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North America Warehouse Automation Market

North America Warehouse Automation Market Size, Trends, and Share Analysis 2024 – 2031 – By Automation Technology, End-Use Industry, By Country

North America Warehouse Automation Market Size and Share Analysis

The North America warehouse automation market is estimated to value at US$23.2 Bn by the end of 2031 from US$7.5 Bn estimated in 2024. The market is expected to record a CAGR of 17.4% during the forecast period from 2024 to 2031.

Market Attributes

Key Insights

North America Warehouse Automation Market Size (2024E)

US$7.5 Bn

Projected Market Value (2031F)

US$23.2 Bn

North America Market Growth Rate (CAGR 2024 to 2031)

17.4%

Historical Market Growth Rate (CAGR 2019 to 2023)

15.6%

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Market Introduction and Trend Analysis

Warehouses are large buildings used by manufacturing companies, importers, exporters, wholesalers, and many other businesses. The race to streamline operations and optimize supply chains has propelled warehouse automation to the forefront of business strategies. Workers in warehouses receive, sort, stock, and get items ready for delivery.

Automated systems are used to replace tedious tasks in warehouse operations. When labor-intensive and time-consuming tasks are eliminated, employees have more time to concentrate on duties that improve warehouse operations, like quality control.

The market for warehouse automation is expanding significantly as a result of more initiatives centered around industrial automation technology. The market is expanding due to factors like the emergence of autonomous mobile robots, the globalization of supply chain networks, and the growth of the e-commerce industry.

Furthermore, it is anticipated that the advancement of cutting-edge technologies, such as motion control, computer vision systems, and Artificial Intelligence (AI), will generate more growth prospects.

Computing power, and AI are developing at an astonishing rate. Though they seemed years away, fully autonomous technologies are here and actively used in many of the contemporary warehouses.

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Historical Growth and Course Ahead

The forklift truck was introduced in 1917, and steel conveyor belts were introduced in 1901. Ever since then, warehouse operations have strived to increase process efficiency. In the 1950s, the first Automated Storage and Retrieval System (ASRS) was created. It was first used in commercial warehouses in the 1960s. The initial ASRS apparatus could move up and down storage racking and place and retrieve objects. The first ASRS equipment provided a more automated, effective process than ever before, despite being operated manually.

Warehouses started implementing IT and computer solutions in the 1980s. Technologies controlled by software have also been incorporated into warehouse operations. These new technologies offered more precision than ever before. The 2000s introduced robotics to warehouse operations. The Autonomous Mobile Robot (AMR) and the Automated Guided Vehicle (AGV) need tracks for navigation and require some manual operation. Still, they proved to increase efficiency in warehouses.

Recent years have placed significant pressure on modern warehouse operations regarding responsiveness and scalability. The main areas of concern are labor, capacity, and quality. Experts in warehouse operations are being forced by these problems to concentrate on effective methods of modernizing antiquated procedures and data management. In order to enhance communication both inside and outside the warehouse, modern warehouse operations have begun utilizing current technologies.

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Key Trends in the Market

  • Adoption of AI and machine learning
  • Rise of autonomous mobile robots (AMRs)
  • Ubiquity of IoT
  • Focus on sustainability
  • Incorporation of cobots
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Market Growth Drivers

Increased Adoption of Robotics

The advent of warehouse robotics is a significant step toward operational excellence and innovation in the vast field of warehouse logistics. Robotics represent a significant step toward great efficiency as businesses look to meet the accelerating pace of demand and streamline processes. They offer diverse solutions that revolutionize traditional practices.

Technological advancements and an increasingly competitive business landscape are forcing modern warehouses to seriously consider the use of robotics. With their ability to increase productivity, accuracy, and operational efficiency, warehouse robots are no longer nice-to-have accessories. They have become indispensable to efficient warehouse operations.

Warehouse automation adds value to warehousing operations by automating the execution of menial, repetitive tasks, thus allowing human workers to focus on more complicated tasks Savvy companies are leveraging warehouse robotics to improve order fulfilment and better manage inventory while staying ahead of the competition. By reducing the time and resources needed to retrieve and move items around the warehouse floor, warehouse robotics frees up human workers to focus on more difficult tasks like packing and shipping orders.

The Exceptional Rise of E-Commerce

The rise of e-commerce has led to a surge in the number of orders that warehouses need to process daily. Automation helps manage this high volume efficiently, reducing the time taken for order picking, packing, and shipping. Automated systems like robotic picking and sorting solutions can handle large volumes quickly and accurately, which is essential for keeping up with consumer expectations for fast delivery.

The e-commerce boom is driving a paradigm shift in retail fulfilment, which is propelling sales of control systems and warehouse automation to unprecedented heights. Systems that can effectively manage a high volume of small, multi-line item orders are being invested in by retailers, their wholesalers, and 3PL fulfilment partners.

Warehouses are being forced to implement automation technologies to meet customer expectations, increase efficiency, and remain competitive with the demands of e-fulfillment. The market for warehouse automation is expanding significantly owing to this trend, as companies look to improve their e-fulfilment capabilities.

Factors Impeding Market Growth

Reluctance of Manufacturers to Implement Automation Solutions

The reluctance of manufacturers to implement automation solutions is typically based mostly on cost concerns. When asked to identify the largest barriers to future automation plans, cost/ROI (40%) and budget (41%) came out on top. (Cost/ROI was also mentioned as an issue in the past; according to 54% of respondents, it had hampered earlier implementation plans.)

A few more obstacles are process, space, disruption, fear and uncertainty, implementation, integration, training, and change management. Implementing automation solutions require significant upfront investment in equipment, technology, and infrastructure.

Many manufacturers, especially small and medium-sized enterprises (SMEs), may find these costs prohibitive. They also operate with legacy systems that may not easily integrate with modern automation technologies.

One major obstacle may be the complexity and expense of integrating these systems. Concerns about productivity losses during the transition period arise from the possibility of ongoing operations being disrupted by the integration of new automation solutions.

Future Opportunities for North America’s Warehouse Automation Players

Expansion of IoT-Powered Smart Warehouses

In today's connected world (Industry 4.0), the logistics and supply chain management (SCM) sector is always changing, and integrating cutting-edge technology has become essential. Indeed, a new era of efficiency, connectivity, visibility, and control in the warehouse industry has been brought about by the rise of the Internet of Things (IoT).

The integration of IoT in warehouse management encompasses various automation processes, such as tracking and monitoring, optimizing storage and retrieval systems, and enhancing productivity and safety. Despite advancements, warehouses and distribution centers still face challenges like damages, spoilage, and incomplete shipments.

However, e-commerce giants like Amazon, JD.com, and Alibaba have successfully showcased the capabilities and business value of increased automation through robots and IoT sensors.

The implementation of IoT in warehouses promises substantial benefits, improving operations across the entire logistics value chain and enhancing overall efficiency and reliability.

Category-wise Analysis

Category

Projected CAGR through 2031

Automation Technology – Autonomous Mobile Robots (AMRs)

19.7%

 End-use Industry– Groceries

18.3%

Autonomous Mobile Robots Lead the Charge

AMRs have emerged as a rapidly expanding segment in warehouse automation, owing to their mobility, scalability, lower entry costs, and technological advancements in recent years. They typically encompass systems for goods-to-person (GTP), person-to-goods (PTG), mobile sorting, and payload transportation.

Diverging from traditional automated guided vehicles (AGVs), AMRs rely on onboard sensing, visioning, and location mapping technology to navigate warehouses efficiently and safely without being confined to preset paths.

AMRs are designed for continuous improvement throughout their operational lifespan. By accumulating data and insights from each task, they can refine their performance, optimize routes, minimize delays, and even anticipate potential issues proactively.

F&B Sets to Exhibit a Substantial Share

It is anticipated that the food and beverage industry is expected to hold a substantial portion of the North America warehouse automation market. To guarantee product quality and safety, the food and beverage industry needs precise handling and storage solutions.

Automation systems lower the possibility of mistakes that could result in contamination or spoilage by providing the required accuracy and efficiency in sorting, packing, and inventory management.

There are strict regulatory standards concerning food safety and traceability in this sector. Automated systems aid companies in meeting these regulations by offering thorough tracking and documentation of products across the supply chain.

The substantial portion of the North America warehouse automation market occupied by the food and beverage segment is propelled by various factors. These include the necessity for efficiency, adherence to regulations, rapid handling of perishable items, effective management of labor costs, scalability, and bolstering supply chain resilience.

Country-wise Analysis

Country

CAGR through 2031

US

18.2%

Canada

16.3%

Warehouse Automation in the US Sets to Skyrocket

The US holds a 78.6% market share in the North America warehouse automation industry. The warehouse automation market in the United States has grown significantly in the last several years. The adoption of warehouse automation solutions in the county is being driven by the need for improved operational efficiency, rising labor costs, and an increasing demand for faster order fulfillment.

The Bank of America predicts that robotic technology will be used in 45% of manufacturing by 2025. The rising growth of warehouses and growing investments in warehouse automation, alongside the global surge in labor costs and the availability of scalable technological solutions, have propelled the market for warehouse robots on a global scale. For instance,

  • Leading logistics brands in the US, such as DHL, XPO Logistics, and NFI Logistics, are engaging in expansion initiatives despite challenges posed by the commercial renting landscape.

Competitive Landscape Analysis

Many players are forming strategic partnerships to enhance their market reach and technological capabilities. Companies are significantly investing in research and development to develop advanced robotics, AI-driven systems, and IoT-enabled solutions. The integration of 5G technology and digital twins is also gaining traction, enabling real-time data processing and enhanced operational efficiency?.

Top Industry Players Profiled in North America Warehouse Automation Market Report

  • Dematic Group
  • Daifuku Co.
  • Honeywell
  • Omron Adept Technologies
  • InVia Robotics Inc.
  • SAP
  • Oracle NetSuite
  • IBM
  • Microsoft Dynamics
  • Swisslog
  • GreyOrange

Recent Industry Developments

January 2023

German intralogistics pioneer Jungheinrich AG (“Jungheinrich”) announced the acquisition of Indiana-based Storage Solutions group (“Storage Solutions”). It is a leading provider of racking and warehouse automation solutions in the United States to gain enhanced access to the attractive U.S. warehousing and automation market.

September 2022

Dematic announced a partnership with Upshop to supply integrated fulfillment solutions that scale with grocery business. The partnership would empower grocers looking to grow their fulfillment operations with solutions that allow them to retain and manage their own customer data.

November 2022

Cubiscan announced partnership with inVia Robotics, a warehouse autonomous mobile robot maker, to help it improve inventory management, optimize outbound parcel strategy, and enhance overall warehouse productivity and throughput.

Report Scope

Attributes

Details

Forecast Period

2024 to 2031

Historical Data Available for

2019 to 2023

Market Analysis

US$ Billion for Value

Key Countries Covered

  • The United States
  • Canada

Key Market Segments Covered

  • Automation Technology
  • End-use Industry
  • Country

Key Companies Profiled in the Report

  • Dematic Group
  • Daifuku Co.
  • Honeywell
  • Omron Adept Technologies
  • InVia Robotics Inc.
  • SAP
  • Oracle NetSuite
  • IBM
  • Microsoft Dynamics
  • Swisslog
  • GreyOrange

Report Coverage

  • Market Forecast and Trends
  • Company Share Analysis
  • Competitive Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

 

Market Segmentation

By Automation Technology

  • Goods-to-Person (GTP)
  • Automated Storage and Retrieval Systems (AS/RS)
  • Automatic Guided Vehicles (AGVs)
  • Autonomous Mobile Robots (AMRs)
  • Pick-to-Light and Put-to-Light Systems
  • Voice Picking and Tasking
  • Automated Sortation Systems

By End-Use Industry

  • Food and Beverage     
  • Post and Parcel
  • Groceries
  • General Merchandise
  • Apparel
  • Manufacturing
  • Others

By Country

  • The United States
  • Canada

- Companies Covered in This Report -

  • Dematic Group
  • Daifuku Co.
  • Honeywell
  • Omron Adept Technologies
  • InVia Robotics Inc.
  • SAP
  • Oracle NetSuite
  • IBM
  • Microsoft Dynamics
  • Swisslog
  • GreyOrange

- Frequently Asked Questions -

E-commerce Growth, labour shortages, operational efficiency, cost reduction, and technological advancements are surging North America’s demand for warehouse automation.

Some of the key players operating in the market are Dematic Group, Daifuku Co. Honeywell, and Omron Adept Technologies.

The food and beverage application segment is anticipated to experience the significant market share.

Increasing demand for autonomous mobile robots (AMRs), and automated guided vehicles (AGVs) equipped with AI to provide opportunity for market growth.

The United States is expected to account for the significant share in the market.

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