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WAREHOUSE ROBOTICS MARKET ANALYSIS

Warehouse Robotics Market, By Type (Industrial Robots, Sortation Systems, Conveyors, Palletizers, Automated Storage and Retrieval System, and Mobile Robots), By Function (Storage , Packaging, Trans-shipments, and Other Functions), By End User (Food and Beverage, Automotive, Retail, Electrical and Electronics, Pharmaceutical, and Other End Users), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

Warehouse Robotics Market Size and Trends

The warehouse robotics market is estimated to be valued at USD 7.58 billion in 2024 and is expected to reach USD 19.72 billion by 2031, growing at a compound annual growth rate (CAGR) of 14.6% from 2024 to 2031.

Warehouse Robotics Market Key Factors

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The adoption of automation and robotics in warehouses is expected to grow significantly during the forecast period. The rising labor costs, emphasis on warehouse optimization, and focus on minimizing shipping errors are some of the key factors driving the increased adoption of warehouse robotics. Advanced technologies, such as autonomous mobile robotics, articulated robots, and collaborative robots, are gaining popularity as they help warehouses replace manual processes with automation, improve workflow, and increase productivity. Many leading e-commerce companies and third-party logistics players are actively investing in warehouse robotics solutions to meet the growing demand for fast and efficient order fulfilment.

Growing demand for automation in warehouses

With the immense growth of e-commerce and the need for efficient logistics operations, the demand for automation has been rising sharply in the warehousing and logistics industry. Warehouse owners and operators are facing increasing pressures to reduce operational costs, improve productivity, enhance accuracy, and streamline the movement of goods within warehouses. At the same time, there is a growing shortage of labor as fewer people are opting for jobs in warehouses. This demand-supply gap of labor is another key factor propelling the need for automation alternatives.

Automating processes through robotics and other technologies can help address many of these challenges. Robots can work 24/7 and their operations do not decline with time. They can lift heavier payloads, navigate complex warehouse environments accurately, and work efficiently in all weather and environmental conditions compared to human workers. The use of robots for various warehouse tasks such as pick, pack, sorting, palletizing, and packaging can significantly enhance productivity while reducing dependency on labor. They also minimize human errors and ensure consistency in operations. This, in turn, helps warehouse owners and logistics companies improve operational efficiencies, meet rising customer demands, and gain competitive advantages.

While the initial investments may be high for automation technologies, the total cost of ownership tends to be lower over the long run. There are fewer requirements for employee training, wages, insurance, and other human resource related costs. Moreover, automation can drive greater product velocity and throughput within warehouses by eliminating non-value adding activities. This allows companies to achieve higher inventory turns and fulfil customer orders faster using the same or lower operational footprint. The growing labor costs in major economies also makes automation an attractive financial proposition for warehouses and distribution centers.

For instance, in August 2022, GEODIS and Locus Robotics announced an expansion agreement to deploy 1,000 LocusBots across GEODIS' global warehouse locations within the next 24 months. This collaboration aims to broaden market presence and client base through the integration of advanced robotics.

/p>Evolution of robotics technologies

There has been rapid evolution and advances happening in the robotics domain which is fuelling the adoption of robotics solutions across different industrial applications including warehouses. Robotic technologies have become more advanced, affordable, flexible, collaborative, and customized to specific logistics and warehouse processes. Earlier robots were mainly used for repetitive tasks with pre-defined motions in structured industrial settings. However, the latest generations of robots are more versatile, intelligent, and capable of performing varied types of tasks with improved autonomy.

Advancements in robot navigation, visioning, artificial intelligence, edge computing, and other related areas have enabled robotic systems to better assist and collaborate with humans.

For instance, in February 2023, DHL Supply Chain installed the Boston Dynamics' Stretch robot for truck carton unloading. This deployment followed DHL's US$ 15 million investment in robotics solutions from Boston Dynamics. Stretch robots efficiently handle package unloading from trailers, enhancing operational efficiency.

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