Warehouse Automation Market size was valued at USD 18.15 billion in 2023 and is likely to reach USD 120.84 billion by 2036, expanding at around 15.7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of warehouse automation is estimated at USD 20.43 billion. The growth of the market can be attributed to the growing adoption of robotics and automation amongst various end-user industries, and constant development in the field of technology. The technological advancement and new breakthroughs in robotics and automation technology is estimated to primarily drive the market growth. With the rise in the population of consumers, manufacturing of consumer goods has also risen tremendously in the past decade. As a result, there is an up-surge in the number of warehouses to stock and supply goods. The growing emergence of warehouses is estimated to boost the market growth. In the year 2018, around 18,200 warehouses functioned worldwide, up from less than 16,000 in 2014. Along with this, over 40,000 new FMCG stores were launched across the world in the same year. Moreover, reduction in labor costs, and increased working speed are some of the major factors estimated to boost the market growth. In addition to this, the growing cases of accidents in industrial workplaces, especially warehouses, is another major aspect, promoting the adoption of automation in warehouses. According to the data by the International Labor Organization (ILO), over 340 million workplace accidents are caused annually, resulting in 2.3 million deaths. Use of automatic robots and machines lowers the risk of accidents, making warehouses safer to work. This is estimated to further encourage the market growth.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
15.7% |
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Base Year Market Size (2023) |
USD 18.15 billion |
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Forecast Year Market Size (2036) |
USD 120.84 billion |
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Regional Scope |
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The market is segmented by end-user into healthcare, electric & electronics, fast moving consumer goods, and others, out of which, the fast-moving consumer goods (FMCG) segment is anticipated to hold the notable share in the global warehouse automation market over the forecast period on account of owing to the growing demand for consumer goods, backed by rising number of consumers. Moreover, growth in manufacturing industry is expected to boost the segment growth.
Our in-depth analysis of the global warehouse automation market includes the following segments:
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By Component |
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By Application |
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By End-User
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On the basis of geographical analysis, the global warehouse automation market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in Asia Pacific region is estimated to witness noteworthy growth over the forecast period on the back of rapid industrial development, coupled with the growing automotive industry and demand for enhanced material handling solutions in the region. Moreover, growing consumer goods manufacturing industry in the countries, such as, India, Japan, Korea, and China, is estimated to boost the market growth. For instance, manufacturing contributes to around 30% of the economy of China.
The warehouse automation market in the North America region is anticipated to gain the largest market share throughout the forecast period owing to the growing adoption of robotics and automatic technology, along with higher labor cost in the region. Moreover, increasing focus on the adoption of industrial internet of things (IIoT) is also expected to create significant growth opportunities for market growth in the region.
Author Credits: Richa Gupta
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