Edition 2023 - Autonomous Mobile Robots Market in Warehousing Industry, 2022-2030

With the ACES mobility research and analysis platform, M14 Intelligence is bringing the most in-depth analysis of autonomous, connected, electric, and shared mobility industry. This report plays a part in assisting stakeholders in understanding the possible Autonomous Mobile Robot's (AMR) market penetration in warehousing industry, technology innovations in sensing and navigation systems and competition among the leading OEMs and start-ups across the geographies.

• The AMR market in warehousing is a rapidly growing industry, driven by the increasing demand for automation in warehouse operations and the need for cost-effective and efficient solutions.
• North America continues to dominate the market and show strong growth, driven by the increasing adoption of AMR technology in the retail and e-commerce industries
• ASEAN is expected to be a key growth market, owing to the boom in the manufacturing and logistics industries and the thrive to adopt of robotics automation to match the GDP growth of around 5%
• Germany is early adopter of AMR technology and hence is leading in European market capturing significant market share, few of the attractive markets in Europe are UK, Sweden, and France.
• The AMR market in warehousing is highly fragmented, with several stakeholders operating in the market including OEMs, technology players, software and AI companies, mapping and localization providers, system integrators, and service providers
• The major factors driving the AMR market in warehousing include the increasing adoption of automation in warehouse operations, the need for cost-effective and efficient solutions, and the growing demand for e-commerce and online retail
• The increasing adoption of Industry 4.0, the trend towards the smart factory and the growing trend of connected logistics are also propelling the growth of the market
• The high cost of AMR solutions and the lack of standardization in the market are some of the major challenges for growth of AMRs in warehousing

In this study, you will find detailed analysis on every aspect of future demand for autonomous mobile robots (AMR) used in explicitly growing warehouse industry.

Some of the critical analysis covered in the report are as follows:

• Analysis of 60+ OEM brands both leading and emerging players across warehousing robotics ecosystem.

• Analyzing the penetration of AMRs in restrictive environment like warehouses and growth potential.

• Analysis of various business models including direct OEM sales, System Integration, and Robot-as-a Service (Raas)

• Analyzing the current status of automation in warehouse industry, and identifying potential future demand for AMRs till 2030

• Analyzing the market penetration of each type robots used in warehouses such as inventory transportation robots, picking robots, sorting robots, collaborative robots, and drones

• Identifying OEM strategies and regional market potential for ARMs

• Analyzing investment/funding analysis of start-ups and technology providers

With this research, we aim to bring a fact-based evaluation of the AMRs. As consultants, we also look forward to help you create your next go-to market strategy to position yourself as a key player in this swiftly evolving robotics industry.

Autonomous Mobile Robots (AMRs) have gained popularity among warehouses and logistical companies to improve operational efficiency, speed, precision, and safety. AMRs can understand and navigate their environment independently using sophisticated sensors, artificial intelligence, machine learning and compute for path planning. Equipped with cameras and sensors, AMRs can detect and avoid unexpected obstacles, such as fallen boxes or crowds of people, by adjusting their path and continuing with their task.

The evolution of large companies such as Amazon, Alibaba and other e-commerce giants has largely been driven by the effectiveness and efficiency of their warehousing operations. Warehousing is as old as humanity itself. However, the concept of warehousing gained new meaning as a result of the industrial revolution. An increase in manufacturing meant that there was an increase in the demand for raw materials and an increase in the production of different goods. Today, Warehousing is a specialized activity. The function of the warehouse has moved from being a simple storage facility to fulfilling other functions such as receiving goods and managing inventory, as a display for commercial buyers, packaging orders, order confirmation and labeling and dispatching them.

Warehousing for large and small corporations can have a negative impact on operations if best practices are not employed to handle the different functions that define the activity. Autonomous Mobile Robots (AMR) provide the best and cost-effective solutions for companies seeking to eliminate market inefficiencies. Built with the latest technologies in terms of software and sustainable materials for the hardware, these robots can perform most if not all of the warehousing tasks such as picking and packing, transportation, and inventory management. The inbuilt software allows the robots to use sensors, cameras, and other technology to navigate and perform tasks within a warehouse.

Automation is applicable to virtually every industry across the world. However, its use in warehousing industry makes it an ideal and complementary feature in the warehouse.

The development of AI has meant that these robots can perform different tasks, with minimum supervision, few to no errors, work faster and longer and in the end increase efficiency, cut costs and allow for better allocation of a company's resources.

The key industries that are driving the demand for AMRs are e-commerce, manufacturing, logistics and warehousing. It is a move towards increasing customer satisfaction and experience. The faster the customer receives their shipment in the condition ordered, the higher their level of satisfaction. This move has also led to an increase in the number of technology companies seeking a share of this lucrative market. With an emphasis on aesthetics and functionality, these companies have developed and produced AMRs for every aspect of warehousing and the application of AI is now the leading feature of differentiation.

This research study about the global autonomous mobile robots provides pertinent insight and information about the penetration of technology in warehousing industry. The industry is expected to triple its size by the year 2030 and these positive projections point to an industry with tremendous growth potential. Autonomous Mobile Robots (AMR) are expected to account 20% market share in coming 5 years in the total warehouse automation market. The study also highlights an upward market trajectory trend that is being sustained by improvements in technology, demand, and competitiveness among industry players.

Technology innovations:

The technology applied in AMRs range from the simple mechanical aspects of these robots to more complex software and hardware components. These robots are meant to perform tasks that would have ordinarily been performed by humans thus increasing their level of sophistication. AI has proved to be a game changer in the creation of AMRs. Companies have invested billions of dollars in Research and Development (R&D) to ensure that their AMRs not only meet the industry standards but also individual needs of the warehousing industry. This is the key factor that drives the technological aspect of AMRs, providing solutions to a wide range of clients with individual needs and preferences. While specific technology can be applicable to a wide range of warehousing processes, a rapidly changing environment has brought the need for scalability and adaptability of technology.

New AMR technologies are constantly being developed to meet the changing demands of the market. One of the key new technologies in the AMR market is the integration of artificial intelligence (AI) and machine learning (ML) algorithms. This enables AMRs to make real-time decisions, improve their performance, and adapt to changing environments. For example, Fetch Robotics has developed an AMR called ""FetchCore"" which uses AI and ML algorithms to optimize warehouse operations and reduce human intervention.

Another new technology that is gaining popularity in the AMR market is the use of collaborative robots (cobots). Cobots are designed to work alongside humans, improving efficiency and safety in warehouse operations. For example, Mobile Industrial Robots has developed an AMR called ""MiR100"" which is designed to work alongside humans in warehouses, factories, and hospital.

The use of 3D mapping and localization technology is also becoming increasingly popular in the AMR market. This technology enables AMRs to navigate through warehouses and other environments with high accuracy and precision. Locus Robotics has developed an AMR called ""LocusBot"" which uses 3D mapping and localization technology to navigate through warehouses and improve efficiency.

Application

The AMR market in warehousing can be segmented into transportation, picking and packing, and inventory management. Transportation is expected to hold the largest share of the market due to the increasing adoption of AMR technology in warehouse transportation operations. Picking and packing is also expected to show positive growth, driven by the increasing adoption of AMR technology in e-commerce and online retail operations.

The increasing demand for AMRs in warehouses is driven by the increasing adoption of technology for inventory management operations. Remotely operated aerial vehicles or drones are also becoming popular in countries such as U.S. and China for inventory management application in warehouses. Drones are expected to capture significant share of the warehouse automation equipment market in coming years.

The market is also expected to witness growth in other application areas such as quality control, packaging and palletizing, and assembly and testing. With the increasing adoption of AMR technology, it is expected that the market will witness new application areas in the future.

Geographic Perspective:

Geographically, the demand for AMRs is limited to developed markets in developed countries across the world. However, the growth of e-commerce giants, logistic operations and warehousing has seen an increase in demand despite the limited target market segments. Contrary to the common view that North America is the leading market for AMRs due to the large number of warehousing facilities across the country and the growth of the ecommerce industry, research actually shows that Europe is the leading market for AMRs. It accounted for more than a quarter of the market share in 2022, which was attributed to the increasing need for material handling equipment from the manufacturing industry's established players.

The success of AMRs in North America and Europe has had a positive influence on other developed countries and emerging economies, which have acknowledged its tremendous potential. What drives demand in these nations besides providing better services is their readiness to embrace new technologies and the desire to move towards economic efficiency.

The ASEAN market is perhaps the market that would benefit the most from the use of AMRs. As the manufacturing capital of the world, Asia has a warehousing industry that is constantly growing which signifies the importance of using AMRs in handling warehousing activities. Its contribution to global trade also means that the ASEAN market is exponentially capturing the market share of the global autonomous mobile robot (AMR) market.

Competition:

The AMR industry is dominated by players both big and small who not only seek to maximize profits but also to produce better products that serve individual customer needs. A company's competitiveness is thus determined by its organization, size, investments in research and development, its marketing and branding activities, its ability to meet customer needs and its relationship with customers. Competition is an aggressive nature of business with companies seeking to increase their market share and have a positive return on their investment. Fortunately, this has increased the level of creativity and innovation in the industry, which has led to the development of better robots that can handle multiple warehousing functions.

Some of the leading players in the market include KUKA AG, Amazon Robotics, Fetch Robotics, GreyOrange, and Locus Robotics. These companies are well-established players in the market and have a strong global presence. They are known for their advanced technology, and they are continuously investing in research and development to improve their products and stay ahead of the competition.

The collective investment in warehouse robotics was close to $250 million in 2018 which doubled to reach half a million in 2020, despite of the impact of Covid-19 pandemic. In 2022, the capital invested in warehouse robotics again increased by 2x to reach around $1billion. The mammoth funding in this segment which is doubling every two years signifies that the warehouse robotics holds high growth potential for emerging players.

Other notable players in the market include companies such as ABB, Mobile Industrial Robots, Clearpath Robotics, and Omron Adept Technologies. These companies also have a strong presence across regions, and they are continuously investing in research and development to improve their products and stay competitive in the market. They are also entering into strategic partnerships and collaborations with other companies to expand their presence in the market.

In addition to the established players, the market also has several new and emerging players. These companies are focusing on developing new and advanced AMR technologies to meet the changing demands of the market. They are also entering into strategic partnerships and collaborations with established players to gain a foothold in the market.

Overall, the AMR market in warehousing is highly competitive, with a large number of players operating in the market.

Contributing Factors:

The increasing adoption of Industry 4.0, the trend towards the smart factory, and the growing trend of connected logistics are major factors driving the growth of the AMR market in warehousing. Industry 4.0, also known as the fourth industrial revolution, involves the integration of advanced technologies such as big data, cloud computing, and IoT (Internet of Things) Manufacturing into manufacturing processes. This integration enables the automation and digitization of manufacturing operations, resulting in increased efficiency, improved quality, and reduced costs.

Another key factor driving the growth of the AMR market in warehousing is the growing trend of connected logistics. Connected logistics refers to the integration of advanced technologies such as IoT, big data, and cloud computing into logistics operations. This integration enables real-time tracking and monitoring of goods, improves inventory management, and increases efficiency and accuracy in logistics operations.

Global growth opportunities from ecommerce sectors attributing to the exponential growth of AMR Market. Better cost efficiency and quick ROI is favoring the adoption of AMR as important warehouse automation tool. The increasing market penetration with emerging OpEx-oriented robots-as-a-service (RaaS) business model will drive the AMR market to newer heights.

Limiting Factors:

On the other hand, the high cost of AMR solutions and the lack of standardization in the market are some of the major factors restraining the growth of the AMR market in warehousing. Additionally, the lack of skilled labor and the lack of awareness about the benefits of AMR technology also act as barriers to the adoption of AMR technology in warehouses.

The lack of standardization in the market results in a lack of interoperability between different systems, which can be a major challenge for organizations looking to implement AMR solutions. Another factor that may limit the growth of the market is the regulatory and compliance issues associated with the deployment of AMR technology in certain industries. "