Warehouse Robotics Market Analysis Report By Product, By Function, By Payload Capacity, By Software, By Application And Segment Forecasts From 2019 To 2025

Industry Insights

The global warehouse robotics market size was worth USD 3.19 billion in 2018. The market is anticipated to expand at a CAGR of 11.0% over the forecast duration, 2019 to 2025. Automation in warehousing is estimated to gain traction as it reduces the cost and time significantly of various warehouse processes. Further, increasing awareness about excellent quality and safety owing to robot deployment is predicted to bode well for the growth of the market.

Warehouse robotics is an effective solution to address the lack of availability of labor and the cost incurred in labor procurement. In addition, it also provides operational efficiency. The robots are deployed to perform various tasks such as lifting heavy loads, carry out placing, picking, transportation, and packaging among others. Further, the increasing use of artificial intelligence and the internet of things, and machine learning are anticipated to propel the growth of warehouse robotics.

The demand for specialized software to keep a tab on warehouse operations, inventory flow, and employees is gaining traction. Thus, the growing demand for software solutions has encouraged professionals to build solutions with added features. Additionally, different companies implement a Warehouse Management System (WMS) that performs various functions like labor management, integration of Enterprise Resource Planning (ERP), and inventory management.

The rapidly growing e-commerce and retail industry is driving the need for automation. To develop their warehouses, companies are deploying robotics in their warehouse. For example, Amazon deployed over 100,000 robotics systems in its 25 fulfillment centers in the U.S. In the same year, 800 Pegasus and Xanthus systems of robotics were deployed thus, expanding the overall count to nearly 200,000 robots globally.

Product Insights

In 2018, the mobile category held the largest share by revenue with over 25%. Further, the segment is estimated to witness considerable growth over the forecast duration. Mobile robotics plays a vital role in the overall warehouse industry by moving small payloads and offering flexibility. They are increasingly used in the consumer electronics and retail industry.

On the other hand, the Cartesian category is projected to expand at a considerable rate from 2019 to 2025. These robots perform various operations ranging from picking & placing loading & unloading, and material handling among others. In 2018, the articulated robots held a considerable share in the market owing to their increasing use in performing heavy-duty tasks. The segment is predicted to register a CAGR of more than 9% over the forecast duration. On the other hand, cylindrical and parallel robots demands are decreasing owing to the presence of technically advanced alternatives.

Payload Capacity Insights

In the payload capacity category, the below 10 kg payload category accounted for more than 30% of the warehouse robotics market share by revenue in 2018 and the segment is estimated to dominate over the forecast duration. These robots are deployed in various end-user industries to carry various products.

On the other hand, the robots with over 400 kg payload capacity are used very little, thus, 401 kg to 900 kg and over 900 kg segments are projected to show sluggish growth over the next few years. The payload capacity of 11 to 80 kg accounted for more than 25% of the share in the market. Operators from the consumer electronics and automotive industries invest in this segment.

Software Insights

Software solution providers are emphasizing offering a customized solution to manage various operations from the warehousing & logistics industries. The software helps in displaying the live status of various operations such as storage shelves, recharge stations, pick stations, and online robots. Using software solutions, operators can easily find out information on different components. Employees override ongoing tasks by giving commands to the software. The software solution also helps in spotting issues and address them.

In 2018, the Warehouse Management System (WMS) category held more than 40% of the share in the market and is projected to maintain its dominance over the forecast duration. This software solution is capable of managing overall activity including moving the product from one place to another, selection of order, receiving, cycle counting, put-away, and shipping. On the other hand, the Warehouse Control System (WCS) and Warehouse Execution System (WES) software are projected to witness significant growth over the forecast duration. The growing numbers of organizations are investing heavily in these solutions, which help them in handling their customers and managing the intricacy of their facility.

Application Insights

The E-commerce category is witnessing huge demand owing to the rise in the number of e-shopping platforms and rising demand for delivering the product without any damage. On the other hand, the healthcare category is estimated to register the highest growth rate with over 13% CAGR from 2019 to 2025. Continuous advancements in the pharmaceutical and medical industry are attributing to the growth of this segment. Additionally, the food & beverage is anticipated to witness considerable demand for warehouse robotics owing to increasing investment in automating various operations in the industry. Automation enables safety and efficiency in the distribution system.

Function Insights

In 2018, the pick & place division held the dominant position in the warehouse robotics market and the segment is estimated to maintain its lead from 2019 to 2025. The packaging category accounted for more than 25% of the share in the market. The growth of this segment is attributed to the installation of future-proof and sustainable packaging solutions by various industries.  Businesses are increasingly focusing on replacing their manual packaging and deploying robots to load containers in the Form Fill Seal (FFS) machines.

The increasing need for reducing the cost of transportation and increasing loading and unloading efficiency is attributing to the growth of the transportation category. This segment is likely to register the highest growth over the forecast duration. Goods meant for shipping are loaded on the container and piled to the ceiling without the use of pallets. Human workers are used to unloading these items once it arrives at the distribution center.

To avoid this labor-intensive and time-consuming process, companies are deploying robots in their warehouse operations. For example, DHL International GmbH prepared a robot equipped with a telescopic conveyor belt, 3D laser scanner, chassis, grabber, and a gripping system. This equipment is placed next to the container and helps in scanning and unloading shipped boxes with the help of a laser.

On the other hand, the palletizing and de-palletizing category is estimated to register significant growth over the forecast period. Growing focus on reducing the burden on employees and automating difficult tasks are attributing to the growth of this segment.

Regional Insights

In 2018, North America held the largest share in the market. Further, the region is anticipated to maintain its dominance from 2019 to 2025. Factors such as the presence of major warehouse operatives and the increasing penetration of innovative technologies are attributing to regional growth. On the other hand, in 2018, the European market was worth USD 650 million. However, the region is anticipated to witness moderate growth over the next few years owing to market saturation, volatility in the economy, and tough competition. Among major European countries, Germany is likely to register significant growth over the forecast duration.

Owing to the rising number of production facilities and growing merchandise demand, Asia Pacific is estimated to emerge as the fastest-growing sector over the forecast duration. In addition, major countries in the region are witnessing significant growth in their economies, thereby, driving the growth of manufacturing and retail industries.

Impact of COVID-19

The coronavirus pandemic has adversely affected the market. The pandemic has resulted in a significant decline in the demand for various products, thereby, delaying the adoption of automation technologies in warehouse management. Additionally, the COVID-19 outbreak has significantly disrupted the supply chain. However, once the restrictions are lifted, businesses are expected to operate with full steam. Increasing penetration of robots and IoT in the warehouse is estimated to reduce the impact of COVID-19 on the supply chain in the near future. Further, post-COVID, businesses are required to design an adaptive and agile supply chain, where automation is expected to play an important role.

Warehouse Robotics Market Share Insights

The use of robotics in warehousing is gaining traction owing to the advancements in software technologies and increasing focus on automation in the various warehouse processes. Robots are becoming increasingly intelligent in adapting to their working environment, which, in turn, is attracting manufactures in automating their warehouse. However, increasing concerns pertaining to reduction in manual works are generating unemployment.

Leading e-commerce platforms are collaborating with market players to cater to the changing preferences of consumers. The deployment of collaborative robots is on the rise as they help operators in performing various critical tasks. Various companies are deploying robotic solutions along with the workforce in facilitating several tasks including heavy lifting. Major market players are KUKA AG, ABB, Fetch Robotics, Inc., Dematic, Daifuku Co., Ltd, OMRON Corporation, and Bastian Solutions, Inc. among others.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global warehouse robotics market report on the basis of product, function, payload capacity, software, application and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)
    • Mobile Robots
    • Articulated Robots
    • Cylindrical Robots
    • SCARA Robots
    • Parallel Robots
    • Cartesian Robots

• Function Outlook (Revenue, USD Million, 2014 - 2025)
    • Pick & Place
    • Palletizing & De-palletizing
    • Transportation
    • Packaging

• Payload Capacity Outlook (Revenue, USD Million, 2014 - 2025)
    • Below 10 kg
    • 11 kg to 80 kg
    • 81 kg to 400 kg
    • 401 kg to 900 kg
    • Above 900 kg

• Software Outlook (Revenue, USD Million, 2014 - 2025)
    • Warehouse Management System
    • Warehouse Control System
    • Warehouse Execution System

• Application Outlook (Revenue, USD Million, 2014 - 2025)
    • E-commerce
    • Automotive
    • Consumer Electronics
    • Food & Beverage
    • Healthcare
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • Asia Pacific
        • China
        • Japan
        • India
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa