NEW YORK, Nov. 5, 2020 /PRNewswire/ — The global warehouse robotics market was valued at USD 3,580.32 million in 2019 and it is expected to reach USD 6,858.05 million by 2025, registering a CAGR of 11.54%, during the period of 2020-2025. The emergence of the Industrial Internet of Things (IIoT) and the advent of a network of connected systems are helping industries perform a multitude of tasks, such as material batching, picking, ordering, packaging, warehouse security, and inspection, as well as improve the operational efficiency by huge margins.
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– The growth in the e-commerce industry worldwide and the growing need for efficient warehousing and inventory management is driving the market growth. Automation in warehousing offers extreme convenience when it comes to cutting down overall business costs and reducing errors in product deliveries. According to DHL, a prominent 3PL company and a significant end-user of warehouse automation solutions, despite the advantages, 80% of warehouses are “still manually operated with no supporting automation.” Further, warehouses, i.e., those that use conveyors, sorters, pick and place solutions, among other equipment(not necessarily automated), account for 15% of total warehouses. In contrast, only 5% of current warehouses are automatic.
– Significant technological advancements, such as sensors technologies which enable an enhanced object perception and an accurate positioning system, have made way for the robotics industry to explore the untapped potential in various warehousing applications, while attaining an optimal operational flow and logistics efficiency, among other accomplishments, across the different industry verticals.
– According to the Bank of America, it is estimated that by 2025, 45% of all manufacturing tasks will be executed by robotic technology. With this emerging trend, large firms, such as Raymond Limited, which is a major Indian textile company and Foxconn Technology which is a China-based supplier for large technology manufacturers like Samsung and others have replaced 10,000 and 60,000 workers, respectively, by incorporating automated technology into their factories.
– These factors have had a direct impact on the increasing adoption of warehouse robotics as well. The rising number of warehouses, increasing investments in warehouse automation, coupled with the global rise in labor costs and availability of scalable technological solutions, have been driving the market for warehouse robots across the globe. For instance, prominent logistics brands in the United States, like DHL, XPO Logistics, and NFI Logistics, are investing in expansion activities, despite the adverse commercial renting climate.
– With the spread of the Covid-19 pandemic, robots and automation are already playing a critical role in managing the situation. Further, the situation is likely to bring new opportunities to the market. A British online grocer, Ocado, is aiming to make its warehouse robotics and grocery home-delivery technology available to other supermarkets for a licensing fee. The company has witnessed its stock rise by 7.6% since the end of 2019 and believes that the company will benefit from the increasing demand for home deliveries during the pandemic.
– While significant advances have been accomplished in robotics, the human workforce still holds the upper-hand in running a well-organized warehouse. Forecast of long-term labor shortages across the United States and Europe, as well as sustained pressure on supply chains to deliver orders quicker and more precisely, has caused operations executives to seriously assess that question as they look for answers to staffing challenges.
Key Market Trends
Increasing Number of SKUs
– An increasing number of SKUs (stock-keeping units) is quite common in the industry, as there is a constant introduction of new products on a regular basis. The luxury of…