US Warehouse Automation Market Size Likely to Reach at a CAGR of 10.32% By 2033

As per the current market research conducted by the CMI Team, the US Warehouse Automation Market size is expected to record a CAGR of 10.32% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 7.12 Billion. By 2033, the valuation is anticipated to reach USD 17.23 Billion.

Warehouse Automation Market: Growth Factors and Dynamics

The warehouse automation market presents significant growth opportunities due to several factors:

• Increasing Demand for Efficiency: As consumer expectations for fast and accurate order fulfilment rise, businesses are turning to warehouse automation to enhance operational efficiency. Automated systems can streamline processes, reduce errors, and improve order accuracy, making them an attractive investment for companies aiming to meet these high standards.

• E-commerce Boom: The rapid growth of e-commerce has created a surge in demand for automated warehouses. With the need for quicker processing and dispatching of online orders, automation solutions are essential for managing large volumes of goods and ensuring timely deliveries.

• Labor Shortages and Cost Savings: Rising labour costs and shortages are driving companies to adopt automation to reduce dependency on human labour. Automated systems can operate around the clock without the need for breaks, holidays, or shifts, providing consistent productivity and significant cost savings over time.

• Technological Advancements: Innovations in robotics, AI, IoT, and cloud computing are enhancing the capabilities of warehouse automation systems. These advancements enable more sophisticated and flexible solutions, allowing warehouses to adapt to changing demands and improve overall performance.

• Customization and Flexibility: Modern warehouse automation solutions offer customizable and scalable options that can be tailored to the specific needs of different industries. This flexibility allows businesses to implement automation incrementally and adapt systems as their operations grow or change.

• Sustainability and Eco-friendly Practices: There is a growing emphasis on sustainable and eco-friendly practices within the supply chain. Automated warehouses can contribute to sustainability efforts by optimizing space utilization, reducing energy consumption, and minimizing waste through more efficient operations.

• Urbanization and Infrastructure Development: Rapid urbanization and the development of modern infrastructure in major cities create opportunities for automated warehouses to serve densely populated areas efficiently. This proximity to urban centres reduces transportation costs and delivery times.

• Lower Barriers to Entry: The declining cost of automation technologies makes it more accessible for small and medium-sized enterprises (SMEs) to invest in automated solutions. This democratization of technology allows a broader range of businesses to benefit from the advantages of warehouse automation.

• Enhanced Data Analytics and Decision Making: Automated warehouses equipped with advanced sensors and data collection tools provide valuable insights into operations. This data can be analyzed to optimize workflows, predict maintenance needs, and improve decision-making processes.

• Integration with Digital Platforms: The integration of warehouse automation with digital platforms and enterprise systems enhances overall supply chain visibility and coordination. Real-time data sharing and collaboration across different stages of the supply chain improve efficiency and responsiveness.

Warehouse Automation Market: Partnerships

• In May 2024, Geekplus, a mobile robot and smart logistics solution, partnered with Blueskye Automation to deploy a fully automated smart warehouse solution powered by the Geekplus suite of Goods-to-Person mobile robots for a Georgia-based 3PL. The initial deployment helped a 3PL specializing in the e-commerce and wholesale fulfillment business meet ballooning e-commerce sales and navigate severe labor shortages.

• In February 2024, Movu Robotics, a provider of warehouse automation solutions, announced a strategic partnership with supply chain integration company peaklogix, an Alta Material Handling company. Through this partnership, Movu Robotics and peaklogix can offer the benefits of Movu’s plug-and-play robotics portfolio as part of their solutions for customers in the North American market.

• In January 2024, Honeywell announced a partnership with Hai Robotics to deliver flexible, high-density storage and retrieval solutions to distribution centers (dcs). The alliance couples Hai’s innovative robotics technology with Honeywell’s Momentum Warehouse Execution Software enhanced cybersecurity capabilities and experience integrating robotics solutions. Additionally, it supports Honeywell’s portfolio alignment to three compelling megatrends: automation, the future of aviation and energy transition.

Report Scope

Warehouse Automation Market: COVID-19 Analysis

The COVID-19 pandemic has had a profound impact on the warehouse automation market, presenting a blend of challenges and opportunities. Key effects include:

• Increased Demand for E-commerce: Lockdowns and social distancing measures led to a surge in online shopping, significantly boosting demand for efficient warehouse operations. This has accelerated the adoption of automation technologies to handle increased order volumes and ensure timely deliveries.

• Supply Chain Disruptions: Warehouse automation providers faced challenges in sourcing components and materials due to global supply chain disruptions. This led to delays in the implementation of automation systems and increased costs for components.

• Workforce Safety and Efficiency: Ensuring the safety of warehouse workers became a priority, prompting the adoption of automation to reduce human contact and maintain social distancing. Automation solutions helped maintain productivity while adhering to health and safety regulations.

• Regulatory Adjustments: Adapting to new health and safety regulations required additional investments in automation to ensure compliance. This included implementing contactless solutions and enhancing cleaning protocols for shared equipment.

• Surge in Demand for Essential Goods: The pandemic led to a heightened demand for essential goods such as medical supplies and groceries. Automated warehouses played a crucial role in managing the increased demand and ensuring the efficient distribution of these items.

• Business Model Innovations: Warehouse automation providers diversified their offerings to include flexible and scalable solutions that cater to the evolving needs of businesses during the pandemic. Some introduced subscription models and pay-per-use options to make automation more accessible.

• Enhanced Digital Integration: Leveraging IoT, AI, and cloud-based platforms, warehouse automation companies improved real-time monitoring and management of operations. This enhanced visibility and control helped businesses navigate the uncertainties of the pandemic.

• Product Diversification: By adapting to changing market needs and integrating advanced technologies, warehouse automation providers successfully diversified their product offerings. This included developing solutions for cold storage, micro-fulfillment centers, and last-mile delivery hubs.

In summary, the COVID-19 pandemic brought both challenges and opportunities to the warehouse automation market, prompting operators to innovate and adapt to the changing landscape. The need for increased efficiency, safety, and flexibility drove the accelerated adoption of automation technologies, positioning the market for continued growth in the post-pandemic era.

List of the prominent players in the US Warehouse Automation Market:

• Honeywell Intelligrated
• Dematic (KION Group)
• Swisslog (KUKA AG)
• Daifuku Co. Ltd.
• SSI Schaefer
• TGW Logistics Group
• Vanderlande Industries
• Knapp AG
• Murata Machinery
• Bastian Solutions (Toyota Advanced Logistics)
• MHS Global
• Fetch Robotics
• 6 River Systems (Shopify)
• Locus Robotics
• GreyOrange
• Others

The US Warehouse Automation Market is segmented as follows:

By Automation Type

• Automated Storage and Retrieval Systems (AS/RS)
• Automated Guided Vehicles (AGVs)
• Conveyor Systems
• Sortation Systems
• Robotics Systems
• Shuttle Systems

By Function

• Storage and Retrieval
• Transportation
• Sorting
• Picking
• Packing
• Palletizing and Depalletizing

By Component

• Hardware
• Software
• Services

By Deployment Mode

• On-Premises
• Cloud-Based

By Operation Mode

• Fully-Automated
• Semi-Automated