Global Warehouse Automation Market
CAGR Forecast at 11%
May 19, 2020
"Warehouse Automation Market By Technology (AGV/AMR, ASRS, Conveyors,
Sortation, Order Picking, AIDC, Palletizing, Overhead Systems and WMS/WES/WCS),
By Industry (E-commerce, Grocery, Apparel, Food & Beverage, Pharma), By
Geography - Forecast to 2025" report has been added to
The warehouse automation market will grow more than 2x from $13 Billion
in 2018 to $27 billion by 2025, at a CAGR of 11.7% between 2019 and
2025. The growth of this market can be attributed to the growth in the
e-commerce industry, emerging multichannel distribution channels,
globalization of supply chain networks, increased adoption of micro-fulfilment
centers, the emergence of autonomous mobile robots and rising need for
same day delivery. The boom in e-commerce is compounding the major labor
challenges faced by the $5trn 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.
Facts to Know
e-Commerce sales have grown at a CAGR of 20% over the last decade,
reaching ~$3 trillion worldwide in 2018, and expected to grow to ~$7
trillion by 2025. The share of online retail sales has gone from ~2% of
total to ~12%, and is further expected to reach ~23% by 2025.
Existing fully automated systems
can reduce warehouse related labour costs by up to 65% and
logistics-related spatial use by up to 60% at the same time as it
increases the maximum output capacity. The adoption of technology is by
no means uniform. While one-hour delivery is available when buying
online in some parts of the U.S. and Europe, the average promised
delivery time in Brazil is nine days. While e-Commerce penetration is
87% in the U.K., it is only 18% in Romania.
Amazon Robotics automates the
company's fulfillment centers using more than 100,000 autonomous mobile
robots, up more than 300% from 30,000 at the end of 2015.