Global Warehouse Automation Market Size, Share & Trends Analysis Report By Component (Hardware, Software and Services), By Level, By Application, By Regional Outlook and Forecast, 2024 - 2031

Global Warehouse Automation Market Size, Share & Trends Analysis Report By Component (Hardware, Software and Services), By Level, By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Warehouse Automation Market size is expected to reach $66.6 billion by 2031, rising at a market growth of 18% CAGR during the forecast period.

Many healthcare products, including vaccines, biologics, and certain pharmaceuticals, require controlled temperature environments for storage. Automated warehouse systems with temperature monitoring and control capabilities ensure these sensitive products are stored optimally, preventing spoilage and maintaining product efficacy. Thus, the healthcare segment procured 23% revenue share in the warehouse automation market in 2023.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In September, 2021, Honeywell International, Inc. released Smart Flexible Depalletizer. Powered by machine learning and advanced perception technologies, automates pallet unloading to reduce workplace injuries and boost productivity. The robot adapts to various pallets, learns from each operation, and can integrate with autonomous mobile robots, making it a valuable solution for labor-strapped warehouses.

Based on the Analysis presented in the KBV Cardinal matrix; Honeywell International, Inc. and ABB Group are the forerunners in the Warehouse Automation Market. Companies such as FANUC Corporation, Murata Machinery, Ltd., KION GROUP AG are some of the key innovators in Warehouse Automation Market. In December, 2023, FANUC Corporation unveiled the M-710iD/50M robot, an updated model in its M-710i series. It features a 50kg payload, enhanced rigidity, and a curved arm for improved accessibility. With a 2,606mm reach and IP67 rating, it offers precision, durability, and ease of maintenance for various applications.

Driving and Restraining Factors

Drivers

• Rising emphasis on operational efficiency and space optimization
• Escalating labor costs and workforce shortages
• Surge in e-commerce demand and online shopping trends

Restraints

• Elevated initial investment costs
• High complexity of advanced automation systems

Opportunities

• Increased focus on sustainable and green technologies
• Rising government support and funding programs

Challenges

• Limited scalability and flexibility of certain automation solutions
• Impact of the supply chain disruptions

Market Growth Factors

Warehouse automation technologies, such as automated storage and retrieval systems (AS/RS), dynamic shelving, and robotic systems, enable more effective use of available space. These systems can optimize storage density by employing vertical space, reducing aisle widths, and automating inventory retrieval processes. As businesses seek to make the most of their warehouse space, the demand for automation solutions that enhance space utilization is increasing.

Additionally, technologies like automated picking systems and conveyor belts operate around the clock, helping businesses meet demand without the constraints of workforce shortages. In conclusion, escalating labor costs and workforce shortages propel the market's growth.

Market Restraining Factors

The process of tailoring automation systems to meet specific needs can be complex and resource intensive. The challenges associated with customization can lead to increased costs and extended implementation timelines, making businesses hesitant to adopt such technologies. Thus, the high complexity of advanced automation systems is impeding the market's growth.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The below illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.

Component Outlook

Based on component, the market is divided into hardware, software, and services. In 2023, the hardware segment garnered 57% revenue share in the market. Hardware components form the backbone of warehouse automation. These physical systems are essential for executing automated tasks such as sorting, picking, packing, and transporting goods.

Hardware Outlook

The hardware segment is further subdivided into autonomous robots (AGV, AMR), automated sorting systems, automated storage & retrieval systems (AS/RS), de-palletizing/palletizing systems, conveyor systems, and automatic identification & data collection (AIDC) In 2023, the autonomous robots (AGV, AMR) segment acquired 28% revenue share in the market.

Software Outlook

The software segment is further subdivided into warehouse management system (WMS), warehouse execution systems (WES), and labor management systems (LMS). In 2023, the warehouse management system (WMS) segment procured 50% revenue share in the market. WMS software offers real-time tracking of inventory levels, locations, and movements.

Services Outlook

The services segment is further subdivided into installation & integration, consulting, training & education, maintenance & support, and analytics & reporting tools. In 2023, the installation & integration segment acquired 41% revenue share in the market. Installation and integration services aim to minimize downtime while deploying new systems.

Level Outlook

On the basis of level, the market is segmented into intermediate automation, basic automation, advanced automation, and autonomous warehouses. The intermediate automation segment recorded 38% revenue share in the market in 2023. In 2023, the advanced automation segment attained 28% revenue share in the market.

Application Outlook

By application, the market is divided into retail & e-commerce, automotive, aerospace & defense, healthcare, electronics & semiconductors, and other applications. In 2023, the retail & e-commerce segment registered 28% revenue share in the market.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Europe region generated 30% revenue share in the market. Companies in Europe are increasingly focusing on improving productivity to remain competitive in the market.

Market Competition and Attributes

The Warehouse Automation Market is highly competitive, featuring key players like Dematic, Swisslog, and Honeywell Intelligrated. Competition revolves around technological innovation in robotics, AI, and IoT for improved efficiency and order fulfillment. Key attributes include integration with warehouse management systems (WMS), scalability to handle different operational sizes, and cost-efficiency to reduce labor and operational costs. Safety and reliability are also critical factors, as companies seek automation solutions that ensure seamless, secure, and uninterrupted warehouse operations.

Recent Strategies Deployed in the Market

• Jul-2024: FANUC Corporation expanded its geographical footprint by opening a new facility in Michigan, United States. The facility would support advanced manufacturing and automation solutions of the company.
• Jun-2024: ABB Group has launched OmniCore, an advanced automation platform offering modular control architecture integrating AI, sensors, and cloud computing. OmniCore delivers high-speed, precise robot performance with up to 25% faster operation and 20% less energy consumption. Its scalable design supports diverse applications, enhancing flexibility and efficiency in automation.
• Feb-2024: Knapp AG partnered with Takeoff, an eGrocery fulfillment services provider, to enhance eGrocery fulfillment, offering a modular product portfolio and coordinated technology roadmap. This partnership empowers retailers with flexible, right-sized automation solutions, streamlining fulfillment operations and driving profitability.
• Feb-2024: Kuka AG announced the launch of KR Fortec industrial robot. The robot offers high dynamic performance in a compact design, ideal for handling and spot welding. It features an extended arm with a 240 kg payload and 3700 mm reach, reduced Total Cost of Ownership, and modular components for lower spare part costs and ease of maintenance.
• Feb-2024: Omron Corporation introduced the MD-650 and MD-900 mid-range AMRs, featuring ROEQ's lifter and roller modules for efficient material handling. The lifter and roller enable these robots to handle and transfer heavy cargo and pallets seamlessly.
• Jan-2024: ABB Group took over Sevensense, a Swiss corporation specializing in AI-enabled 3D vision navigation for autonomous mobile robots (AMRs). This acquisition enhances ABB’s AMR portfolio with advanced Visual SLAM technology, improving navigation and scalability in dynamic environments.

List of Key Companies Profiled

• Honeywell International, Inc.
• Murata Machinery, Ltd.
• Knapp AG
• ABB Group
• FANUC Corporation
• Kuka AG (Midea Group Co., Ltd.)
• Jungheinrich AG
• KION GROUP AG
• Daifuku Co., Limited
• Omron Corporation

Global Warehouse Automation Market Report Segmentation

By Component

• Hardware
• Autonomous Robots (AGV, AMR)
• Automated Sorting Systems
• Automated Storage & Retrieval Systems (AS/RS)
• De-palletizing/Palletizing Systems
• Conveyor Systems
• Automatic Identification & Data Collection (AIDC)
• Software
• Warehouse Management System (WMS)
• Warehouse Execution Systems (WES)
• Labor Management Systems (LMS)
• Services
• Installation & Integration
• Consulting, Training & Education
• Maintenance & Support
• Analytics & Reporting Tools

By Level

• Intermediate Automation
• Basic Automation
• Advanced Automation
• Autonomous Warehouses

By Application

• Retail & E-commerce
• Automotive
• Aerospace & Defense
• Healthcare
• Electronics & Semiconductors
• Other Applications

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA