Warehouse Robotics Market: E-commerce increased the Need for More Efficient Warehouse Operations to Handle the High Volume of Orders and Drive the Demand for Robotics

Global Warehouse Robotics Market size was valued at USD 5.87 Bn in 2023 and is expected to reach USD 16.29 Bn by 2030, at a CAGR of 15.7 %.
Overview
Warehouse robotics revolutionizes logistics by using automated systems to perform tasks such as order picking, packing, palletizing, material handling, inventory management, sorting, quality control, and unloading. Key types include Automated Guided Vehicles (AGVs), Autonomous Mobile Robots (AMRs), Automated Storage and Retrieval Systems (AS/RS), palletizer robots, robotic arms, drones, and collaborative robots (cobots). These robots enhance efficiency, accuracy, safety, and space utilization while reducing labor costs. The growing e-commerce market, demand for faster order fulfillment, and labor shortages drive the adoption of warehouse robotics. Before investing, businesses should consider warehouse layout, operational requirements, cost-benefit analysis, scalability, vendor reputation, workforce training, and system integration to ensure a seamless implementation. The deployment of robotics in the warehouse to perform functions such as pick-place, packaging, transportation, packaging, and palletizing. The integration of warehouse and robotics technology has increased warehouse storage space and operational efficiency while ensuring accuracy and automation. The global warehouse robotics market is largely driven by increased demand for automation as a result of increased e-commerce competition, an increase in the number of stock-keeping units, and technological advancements.

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Warehouse Robotics Market Dynamics
Rising E-Commerce Demand and Omnichannel Retailing to Drive the Market Growth

Robotic automation is revolutionizing e-commerce by streamlining operations, improving efficiency, and enhancing customer experiences. In warehouses, robots handle tasks like picking, packing, sorting, and inventory management using advanced sensors and AI. They ensure accurate stock levels and quality control. Autonomous delivery robots reduce delivery times and costs, handling last-mile deliveries and returns efficiently. Robots offer speed, accuracy, strength, and flexibility, augmenting human capabilities and creating more efficient processes. The surge in e-commerce and the shift towards omnichannel retailing are significant drivers of growth in the warehouse robotics market. With consumers increasingly shopping online, businesses are pressured to enhance their supply chain efficiency, speed, and accuracy to meet rising expectations. Warehouse robotics, including automated guided vehicles (AGVs) and robotic picking systems, offer a solution by streamlining operations, reducing errors, and accelerating order fulfillment processes. As retailers aim to provide seamless customer experiences across multiple sales channels, the integration of robotics becomes crucial in managing inventory, processing returns, and optimizing warehouse space. This trend is expected to propel the demand for advanced robotic solutions, driving substantial growth in the warehouse robotics sector.



Automation offers a range of benefits for warehouses, from increasing productivity to reducing risk related to labor. U.S. e-commerce represented 22.0% of total retail sales, as per U.S. Department of Commerce data. Industrial Procurement Services excels as an expert in automation and robotics, driving the Warehouse Robotics Market forward with innovative solutions. Specializing in warehouse automation and integration, we optimize operations through cutting-edge robotic technologies. Their services encompass the entire spectrum from receiving and sorting to picking, packing, and shipping, enhancing efficiency and accuracy across e-commerce and fulfillment sectors. They leverage advanced robotics such as Autonomous Mobile Robots (AMRs) for dynamic tasks like goods-to-person picking, significantly boosting productivity. With a focus on scalability and flexibility, our solutions adapt to evolving business needs, ensuring sustainable growth and operational excellence.

Advances in AI and Machine Learning Technologies to Boost the Market Growth

Advancements in artificial intelligence (AI) and machine learning (ML) technologies are revolutionizing warehouse robotics, making them more intelligent, adaptable, and efficient. These technologies enable robots to learn from their environments, optimize their tasks, and collaborate with human workers more effectively. Enhanced AI capabilities allow robots to perform complex tasks such as object recognition, path planning, and decision-making with greater precision and speed. This results in improved productivity, reduced operational costs, and enhanced flexibility in warehouse operations. As AI and ML continue to evolve, their integration into warehouse robotics will drive significant growth, enabling businesses to achieve higher levels of automation and efficiency in their supply chain management. Around 80% of warehouse operations are taken care of through a WMS. COVID-19 and subsequent consumer habits change further incentivized warehouse management to digitize and automate processes and boost Warehouse Robotics Market growth.

The warehousing industry is expected to see a significant increase in the use of robotic systems to reduce operational time and costs while increasing warehouse throughput. The market is expected to grow significantly due to the rising demand for automation and increased awareness of the importance of safety and high-quality production. Warehouse robotics is widely regarded as one of the most effective methodologies for reducing pressures associated with labor costs and availability and improving operational competencies. The robots lift heavy loads and efficiently complete tasks in the facility such as picking, placing, transportation, packaging, and palletizing. The proliferation of the Internet of Things (IoT), Artificial Intelligence (AI), machine learning, and other similar technologies, which have already made an impact in the warehousing industry, is expected to fuel Warehouse Robotics Market growth in the near future.



A combination of the growing retail and e-commerce industries, as well as energy efficiency-driven technological shifts in automation, is expected to drive the market. For the development of their warehouses, several companies are incorporating robotics and automation. For example, in 2021, Amazon, Inc., had over 100,000 robotics systems deployed across 25 fulfillment centers across the United States. The company also deployed 800 Pegasus and Xanthus robotic systems in some fulfillment centers later in the year, bringing the total number of robots to around 200,000 globally. With the spread of the COVID-19 pandemic, robots and automation are already assisting in the management of the situation. Furthermore, the situation is likely to create new Warehouse Robotics Market opportunities. Ocado, a British online supermarket, plans to license its warehouse robotics and grocery home-delivery technology to other supermarkets for a fee.

ABB Robotics supports logistics automation with a comprehensive portfolio, modular solutions, and an expansive service network. Their modular portfolio includes industrial robots, Autonomous Mobile Robots (AMRs), and collaborative robots, all supported by extensive global expertise from solution centers in Belgium, China, and the USA. ABB's technology seamlessly integrates robots with software-enabled hardware, optimizing efficiency, flexibility, speed, and accuracy in logistics processes. Key applications like cross-docking and intralogistics benefit from their innovative solutions, which are tailored to meet modern market demands. Success stories from industries such as meat processing, food delivery, and online pharmacies highlight the transformative impact of ABB's automation, driving higher productivity and sustainability.

Expansion into Small and Medium Enterprises (SMEs) to Influence the Market Growth

The warehouse robotics market is poised for substantial growth, projected to increase by 25% by 2030 according to ABI Research. As automation technologies become more accessible, both large organizations and small-medium enterprises (SMEs) are adopting diverse solutions. Autonomous mobile robots (AMRs) are expected to surpass 500,000 installations globally by 2030, driven by advancements in artificial intelligence (AI). Companies like Locus Robotics and InVia Robotics are expanding their market presence, particularly in item and case-level automation. Additionally, investments in autonomous forklifts from companies such as Balyo, OTTO Motors, and Seegrid are on the rise, aiming to enhance warehouse efficiency amid evolving economic conditions. In 2023, there were approximately 882,770 small and medium-sized enterprises (SMEs) in the construction sector in the United Kingdom, the most of any sector in that year. The sector with the second-highest number of SMEs was the Professional, Scientific and Technical activities sector, with 770,475 SMEs.

The expansion of warehouse robotics into small and medium enterprises (SMEs) presents a unique growth opportunity in the market. Historically, the high costs and complexity of robotic systems have limited their adoption by large enterprises. However, recent developments in cost-effective and scalable robotic solutions are making automation accessible to smaller businesses. SMEs now leverage robotics to enhance their operational efficiency, reduce labor costs, and compete with larger players in the market. This democratization of warehouse robotics technology opens a vast, untapped market segment, offering substantial growth potential. As more SMEs adopt these solutions, the overall demand for warehouse robotics is expected to increase, driving Warehouse Robotics Market growth and innovation.

High Initial Investment to Pose the Challenge for Market Growth

The adoption of warehouse robotics, while promising significant improvements in efficiency and accuracy, is often hindered by the high initial investment required. Implementing advanced robotic systems entails substantial upfront costs, including the purchase of sophisticated robots, installation of specialized infrastructure, and integration with existing warehouse management systems. For many businesses, especially small to mid-sized enterprises, these costs are prohibitive. Additionally, ongoing maintenance and the need for skilled personnel to operate and manage these systems add to the financial burden. This substantial initial outlay deters companies from embracing robotic automation, despite the potential long-term benefits. As a result, the challenge of high initial investment remains a significant restraint in the widespread adoption of warehouse robotics, limiting its accessibility to larger corporations with substantial capital reserves. Another major restraint on the growth of the warehouse robotics market is the complexity involved in integrating these advanced systems with existing warehouse operations. Warehouses often utilize a variety of legacy systems and processes that may not be readily compatible with new robotic technologies. The integration process can be both time-consuming and costly, requiring extensive customization and testing to ensure seamless operation.
Warehouse Robotics Market Segment Analysis
By Product:
In 2023, the mobile robots segment held the largest Warehouse Robotics Market share in 2023 and it is expected to grow significantly over the forecast period. Mobile robots are an important part of the global warehousing industry because they are used to move small payloads around the facility, particularly in the retail and consumer electronics industries, and they offer more flexibility than most traditional automation systems. Due to their ability to perform warehouse operations such as material handling, picking and placing, and loading and unloading, among others, the Cartesian robots segment is expected to grow significantly over the forecast period. Because of the thoroughness with which they perform tedious tasks, articulated robots, which are used for heavy-duty tasks in the facility, held a significant market share in 2023. From 2024 to 2030, the articulated robots market is expected to grow at a significant CAGR of over xx%. This Warehouse Robotics Industry growth is attributed to the fact that they are simple to align with various planes and provide operational and main services.

By Function:
Based on function segment the Transportation segment held the largest Warehouse Robotics Market share in 2023. This growth is driven by the expanding retail and e-commerce industries, along with rising demand for automated robots to enhance efficiency and reduce costs in logistics operations. Also, integrating robots for transport functions helps address labor shortages by automating various tasks. For example, KNAPP AG partnered with eMAG.ro, MALL.CZ, HPTRONICS, and Alza.cz to bolster logistics capabilities, solidifying its position as a leading technology provider for e-commerce logistics in Central and South Eastern Europe. The continuous technological advancements that have made robots more efficient, precise, and adaptable for such tasks. For instance, ABB introduced the SWIFTI CRB1300 industrial collaborative robot in December 2022, tailored for tasks ranging from machine tending and palletizing to pick-and-place and screw driving. Additionally, declining costs have made pick-and-place robots more accessible to smaller businesses and manufacturers, contributing to their increased adoption.
Warehouse Robotics Market Regional Analysis
Asia Pacific dominated the largest Warehouse Robotics Market share in 2023. Asia has a robot density of 168 units per 10,000 employees in the manufacturing industry. On a global scale the economies of Korea, Singapore, Japan, Mainland China, Hong Kong and Chinese Taipei all rank within the top-ten most automated countries. It is the world's largest industrial robot market, according to the World Robotics report released by the International Federation of Robotics (IFR) in September 2023. China continues to be the largest industrial robot market, accounting for 36% of total installations. Industrial robot operational stock is expected to reach 3788 (in thousand units) by 2023, up from 2408 (in thousand units) in 2023. For example, Alibaba, the world's largest retailer based in China, has upgraded to robotic labor in one of its warehouses, resulting in a 70% reduction in the labor force, and opening up opportunities for highly-skilled workers.

In 2023, the European Warehouse Robotics Market was worth over USD xx million, and regional demand is expected to remain sluggish over the forecast period. The fierce competition, Warehouse Robotics Industry saturation, and challenging economic situation are all factors contributing to the slow growth rate. From 2024 to 2030, Germany is expected to grow significantly within Europe. The European Union has a robot density of 208 units per 10,000 employees with Germany, Sweden and Switzerland ranking in the global top-ten group. North America´s robot density is 188 units per 10,000 employees. The United States is among the top-ten most automated countries in the manufacturing industry.
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Global Warehouse Robotics Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 5.87 Bn.


Forecast Period 2024 to 2030 CAGR:
15.7%
Market Size in 2030:
US $ 16.29 Bn.


 Segments Covered:
by Product
Mobile Robots
Articulated Robots
Cylindrical Robots
SCARA Robots
Parallel Robots
Cartesian Robots
Others


by Function
Pick & Place
Palletizing & De-palletizing
Transportation
Packaging
Others


by Payload Capacity
< 200 Kg
200 to 400 Kg
400 to 600 Kg
600 to 900 Kg
> 900 Kg


by Industry
Automotive
E-commerce
Semiconductor & Electronics
Food and Beverages
Healthcare
Others



Global Warehouse Robotics Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Warehouse Robotics Key Players
North America
1. Honeywell International Inc (Mason, Ohio, USA)
2. Fetch Robotics, Inc. (San Jose, California, USA)
3. Bastian Solutions, Inc. (Indianapolis, Indiana, USA)
4. Dematic (Atlanta, Georgia, USA)
5. Kiva Systems (Amazon Robotics LLC) (North Reading, Massachusetts, USA)
6. IAM Robotics (Pittsburgh, Pennsylvania, USA)
7. Locus Robotics (Wilmington, Massachusetts, USA)
8. ATS Automation Tooling Systems Inc. (Cambridge, Ontario, Canada)
Europe
9. KUKA AG (Augsburg, Germany)
10. ABB (Zurich, Switzerland)
11. KNAPP AG (Hart bei Graz, Austria)
12. Siemens AG (Munich, Germany)
13. Others
Asia Pacific
14. OMRON Corporation (Kyoto, Japan)
15. YASKAWA ELECTRIC CORPORATION (Kitakyushu, Japan)
16. Daifuku Co., Ltd. (Osaka, Japan)
17. Toshiba Corporation (Tokyo, Japan)
18. Fanuc Corporation (Oshino, Japan)
19. Yamaha Robotics (Hamamatsu, Japan)
20. Others

Frequently Asked Questions:
1] What is the growth rate of the Global Warehouse Robotics Market?
Ans. The Global Warehouse Robotics Market is growing at a significant rate of 15.7 % during the forecast period.

2] Which region is expected to dominate the Global Warehouse Robotics Market?
Ans. APAC is expected to dominate the Warehouse Robotics Market during the forecast period.

3] What is the expected Global Warehouse Robotics Market size by 2030?
Ans. The Warehouse Robotics Market size is expected to reach USD 16.29 Bn by 2030.

4] Which are the top players in the Global Warehouse Robotics Market?
Ans. The major top players in the Global Warehouse Robotics Market are ABB, Honeywell International Inc., and others.

5] What are the factors driving the Global Warehouse Robotics Market growth?
Ans. The growth of e-commerce and advancement in ai and machine learning technologies is expected to drive the Warehouse Robotics Market growth.

6] Which country held the largest Global Warehouse Robotics Market share in 2023?
Ans. China held the largest Warehouse Robotics Market share in 2023.