PUBLISHER: UnivDatos Market Insights Pvt Ltd | PRODUCT CODE: 1122984
PUBLISHER: UnivDatos Market Insights Pvt Ltd | PRODUCT CODE: 1122984
The Global Warehouse Automation Market is expected to witness an exponential CAGR of ~12% during the forecast period (2021-2027). This is mainly due to the rising focus of enterprises on industrial automation and improving workplace safety coupled with substantial growth of the presence of a huge intralogistics sector in emerging economies. These systems provide efficient, cost-effective movement of products and materials, within predetermined, safe parameters - making them ideal for use in warehouses, in any instance where repetitive, time-efficient operations are critical. Warehouse robots can help e-commerce companies to achieve their targets of faster delivery without compromising the quality of packaging. Since the e-commerce and manufacturing industry is growing at a prominent growth rate, the market for warehouse automation is also expected to grow at an influential growth rate. Furthermore, major players in the market are focusing on the launch of new and advanced products to improve shipping speed and accuracy for organizations integrating systems in their facilities.
COVID-19 slowed the overall growth of various industries including manufacturing, and automotive, and disrupted the supply chain and logistics sector across geographies. The countries were forced to implement lockdowns during the first half of 2020. The manufacturing industry witnessed a significant drop in earnings and income as a result of the COVID-19 pandemic. Business operations saw a large reduction in workforce, resulting in an overall loss in manufacturing activity. However, to tackle the challenges of a restricted workforce amid the lockdowns and reduce the chances of transmission of COVID-19 in labor-intensive industries, major stakeholders in the ecosystem started integrating automation technologies systems and solutions in warehouses, to increase operational efficiency and meet their respective growth targets.
Daifuku Co. Ltd., JBT Corporation, KION GROUP AG, Jungheinrich AG, KNAPP Group, Toyota Industries Corporation, KUKA AG, Oceaneering International Inc., Fritz SCHAFER GmbH & Co KG, and Scott Technology Limited are some of the key players in the market. Several strategic measures have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Based on component, the market has been categorized into hardware, software, and service. Amongst these, the hardware category held a significant market share in 2020 and is expected to witness strong growth during the forecast period. This is mainly due to the growing adoption of AMRs. The increasing preference for e-commerce shopping platforms and the growing need for enhancing the efficiency of warehouses have led companies to focus on automation of operations. Further, the growth of the segment is influenced by the factors such as increasing demand for automated warehouses and automated material handling equipment coupled with the flexibility of these hardware systems and the wide range of tasks they can perform.
Based on industry, the market is classified into automotive, manufacturing, food & beverages, aerospace, retail, and others. Amongst these, the retail industry is expected to witness the highest CAGR during the forecast period. The rapid rise of global e-commerce in areas such as online retailing combined with high urban density and elevated customer expectations for shorter delivery times have forced retail companies to integrate new material handling and automated solutions. Mobile robots and automated storage & retrieval system are automation solutions that ease the increasing pressure that is felt by online retailers to get orders out to customers more efficiently while reducing fulfillment costs.
In 2020, APAC held a lucrative market share owing to the rapid growth of e-commerce, healthcare, and logistics sectors in emerging economies, such as China and India. For instance, in India, the growth of the industry has been triggered by an increase in internet and smartphone penetration. The number of internet connections in 2021 increased significantly to 830 million.
In 2020, China held the largest revenue share in APAC warehouse automation market. This can be attributed to the accelerated industrialization and increased expenditure on advanced and automated solutions in the country. Furthermore, with the rapid growth of downstream industries such as e-commerce and logistics and the rising costs of land, labor, and raw materials, the warehousing industry in China has been witnessing a substantial shift towards automated equipment to improve efficiency and manage the increased workload. Furthermore, major investors and venture capitalists are investing heavily in new-age start-ups developing robots and AGVs in the country. For instance, in April 2022, Beijing J-Elephant Technology Co. Ltd., a mobile robot manufacturer in China announced that it has secured nearly US$ 15 million (CNY 100 million) in angel and pre-A financing rounds. The angel round featured joint contributions from Sequoia China Seed Fund, Legend Star, and Sinovation Ventures.
Global warehouse automation market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.