Warehouse Robots Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Warehouse Robotics Market Analysis

The Warehouse Robotics Market size is estimated at USD 7.93 billion in 2024, and is expected to reach USD 17.91 billion by 2029, growing at a CAGR of 17.70% during the forecast period (2024-2029).

• Expanding SKU Diversity Drives Warehouse Automation: The warehouse robotics market is witnessing accelerated growth driven by the surge in SKU diversity. Over 50% of businesses are expected to increase the number of SKUs to cater to long-tail consumer demands. This trend is reshaping traditional warehouse models, where large-pallet order systems are being replaced by small, multi-SKU orders. To meet this challenge, automated mini-load storage and retrieval systems (AS/RS) are becoming vital. These systems leverage lightweight cranes to manage totes, cases, and crates, optimizing storage and freeing up crucial labor and delivery resources.
• Increase in Warehouse Size: Warehouses have expanded from 65,000 sq. ft in 2000 to over 200,000 sq. ft in 2020 to accommodate the rising volume of SKUs.
• Shift in Retailer-Wholesaler Dynamics: Just-in-time ordering and direct-to-consumer distribution are reducing large-pallet orders, accelerating the need for automation.
• Picking Robots and AGVs: The latest generation of picking robots and Automated Guided Vehicles (AGVs) is ideal for handling small orders spread over vast SKU ranges in large warehouses.
• Surging Investments Fuel Technological Advancements: The influx of capital is propelling warehouse automation technologies forward. Venture capital firms have been actively investing in robotics, with funding for warehouse robotics startups reaching USD 381 million in Q1 2020, a 57% year-over-year increase.
• Locus Robotics’ Expansion: In June 2020, Locus Robotics raised USD 40 million to enhance R&D and expand into the European Union.
• Amazon’s Innovation Hub: Amazon’s investment of USD 40 million to develop a cutting-edge robotics hub in Massachusetts is expected to boost automation advancements.
• Shopify’s Strategic Acquisition: Shopify’s USD 450 million acquisition of 6 River Systems in 2019 expanded its fulfillment capabilities, incorporating cloud-based software and collaborative mobile robots.
• E-commerce Boom Accelerates Adoption: The rapid growth of e-commerce continues to drive the adoption of warehouse robotics. Efficient inventory management and fulfillment operations are becoming critical as online retail surges.
• Projected Market Value: Cowen projects that the U.S. market for warehouse and logistics robots in e-commerce will reach nearly USD 8 billion by 2024.
• New Fulfillment Models: Albertsons and Takeoff Technologies have collaborated to pilot urban fulfillment centers powered by AI and robotics to streamline small urban warehouse operations.
• Kroger’s Expansion: Kroger is planning to open up to 20 customer fulfillment centers in partnership with Ocado, featuring large-scale robot-driven facilities.
• Labor Shortages and Cost Reduction Drive Innovation: Warehouse robotics are being increasingly used to tackle labor shortages and reduce operational costs. Automation helps improve efficiency by reducing unnecessary labor movement and streamlining operations.
• Wasted Motion Costs: U.S. warehouses lose USD 4.3 billion annually due to wasted motion, emphasizing the importance of robotic solutions.
• Industrial Robots Growth: The operational stock of industrial robots is projected to grow from 2,408 thousand units in 2018 to 3,788 thousand units by 2021.
• Alibaba’s Workforce Reduction: By deploying robotic labor, Alibaba reduced its warehouse workforce by 70%, while creating more opportunities for skilled labor.

Warehouse Robotics Market Trends

Mobile Robots (AGVs and AMRs) Largest Segment by Type

Warehouse Robotics Industry Segmentation

Warehouse robotics refers to machines capable of performing specific tasks within a warehouse, to relieve human workers from repetitive and potentially dangerous tasks. The surge in online shopping has led to an exponential increase in demand for robots in warehouse space. These Robots are equipped with advanced AI and automation technologies, which play a pivotal role in streamlining order fulfillment processes, optimizing inventory management, and ensuring swift delivery of cards.

The warehouse robotics market is segmented by type (industrial robots, sortation systems, conveyors, palletizers, automated storage and retrieval system (ASRS), mobile robots (AGVs and AMRs)), by function (storage, packaging, trans-shipment, other functions), by end-user industry (food and beverage, automotive, retail, electrical and electronics, pharmaceutical, other end-user industries) and by geography (North America [United States, Canada], Europe [United Kingdom, Germany, France, Rest of Europe], Asia-Pacific [China, South Korea, Japan, Rest of Asia-Pacific], Latin America, Middle-East and Africa). The market sizes and forecasts are provided in terms of value USD for all the above segments.