According to Transparency Market Research, the global warehouse automation solutions industry is set to boom and be valued at USD 94.7 billion by 2031. The industry’s net worth in 2022 was USD 43.8 billion. It is expected to grow at a CAGR of 9.3% by 2031.
The increased adoption of warehouse automation systems in storage facilities across sectors will drive this growth.
The key drivers identified for the rise of warehouse automation are:
1. The increasing demand for consumer goods
2. Rising complexity in production processes
3. The development of e-commerce operations
4. Soaring labour expenses
5. A shortage of labour
Technology will also play an important role in the growth of the sector. Conventional warehouse management systems will give way to cloud-based systems, and Robotics and AI will be adopted on a large scale in warehousing.
Other findings from the report of 2022 include:
In the software segment, the warehouse management and execution sub-segments held 59.1% of the market share.
In the hardware segment, the automated storage and retrieval system (ASRS) accounted for a 26.8% share.
According to warehouse automation solutions market trends, North America and Europe held 34% and 20% of the worldwide market share, respectively.
In the years between 2022 and 2031, there is an expected growth rate of 12.5% for the ASRS sub-segment. This will be triggered by the need to maximize the use of space and the fast-paced growth of the e-commerce industry.
ASRS systems are gaining popularity across industries, including food and beverages, automobiles, personal care, and medicinal products.
Considering geographies, the United States is expected to embrace the fifth industrial revolution by heavily using data for setting manufacturing strategies and implementing them.
This will need efficient warehouse automation systems that can be linked to various manufacturing units throughout the distribution network.
The Asia-Pacific region is also expected to adopt warehouse automation significantly in the coming decade. This will be backed by the rising warehouse sector, the use of automated manufacturing technologies, and the growth of industrial control.
Warehouse automation presents multiple benefits, including reduced business expenditures and fewer product delivery problems. Hence, it will not be surprising to see the industry experience substantial in the upcoming decade. Read more here.