by The warehouse robotics market comprises autonomous mobile robots that are utilized for varied indoor industrial applications such as transportation, identification, packaging, and palletization. The emergence of service robots in e-commerce and rise in demand for automation in warehouses to optimize labor costs have augmented the market growth. Global warehouse robotics market is estimated to be valued at US$ 15.19 Mn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the warehouse robotics market are Apogee Enterprises Inc., Fletcher Building, Ply Gem Holdings Inc., YKK AP Inc., LIXIL Group Corporation, Xingfa Aluminium, Sapa Group, PGT Inc., Wacang, and Fenan Group. The escalating e-commerce industry trends have opened new avenues for inventory management and order fulfillment robots. The advent of automation presents opportunities for global players to expand their business in developing countries. Rapid urbanization and increasing demand from emerging economies in Asia Pacific are expected to drive the regional expansion of the warehouse robotics market.
Market drivers
The overriding factor driving the growth of the warehouse robotics market is the rising need for labor cost optimization in warehouses and distribution centers. Manual handling of inventory requires huge labor costs which can be reduced significantly through implementation of industrial autonomous mobile robots. Automated guided vehicles and goods-to-person systems enhance efficiencies, minimize shipping errors, and optimize labor utilization in warehouses. This has been a major driver for adoption of warehouse robotics across industries.
PEST Analysis
Political: Governments in various Warehouse Robotics Market Demand countries are promoting the adoption of advanced technologies in the warehouse operations to enhance efficiency. Additionally, foreign direct investments in robotics technology is encouraged with tax exemptions and subsidies.
Economic: Inflation in the labor costs has increased the total operational expenses of warehouses significantly. Deploying automated systems can help reduce dependencies on human workforce which in turn optimizes costs for the warehouse operators.
Social: Younger generation workforce is showing less interest in performing repetitive and labor-intensive tasks in the warehouses. Automation helps address this issue by streamlining the operations and reliance on robotics systems instead of human workforce.
Technological: Rapid advancements in robotics, AI, IoT, machine vision are enabling the development of smart, autonomous mobile robots and automated guided vehicles that can perform various material handling operations without direct human supervision. Computer vision and artificial intelligence plays a key role in navigation, hazard detection, and decision making of these robots.
The warehouse robotics market in terms of value is concentrated majorly in developed economies including North America and Western European countries with presence of global leaders in robotics and supply chain technology. However, Asia Pacific region is emerging as the fastest growing regional market driven by growth in e-commerce industry, rising labor costs, and increasing number of industrial robots deployment in China, Japan and other Southeast Asian countries.
The North American region currently holds the largest share in the warehouse robotics market in terms of value primarily due to strong presence of robotics technology providers, rapid adoption across industries like e-commerce, food and beverages and automotive. However, Asia Pacific region is projected to witness the highest CAGR between 2024 to 2030 considering aspects like growing industrialization, rising labor costs, significant investments by technology companies in this region. Countries like China and Japan are at the forefront of adopting smart automation for warehousing operations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
