1. Market Research
  2. > Robotics Market Trends
Warehouse Robotics Market - Growth, Trends, Forecasts (2020 - 2025)

Warehouse Robotics Market - Growth, Trends, Forecasts (2020 - 2025)

  • October 2020
  • 191 pages
  • ID: 5982346
  • Format: PDF
  • Mordor Intelligence LLP

Summary

Table of Contents

Search Inside

The global warehouse robotics market was valued at USD 3,580.32 million in 2019 and it is expected to reach USD 6,858.05 million by 2025, registering a CAGR of 11.54%, during the period of 2020-2025. The emergence of the Industrial Internet of Things (IIoT) and the advent of a network of connected systems are helping industries perform a multitude of tasks, such as material batching, picking, ordering, packaging, warehouse security, and inspection, as well as improve the operational efficiency by huge margins.

- The growth in the e-commerce industry worldwide and the growing need for efficient warehousing and inventory management is driving the market growth. Automation in warehousing offers extreme convenience when it comes to cutting down overall business costs and reducing errors in product deliveries. According to DHL, a prominent 3PL company and a significant end-user of warehouse automation solutions, despite the advantages, 80% of warehouses are “still manually operated with no supporting automation.” Further, warehouses, i.e., those that use conveyors, sorters, pick and place solutions, among other equipment(not necessarily automated), account for 15% of total warehouses. In contrast, only 5% of current warehouses are automatic.
- Significant technological advancements, such as sensors technologies which enable an enhanced object perception and an accurate positioning system, have made way for the robotics industry to explore the untapped potential in various warehousing applications, while attaining an optimal operational flow and logistics efficiency, among other accomplishments, across the different industry verticals.
- According to the Bank of America, it is estimated that by 2025, 45% of all manufacturing tasks will be executed by robotic technology. With this emerging trend, large firms, such as Raymond Limited, which is a major Indian textile company and Foxconn Technology which is a China-based supplier for large technology manufacturers like Samsung and others have replaced 10,000 and 60,000 workers, respectively, by incorporating automated technology into their factories.
- These factors have had a direct impact on the increasing adoption of warehouse robotics as well. The rising number of warehouses, increasing investments in warehouse automation, coupled with the global rise in labor costs and availability of scalable technological solutions, have been driving the market for warehouse robots across the globe. For instance, prominent logistics brands in the United States, like DHL, XPO Logistics, and NFI Logistics, are investing in expansion activities, despite the adverse commercial renting climate.
- With the spread of the Covid-19 pandemic, robots and automation are already playing a critical role in managing the situation. Further, the situation is likely to bring new opportunities to the market. A British online grocer, Ocado, is aiming to make its warehouse robotics and grocery home-delivery technology available to other supermarkets for a licensing fee. The company has witnessed its stock rise by 7.6% since the end of 2019 and believes that the company will benefit from the increasing demand for home deliveries during the pandemic.
- While significant advances have been accomplished in robotics, the human workforce still holds the upper-hand in running a well-organized warehouse. Forecast of long-term labor shortages across the United States and Europe, as well as sustained pressure on supply chains to deliver orders quicker and more precisely, has caused operations executives to seriously assess that question as they look for answers to staffing challenges.

Key Market Trends
Increasing Number of SKUs

- An increasing number of SKUs (stock-keeping units) is quite common in the industry, as there is a constant introduction of new products on a regular basis. The luxury of customization and the growing number of consumer choices through the e-commerce platform has pushed the demand for an expanded inventory, with a host of options and styles available at the disposable of the e-commerce retailers for dispatch on request.
- According to the Materials Management & Distribution Report, Just-in-time ordering, direct-to-consumer distribution, and shifting retailer-wholesaler relationships are decreasing the number of large-pallet orders received by distributors. In turn, the growth of small, multiple SKU orders is forcing warehouses to automate.
- Automated, efficient mini-load storage and retrieval systems (AS/RS) address this market challenge by employing lightweight cranes that can sort individual totes, cases, trays, and crates while optimizing storage and releasing key delivery and labor resources. These systems maximize supply chain efficiency through the automation of key processes, including goods arrival, maximized inventory storage, and the fulfillment of outbound shipping orders.
- To meet the demand for home delivery (or curbside delivery), warehouses are increasing in size. The average size of warehouses in 2000 was around 65,000 square feet, compared to >200,000 square feet in 2020. The increase in size helps warehouses to cope with higher volumes and a growing number of SKUs.

Asia Pacific is expected to hold significant market share

- According to the World Robotics report presented by the International Federation of Robotics (IFR) in September 2019, Asia is the world’s largest industrial robot market. China remains as the largest industrial robot market with a market share of 36% of total installations. In 2018, about 154,000 units were installed, which is 1% less compared to the previous year, but more than the number of robots installed in Europe and the Americas together and Japan’s robot sales increased by 21% to about 55,000 units, representing the highest value ever for the country.
- According to IFR, the operational stock of industrial robots is expected to reach 3788 (in thousand units) by 2021 from 2408 (in thousand units) in 2018. For instance, Alibaba, the world’s largest retailer based out of China, has upgraded to robotic labor in one of its warehouses, which has resulted in drastically reducing the labor workforce by 70%, creating an opportunity for a highly-skilled workforce.
- South Korea’s population is aging rapidly, and by the middle of this century, it will have one of the oldest populations out of all Organisation for Economic Co-operation and Development countries, just behind Japan, Italy, and Greece. Due to this, most of the manufacturing units are implementing industrial robots to maintain competitiveness.
- Owing to strong technological and mobile adoption, the country is one of the biggest e-commerce markets worldwide, with over 25 million e-shoppers in the country; South Korea stands third in GDP rankings.
- In December 2019, OOCL Logistics launched AI-equipped “EVE” robots in Ibaraki, Japan. The newly developed smart warehouse is northeast of Tokyo and will be a major logistics hub for OOCL Logistics (Japan) Ltd. The company has added 39 Automated Guided Vehicle (AGV) warehouse management robots called “Electric Vehicle” (EVE) on the first floor of the new Ibaraki warehouse to overcome labor shortages and increase the efficiency. The company is leveraging AI and the adoption of robotic process automation and customized technologies to improve operational performance, eliminate manual errors, and reduce costs.

Competitive Landscape
The warehouse robotics market is moderately fragmented and consists of highly competitive players. In terms of market share, few of the major players such as ABB Ltd, Honeywell, and Kiva Systems currently dominate the market. These major players with a significant share in the market are expanding their customer base across various regions and many companies are forming strategic and collaborative initiatives with various start-up companies to increase their market share and their profitability.

- February 2020 - ABB Limited and Covariant announced a partnership to bring AI-enabled robotics solutions to market, starting with a fully autonomous warehouse order fulfillment solution and the partnership brings together the two companies with a common vision for robotics enabled by AI, where intelligent robots work alongside humans in dynamic environments, collectively learning and improving with every task completed.
- September 2019 - Honeywell had signed an agreement with retail supply chain services provider “The Apparel Logistics Group” to help the company in the expansion of the e-commerce order output at its distribution center in Dallas. Under this agreement, The Apparel Logistics Group, which engages in third-party logistics and order fulfillment services for apparel, footwear, and accessories will incorporate Honeywell ’s automated material handling solutions.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Grace helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at [email protected] to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - [email protected] or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

ref:plp2020

Reportlinker.com © Copyright 2022. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on