LogisticsIQ Sees Warehouse Automation Market Of $41B by 2027
May 16, 2022
per LogisticsIQ latest market research and analysis, warehouse
automation market is expected to touch the mark of $41 Billion by
2027, at a CAGR of almost 15% between 2022 and 2027. The growth of
this market can be attributed to the growth in the e-commerce
industry, multichannel distribution channels, e-grocery penetration
with dark stores & ultrafast delivery services, globalization of
supply chain networks, emergence of autonomous mobile robots and
rising need for same day / same hour delivery. The boom in
e-commerce is compounding the major labour challenges faced by the
$5T global logistics industry. Not only are shipment volumes growing
rapidly, but online retail also typically requires more logistical
work per item than brick & mortar retail. Indeed, online purchases
require individual picking packing and shipping, as opposed to the
bulk transportation models of traditional brick & mortar retail.
Most of the fastest growing markets are concentrated in APAC, mainly in South Asia (India) and South-East Asia. Middle East is another exciting opportunity and is well suited in terms of geography with European players looking to expand their offerings in the region. Latin America is still under-penetrated with regards to automation; however, things are set to change and market is set to observe a high growth in Brazil and Mexico. Within Europe, Central and Eastern Europe is a fast-growing region, with Poland and Czech Republic emerging as logistics hub and showing good growth prospects. However, given the current geopolitical situation with Russia-Ukraine war, expansion and investment plans have been put on hold.
AGV and AMR market is expected to be biggest market in 2027 with a CAGR of 40%. AMR (without any external support of optical tape, sensor or vision) is going to be main contributor in the warehouses due to high demand in e-commerce sector and its flexibility to deploy the robot without any major change in the existing warehouse infrastructure. However, it is a bit slow in terms of pick rate per hour as compared to ASRS but is preferred in small and medium warehouses due to lower cost and quick deployment. It is expected that AGVs/AMRs are going to have more than 24% market share by 2027 in overall warehouse automation market led by players like Seegrid, Balyo, Hai Robotics, Geek+, GreyOrange, HikRobot, Quicktron, Locus Robotics, Fetch Robotics (Zebra), 6 River Systems, Teradyne (MiR, AutoGuide Mobile Robots), Rocla, JBT, ek-robotics, Omron etc.
The Grocery industry is one of the most challenging and attractive industries from a logistics perspective. Grocery distributors ship high cubic volumes of merchandise to retail stores with frequent deliveries to ensure product freshness. Grocery distribution center operations are amongst the most labour intensive of any industry. Higher automation driven by online grocery, micro-fulfillment centers (MFC) and ultrafast deliveries is going to be biggest opportunity in next 5 years led by different type of solution providers as AutoStore, Takeoff Technologies, Exotec, Fabric, Attabotics, OPEX, Dematic, Geekplus, and Urbx Logistics. It will witness an opportunity worth ~$7B by 2027 with ~19% growth rate. We have already witnessed these partnerships in last 2 years such as Ocado and Kroger in USA, Takeoff Technologies and Majid Al Futtaim in Middle East, Dematic and Coop in Denmark, Walmart and Symbotic in USA etc.