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LogisticsIQ Sees Warehouse Automation Market Of $41B by 2027

May 16, 2022

As 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.

Year 2021 witnessed a huge order intake for warehouse automation companies but revenue growth was limited due to supply chain constraints. As a result, industry has also entered in 2022 with a record order backlog which is great sign for the future potential of this market. Order intake has been led by Dematic with more than $5 Billion in 2021 followed by Honeywell Intelligrated (~50% YoY growth) and Daifuku (~30% YoY growth).

Our 3rd version of this market study is having a detailed market analysis of more than 650+ players (part of our exclusive Market Map), 10 solutions, 7 industries and 30 countries along with 550 pages, 355 Market Tables, 293 Exhibits and 134 Company Profiles. Analysis is validated through 100+ in-depth interviews across the value chain with components and technology providers, system integrators & manufacturers, software and services providers, and end-user industry verticals.

Post pandemic, most important and emerging trends have been Online Grocery growth, Micro-Fulfillment Centers, Dark Stores and automated cold storages. Huge investment for start-ups like Takeoff technologies, Fabric, Attabotics, Exotec Solutions, Hai Robotics, Addverb Technologies, SEER, Dexterity, Nuro, and Youibot are witnessing this growth along with presence of existing big players like Dematic, Honeywell intelligrated, SSI Schafer, Knapp, Daifuku, Muratec, AutoStore, and Toyota Advance Logistics. Retailers such as Walmart, Kroger, Coop, Woolworths, Amazon, Ocado, Meijer, Carrefour, H-E-B, Albertsons, and Ahold Delhaize have already started adopting and implementing these new technologies during pandemic. Apart this, piece picking players such as Righthand Robotics, Nimble, Fizyr, Kindred, Covariant, OSARO, Plus One Robotics, Berkshire Grey, and AWL have established a new attractive capability for order picking in ecommerce fulfillment as picking is least automated process in existing warehouses.

Highlights

United States, China and Germany are the largest markets with more than 50% share for Warehouse Automation both with regards to demand as well as the presence of OEMs and System Integrators. Europe is a big hub for OEMs, with strong presence in Germany, Italy, France, Netherlands, and Spain. Western Europe is a big market accounting ~30% of the overall global market.

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.

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