Warehouse Automation Market to Double by 2025

automation market

Automation is spreading rapidly throughout the logistics world. From the integration of robotic technology to WMS platforms that streamline order fulfillment, automation plays a prominent role in warehouses across the globe.

In fact, a recent LogisticsIQ market research study revealed that the global warehouse automation market will nearly double in just a few short years. The numbers show that it will go from roughly $13 billion in 2019 to an estimated $27 billion by 2025. And this isn't slow growth, either as it is expected to grow at a CAGR of 11.5% between now and 2025.

But what exactly is driving this growth? Better yet, how can you best prepare for it?

Let's take a look at a few of the key indicators and findings that came up in the LogisticsIQ report...


The Key Findings from the LogisticsIQ Report on Warehouse Automation 

Nowadays, customers expect and actively seek quicker, faster, and more affordable fulfillment solutions. This means that any company that ships products to consumers must find a way to keep a competitive edge. 

And this is where automation solutions come into play.

Many warehouse automation solutions, according to this LogisticsIQ report, are built for scale and delivering higher output with more accurate order fulfillment than a manual setup. And it can do it all at lower than normal operating costs. 

These platforms allow warehouses to meet growing consumer demands, improve efficiency and reduce costs at the same time.

Overall, the report discovered that there is a growing interest and need for warehouse automation technology. And with the growth of e-commerce, it is really no surprise that there is such high demand. Since online retail is focused on reducing the cost of inventory management and expedited delivery options, automation is a no-brainer.

Here are a few other notes that were highlighted in this report:


Scalable Solutions are the Key

One of the biggest hurdles to full warehouse automation is the initial investment. There is equipment and software to be purchased and operators to be trained.

However, the initial overhead costs will pay for themselves in the long-run. Since the automation market is expected to boom over the next few years, we recommend that warehouses invest in scalable platforms that will be resilient to age.


The Expansion of Online Grocery Delivery

Another major influencer for the expansion of warehouse automation is the online grocery sector.

Basically, this sector of the industry involves shipping fresh products, commonly stored in temperature-controlled warehouses and delivered directly to customers by third-party services.

Warehouse automation is used to determine which option is best for the retailer, as well as the customer. If the customer requires same-day delivery, the automated platforms can match them with the best local delivery agent.


Need for Automated Palletizing Solutions

Lifting, bending, and pulling are some of the most reported warehouse injuries.

Stacking, loading, and unloading pallets are some of the most strenuous tasks handled by warehouse workers. Modern robotic technology is actively trying to combat these issues via robust and automated palletizing solutions. 


Introduction of Automated Delivery Services

Finland, Sweden, and several other European countries have actively embraced automated transportation.

Pending regulatory changes in the US and North America, along with constant testing, indicate that automated delivery services are just around the corner. The lack of qualified replacement CDL drivers for truck driving positions is another indicator that the automation market is poised for rapid growth over the next few years.