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  • Warehouse Robotics Market Analysis | 2023-2029

    Warehouse Robotics Market Analysis | 2023-2029

    Warehouse Robotics Market Analysis | 2023-2029
    Report code - SR2459 Delivery - 2 Weeks
    Warehouse Robotics Market Size, Share, Trend, Forecast, Competitive Analysis & Gr See more...

    Market Insights

    The Warehouse Robotics Market was estimated at US$ 4.89 billion in 2022 and is expected to grow at an impressive CAGR of 13.5% during 2023-2029 to reach US$ 11.89 billion by 2029.

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    What is Warehouse Robotics?

    Warehouse robotics refers to the use of automated machines and robotic systems in the management and operation of warehouses. These robots are designed to streamline and optimize various tasks within a warehouse environment, such as inventory management, order fulfillment, and material handling. Warehouse robotics can include autonomous mobile robots, robotic arms, and automated guided vehicles (AGVs) that work collaboratively or independently to enhance efficiency, accuracy, and speed in warehouse operations.

    By leveraging technologies like artificial intelligence and sensors, these systems contribute to the automation of repetitive tasks, reducing labor costs, minimizing errors, and increasing the overall productivity of warehouse processes.

    Market Dynamics

    Industries are benefiting greatly from the rise of the Industrial Internet of Things (IIoT) and the interconnected network of systems. This has enabled them to carry out a wide range of tasks, including material batching, picking, ordering, packaging, warehouse security, and inspection, with significant improvements in operational efficiency.

    The global e-commerce industry's expansion and the increasing demand for efficient warehousing and inventory management are fueling the market's growth. The automation of warehousing provides significant benefits in reducing errors in product deliveries and cutting down overall business costs.

    According to DHL, a leading 3PL company that uses warehouse automation solutions, even though there are automation advantages, 80% of warehouses are still operated manually without supporting automation. Only 15% of total warehouses use conveyors, sorters, and pick-and-place solutions, among other equipment that is not necessarily automated. In contrast, just 5% of current warehouses are fully automatic.

    The robotics industry has been able to tap into various untapped potential warehousing applications, achieve optimal operational flow, and improve logistics efficiency, among other accomplishments, in various industry verticals, thanks to significant technological advancements such as sensor technologies that enhance object perception and accurate positioning systems.

    Bank of America predicts that by 2025, robotic technology will handle 45% of all manufacturing tasks. This emerging trend has led to large companies like Raymond Limited, a leading Indian textile company, and Foxconn Technology, a China-based supplier for major technology manufacturers such as Samsung, adopting automated technology in their factories and replacing 10,000 and 60,000 workers, respectively.

    The market for warehouse robots has been on the rise due to various factors, including the increasing number of warehouses, rising investments in warehouse automation, the global increase in labor costs, and the availability of scalable technological solutions. This trend is evident worldwide. In the United States, major logistics brands such as DHL, XPO Logistics, and NFI Logistics are investing in expansion activities, despite the challenging commercial renting climate.

    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.

    Segments Analysis

    Regional Analysis: Asia-Pacific to Hold Significant Market Share

    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 major players operating in the global warehouse robotics market are:

    • 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

    Research Methodology

    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 1,000 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 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

    Report Features

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

    What Deliverables Will You Get in this Report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth Analysis of the Warehouse Robotics Market

    How lucrative is the future?

    The market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional, and country-level historical data and forecasts

    Which are the most attractive market segments?

    Market Segment Analysis and Forecast

    Who are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirements?

    10% free customization

    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 1st 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.

    Frequently Asked Questions (FAQs)

    The Warehouse Robotics Market is expected to grow at an impressive CAGR of 13.5% during 2023-2029.

    The major players operating in the global Warehouse Robotics market are ABB, Daifuku, Kion Group, FANUC, Geekplus Technology, KUKA, GreyOrange, OMRON Corporation, Murata Machinery (Muratec), Toyota Industries, Shopify, Hikrobot, IAM Robotics, inVia Robotics, Scallog, JBT, KNAPP, Magazino, Locus Robotics, Shanghai Quicktron Intelligent Technology, Teradyne, SSI SCHAEFER, Yaskawa Electric Corporation, Zebra Technologies, Vecna Robotics.

    The Warehouse Robotics Market is expected to reach US$ 11.89 billion by 2029.

    The major players operating in the global Warehouse Robotics market are ABB, Daifuku, Kion Group, FANUC, Geekplus Technology, KUKA, GreyOrange, OMRON Corporation, Murata Machinery (Muratec), Toyota Industries, Shopify, Hikrobot, IAM Robotics, inVia Robotics, Scallog, JBT, KNAPP, Magazino, Locus Robotics, Shanghai Quicktron Intelligent Technology, Teradyne, SSI SCHAEFER, Yaskawa Electric Corporation, Zebra Technologies, Vecna Robotics.

    The Asia-Pacific region is expected to be dominant in the market during the forecast period.

    The study period of the market is 2017-2029.