Whether you’re looking at warehouse automation by the amount of money being spent or by the number of units being purchased and put to use, it’s easy to see that the trend is up. By comparison, in 2016, there were about 40,000 units shipped. By the end of 2021, it’s expected that there will be at least 620,000 shipments of various warehouse automation technologies worldwide. The calculated compound annual growth between 20 is estimated to be around 10 percent. According to estimates, the market is expected to grow by 1.5x in the mid-term (by 2025) and further expected to cross $37.6 billion by 2030. However, this year (2021) is estimated to witness growth by almost 38.4 percent to reach $19.5 billion. In 2020, the total warehouse automation market has experienced decline of 6 percent. Warehouse automation market in 2019 was estimated at $15 billion up by 10.9 percent from the previous year. In 2021, the warehouse automation market is expected to grow by more than 38 percent. The median anticipated spending amount, which may be more representative of the responses, was just shy of $70,000. This is an average, which can be skewed by both large and small investments. The average warehouse or distribution center considering investments in automation anticipates spending around $350,000. Only 5% anticipated a decrease in investments. ( Source)ĥ2% expected an increase in investment, while 43% expected to spend roughly the same amount annually. The majority of warehouse and operations managers expect their overall spending on material handling equipment and automation to increase over the next few years. A further 49% expected to invest in software (such as WES, WMS, or WCS) that runs the equipment. The figure, from Peerless Research Group’s (PRG) 2018 annual survey, noted that 40% of survey respondents expected to invest in conveyors and sortation equipment, 25% in robotics, and 14% in AGVs. As of 2018, an estimated 42% of warehouses and distribution centers expected to move forward with investments in technology and automation. Warehouse automation is already big money and is only going to get bigger as more and more companies and operations begin making the switch. Worldwide sales of warehouse automation technology (robotics, logistics, etc.) are expected to reach a market value of more than $22.4 billion by the end of 2021. This brings immense market opportunities for the companies in the warehousing automation ecosystem. However, since last decade ~15 percent of the warehouses are being mechanized, while only 5 percent are using sophisticated automation equipment and solutions. More than 80 percent of the warehouses today have no automation whatsoever. Among them are an increased awareness of the technologies, rising labor costs, and rising land/rent/facility costs, all of which encourage business owners to automate to bring costs down. The Numbers Behind Why Operations Are Automatingīefore diving into statistics specifically focused on how automation can benefit the warehouses and distribution centers that pursue it, it’s important to understand the trends that have led many of today’s order fulfillment operations to pursue automation. Here are 29 statistics that will help you understand the true value that warehouse automation brings to today’s rapidly evolving economy. Whichever version of the future you subscribe to, the truth is that warehouse automation is here to stay, and it’s only going to get more and more sophisticated and advanced as time goes on. If you work in the order fulfillment, materials handling, or supply chain industries, then there is a 100-percent chance that you have given at least some thought to the ways that automation has, and continues to, change the nature of your work.Įven if you don’t work in those industries, you’ve undoubtedly heard countless stories about how automation is either going to a.) kill jobs or b.) lead us to a brand-new world of increased productivity.Īre you considering implementing automation in your warehouse, distribution center, or order fulfillment operation? We can help you think through your options. The Supply Chain Professional’s Guide to Warehouse Automation.Lifecycle Support for Order Fulfillment Technologies.Controls Support Engineer – Tech Support.Medical Device & Pharmaceutical Products.Industrial & MRO Parts Supply Distribution.
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