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Warehouse automation market to hit $55b by 2030
One driving factor includes the e-commerce boom.
The warehouse automation market is projected to reach $55b by 2030, growing at a compounded annual growth rate (CAGR) of 15% between 2024 and 2030, according to LogisticsIQ’s.
This growth is fuelled by factors such as the e-commerce boom, the rise of multichannel distribution channels, increasing digital services, expanding e-grocery penetration and dark stores, globalisation of supply chains, the emergence of autonomous mobile robots (AMRs), and the rising demand for same-day or same-hour delivery.
In 2021, warehouse automation companies experienced a surge in order intake, but revenue growth was limited due to supply chain disruptions. As a result, 2022 saw a backlog of orders, which began to clear in 2023, although macroeconomic uncertainties slowed the recovery, LogisticsIQ noted.
Whilst order volumes began to rise again this year, investments have been cautious due to inflation, low consumer spending, and geopolitical tensions. However, the report forecasts a rebound in order volumes by 2025 as retailers adapt to growing consumer demand.
Recent years have seen the emergence of advanced technologies such as automated picking systems, mobile manipulators, and automated cold storage solutions, which are being adopted by major retailers like Walmart, Kroger, Amazon, Ocado, and Carrefour to improve their supply chain capabilities.
Additionally, new piece-picking technologies have been developed to automate order picking, one of the least automated processes in existing warehouses.
The report also projects that the market for automated guided vehicles (AGVs) and AMRs will grow at a CAGR of over 20% by 2030, with these technologies expected to capture more than 20% of the market share. Additionally, the sector is likely to see increased consolidation and mergers and acquisitions as larger system integrators seek to enhance their product portfolios.
