44 n SMART WAREHOUSES June 2026 www.drivesncontrols.com Smart warehousing market is set to quadruple The global market for warehouse automation market was worth $21.7bn in 2024 and is projected to reach $90.7bn by 2034 – a CAGR of 15.1% from 2025 to 2034 – according to a report from Allied Market Research. This trajectory reflects how quickly logistics and supply chain infrastructures are going digital. The warehouse automation market is experiencing rapid acceleration, using robotic systems, AMRs (autonomous mobile robots), AGVs (automated guided vehicles), AI-powered software for managing warehouses, and IoT-equipped devices. Smart warehouses are helping businesses to cut their running costs and curb human errors, and to keep up with the consumer demand for fast, accurate deliveries. More than 70% of warehouses around the world have already implemented some form of automation. For example, there are estimated to be around four million robots of various types already working in more than 50,000 warehouses. According to the report, the warehouse automation market is at an inflection point, propelled by several converging forces. Rising labour costs, rocketing e-commerce growth, and increasing supply chain complexity, have made automation more than a competitive differentiator. It has become a strategic necessity. Among the factors driving the dramatic expansion of the smart warehouse market are: n E-commerce Manufacturers and distributors are under more pressure than ever before to fulfil order volumes faster and more accurately. n The integration of AI and IoT The fusion of AI, machine learning and IoT technologies is driving visibility into inventory in real-time through predictive analytics and warehouse execution adaptability. Warehouse management and execution systems are expected to grow at a CAGR of 21.8% in the period to 2034. n Rising labour costs These are adding further fuel to the fire of warehouse robotics uptake with rising wages paving the way for investment in automation technologies with sub-two-year paybacks. n Supply chain resilience Enterprises are using automation to eliminate human dependency in their logistics operations. n Sustainability Consumer demands for more sustainable goods have increased the need for energy-efficient automation systems using electric-powered robots and AIoptimised routing to reduce carbon emissions. Of the various warehouse automation technologies available, automated storage and retrieval systems are particularly attractive because of their ability to optimise storage space, reduce picking errors, and integrate easily with warehouse management software. They play a key role in e-commerce, pharmaceutical, and manufacturing applications that need highdensity, high-accuracy storage. Other hardware technologies involved in warehouse automation include AMRs, AGVs, conveyors and sortation systems, robots, picking and packing equipment, palletising and de-palletising systems, sensors and scanners. Warehouse software is expected to experience a CAGR of 21.8% in the period from 2023 through 2034, driven by the shift towards data-driven operations and AIintegrated operations. The e-commerce sector accounts for more than half of warehouse automation revenues, mainly because it needs to process large numbers of SKUs, fulfil orders as quickly as possible, and satisfy customer demands for same-day or next-day fulfilment. Other big users include the automotive, food and beverage, pharmaceuticals and fashion sectors. Manufacturers and distributors account for more than 60% of warehouse automation revenues. But retailers are predicted to become the fastest-growing segment as they broaden their networks both to fulfil same-day delivery and manage returns According to Allied, the top ten vendors in the warehouse automation market account for around half of all global revenues. Key players listed in the report include ABB, Honeywell, Dematic (Kion group), Kuka, SSI Schaefer, Fanuc, Jungheinrich, Zebra Technologies (Fetch Robotics), Omron, Schneider Electric, Siemens and Yaskawa. North America accounts for more than 44% of global revenues in warehouse automation, driven by high wages and government support for supply chain modernisation. The German market is predicted to grow at a CAGR of around 15.5% until 2034. n The global market for smart warehouse technologies is expected to more than quadruple in the period to 2034, when it will be worth more than $90bn. This growth is being driven by a combination of factors including the relentless rise of e-commerce, the arrival of AI-driven logistics platforms, and the emergence of smart supply chain technologies AMRs are increasingly being used of warehouse automation systems
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