Smart Warehousing Market Report 2025

The smart warehousing market size has grown rapidly in recent years. It will grow from $24.87 billion in 2024 to $28.8 billion in 2025 at a compound annual growth rate (CAGR) of 15.8%. Growth in the historic period was driven by increasing adoption of advanced robotics, rising demand for same-day delivery, growing e-commerce penetration, greater focus on energy-efficient and sustainable warehouses, and increased use of autonomous mobile robots.

The smart warehousing market size is expected to see rapid growth in the next few years. It will grow to $51.11 billion in 2029 at a compound annual growth rate (CAGR) of 15.4%. Growth in the forecast period is expected to be driven by rising demand for faster order fulfillment, increasing focus on warehouse efficiency and accuracy, growing need for real-time inventory visibility, expanding labor shortages in logistics, and higher demand for data-driven decision-making. Key trends projected for this period include advancements in AI-driven inventory management, innovations in autonomous material handling systems, progress in wearable technology for warehouse staff, development of real-time data analytics, and increased adoption of digital twin technology.

The growing e-commerce sector is driving the expansion of the smart warehousing market. Rising internet penetration and increasing online sales are fueling demand for efficient order fulfillment, prompting warehouses to adopt automated solutions and real-time inventory management systems. Smart warehousing improves operational efficiency by optimizing storage, picking, and shipping processes while reducing errors and labor costs. For instance, in February 2025, the United States Census Bureau reported that total e-commerce sales in 2024 reached $1.19 trillion, an 8.1% increase compared to 2023, highlighting the rising need for responsive and efficient warehouse operations.

Companies in the smart warehousing market are focusing on advanced automated guided vehicles (AGVs) to boost productivity and accuracy. AGVs are computer-controlled transport systems with sensors and navigation technology that autonomously move materials within warehouses, reducing the need for human intervention. For example, in March 2022, Cainiao Network, a China-based logistics company, launched a 20,000 m² fully automated smart warehouse equipped with approximately 100 AGVs. This system reduced worker travel distance by nearly 90%, increased storage accuracy to 99%, and enhanced throughput during peak shopping periods.

In July 2025, SYSPRO Proprietary Limited, a South Africa-based ERP software company, acquired riteSOFT LLC to strengthen its warehouse automation capabilities. This integration aims to improve operational efficiency and supply chain visibility by combining SYSPRO’s ERP solutions with riteSOFT’s smart warehousing and time-tracking technology. riteSOFT LLC is a US-based software provider specializing in warehouse automation solutions.

Major players in the smart warehousing market are Siemens AG, International Business Machines Corporation, Oracle Corporation, Honeywell International Inc., KPMG International, SAP SE, ABB Ltd., Kion Group AG, Zebra Technologies Corporation, Reply S.p.A., Epicor Software Corporation, Cognex Corporation, Manhattan Associates Inc., Vinculum Solutions Pvt. Ltd., Tecsys Inc., Armstrong Dematic, Synergy Logistics Ltd., Microlistics Pty Ltd., FlytBase Inc., AWL Group.

North America was the largest region in the smart warehousing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in smart warehousing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the smart warehousing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the transport services sector by driving up costs for vehicles, spare parts, and fuel, key inputs often sourced from tariff-affected regions. Freight operators, logistics providers, and public transportation systems are facing squeezed profit margins as higher equipment and maintenance costs coincide with limited ability to pass on these expenses to customers due to competitive pressures. The uncertainty has also delayed fleet modernization and the adoption of greener, more efficient vehicles, slowing progress toward sustainability goals. To adapt, transport firms are optimizing route planning, investing in fuel efficiency technologies, renegotiating supplier contracts, and exploring collaborative logistics models to share costs and mitigate the impact of higher tariffs.

Smart warehousing refers to a modern warehousing system that incorporates advanced technologies to optimize inventory management, streamline operations, and enhance efficiency. Its main purpose is to minimize human error, provide real-time visibility, and improve speed and accuracy in storage, retrieval, and distribution processes.

The main components of smart warehousing include hardware, software, and services. Hardware in smart warehousing encompasses the physical devices and equipment that enable automated, intelligent, and efficient warehouse operations. It employs various technologies, including artificial intelligence (AI) and analytics, robotics and automation, the Internet of Things (IoT), augmented reality (AR) and virtual reality (VR), and networking and communication, and is deployed through cloud-based and on-premises solutions. Applications of smart warehousing include transport management, inventory management, order management, yard management, shipping management, and labor management. Key end-users span industries such as retail and e-commerce, manufacturing, healthcare and pharmaceuticals, automotive, energy and utilities, and third-party logistics (3PL) providers.

The smart warehousing market research report is one of a series of new reports that provides smart warehousing market statistics, including the smart warehousing industry global market size, regional shares, competitors with the smart warehousing market share, detailed smart warehousing market segments, market trends, and opportunities, and any further data you may need to thrive in the smart warehousing industry. This smart warehousing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The smart warehousing market consists of revenues earned by entities by providing services such as real-time tracking and monitoring, warehouse management system (WMS) integration, predictive maintenance of warehouse equipment, data analytics and demand forecasting, and energy management and optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart warehousing market also includes sales of automated guided vehicles (AGVs), autonomous mobile robots (AMRs), conveyor and sorting systems, drones for inventory scanning, and automated packaging machines. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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