In this article, we gathered the most important warehouse automation statistics to give you insight into industry updates projected for 2023 and beyond.
Warehouse Automation Statistic #1: The global warehouse automation market is expected to reach $41 billion by 2027, growing at a CAGR of nearly 15% between 2022 to 2027. (Business Wire)
Why? According to a survey by MHI and Deloitte, in 2019, 55% of warehouses already had some form of automation, and by 2023 that number is expected to rise to over 75% because:
- Reduced labor costs: The use of warehouse automation technology can reduce labor costs by up to 60%.
- Improved productivity: The adoption of warehouse automation technology is expected to improve labor productivity by 30%.
- Reduced error: The use of warehouse automation technology can reduce errors by up to 99%.
- Faster operations: The use of warehouse automation technology can reduce shipping and handling times by up to 50%.
- Increased storage: The use of warehouse automation technology can increase warehouse storage capacity by up to 50%.
- Cost savings: The use of warehouse automation technology can reduce operational costs by up to 30%.
- Government support: Many governments are supporting the adoption of automation technology in the form of subsidies, tax breaks, and other incentives.
- Technological advancements: Advances in technology, such as artificial intelligence and the internet of things, are making automation technology more advanced and accessible, driving its adoption in warehouses.
- Increase in manufactured goods: The increase in automation in the manufacturing industry also leads to a rise in the need for automation in warehouses to keep up with the expectations of faster delivery times and better inventory management.
- Rising eCommerce industry: With the rise of eCommerce, there is a growing need for efficient and cost-effective logistics solutions, which can be provided by automation technology.
All of these factors are expected to drive the growth of the warehouse automation market in the coming years.
Warehouse Automation Statistic #2: The eCommerce industry is driving demand for warehouse automation, with a CAGR of 14.8% between 2022 to 2030. (Acumen Research and Consulting)
Why? With eCommerce rising during the pandemic, manual systems have made it hard for businesses to keep up with demand, whereas automation can help address many operational challenges and consumer expectations, such as:
- High volume of orders: The eCommerce industry is characterized by a high volume of orders, which can be challenging to handle manually. Automation technology can help increase efficiency and accuracy in fulfilling these orders.
- Short delivery times: eCommerce companies often need to deliver orders quickly to meet customer expectations, which can be challenging to achieve without automation technology.
- Smaller order sizes: eCommerce orders are often smaller than wholesale orders, making it more challenging to handle them manually. Automation technology can help to increase efficiency and accuracy when handling smaller orders.
- Personalized orders: eCommerce companies often need to handle personalized orders, such as customized products and gift wrapping, which can be challenging to handle manually. Automation technology can help to increase efficiency and accuracy when handling these types of orders.
- Increase in returns: eCommerce industry is characterized by a high rate of returns, which can be challenging to handle manually. Automation technology can help to increase efficiency and accuracy when handling these types of orders.
- Inventory management: Automation technology can help eCommerce companies to better manage their inventory, ensuring that products are in stock and ready to ship when needed.
All these factors make automation technology a crucial component for eCommerce companies to improve their operational efficiency and customer satisfaction.
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Warehouse Automation Statistic #3: The Autonomous Mobile Robot (AMR) market size is predicted to reach $22.15 billion by 2030, with a CAGR of 34.3% from 2022-2030. (Research and Markets)
Why? AMRs and other forms of G2P (goods-to-person) robots are considered to be one of the most essential warehouse automation deployment as it offers:
- Increased efficiency: AMRs can move around a warehouse independently, eliminating the need for manual labor and increasing efficiency.
- Cost savings: AMRs can reduce labor costs and improve operational efficiency, leading to company cost savings.
- Improved accuracy: AMRs can improve accuracy in tasks such as inventory management, picking, and packing.
- Flexibility: AMRs can be easily reconfigured to handle different tasks and can adapt to changing warehouse layouts.
- Scalability: AMRs can be easily scaled up or down to match the needs of the warehouse.
- Improved safety: AMRs can take on dangerous or repetitive tasks, reducing the risk of injuries for human workers.
- Easy integration: AMRs can be integrated with other warehouse automation systems, such as conveyor belts and automated storage and retrieval systems.
- Advancements in technology: Advancements in sensor technology, machine learning, and artificial intelligence are making AMRs more accurate, reliable, and cost-effective, which is driving their adoption.
All of these factors make AMRs an attractive option for companies looking to improve efficiency, reduce costs, and increase accuracy in their warehouse operations.
If you find these warehouse automation statistics resourceful, take a look into these 11 instant benefits of deploying a fulfillment robot!
Warehouse Automation Statistic #4: Nearly 53% of 3PLs think automating processes in their warehouses is a top opportunity for 2023. (VentureBeat)
Why? 3PLs have many KPIs, SLAs, and competition to keep up with, and warehouse automation goes a long way in helping achieve that.
- Scalability: Automation technology can be easily scaled up or down to match the needs of the warehouse, which is particularly beneficial for 3PLs that service multiple clients with different requirements.
- Increased competition: The logistics industry is becoming increasingly competitive, and many 3PLs see automation as a way to stay competitive and increase their market share.
- Client retention: 3PLs have to report various performance metrics, such as TOCT (total order cycle time) and order accuracy, which can be significantly improved with warehouse automation.
- Labor shortage: The shortage of skilled labor in the logistics industry deeply affects 3PLs as they have many operations reliant on it, making adopting automation technology a crucial investment to help eliminate such challenges.
- High volume of orders: 3PLs often handle a high volume of orders from multiple clients, which can be challenging to handle manually. Automation technology can help to increase efficiency and accuracy in fulfilling these orders.
- Short delivery times: 3PLs often need to deliver orders quickly to meet customer expectations, which can be challenging to achieve without automation technology.
Due to the reasons above and the increased demand for automation technology in the logistics industry, 3PLs see an opportunity to invest in automation technology to improve their operations and increase their competitiveness.
Warehouse Automation Statistic #5: North America held the largest warehouse automation share in 2021, contributing to more than two-fifths of the total market share. (Allied Market Research)
How? Prioritizing efficiency and productivity is essential to their market’s success, resulting in many first-movers of warehouse automation within the region.
- Developed logistics industry: North America has a well-developed logistics industry, with a large number of warehouses and distribution centers. This creates a strong demand for automation technology to improve efficiency and reduce costs in the industry.
- High adoption of technology: North America is known for its high adoption of technology, which is reflected in the high level of automation in its warehouses. Companies are willing to invest in technology to improve their operations.
- Strong eCommerce market: The eCommerce market is strong in North America, which creates a high demand for automation technology to handle the high volume of orders and short delivery times required in e-commerce operations.
- High labor costs: North America has high labor costs, which makes automation an attractive option for companies looking to reduce labor costs.
- Government support: North American governments have provided support for the adoption of automation technology in the form of subsidies, tax breaks, and other incentives.
- Economic stability: North America has a relatively stable economy, which allows companies to invest in automation technology with more confidence.
All of these factors contribute to the high level of automation in North American warehouses and make the region the top adopter of warehouse automation.
Warehouse Automation Statistic #6: The Asia-Pacific region is expected to manifest the fastest CAGR of 16.2% by 2031. (Allied Market Research)
Why? Most of the highest-ranking countries for manufacturing are within the Asia-Pacific region, which makes deploying warehouse automation a more value-added investment for them.
- Rapid economic growth: The Asia Pacific region is experiencing rapid economic growth, which is driving an increase in demand for automation technology in warehouses.
- Increase in eCommerce: The eCommerce market is growing rapidly in the Asia Pacific region, which is driving a need for automation technology to handle the high volume of orders and short delivery times required in eCommerce operations.
- Labor shortage: Like others, the Asia Pacific region is also facing a labor shortage in the logistics industry, which is driving the adoption of automation technology to improve efficiency and reduce labor costs.
- Large population: With a large population, Asia Pacific countries have a large domestic market that drives the eCommerce industry and the need for automation in warehouses to handle the high volume of orders and short delivery times.
All of these project a high level of automation in Asia Pacific warehouses, ranking the region as the fastest-growing market within our warehouse automation statistics.
Warehouse Automation Statistic #7: 40% of warehouse jobs will be replaced by robots by 2030. (McKinsey)
However, with automation, there are also new jobs and positions that are looking to be filled by “new-collar employees.”
- Retraining and re-skilling: Some employees may be able to transition to new roles in the warehouse, such as operating, maintaining, and programming automation technology. This will require retraining and re-skilling for these employees.
- Job creation: Automation can also create new jobs in areas such as design, development, and maintenance of automated systems and technologies.
- Increase in productivity: Automation can lead to an increase in productivity, which can create more jobs and more opportunities for the employees in the warehouse.
It’s important to note that the impact of automation on jobs will vary depending on the specific industry, company, and country. Some companies may choose to invest in retraining and re-skilling their employees, while others may choose to automate their operations and let workers go.
It’s also worth noting that the long-term impact of automation on jobs is an ongoing subject of debate among experts and will depend on many factors, such as the speed of technological progress and the adaptability of the labor market.
All in all…
Each of these warehouse automation statistics showcases the importance automation is gaining within the warehouse industry, with foolproof examples of how and why you should jump on the automation train!
Contact our experts to discover the automation opportunities for your warehouse!