Warehouse Automation Market - $44B TAM to Monetize in Next 5 Years
2021 witnessed a huge order intake for warehouse automation companies but revenue growth was limited due to supply chain constraints. As a result, the industry entered 2022 with a record order backlog which was reduced in 2023 due to slowdown and macro uncertainties. Entering 2024, companies have started receiving the orders once again but retailers are still cautious about capital expenditure due to low consumer spending, high inflation, and geopolitical tension.
As per this market research and analysis, the Warehouse Automation Market is expected to touch the mark of $44 Billion by 2028, at a CAGR of almost 15% between 2023 and 2028. The growth of this market can be attributed to the growth in the e-commerce industry, multichannel distribution channels, e-grocery penetration, globalization of supply chain networks, the emergence of autonomous mobile robots, and the rising need for same day / same hour delivery. The boom in e-commerce is compounding the major labour challenges faced by the $5T global logistics industry. Not only are shipment volumes growing rapidly, but online retail also typically requires more logistical work per item than brick & mortar retail. Indeed, online purchases require individual picking packing and shipping, as opposed to the bulk transportation models of traditional brick & mortar retail.
The 4th edition of this market study is a detailed market analysis of more than 700+ players (part of the exclusive Market Map), 10 solutions, 7 industries and 30 countries along with more than 500 pages, 350+ Market Tables, 290+ Exhibits, and 140+ Company Profiles. Analysis is validated through 100+ in-depth interviews across the value chain with components and technology providers, system integrators & manufacturers, software and services providers, and end-user industry verticals.
Of course, the push to automate the warehouses was in full force before the Covid-19 but the global pandemic forced the companies to change their strategy w.r.t warehouse automation from the “good to have” category to “must to have” if they have to sustain in this industry. One of the learnings from the COVID-19 pandemic is that mega-trends like an aging population, globalisation, health & safety, mobility, green logistics, autonomous world, urbanisation, individualisation and digitization need to be given more consideration and weight than in the past with a long-term vision so that we are ready with any challenge.
Post pandemic, most important and emerging trends have been eGrocery Growth, Micro-Fulfillment Centers, Automated Picking, Mixed Pallets Automation, Mobile Manipulators, and Automated Cold Storage. Huge investments in start-ups such as Symbotic, Takeoff Technologies, Geek+, Fabric, Attabotics, Exotec Solutions, Hai Robotics, Addverb Technologies, and Dexterity are witnessing this growth along with the presence of existing big players like Dematic, Honeywell Intelligrated, SSI Schafer, Knapp, Daifuku, Muratec, AutoStore, and Toyota Advance Logistics. Retailers such as Walmart, Kroger, Coop, Target, Woolworths, Amazon, Ocado, Meijer, Carrefour, H-E-B, Albertsons, and Ahold Delhaize have already started adopting and implementing these new technologies during pandemic. Apart from this, piece picking players such as Righthand Robotics, Nimble, Fizyr, Kindred, Covariant, OSARO, Plus One Robotics, Berkshire Grey, and AWL have established a new attractive capability for order picking in ecommerce fulfillment as picking is the least automated process in existing warehouses.
Analytical Insights
- US, Germany, and China are the key markets: United States, China, and Germany are the largest markets with more than 50% share for Warehouse Automation both with regards to demand as well as the presence of OEMs and System Integrators. Europe is a big hub for OEMs, with a strong presence in Germany, Italy, France, Netherlands, and Spain. Western Europe is a big market accounting for ~30% of the overall global market. Most of the fastest growing markets are concentrated in APAC, mainly in South Asia (India) and South-East Asia. Middle East is another exciting opportunity and is well suited in terms of geography with European players looking to expand their offerings in the region. Latin America is still under-penetrated with regard to automation; however, things are set to change and the market is set to observe high growth in Brazil and Mexico. Within Europe, Central and Eastern Europe is a fast-growing region, with Poland and the Czech Republic emerging as logistics hub and showing good growth prospects.
- Online Grocery becoming the top attraction for warehouse automation: The Grocery industry is one of the most challenging and attractive industries from a logistics perspective. Grocery distributors ship high cubic volumes of merchandise to retail stores with frequent deliveries to ensure product freshness. Grocery distribution center operations are amongst the most labour intensive of any industry. Higher automation driven by online grocery, micro-fulfillment centers (MFC), and ultrafast deliveries is going to be the biggest opportunity in the next 5 years led by different types of solution providers such as AutoStore, Ocado, Takeoff Technologies, Exotec, Fabric, Symbotic, Attabotics, OPEX, Geek+, and Urbx Logistics. It will witness an opportunity of more than $7B by 2028 with an 18% growth rate. We have already witnessed many partnerships in the last 2-3 years such as Ocado and Kroger in the USA, Takeoff Technologies and Majid Al Futtaim in the Middle East, Walmart and Symbotic in the USA, Ocado and Coles in Australia, and Freshippo (Alibaba Group) in China.
- AGV/AMR will remain the key technology to adopt: AGV and AMR market is expected to be the biggest market in 2028 with a CAGR of ~30%. AMR (without any external support of optical tape, sensor or vision) is going to be the main contributor in the warehouses due to high demand in the e-commerce sector and its flexibility to deploy the robot without any major change in the existing warehouse infrastructure. However, it is a bit slow in terms of pick rate per hour as compared to ASRS but is preferred in small and medium warehouses due to lower cost and quick deployment. It is expected that AGVs/AMRs are going to have more than 20% market share by 2028 in this market led by players like Seegrid, Balyo, Hai Robotics, Geek+, GreyOrange, HikRobot, Quicktron, Locus Robotics, Fetch Robotics (Zebra), 6 River Systems (Ocado), Teradyne (MiR, AutoGuide Mobile Robots), Rocla, JBT, ek-robotics, Omron, Rockwell Automation (Clearpath Robotics, OTTO Motors) etc.
- Picking systems are still largely manual: The order picking process can be done manually or can be automated. Manual picking is preferred when there is a wide variety of SKUs (for example online grocery shopping) to pick from. The order picking is the most labour intense part of the warehouse/DC and ideal for automation, however automation becomes increasingly challenging as the number of SKUs goes up. Barcode scanning can minimize errors but RFID (radio frequency) is quicker and more accurate for product identification. Manual pickers can still be tasked with picking individual items; however, automated storage and retrieval systems can bring the goods to the picker, and order picking robots can improve this further, thereby cutting down on a lot of manual labour and costs. Technologies like pick-to-light or pick-to-voice can also increase the efficiency of the human worker even if the task is not truly automated. Apart this, piece picking robots are the latest pick by fulfillment centers for ecommerce delivered by Righthand Robotics, Berkshire Grey, Osaro, Covariant, Kindred AI, Plus One Robotics, Fizyr, Dexterity, Pickr AI etc.
Key Highlights
- Warehouse Automation equipment suppliers and industry consultants expect broadly mid-teen% sales growth in the long term driven by demographic changes, increased penetration in e-commerce and the advent of the Industrial IoT, that will drive demand for data analytics, 5G, digital services and automated operations in post-pandemic era.
- Competitive landscape - There are around 15 big players having annual revenue of more than $1B and 15-20 medium-size companies with revenue between $200M and $1B operating in the material handling equipment space capable of delivering comprehensive automated warehouse solutions. Top-10 large companies (including Dematic, Daifuku, SSI Schaefer, Honeywell Intelligrated, Knapp, Toyota Advance Logistics, Muratec, Beumer Group, Fortna, Witron) are capturing more than 50% of the market share although lots of start-ups are emerging in new categories like AMRs, Cube based ASRS, Picking Robots, Micro-Fulfillment, Autonomy Service Providers, etc. Symbotic has emerged as a new player in the last couple of years to compete with established players in the USA.
- Services, both MRO and Digital, importance is increasing - Over the time as the installed base of automated warehouse solutions grows, industry players expect an increase in revenues from services and maintenance, which would have a positive impact on profitability as the service business typically has 15-20% operating margins, versus 3-5% margins for new equipment. It is expected to be ~$11B opportunity by 2028 including digital services which is almost 25% of total market.
- Business models are also changing considering the real time pain points of end-users for high capex. Businesses are increasingly intrigued with RaaS (Robotics As a Service) because of its flexibility, scalability, and lower cost of entry than traditional robotics programs. The business model for pick-as-a-service is usually on a per-pick basis, ranging from 6 cents to 10 cents per pick, while AMR-as-a-service is usually leased on a monthly basis, from US$750 per robot per month to several thousands of dollars per month, depending on the commitment period.
- Industry Consolidation - The past 5 years have seen an increase in consolidation amongst material handling equipment providers as traditional players see the acquisition of new technology leaders as an increasingly attractive way of positioning themselves in response to changing market trends. Acquisitions like Rockwell Automation (Clearpath Robotics, OTTO Motors), Jungheinrich (Magazino), SSI Schafer (DS Automotion), Zebra (Fetch Robotics, Matrox), ABB (ASTI), Toyota (Vanderlande, Bastian Solutions, ViaStore), Murata Machinery (Cimcorp), Locus Robotics (Waypoint), Hitachi (JR Automation), KPI Solutions (Kuecker Logistics Group, Pulse Integration, QC Software), Ocado (6 River Systems, Kindred, Haddington Dynamics), Element Logic (SDI), Honeywell (Intelligrated, Transnorm), Körber (Cohesio Group, Siemens Logistics, HighJump), Teradyne (MiR, Energid, AutoGuide Mobile Robots), Jungheinrich (Arculus), KION (Dematic), KUKA (Swisslog) are just some of the examples of this consolidation.
Facts to Know
- Global e-Commerce sales have grown at a CAGR of 20% over the last decade, reaching almost $5 trillion worldwide in 2021, and are expected to grow to more than $8 trillion by 2027. The share of online retail sales has gone from 2% of the total to 19%, and is further expected to reach >25% by 2030.
- Amazon Robotics automates the company’s fulfillment centers using more than 750,000 autonomous mobile robots, a 25x growth from 30,000 at the end of 2015. Amazon had been playing catchup to match supply with demand - fulfillment costs as a percentage of net sales climbed from ~15% in 2020 to 16-17% in 2022. Company has created a $1 billion venture investment program called the Amazon Industrial Innovation Fund (AIIF) to spur and support innovation in customer fulfillment, logistics, and the supply chain.
- Walmart announced has partnered with Symbotic to reimagine the retailer’s regional distribution network. Symbotic first implemented its system in Walmart’s Brooksville, Florida distribution center in 2017. Since that time, the companies have worked together to optimize the system. In July 2021, Walmart announced its partnership with Symbotic to implement their high-tech automation system in the regional network and planned to implement this technology in 25 of their 42 RDCs. In May 2022, both expanded
- Commercial agreements to implement Symbotic’s robotics and software automation platform in all 42 of Walmart’s regional distribution centers over the coming years.
- Zalando, Europe’s leading online platform for fashion and lifestyle, has opened its third fulfillment center in Poland. The ramp up marks an important milestone in Zalando’s logistics network expansion with two Polish fulfillment centers serving Zalando’s growing customer base and one logistics site taking care of Zalando Lounge deliveries.
- Warehouse labour shortages are also an issue with peak labour demands occurring around major shopping holidays viz. Black Friday, Cyber Monday, Amazon Prime day, Thanksgiving Day and Singles Day. Warehouses have to hire temporary labour around these peak times to meet the customer delivery schedules. Supply chain robotics company Cainiao had installed 700+ robots at China’s largest robot-run warehouse to process orders on Singles Day.
- 2022 was the first year in Singles’ Day history Alibaba declined to release its sales data, with the company simply stating sales were “in line” with those of 2021. Alibaba rival JD.com, Inc (China’s second-largest retailer) also declined to release sales numbers for the first time - although they called their sales “record-setting”. Singles’ Day 2022 sales volume across all platforms was between $130 and $150 billion, an increase of between 3% and 13% from 2021. Analysts are expecting low-single-digit% growth for 2023 Singles’ Day.
Key Players Analyzed:
- Material Handling Equipment: Dematic, Daifuku, SSI Schaefer, Honeywell Intelligrated, Murata Machinery, FIVES Intralogistics, Körber, Savoye, Witron, Beumer Group, Swisslog, TGW, Interlake Mecalux, Knapp, OPEX Corporation, Westfalia, Vanderlande, Fortna (MHS Global), Bastian Solutions, SIASUN, KPI Solutions, Lodige, Kardex, Jungheinrich, Dambach, PSB Intralogistics, Gudel, Symbotic, Wayzim Technology, AutoStore, DMW&H, Lodamaster Group, Addverb Technologies, System Logistics
- AGV/AMR: Geek+, Quicktron (Flashhold), Hai Robotics, Amazon Robotics (Kiva System), Grey Orange, HikRobots, MiR, inVia Robotics, Guidance Automation, IAM Robotics, EiraTech Robotics, Aethon, 6 River Systems (Ocado), Caja System, Cobalt , Sherpa (Norcan), Syrius Robotics, Locus Robotics, Matthews Automation Solutions, Waypoint Robotics, iFuture Robotics , SMP Robotics, Milvus Robotics, ALOG Tech, Vecna Robotics, Fetch Robotics (Zebra), Tompkins Robotics, Scallog, MegVII, EuroTec (Lowpad), Cohesio Group (Korber), OTTO Motors (Clearpath Robotics, Rockwell Automation), BLEUM, Ubiquity Robotics, Neobotix, IQ Robotics, Next Shift Robotics, KnightScope, Magazino, Intelligent Robots, Yandex, Savioke, Gideon Brothers, ForwardX , Omron Adept, Milrem Robotics, Cainiao, Cohesio, DS Automotion, Ro-ber, Rocla AGV, Active Space Automation, AgiLox, John Bean Technologies Corporation (JBT), AGVE Group, ek-automation, Transbotics (SCOTT), ASTI Mobile Robotics (ABB), America in Motion (AIM), Kivnon, Oceaneering AGV, Casun, Savant Automation, AGV International, Creform, PAL Robotics, Pulse Integration
- Warehouse Management System (WMS): AFS Technologies, Aptean, Consafe Logistics, DataByte, Davanti, Deposco, DSI, Ehrhardt + Partner Group, EVS, Generix Group, HAL, Hardis Group, HighJump, inconso, Infor, Iptor, Blue Yonder, Made4net, Manhattan Associates, Mantis, Mecalux Software, Microlistics, Oracle, Reply, SAP, Softeon, SSI SCHÄFER IT, Synergy Logistics, Tecsys, Tradelink, TTX, Vinculum, vTradEx, Savant Software, envista, Fishbowl
- Micro-Fulfillment: Takeoff Technologies, Fabric, Dematic, Knapp, Murata Machinery, Alert Innovation, Opex Corporation, Attabotics, Autostore, Exotec, Swisslog, i-collector, Storojet, Konecranes, Ocado Technology, KPI Solutions, Geek+, Hai Robotics, Urbx Logistics, Nano Fulfillment
- Piece Picking Robots: Righthand Robotics, Kindred AI (Ocado), Knapp, Universal Robotics, Berkshire Grey, PlusOne Robotics, XYZ Robotics, Swisslog, Grey Orange, OSARO, Dematic, Nimble, Fizyr
- Last Mile Delivery: Myrmex Robotics, Cleveron, Starship Robots, Nuro, Refraction AI, LogiNext, PostMates, Bringg, Matternet, what3words, Deliv, Roadie, Routific, Gatik AI, iMile, Robby Technologies, Marble.io, BoxBot
- Automatic Identification and Data Capture (AIDC): Zebra Technologies, Datalogic, Cognex, SATO, Honeywell AIDC, SICK, BLUEBIRD, DENSO, Panasonic, Toshiba TEC, TSC, CASIO, SNBC, AVERY DENNISON, NCR, Scan Source, Newland America, CAB, EPSON, Unitech, M3 Mobile
- Autonomy Service Providers (ASP): Covariant AI, Brain Corp, Balyo, Mov AI, Amazon Canvas, WIBOTIC, Realtime Robotics, Seegrid, Kollmorgen, Oceaneering, MEGVII, MOVEL AI, PerceptIn, RoboCV, Robominds, SlamTec, Freedom Robotics, Humatics, Clearpath Robotics, Bluebotics, ASI, Exyn Technologies, BITO Robotics, Vecna Robotics, Robust AI, Stanley Innovation, Southie Autonomy
- Warehouse Drones: PINC Solutions, Drone Delivery Canada, Dronescan, Eyesee Drone, Infinium Robotics, Matternet, Workhorse Group, Skycart, Skysense, Zipline, Flirtey, Flytrex, Altitude Angel, Airmap, H3 Dynamics, Edronic, Cheetah Logistics Technology, Multirotor, Skyward.io, Unify, Sensefly, Volocopter GmbH, Ehang, Uber
What will you get in this report?
- 500+ Pages and 290+ Exhibits Market Report for 7 major Industry Verticals and 10 Technologies
- A bottom-up analysis of Warehouse Automation market for 20+ countries and regions
- In-depth analysis of 700 companies in the ecosystem with more than 140+ company profiles
- Focus Group Discussion with 100+ key industry stakeholders across the value chain to collect the first-hand information to validate the analysis
- Excel file with a pivot modelling and 350+ market tables including forecast till 2028
- 2 Analyst Sessions to brainstorm further
- Investment details with 150+ M&A and 750+ funding deals
- The Publisher's Exclusive Market Map (650+ Players across 15+ categories)
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Table of Contents
1 Warehouse Automation
2 Warehouse Automation Technology Breakdown
3 Warehouse Automation Business Model, Drivers and Trends
4 COVID-19 pandemic - Impact on warehouse automation
5 Warehouse automation drivers and trends
6 Warehouse Automation Market, by Technology
7 Warehouse Automation Market, by End-user Industry
8 Warehouse Automation Market Share, by country
9 Warehouse Automation Developments - Major Customers
10 Competitive Landscape
11 Emerging Technologies
13 Company Profiles
14 AGV & AMR - Key Players
15 Autonomy Service Providers (ASP)
16 Machine Vision & Imaging
17 Disinfection Robots
18 Retail Robots
19 Indoor Delivery Robots
20 Security and Inspection Robots
21 Tele-operated / Telepresence Robots
22 Cleaning Robots
23 Hospital Support Robots
24 Agriculture Robots
25 Battery & Chargers
26 Key Components
27 Piece Picking Robots
28 Warehouse Management System Providers
29 Automatic Identification and Data Capture (AIDC)
30 Warehouse Drones
31 Delivery Robots
List of Exhibits
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- 6 River Systems (Shopify)
- Active Space Automation
- Aeriu
- Aethon
- AFS Technologies
- AgiLox
- AGV International
- AGVE Group
- AIRIO
- Airmap
- Alert Innovation
- ALOG Tech
- Amazon Canvas
- Amazon Robotics (Kiva System)
- America in Motion (AIM)
- Aptean
- ASI
- Attabotics
- Autostore
- AVERY DENNISON
- Balyo
- Bastian Solutions
- Berkshire Grey
- Beumer Group
- BITO Robotics
- BLEUM
- BLUEBIRD
- Bluebotics
- BoxBot
- Brain Corp
- Bringg
- Brookhurst Garage
- CAB
- Cainiao
- Caja System
- CASIO
- Casun
- Clearpath Robotics
- Cleveron
- Clevron
- Cobalt
- Cognex
- Cohesio
- Cohesio Group (Korber)
- Consafe Logistics
- Conveyco
- Covariant
- Covariant AI
- Creform
- DAIFUKU
- Dambach
- DataByte
- Datalogic
- Davanti
- Deliv
- Dematic
- DENSO
- Deposco
- Doks
- Drone Delivery Canada
- Dronescan
- DS Automation
- DSI
- Ehrhardt + Partner Group
- EiraTech Robotics
- EK Automation
- envista
- EPSON
- ESTI Mobile Robotics
- EuroTec (Lowpad)
- EVS
- Exotec
- Exyn Technologies
- Eyesee Drone
- Fabric (Commonsense)
- Fetch Robotics
- Fishbowl
- FIVES
- ForwardX
- Freedom Robotics
- Gatik AI
- Geek+
- Generix Group
- Gideon Brothers
- Grey Orange
- Gudel
- Guidance Automation
- HAL
- HANEL
- Hardis Group
- HighJump
- HikRobots
- Honeywell AIDC
- Honeywell Intelligrated
- Humatics
- i-collector
- IAM Robotics
- iFuture Robotics
- IHI
- iMile
- inconso
- Infinium Robotics Flytrex
- Infor
- Intelligent Robots
- Interlake Mecalux
- Inther
- inVia Robotics
- Iptor
- IQ Robotics
- JDA
- John Bean Technologies Corporation (JBT)
- Jungheinrich
- Kardex
- Kindred AI
- Kivnon
- Kiwibot
- Knapp
- KnightScope
- Kollmorgen
- Konecranes
- Korber
- Kuecker
- Locus Robotics
- Lodige
- LogiNext
- M3 Mobile
- Made4net
- Magazino
- Malu Innovation
- Manhattan Associates
- Mantis
- Marble.io
- Matternet
- Matthews Automation Solutions
- Mecalux Software
- MegVII
- MHS
- Microlistics
- Milrem Robotics
- Milvus Robotics
- MiR
- Mov AI
- MOVEL AI
- Murata Machinery
- Myrmex Robotics
- NCR
- Neobotix
- Newland America
- Next Shift Robotics
- Nuro AI
- Ocado Technology
- Oceaneering
- Oceaneering AGV
- Omron Adept
- Opex Corporation
- Oracle
- OSARO
- OTTO Motors (Clearpath Robotics)
- PAL Robotics
- Panasonic
- PerceptIn
- Plus One Robotics
- PostMates
- PSB Intralogistics
- Pulse Integration
- Quicktron (Flashhold)
- Raymond
- Realtime Robotics
- Refraction AI
- Reply
- Righthand Robotics
- Ro-ber
- Roadie
- Robby Technologies
- RoboCV
- Robominds
- Robust AI
- Rocla AGV
- Routific
- SAP
- SATO
- Savant Automation
- Savant Software
- Savioke
- Savoye
- Scallog
- Scan Source
- Seegrid
- Sherpa (Norcan)
- SIASUN
- SICK
- SlamTec
- SMP Robotics
- SNBC
- Softeon
- Southie Autonomy
- SSI SCHÄFER IT
- Stanley Innovation
- Starship
- Storojet
- Swisslog
- Symbotic
- Synergy Logistics
- Syrius Robotics
- Takeoff Technologies
- Tecsys
- Tele Retail
- TGW
- The Hi-Tech Robotic Systemz Ltd.
- Tompkins Robotics
- Toshiba TEC
- Tradelink
- Transbotics (SCOTT)
- TSC
- TTX
- Ubiquity Robotics
- Unitech
- Universal Robotics
- UVL Robotics
- Vanderlande
- Vecna Robotics
- Vinculum
- vTradEx
- Waypoint Robotics
- Westfalia
- WIBOTIC
- Witron
- XYZ Robotics
- Yandex
- Zebra Technologies
