The warehouse robotics market is estimated to be valued at USD 7.58 Bn in 2024, growing at a CAGR of 14.6% over the forecast period (2024-2031). Furthermore, the rising emphasis on warehouse automation and optimization of business processes are supplementing the adoption of warehouse robotics solutions.
Market Dynamics:
The warehouse robotics market is projected to witness significant growth over the forecast period. One of the primary drivers boosting the demand for warehouse robotics includes the surging online shopping volumes globally. With more people purchasing groceries, apparels, electronics, and other items online, the need for improved fulfilment center operations and increased productivity has risen. Warehouse robots help reduce errors, improve productivity, and minimize costs associated with inventory management and order fulfilment. Additionally, the growing labor costs and the global shortage of labor are encouraging companies to automate their warehouses using robotics solutions. This considerably reduces overhead expenses and improves production yields. Another driver has been the development of advanced technologies such as artificial intelligence, Internet of Things (IoT), and big data analytics that have made robots more affordable and efficient in performing complex tasks. Several leading e-commerce players are increasingly leveraging robotic solutions for inventory management, packaging, and delivery to support their seamless order fulfilment demands.
Market Drivers
Increasing Demand for Automation and Labor Cost Optimization in Warehousing Operations
Warehouse robotics are being increasingly adopted by companies to automate repetitive and labor-intensive tasks in warehousing operations. Using robots and autonomous mobile robots (AMRs) allows companies to improve operational efficiency, minimize labor costs, and reduce reliance on human workers. The rising costs of labor have prompted many companies to invest in warehouse robotics to optimize costs through automation. Additionally, the shortage of labor in certain regions has pushed companies to adopt robotics solutions to maintain business continuity.
Growth of E-commerce and Need for Faster Order Fulfilment
The booming e-commerce industry has significantly increased the volume of orders that need to be processed and fulfilled by warehouses. This has created immense pressure on warehouses to accelerate order fulfilment while maintaining high accuracy. Warehouse robotics help meet these challenges by automating order picking, sorting, packaging, and delivery to the shipping dock. Robots allow warehouses to fulfil high order volumes efficiently at a much faster pace compared to human workers. Their adoption is growing amongst e-commerce retailers and third-party logistics companies to support the delivery needs of the e-commerce sector.
Market Restraints
High Initial Investment Requirements
The implementation of an automated warehouse robotics solution requires substantial upfront capital expenditure. Purchasing robots, Autonomous mobile robots (AMR), automated storage and retrieval systems (ASRS), and other hardware involves a significant initial investment. The costs associated with system integration, software, installation, and training also add to the expenses. Such high costs act as a deterrent, especially for small- and medium-sized warehouses.
Require Well-designed Processes and Infrastructure
For warehouse robots to work efficiently, the warehouse operations and layout need to be designed to support an automated system. Factors like space, material flow, use of standardized packaging, and load units need to be optimized to facilitate robotics usage. Retrofitting robotics into an existing warehouse requires adjustments to workflows and infrastructure which can increase costs and complexity of implementation. The operational changes and infrastructure upgrades required pose challenges for companies with less flexible processes.
Market Opportunities
Adoption in Cold Storage Warehouses
Cold storage warehouses that handle frozen and chilled goods have traditionally relied heavily on manual labor for tasks inside temperature-controlled environments. However, adopting robotics allows them to minimize the number of human workers required to enter cold zones, thereby improving occupational safety and working conditions. It also helps increase productivity as robots are unaffected by cold temperatures. This makes cold storage facilities a ripe opportunity area for robotics usage.
Proliferation of Micro-fulfilment Centers
The establishment of micro-fulfilment centers located closer to population centers and customers is growing. They aim to provide ultra-fast delivery within 2-4 hours. To achieve this, they need flexible, scalable automation solutions for fulfilling orders amid demand fluctuations. Warehouse robotics optimized for micro-fulfilment center environments can address this need and their adoption is likely to rise as more such facilities emerge to enable same-day delivery.
Link: https://www.coherentmarketinsights.com/market-insight/warehouse-robotics-market-5056
Key Developments:
- In November 2023, KUKA, a renowned robotics company, joined forces with Upper Bavarian, a digital workbench specialist. Together, they developed a mobile harvesting robot for fruit farmers, combining KUKA's expertise in robotics with Upper Bavarian's digital system knowledge. This collaboration represents a significant stride in agricultural technology, specifically addressing the challenges of fruit harvesting.
- In July 2023, SoftBank Group Corp. and Symbotic Inc. established GreenBox Systems LLC, a joint venture targeting the US$ 500 billion annual warehouse-as-a-service market. Simultaneously, symbotic secured a US$ 7.5 billion contract with GreenBox to provide warehouse automation systems, making supply chain services more accessible.
- In July 2023, Maersk, a logistics integrator, announced the implementation of an AI-enabled robotic solution in one of its warehouses in East Midlands, U.K. The state-of-the-art Robotic Shuttle Put Wall System by Berkshire Grey, a U.S.-based company, is expected to significantly automate and enhance warehouse operations.
Key Market Players:
ABB Ltd., Addverb Technologies, Amazon.com Inc., Daifuku, Fanuc Corp., Fetch Robotics Inc., Geekplus Technology, Hikrobot, Honeywell International Inc., IAM Robotics, InVia Robotics Inc., KION Group AG, Knapp AG, Locus Robotics, Lowpad B.V., Magazino GmbH, Mobile Industrial Robots, Murata Machinery Ltd., Omron Corporation, Shanghai Quicktron Intelligent Technology Co. Ltd., Shopify Inc., Siemens AG., SSI Schaeffer, Universal Robots, Yamaha Motor Co. Ltd., and Yaskawa Electric Corp. are the major players.
