AI in Warehousing Market Trends

Growth Drivers:

• Rapidly increasing e-shopping activities: The expanding online shopping activities and e-commerce boom globally are significantly increasing the workload at the logistics, transportation, and warehousing end. To mitigate the workload and increase operation efficiency and automation, these segments use digital technologies including artificial intelligence. For instance, Research Nester estimates that global e-commerce sales are projected to reach USD 58.7 trillion by 2028. This underscores the need for AI technologies in warehousing to estimate future demands, enhance operations, and offer strategic insights for decision-making.
• Automation and robotics: The integration of robotics technology is one of the latest trends in the AI in warehousing market. Several autonomous robots including drones are equipped with AI to assist in material handling, identifying issues, and material checks. AI along with simultaneous localization and mapping (SLAM) technology offers effective results in finding goods in complex warehousing infrastructure. AI-enabled drones with advanced sensors and cameras also aid in navigating and material transporting purposes within the warehouse.

Challenges:

• Complexity increases investment costs: One of the major factors limiting the use of AI in warehousing is the high initial investment required. The advanced technologies are complex to integrate with existing infrastructure and need skilled technicians, which also contributes to overall costs. The majority of small warehouses or those working on limited budgets resist adopting advanced technologies such as AI.
• Misconception hampering adoption rates: Lack of knowledge of digital technologies particularly among warehouse operators in poor economies is estimated to hamper the artificial intelligence (AI) in warehousing market growth to some extent going ahead. The misconception of AI-enabled devices and equipment also contributes to this.