Timothy Owens
Senior research Lead covering technology and telecoms
Warehouse automation market worldwide - statistics & facts
Warehouse automation is the practice of automating the movement of goods inside and outside a warehouse with minimum human participation to eliminate repetitive and labor-intensive tasks. When we think about warehouse automation, one can imagine robots roaming around the warehouses but in many cases, it can involve replacing manual tasks with software solutions. Warehouse automation may have significant initial costs but there are also many advantages like speed, efficiency, and human error reduction.
E-commerce is a major factor
Online sales in the retail sector are expected to reach over 6.3 trillion U.S. dollars by 2024 and with the coronavirus pandemic fueling the need for online shopping, the demand for warehouse automation solutions has never been greater. Automation is becoming an increasingly attractive option, but also more accessible for companies operating in logistics, distribution, and parcel shipping. With rising logistics costs, more and more countries are investing in warehouse automation solutions.Warehouse automation technologies
The technologies used in warehouse automation can range from simple replacement tasks such as using conveyor belts or carousels to complex technologies like machine learning, robotics, and Artificial Intelligence (AI). However, the implementation of such technologies requires a significant financial investment in hardware and software, as well as the time and costs associated with the implementation of new systems and employee training.Dematic and Honeywell lead the way
Automation companies such as Dematic and Honeywell are leading in the warehouse automation market. With a market share of nine percent, the U.S. supplier of material handling solutions, Dematic generated revenue to the tune of two billion U.S. dollars in 2020. Closely following, Honeywell had a market share of six percent in 2020.
