The Latest Warehouse Automation Industry Statistics Explained
The global warehouse automation market was valued at approximately USD 14.47 billion in 2019.
The statistic indicates that in 2019, the total value of the global warehouse automation market was estimated to be around USD 14.47 billion. This figure signifies the significant size and economic impact of the warehouse automation industry, which encompasses various technologies and systems designed to streamline and improve the efficiency of warehouse operations. The market value suggests a growing demand for automation solutions in warehousing, driven by factors such as the need for increased efficiency, cost savings, and the adoption of emerging technologies like robotics and artificial intelligence in supply chain management.
The warehouse automation industry is forecasted to have a compound annual growth rate (CAGR) of 14% over the period 2020-2025.
The statistic that the warehouse automation industry is forecasted to have a compound annual growth rate (CAGR) of 14% over the period 2020-2025 indicates that the industry is expected to experience significant growth over the next five years. This CAGR implies that the industry’s revenue or market size is estimated to increase by an average of 14% per year during this period. The forecast suggests a strong demand for warehouse automation solutions due to factors such as technological advancements, the need for efficient supply chain management, and the increasing adoption of e-commerce. Companies operating in this industry may benefit from this projected growth by expanding their offerings, investing in research and development, and capitalizing on emerging opportunities in the market.
The Asia-Pacific region is going to witness the fastest growth in warehouse automation, thanks to the increasing e-commerce and manufacturing activity.
The statistic indicates that the Asia-Pacific region is poised to experience the most rapid expansion in warehouse automation compared to other regions globally, largely attributed to the escalating levels of e-commerce and manufacturing operations in the region. This trend suggests a shift towards enhancing operational efficiency and productivity within warehouses as businesses in the region strive to meet the growing demands of online retail and industrial production. The increasing adoption of automation technologies in warehouses in the Asia-Pacific region is likely driven by the need to streamline logistics processes, bolster supply chain capabilities, and improve overall business performance in response to the evolving market dynamics and customer expectations in the digital age.
Warehouse automation can increase order accuracy by nearly 99.9%.
The statistic that warehouse automation can increase order accuracy by nearly 99.9% indicates a significant improvement in the precision and reliability of order fulfillment operations through the implementation of automated technologies in warehouse management systems. By leveraging robotics, AI, and other automation technologies, warehouses can streamline picking, packing, and shipping processes, leading to a substantial reduction in errors typically associated with manual handling. This statistic suggests that automation can enhance operational efficiency and boost customer satisfaction by drastically reducing order inaccuracies, ultimately resulting in higher service quality and improved overall performance of the warehouse.
North America holds the largest warehouse automation market share.
The statistic ‘North America holds the largest warehouse automation market share’ indicates that within the global warehouse automation industry, North America accounts for the largest proportion of market activity and revenue. This suggests that North American companies and organizations lead in the adoption and implementation of automation technologies in their warehouse operations compared to other regions around the world. The dominance of North America in this market may be attributed to factors such as high levels of technological advancement, efficiency-driven business practices, strong logistical infrastructure, and a large number of e-commerce and retail companies that benefit from automated warehouse systems to streamline their operations and meet customer demands effectively.
Grocery segment of Warehouse Automation Industry is expected to grow at a CAGR of 14.4% during 2018-2022.
The statistic indicates that the grocery segment within the Warehouse Automation Industry is projected to experience a Compound Annual Growth Rate (CAGR) of 14.4% over the period from 2018 to 2022. This growth rate suggests a strong and steady expansion of automated systems and technologies within the grocery sector, driven by factors such as increasing demand for efficient warehouse operations, rising adoption of automation to improve productivity and reduce labor costs, and the need to meet growing consumer expectations for faster and more accurate order fulfillment. This growth trend highlights the significant opportunities and investments in automation technology within the grocery industry, reflecting a shift towards more advanced and streamlined logistics processes to meet the evolving needs of the market.
Automated Guided Vehicle (AGV) integration in warehouse automation is predicted to grow at a CAGR of more than 15% from 2019 to 2026.
This statistic indicates that the incorporation of Automated Guided Vehicles (AGVs) within warehouse automation processes is expected to experience a Compound Annual Growth Rate (CAGR) exceeding 15% between the years 2019 and 2026. This forecast suggests a substantial increase in the adoption and utilization of AGVs for tasks such as material handling, transportation, and inventory management within warehouse settings. The high growth rate projected for AGV integration highlights the growing importance of automation technology in streamlining warehouse operations, enhancing efficiency, reducing costs, and improving overall productivity in the logistics and supply chain industry.
76% of businesses plan to increase their warehouse sizes.
The statistic ‘76% of businesses plan to increase their warehouse sizes’ indicates that a significant majority of businesses surveyed have intentions to expand their warehouse capacities. This suggests an overall trend towards growth and expansion in the business sector, possibly driven by increasing demand for goods and services or operational efficiency improvements. The planned warehouse size increases could reflect expectations of future business growth, the need to accommodate larger inventories, or a desire to streamline supply chain operations. This statistic highlights a positive outlook for these businesses and may imply potential opportunities for economic expansion and job creation in related industries.
The warehouse management system market is expected to grow from USD 2.06 Billion in 2018 to USD 3.23 Billion by 2023, at a Compound Annual Growth Rate (CAGR) of 9.3% during the forecast period.
The statistic regarding the warehouse management system market indicates that there is projected growth in the market size over a five-year period from 2018 to 2023. Specifically, the market is expected to increase from USD 2.06 Billion in 2018 to USD 3.23 Billion by 2023, representing a Compound Annual Growth Rate (CAGR) of 9.3%. This growth rate signifies a steady expansion in the demand for warehouse management systems driven by factors such as increasing adoption of automation and digitalization in supply chain management, the need for improved efficiency and productivity in warehouse operations, and the rising trend of e-commerce and omnichannel retailing. Overall, the forecasted growth in the warehouse management system market suggests promising opportunities for vendors and businesses operating in this sector.
Conveyor systems hold a major share in the warehouse automation market.
The statistic that conveyor systems hold a major share in the warehouse automation market indicates that among various types of automation technologies utilized in warehouses, conveyor systems are prominent and widely adopted. Conveyor systems play a crucial role in streamlining and optimizing warehouse operations by efficiently moving goods and materials throughout the facility. Their ability to automate the transportation of items within the warehouse environment leads to increased efficiency, productivity, and throughput. As a result, conveyor systems are considered a cornerstone technology in warehouse automation solutions and are favored by many businesses seeking to enhance their operational capabilities.
The need for warehouse automation is expected to grow by at least 25% in the next few years.
The statistic “The need for warehouse automation is expected to grow by at least 25% in the next few years” indicates a significant anticipated increase in the adoption of automation technology in warehouse operations. This suggests that more companies are recognizing the benefits of automation in terms of improving efficiency, accuracy, and overall productivity in their supply chain and logistics processes. The expected 25% growth implies a strong market demand for warehouse automation solutions, driven by factors such as increasing e-commerce activities, the need for faster order processing, and the desire to reduce labor costs and errors. As a result, organizations may increasingly invest in technologies such as robotics, artificial intelligence, and warehouse management systems to optimize their operations and stay competitive in a rapidly evolving business landscape.
In 2019, around 80% of warehouses were manually operated and only 25% of warehouses were fully automated.
The statistic highlights the distribution of warehouse operations in 2019, indicating that the majority of warehouses were still manually operated, with approximately 80% relying on human labor. Conversely, only a quarter of warehouses had fully embraced automation in their operations. This suggests that while there is a rising trend towards automation in the logistics industry, a significant portion of warehouses still rely on manual processes for their daily operations. The data underscores the ongoing transition towards greater automation and efficiency in warehouse management, with potential implications for labor practices, technology adoption, and overall productivity in the sector.
Warehouse automation can reduce labor costs by 65%.
The statistic ‘Warehouse automation can reduce labor costs by 65%’ suggests that implementing automation technology within a warehouse facility has the potential to significantly decrease the amount spent on labor expenses. By utilizing automated systems such as robotics, conveyors, and software applications, companies can streamline processes, improve efficiency, and reduce the reliance on manual labor. The 65% reduction in labor costs indicates a substantial financial benefit that can have a substantial impact on a company’s bottom line. This statistic underscores the growing trend in the logistics industry towards embracing automation as a means of achieving cost savings and operational improvements in warehouse management.
Retail and e-commerce sectors accounted for over 60% of the global warehouse automation market revenue in 2020.
The statistic indicates that in 2020, the combination of the retail and e-commerce sectors contributed significantly to the revenue generated in the global warehouse automation market, accounting for more than 60% of the total. This suggests that these sectors have been actively investing in automated warehouse technologies to streamline their operations and enhance efficiency. The high percentage highlights the growing importance of automation in meeting the increasing demands of the retail and e-commerce industries, as they strive to improve order fulfillment, inventory management, and overall supply chain logistics to meet the needs of a rapidly evolving consumer market.
Amazon currently uses around 200,000 robotic vehicles in its warehouses worldwide.
The statistic that Amazon currently uses around 200,000 robotic vehicles in its warehouses worldwide provides insight into the scale and efficiency of the company’s operations. By employing such a significant number of robotic vehicles, Amazon is able to automate various tasks within its warehouses, such as moving inventory and fulfilling orders. This not only improves the speed and accuracy of operations but also reduces the reliance on human labor for repetitive and physically demanding tasks. The use of robotic vehicles demonstrates Amazon’s commitment to innovation and technology in optimizing its supply chain and logistics processes on a global scale.
Among end users of warehouse automation, eCommerce is projected to hold the largest market share during the forecast period 2021-2026.
This statistic indicates that within the market of end users utilizing warehouse automation technologies, eCommerce businesses are expected to have the highest proportion of market share compared to other industries from 2021 to 2026. This trend suggests that the eCommerce sector is increasingly adopting warehouse automation to streamline operations, enhance efficiency, and meet the demands of a rapidly growing online retail landscape. The projected dominance of eCommerce in this market reflects the industry’s recognition of the benefits of automation in managing inventory, order fulfillment, and logistics, as well as its commitment to staying competitive and meeting customer expectations in a dynamic and evolving retail environment.
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