To know the impact of COVID-19 On Warehouse Automation Services Market Size, Share & Trends Analysis Report By Service Mode (Online, Offline), By End User (Food and Beverage, Post and Parcel, Groceries, General Merchandise, Apparel, Manufacturing, Other End-user Industries) Based on Region, And Segment Forecasts, 2021 - 2027 Market
Market Size Forecast Scenarios (Optimistic, Baseline and Pessimistic) 2021-2027
Global Warehouse Automation Services Market is valued at USD 4.5 Billion in 2020 and is expected to reach USD 9.11 Billion by 2027 with a CAGR of 15.1% over the forecast period.
Global Warehouse Automation Services Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2027- Growing demand for automation-related service contracts along with rising demand for automation equipment and increasing investments in warehouse automation services are the major factors for driving the growth of global warehouse automation services market.
Scope of Global Warehouse Automation Services Market Report:
The services used to process for automating the movement of portfolios within, into, and out of warehouses are nothing but warehouse automation services. Businesses can eliminate labor-intensive duties such as repetitive physical work, manual data entry & analysis and others, with these services. Warehouse automation services are wide-ranging which contain several types of technologies designed to speed up warehouse processes. In these solutions, the Facility-as-a-services (FaaS) spectrum is a service-based model where the automation vendor contracts for the fulfillment capacity to retailers from a facility which is owned & operated by the automation vendor. In these services vendors offers movement and handling services, intelligent storage, automated material handling & storage services and automated storage & retrieval service with a particular system. In these services vendors covers critical after-sales services, troubleshooting, spares and repairs.
Covid 19 has shown positive impact on warehouse automation services market. The circumstances under this pandemic situation has witnessed the surge in e-commerce activities. Also there is increasing demand for warehouse automation with increasing need for fewer employees in warehouses to meet safety & social distancing standards accompanied by the need to ramp up operations to meet increased online order volume. Additionally, some initiatives are taken for warehouse automation in this pandemic. For example, according to 2020 Intelligrated automation investment study by Honeywell, e-commerce & grocery retailers developed as the most willing categories for investing in supply chain automation i.e. warehouse automation services to fight the drastic shift in retailing triggered by the pandemic. Moreover, the increased adoption of robotics automation in supply chain has increased to 39% from about 32% between 2020-2021.
Global Warehouse Automation Services Market Segmentation:
Global warehouse automation services market is segmented into service mode and end-users. On the basis of service mode the market is segmented into online and offline. On the basis of end-users, the market is segmented into food & beverage, post & parcel, groceries, general merchandise, apparel, manufacturing and other end-user industries.
By Service Mode:
By End User:
- Food and Beverage
- Post and Parcel
- General Merchandise
- Other End-user Industries
Warehouse Automation Services Companies
Some of the key players for Global Warehouse Automation Services Market are Alithya, Locus Robotics, Lucas Systems, Inc., S&H Systems, Seegrid, TGW Systems Inc., Westfalia Technologies, Inc, and others.
News: Interest in Warehouse Automation services investment has risen due to the Pandemic.
On 16 November 2020-Gamma Solutions Company has mentioned in their news blog, about the increasing interest in warehouse automation with rising investments due to pandemics. In this blog, the company explained that the ongoing pandemic has put industries at risk. It is encouraging companies to innovate new supply chain ideas by investing in warehouse automation. According to the Honeywell Integrated Automation Investment Study, the industries are motivated for the adoption of warehouse automation such as E-commerce with 66%, Grocery, food and beverage with 59% and Logistics with 55%.
In addition, Chief Marketing Officer at Honeywell Integrated said that the modern customers are looking for brands to provide all-in-one integration between in-store & online shopping buying, and delivery experience. To resolve their sufferings, organizations have decided to adapt by establishing micro-fulfilment strategies. One of the main strategies of the organizations, warehouse automated solutions are improving the accuracy & speed of order processing, fulfilment, and delivery. Thus, companies are benefiting from higher productivity and ROI.
Global Warehouse Automation Services Market Dynamics–
Growing demand for automation-related service with surging demand for automation equipment and increasing investments in warehouse automation services are the major factors driving the growth of global warehouse automation services market.
Every business is aware about the result of the inefficient warehouses it can negatively impact the customer experience. So, as a solution for this, businesses are adopting automated warehouses to do more with less and thrive under increased customer demand. Also, the numbers of warehouses are increasing rapidly across the globe with the increasing penetration of e-commerce. For example, according to White Paper, since 2016 more than 10% of warehouses in U.S. were using automated warehousing equipment which enables a goods-to-man picking approach. The trend will go faster over the next five years, with research predicting that the number of robots in warehouses growing about 15 times by the end of 2021 to about 620,000. Consequently, the capacity & the size of the warehouses are also increasing at a greater extent. Thus, this increasing focus of warehouses on using automation solutions for greater material handling capacity & reduced time-to-handle, this increasing demand for warehouse automation-related services and it is driving the growth of the market.
Also, as automation becomes appealing as a solution businesses are making some strategies with increasing throughput requirements. In addition, automated warehouses has been one of the newest technological trends in commercial real estate (CRE) sector which have increased demand for warehouse automation service as an important asset among the fulfillment, logistics, materials handling and supply-chain industries. So there is increasing investment in warehouse automation services. For instance, Ryan company has designed & constructed multiple warehouse automation service as a project for Amazon & currently it is one of the leading builders for the world’s largest retailer which has completed 40 automated warehouse projects. The constant growth in investment for the increased adoption of warehouse automation services is expected to contribute the market growth.
However, a real risk of disruption and service level failings during the operational start‐up of warehouse automation service projects, along with concerns about ongoing flexibility, are expected to hamper the market growth. On the other hand, R&D and technological advancement in warehouse automation services are likely to create ample opportunities in the warehouse automation services market.
Global Warehouse Automation Services Market Regional Analysis–
The regions covered in this Warehouse Automation Services market report are North America, Europe, Asia-Pacific, and Rest of the World. Based on country level, the market of Warehouse Automation Services is subdivided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, Southeast Asia, Middle East Asia, GCC (UAE, Saudi Arabia, Egypt), Africa, etc.
North America is expected to dominate the warehouse automation service market owing to the increased adoption of warehouse automation services and technological advancements. In the US, advanced technology such as artificial intelligence, computer vision systems, and others along with surge in startup focused on professional warehouse automation are expected to fuel the market growth. For instance, according to Vox Media, LLC, Amazon has installed over 200,000 mobile robots works inside its warehouse network, collective with hundreds and thousands of human workers in the United States. Also, the increasing eCommerce sector in the region has become the primary reason for increasing automation in warehouses & distribution centers in the United States. Consequently, it increases the adoption rate of warehouse automation services into region.
Asia Pacific is expected to be the second-largest growing region over the forecast period. The growth of the e-commerce & packaging industry, increasing income level, and an increasing number of manufacturing facilities in the region support the market growth. The surge in the e-commerce industry in the region has created the demand for efficient warehousing which in turn promotes warehouse automation services. This is because, automation services in warehousing offers extreme suitability when it comes to cutting down the overall business costs & reducing errors in product deliveries. In Asia Pacific region, developing economies such as India, China, Japan, etc. are adopting these warehouse automation services in their manufacturing facilities. For instance, In India, corporates such as Tata Steel, Mahindra, Tata Motors, Shriram Pistons, Maruti and VE Commercial Vehicles and CEAT Tyres are considering for the adoption of warehouse automation technology and services for their manufacturing sites. This all the above-mentioned factors are expected to fuel the overall market growth in the near future.
- Rest of Europe
- South Korea
- Rest Of APAC
- Rest of South America
Middle East and Africa
- Saudi Arabia
- South Africa
- Rest Of MEA
Key Benefits of Global Warehouse Automation Service Market Report–
- Global Warehouse Automation Service Market report covers in-depth historical and forecast analysis.
- Global Warehouse Automation Service Market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Warehouse Automation Services Companies, Market Drivers, Market Restraints, Market opportunities, Competitive Analysis, Regional and Country Level.
- Global Warehouse Automation Service Market report helps to identify opportunities in the marketplace.
- Global Warehouse Automation Service Market report covers extensive analysis of emerging trends and competitive landscape.
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Warehouse Automation Services Market Trends, Size, Share, Demand, and Industry Growth Analysis 2027