Warehouse Automation Market Surges, Projected to Reach US$53.2 Billion by 2029
The global warehouse automation market, which was valued at US$12.7 billion in 2019, is poised for remarkable growth and is anticipated to exceed US$53.2 billion by the end of 2029, with a robust compound annual growth rate (CAGR) of 15.4%, according to a recent market analysis.
Digital Logistics Drives Demand for Warehouse Automation
Efficient logistics operations are at the core of business success, driving increased efficiencies, optimized warehouse space utilization, higher production rates, cost reduction, improved inventory control, heightened customer and supplier satisfaction, and an enhanced customer experience. To achieve these goals, organizations are recognizing the need to revamp their logistics management strategies. Warehouse automation emerges as a pivotal solution to address these challenges. As the global digital logistics market is poised to reach US$47 million by 2027 with a CAGR of 22%, awareness about the critical role of logistics management is fostering substantial growth in the warehouse automation sector.
Labor Shortages Propel Warehouse Automation Adoption
In recent years, the logistics and warehouse sector has faced significant labor shortages, with 244,000 workers quitting their jobs in August 2022 in the United States alone. The trend towards white-collar, secure employment has contributed to this scarcity of skilled labor. To counteract this challenge, logistics companies have increasingly turned to automation systems, with industry giant Amazon leading the way by adopting automation in its warehouses, expediting order processing and enabling faster last-mile delivery. Consequently, the labor shortage has indirectly fueled the expansion of the warehouse automation market.
Challenges in High Initial Investments and Maintenance Costs
While warehouse automation promises long-term benefits such as reduced labor costs and increased productivity, the initial investments required can be prohibitively expensive. For instance, the installation of robotic cube storage can amount to US$1.5 million, while unit-load ASRS installation costs approximately US$1 million. Similarly, multi-shuttle and mini-load ASRS installations can cost US$1 million and US$750,000, respectively. Moreover, the annual maintenance costs for these equipment can be a financial burden, particularly for small-scale industries or organizations.
North America Leads the Way, Asia Pacific Shows Rapid Growth
In 2020, North America emerged as the dominant player in the warehouse automation market, boasting the largest market share. The presence of numerous major market participants as well as a thriving community of small and medium-sized businesses in North America bodes well for the widespread adoption of warehouse automation technology in the region. Meanwhile, the Asia Pacific region is expected to exhibit the fastest CAGR between 2021 and 2029, driven by increasing demand for cutting-edge technical solutions in nations such as China and India.
Leading vendors in the global warehouse automation market are actively implementing a range of strategies, including new product launches, product upgrades, partnerships, expansions, mergers, and acquisitions to strengthen their market presence. Key players in the market include ABB Ltd., Bastian Solution LLC, Daifuku Co Ltd., FANUC Corporation, Fetch Robotics Inc., Jungheinrich AG, KUKA AG, Omron Corporation, SSI SCHAEFER Group, and Yaskawa Electric Corporation. These market leaders are also engaged in joint ventures, new product launches, and contractual agreements to solidify their positions in the competitive landscape.
Global Warehouse Automation Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2029 – (By Components Coverage, By End User Coverage, By Application Coverage, By Geographic Coverage and By Company) https://www.fairfieldmarketresearch.com/report/warehouse-automation-market
Our Trending Reports:
Warehouse Management System Market
Irrigation Automation Market
Retail Automation Market
Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.
Fairfield Market Research
UK +44 (0)20 30025888
USA (Toll-free) +1 (844) 3829746
This press release first seen on Brilad