Warehouse Robotics Market Growth Analysis | 2023-2029

Market Insights

“The warehouse robotics market was estimated at USD 4.89 billion in 2022 and is likely to grow at a CAGR of 13.5% during 2023-2029 to reach USD 11.89 billion in 2029.”

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Market Dynamics

Introduction

Warehouse robotics is the act of utilizing machines as well as robots in the running and organization of warehouses. These robots are created to mechanize routine processes in the warehouse, including storage, order picking, and moving of products. The main types of warehouse robotics are autonomous mobile robots, robotic arms, and AGVs that can be used independently or in combination to improve warehouse operations’ effectiveness, precision, and productivity.

These systems also assist in further enhancing and automating tedious tasks involving artificial intelligence and sensors; they help reduce expenses originating from payments given to workers, cut down on errors, and enhance the general efficiency of operations within the warehouse.

COVID-19 Impact

Amidst the COVID-19 outbreak, robots and automation played a crucial role in managing the situation, and it has brought new opportunities to the market. For example, Ocado, a British online grocer, plans to offer its warehouse robotics and grocery home-delivery technology to other supermarkets for a licensing fee. Despite the recovery of many warehouse sites since May 2020 when they resumed operations post-lockdown, fluctuations during the first four months of 2020 could lead to order delays and lead time across the warehouse robotics supply chain throughout the year.

Although robotics has made significant advancements, the human workforce still plays a crucial role in maintaining a well-organized warehouse. However, long-term labor shortages forecasted across the United States and Europe, along with sustained pressure on supply chains to deliver orders quickly and accurately, have prompted operations executives to seriously consider how to address staffing challenges.

Market Drivers

The advanced industry, therefore, receives many benefits from the development of the Industrial Internet of Things (IIoT) and the system's interconnectivity. This has made them perform a host of tasks such as improving its operational performance in activities such as material batching, picking, ordering, packaging, and security of the warehouse, and inspection among other activities. The growth of the e-commerce market and the needs of companies all over the world are establishing the necessity for effective logistics and warehousing solutions.

The automated warehousing system offers remarkable advantages in decreasing the number of mistakes in product delivery and decreasing the general expense of business. DHL, a third-party logistics firm that offers automated warehouse solutions, noted that while there are benefits associated with AC, 80% of the warehouses are kept manually without support from the automation. As for other equipment, which is not considered fully automated, such as conveyors, sorters, and pick-and-place systems, their number is minimal; only 15% of total warehouses use them.

On the other hand, old APIs show that only 5% of the current warehouses are fully automatic. This has in turn enabled the robotics industry to harness several unexplored potential uses in warehousing, attain the highest possible workflow, and achieve better logistics management, among others, in various vertical markets, owing to several technologies that include, but are not limited to, the sensor technologies that have boosted the object recognition and precise positioning systems.

According to the estimation by Bank of America, it is expected that by 2025 the rate of robotic technology to deal with manufacturing jobs is 45%. This emerging trend has led large companies like Raymond Limited, an Indian textile, and Foxconn Technology, a China-based supplier to many technology giants including Samsung, to automate their factories and replace their 10,000 and 60,000 workers, respectively. The factors that have led to market growth for warehouse robots include the existence of higher numbers of warehouse complexes, the growing investments in warehouse automation systems, the advanced hike of labor costs across the globe, and affordable and expandable technologies available in the market now. This trend can be identified all over the world. Currently, the top logistics companies, like DHL, XPO Logistics, and NFI Logistics, are reported to be active in expansion, whereas the commercial renting environment is rather unfavorable.

Segments Analysis

Regional Insights

“Asia-Pacific to hold significant market share during the forecast period.”

The manufacturing sector is expected to contribute significantly to the market share and become one of the key contributors in the region, with massive investments in industry. In China, companies that have already deployed robots in their warehouses have seen positive results during the pandemic.

For example, JD.com, a Chinese e-commerce giant based in Wuhan, used a fleet of robotic vehicles in its automated warehouses to deliver essential goods to residents shopping online during lockdowns. The company claims to have experienced a surge in daily orders, doubling from about 600,000 to over a million in a single week during the pandemic.

South Korea's population is aging rapidly, and by the middle of this century, it is projected to have one of the oldest populations among all Organization for Economic Co-operation and Development countries, ranking just behind Japan, Italy, and Greece. In response to this, most manufacturing units are adopting industrial robots to maintain competitiveness.

The South Korean government has implemented measures to support the country's small and mid-sized manufacturing companies, including the establishment of 30,000 smart factories by 2022. The government anticipates that small and mid-sized firms in the manufacturing industry will create 66,000 jobs by automating 50% of their manufacturing facilities and generating KRW 18 trillion (USD 16 billion) in sales.

Japan has consistently held its position as the leading exporter of robots globally, both in terms of shipment value and the number of operating units. One example is Fuji Yusoki Kogyo Co. Ltd, a Japanese company that specializes in developing and manufacturing palletizing robots. The company has sold more than 16,000 robots worldwide and holds a 63% market share in Japan's robotic palletizing industry and over 20% market share in the global robotic palletizing industry.

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Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc.

The following are the key players in the warehouse robotics market (arranged alphabetically):

• ABB
• Daifuku
• FANUC
• Geekplus Technology
• GreyOrange
• Hikrobot
• IAM Robotics
• inVia Robotics
• JBT
• Kion Group
• KNAPP
• KUKA
• Locus Robotics
• Magazino
• Murata Machinery (Muratec)
• OMRON Corporation
• Scallog
• Shanghai Quicktron Intelligent Technology
• Shopify
• SSI SCHAEFER
• Teradyne
• Toyota Industries
• Vecna Robotics
• Yaskawa Electric Corporation
• Zebra Technologies

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s warehouse robotics market realities and future market possibilities for the forecast period of 2023 to 2029. After a continuous interest in our warehouse robotics market report from the industry stakeholders, we have tried to further accentuate our research scope on the warehouse robotics market to provide the most crystal-clear picture of the market. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulating the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The warehouse robotics market is segmented into the following categories:

By Type

• Autonomous Mobile Robot (AMR)
• Automated Guided Vehicle (AGV)
• Articulated Robots
• Cylindrical and Scara Robots
• Collaborative Robots

By Function Type

• Picking and Placing
• Palletizing and De-Palletizing
• Transportation
• Sorting and Packaging

By Payload Type

• Less Than 20 Kg
• 20-100 Kg
• 100-200 Kg
• More Than 200 Kg

By Industry Type

• E-Commerce
• Automotive
• Electrical and Electronics
• Metal and Machinery
• Chemical, Rubber, and Plastics
• Food and Beverage
• Pharmaceutical
• Paper, and Printing
• Textile
• Clothing

By Component Type

• Safety Systems
• Communication System
• Job Control System
• Traffic Management System
• Battery Charging System
• Sensors
• Controllers
• Drives
• Robotic Arms

By Software Type

• Warehouse Management System (WMS)
• Warehouse Control System (WCS)
• Warehouse Execution System (WES)

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players).
• SWOT analysis of key players (up to 3 players).

Market Segmentation

• Current market segmentation of any one of the product types by application type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Recent Market News & Developments

• In December 2022, OMRON, a factory automation solution provider, opened its 1^st Automation Center exclusively catering the logistics industry in Singapore, Southeast Asia, and Oceania.
• In October 2022, Numina, a renowned software developer and integrator of warehouse automation solutions, entered a strategic partnership with Geek+, as North America's latest integrator of Geek+ robotics warehouse solutions.
• In July 2022, ABB joined Berkshire Grey’s Technology Alliance program to deliver AI-powered robotic solutions.
• In July 2022, FANUC opened a new robotics and automation headquarters in Aguascalientes, Mexico.