Warehouse Automation Global Market Opportunities and Strategies to 2033

This report describes and explains the warehouse automation market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global warehouse automation market reached a value of nearly $19.3 billion in 2023, having grown at a compound annual growth rate (CAGR) of 15.3% since 2018. The market is expected to grow from $19.3 billion in 2023 to $39.2 billion in 2028 at a rate of 15.3%. The market is then expected to grow at a CAGR of 14.7% from 2028 and reach $77.9 billion in 2033.

Growth in the historic period resulted from the growth in the e-commerce sector, increased demand for omnichannel model and strong economic growth in emerging markets. Factors that negatively affected growth in the historic period were increasing warehouse costs and risk of technological obsolescence in warehouse automation.

Going forward, rising adoption of robotics in warehouses, growing population, industrial sector growth and increasing investments and government initiatives will drive the growth. Factor that could hinder the growth of the warehouse automation market in the future include resistance to change and impact of increasing competition.

The warehouse automation market is segmented by type into MRO services, automated guided vehicles (AGVS) and autonomous mobile robots (AMRS), storage systems, picking systems, conveyor/sortation systems, warehouse management systems (WMS), palletizing and depalletizing, automatic identification and data capture (AIDC) and overhead systems. The MRO services market was the largest segment of the warehouse automation market segmented by type, accounting for 23.8% or $4.6 billion of the total in 2023. Going forward, the automated guided vehicles (AGVS) and autonomous mobile robots (AMRS) segment is expected to be the fastest growing segment in the warehouse automation market segmented by type, at a CAGR of 18.5% during 2023-2028.

The warehouse automation market is segmented by component into hardware and software. The hardware market was the largest segment of the warehouse automation market segmented by component, accounting for 74.5% or $14.4 billion of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the warehouse automation market segmented by component, at a CAGR of 17.2% during 2023-2028.

The warehouse automation market is segmented by function into inbound, picking and outbound. The inbound market was the largest segment of the warehouse automation market segmented by function, accounting for 49.4% or $9.5 billion of the total in 2023. Going forward, the picking segment is expected to be the fastest growing segment in the warehouse automation market segmented by function, at a CAGR of 15.9% during 2023-2028.

The warehouse automation market is segmented by end-user into e-commerce, general merchandise, healthcare, FMCG/non-durable goods and other end users. The e-commerce market was the largest segment of the warehouse automation market segmented by end-user, accounting for 39.4% or $7.6 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the warehouse automation market segmented by end-user, at a CAGR of 16.8% during 2023-2028.

North America was the largest region in the warehouse automation market, accounting for 41% or $7.9 billion of the total in 2023. It was followed by Western Europe, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the warehouse automation market will be Asia Pacific and Middle East where growth will be at CAGRs of 20.1% and 18.1% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 18% and 15.6% respectively.

The global warehouse automation market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 50.4% of the total market in 2022. The market concentration can be attributed to the presence of large players in different geographies. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. Honeywell International Inc. was the largest competitor with a 12.8% share of the market, followed by Kion Group (Dematic) with 10.7%, Symbotic with 5.2%, Korber with 5.2%, TGW Logistics with 4.5%, Fives Group with 3.3%, Kardex AG with 2.6%, Daifuku Co. Ltd. with 2.3%, Murata Machinery with 2% and Yaskawa Electric Corp. with 1.9%.

The top opportunities in the warehouse automation market segmented by type will arise in the MRO services segment, which will gain $5.3 billion of global annual sales by 2028. The top opportunities in the warehouse automation market segmented by component will arise in the hardware segment, which will gain $14 billion of global annual sales by 2028. The top opportunities in the warehouse automation market segmented by end-user will arise in the e-commerce segment, which will gain $8.9 billion of global annual sales by 2028. The top opportunities in the warehouse automation market segmented by function will arise in the inbound segment, which will gain $9.5 billion of global annual sales by 2028. The warehouse automation market size will gain the most in the USA at $6.5 billion.

Market-trend-based strategies for the warehouse automation market include launch of new robotics and warehouse automation brands, adoption of industry first warehouse automation system featuring autonomous robots, launch of robotic systems for collaborative warehouse work, use of drone technology for real-time inventory tracking, focus on warehouse automation solutions for small and medium-sized businesses (SMBs), innovative warehouse management systems to improve warehousing efficiencies, focus on facility expansions, launch of innovative products for picking operations, launch of smart warehouse technology, strategic mergers and acquisitions and focus on partnerships to launch AI-powered warehouse robots.

Player-adopted strategies in the warehouse automation market include improving portfolio through the product launch, focus on the installation of latest automation technology at logistics center, expanding business capabilities through product launches, partnerships, merger and acquisitions and focus on the merger and acquisitions, partnerships.

To take advantage of the opportunities, the analyst recommends the warehouse automation companies to focus on brand expansion, focus on innovative warehouse automation systems, focus on advanced robotics systems, focus on drone technology integration, focus on warehouse automation solutions for small and medium-sized businesses (SMBS), focus on innovative products for picking operations, focus on automated guided vehicles (AGVS) and autonomous mobile robots (AMRS) and MRO services, expand in emerging markets, continue to focus on developed markets, focus on AI-powered warehouse robots through partnerships, provide competitively priced offerings, continue to use B2B promotions, participate in trade shows and events and focus on e-commerce and healthcare segments.