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The warehouse robotics market size is forecast to increase by USD 4.75 billion and is estimated to grow at a CAGR of 14.76% between 2023 and 2028. In today's business landscape, the need for efficient distribution channels is paramount for companies to remain competitive. Automation and industrialization have significantly increased productivity and reduced costs, leading to a surge in their adoption. Small and medium-sized enterprises (SMEs) are also joining the bandwagon by integrating robots into their operations. Robots offer numerous benefits, including improved accuracy, reduced labor costs, and increased productivity. By automating repetitive tasks, SMEs can focus on core business activities, enabling them to scale and grow more effectively. The integration of robots in distribution channels enhances efficiency, ensuring timely delivery of products and reducing the likelihood of errors. This not only improves customer satisfaction but also helps in gaining a competitive edge in the market.
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The market is witnessing significant growth due to the increasing demand for automation in various industries, including manufacturing, aerospace, e-commerce, and logistics. Venture capitalists are heavily investing in robotics technology to reduce setup costs and infrastructure requirements. The market encompasses various types of robots, such as Parallel Robots and Cartesian Robots, each with distinct payload capacities and applications. Robotics in warehouses are primarily used for sorting and moving goods. Companies like Locus Robotics, Fetch Robotics, and Scallog offer advanced systems to optimize warehouse operations. These systems integrate with Warehouse Management Systems, Warehouse Execution Systems, and Warehouse Control Systems, enhancing overall efficiency. Major players in the market include manufacturers of Programmable Logic Controllers, Microprocessors, and Microcontrollers, such as Siemens, Rockwell Automation, and Schneider Electric. The market is expected to grow further with acquisitions and collaborations, as well as the development of Intelligence Cloud solutions. Industries like Electrical and Electronics, Metal, Chemical, Rubber, and Plastics are major consumers of warehouse robotics technology. The market is expected to continue its growth trajectory, driven by the increasing need for automation and the integration of advanced technologies like Artificial Intelligence and Machine Learning. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Need for efficiency in distribution channels is notably driving market growth. The escalating trend towards advanced distribution methods is fueling the adoption of warehouse robotics. Autonomous robots have emerged as a preferred solution for businesses in sectors such as courier services, food chains, and e-commerce, given the growing consumer preference for quick delivery.
Moreover, with the global parcel delivery market valued at approximately USD83.65 billion (excluding pickup, line-haul, and sorting), major players like China, the US, and Germany hold over 40% of the market share. Retailers, e-commerce companies, and manufacturers are under pressure to meet consumer demands while keeping operational costs in check. Thus, such factors are driving the growth of the market during the forecast period.
Rise in adoption of industrial Internet of things (IIoT) technology in robotics is the key trend in the market. Warehouses are integrating advanced technologies to enhance productivity and efficiency. One such technology is the deployment of Internet of Things (IoT) devices in warehouse robotics. These devices enable the collection of real-time data, which can be analyzed to optimize operations.
Moreover, the integration of IoT systems in warehouse robotics involves the use of intelligent devices, data infrastructure, and cloud-based applications. The data gathered from various sensors installed in the production system, including warehouse robotics, can be analyzed to assess manufacturing productivity and speed. This information can be instrumental in making informed business decisions and improving overall performance. Thus, such trends will shape the growth of the market during the forecast period.
Malfunctioning of robots is the major challenge that affects the growth of the market. Warehouses have increasingly adopted robotics to streamline operations and enhance productivity. However, the integration of these advanced technologies comes with potential risks. Malfunctions or intentional attacks on warehouse robotics can pose harm to individuals in the vicinity.
Moreover, external threats, including theft and cyberattacks, are growing concerns for buyers. Vulnerabilities such as unsecured control communications, authentication issues, and insufficient authorization have been identified in current robotics, increasing the risk of hacking and harmful programming. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers warehouse robotics such as Flexbuffer.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The e-commerce segment is estimated to witness significant growth during the forecast period. Warehouse Robotics refers to the integration of robotics technology in the management and operation of warehouses and distribution centers. Venture capitalists have shown significant interest in this sector due to its potential for increasing efficiency and reducing setup costs in manufacturing, aerospace, sorting, and e-commerce industries.
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The e-commerce segment was the largest segment and valued at USD 1.33 billion in 2018. Infrastructure requirements for implementing warehouse robotics include programmable logic controllers, microprocessors, and microcontrollers, as well as a robust Warehouse Management System (WMS), Warehouse Execution System (WES), and Warehouse Control System (WCS). Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Warehouse Robotics refers to the integration of robotic systems and automation technologies in the management and operation of warehouses and distribution centers. Venture capitalists have shown significant interest in this sector due to its potential for increasing efficiency and reducing costs in manufacturing, aerospace, sorting, and e-commerce industries. Setting up a warehouse robotics system involves substantial infrastructure requirements, including the installation of programmable logic controllers, microprocessors, and microcontrollers, as well as the integration of a warehouse management system, warehouse execution system, and warehouse control system. Hence, such factors are driving the market in APAC during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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Warehouse robotics refer to automated systems designed to streamline and optimize warehouse operations. These robots are increasingly being adopted by various industries, including manufacturing, aerospace, e-commerce, and more. Venture capitalists have taken notice of this trend, injecting significant funds into the market. Robotics technology, such as collaborative robots, parallel robots, and cartesian robots, are key players in this market. The setup costs and infrastructure requirements for implementing these systems can be substantial, but the benefits, including increased efficiency, accuracy, and productivity, often outweigh the initial investment. The market is driven by the need for automation in industries with high demand for sorting and heavy payload capacity.
Moreover, companies like Locus Robotics and Fetch Robotics offer innovative solutions with their Locus Robotics System and Fetch Robotics Freight, respectively. The integration of IoT and cloud computing in warehouse management systems, warehouse execution systems, and warehouse control systems has revolutionized the industry. Additionally, the use of programmable logic controllers, microprocessors, and microcontrollers enhances the intelligence of these systems. The Scallog System integrates with the Programmable Logic Controller to enhance warehouse safety during the economic downturn, ensuring efficient operations and risk mitigation strategies. Industries like electrical and electronics, house, metal, machinery, chemical, rubber, and plastics are major consumers of warehouse robotics. However, economic downturns can impact the market's growth. Safety concerns are also a significant factor, with companies investing in advanced safety features. Acquisitions and mergers have been common in the market, with companies like GEODIS and Locus Robotics making strategic decisions to expand their offerings. Pallet unloading technology is a growing sub-segment, with companies focusing on developing efficient and cost-effective solutions. Historical data indicates a steady growth trend for the market, making it an attractive investment opportunity for businesses and investors alike.
Market Scope |
|
Report Coverage |
Details |
Page number |
144 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.76% |
Market growth 2024-2028 |
USD 4.75 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.55 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 51% |
Key countries |
China, US, Japan, Germany, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Daifuku Co. Ltd., FANUC Corp., Geekplus Technology Co. Ltd., Hangzhou Hikvision Digital Technology Co. Ltd., IAM Robotics, inVia Robotics Inc., John Bean Technologies Corp., KION GROUP AG, KNAPP AG, KUKA AG, Locus Robotics Corp., Magazino GmbH, Murata Machinery Ltd., OMRON Corp., SSI Schafer IT Solutions GmbH, Teradyne Inc., Toyota Industries Corp., Vecna Robotics Inc., and Yaskawa Electric Corp. |
Market dynamics |
Parent market analysis, market report, market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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