The Warehouse Robotics Market was valued at USD 6.12 billion in 2019 and is expected to reach USD 25.80 billion by 2025, at a CAGR of 27% over the forecast period 2020 - 2025. The advent of Industrial Internet of Things (IIoT) on the global industrial landscape and the emergence of connected systems are helping industries perform various tasks, such as material batching, picking, ordering, packaging, warehouse security and inspection, and helping improve the operational efficiency by exponential margins.
- This has also enabled manufacturers and retailers to handle increased demand while keeping labor costs low. With a worldwide sale of industrial robots at 248,000 units in 2015, these robots are already making an impact on the global economy.
- Significant technological advancements, such as sensors technologies (that enable an enhanced object perception and an accurate positioning system), have allowed the robotics industry to explore the untapped potential in the warehousing applications, while attaining an optimal operational flow and logistics efficiency, among other accomplishments, across the various industry verticals.
- According to the Bank of America, it is estimated that by 2025, 45% of all manufacturing will be performed by robotic technology. Following this trend, large firms, such as Raymond Limited (an Indian textile major) and Foxconn Technology (a China-based supplier for large technology manufacturers like Samsung and others) have replaced (or will replace) 10,000 and 60,000 workers, respectively, by incorporating automated technology into their factories.
Scope of the Report
While great advances have been accomplished in robotics, the human workforce still holds the upper-hand in running a well-organized warehouse. Forecasts of long-term labor shortages across the U.S. and Europe as well as sustained pressure on supply chains to deliver orders quicker and more precisely have caused operations executives to seriously assess that question as they look for answers to staffing challenges.
Key Market Trends
Fulfillment and Distribution Centers Need for Accurate, Efficient, High Throughput Inventory Management Capabilities.
- Automated storage and retrieval systems (ASRS), have the ability to sort, sequence, buffer, and store a wide range of goods into virtually unlimited destinations. Their common applications include goods to a person picking, dynamic replenishment, sequence buffering, order fulfillment, work in process storage, and finished goods storage.
- ASRS is a significant component of warehouse automation systems in fulfillment and distribution centers, providing highly efficient, accurate and high throughput inventory management capabilities. They can be configured to be completely redundant, spreading inventory across multiple aisles and thus reducing the dependency on the ability of any single ASRS system to handle a task.
- Benefits of ASRS include increased safety at work, round the clock operations, real-time information of material movement. Other technological advancements include interconnected devices, IoT, touch display, voice-activated devices, sensors, scanners, RFIDs, etc. These advancements are expected to gain traction with other new technologies, such as VR/AR, 3D printing and scanning, robotic arms capable of handling different product sizes/dimensions, etc.
China Enjoys the Biggest Market Pie for Robotics in the World.
- China is one of the biggest markets for robotics in the world. According to the estimations of the International Federation of Robotics (IFR), around 30% of the total supply of industrial robots in 2016 were installed in China.
- These statistics suggest that the consumption of robots in China is close to the total volume of Europe and the Americas together (97,300 units) in 2016. With such high automation rate, easy availability of warehouse robots, and the presence of key vendors in the country, there is an increased demand for these robots in the country.
- Apart from several advantages, the country also faces a considerable threat from local environmental protection laws. The environmental protection tax law, which was hammered in place since the end of 2017, has an adverse impact on many industrial segments. Out of all industries affected, aluminum sector brings most drawbacks.
- The winter smog situation of the country, in 2017, made the Chinese government realize the importance of environmental laws. China, the world's biggest producer of the aluminum (31 million metric ton in 2016), has decided to shut down plants that fail to meet environmental regulations.
The warehouse robotics market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with the prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability.
- July 2018 - ABB Limited announced that it plans to acquire Intrion, based in Brussels, with approximately 120 employees and operating in logistics automation solutions and services for the warehouse and distribution, food and beverage, and pharmaceutical industries. ABB aims to expand its product offerings via this acquisition and is expected to offer solutions, including inline checking, product picking, packing, palletizing, conveying, storage, sorting and sequencing, and order picking.
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