The global warehouse automation market is projected to grow at a compound annual growth rate of 15 percent through 2031, driven by expanding e-commerce activity, ongoing labour shortages, and increasing adoption of AI-enabled logistics software.
Economic and Operational Drivers
Rising labour costs and tightening workforce availability are pushing warehouse operators to reduce dependence on manual labour. Automation is increasingly seen as a way to control operating expenses while maintaining productivity.
Warehouses are also managing more complex supply chains with fluctuating demand and multi-source procurement. At the same time, omni-channel retailing requires seamless order fulfilment across online, in-store, and mobile platforms, increasing pressure on speed and accuracy.
Subscription Models Gain Traction
Subscription-based pricing models are emerging as a major growth driver. These models shift capital risk from operators to vendors, allowing fleet size adjustments with notice periods of 30 to 90 days.
Subscription pricing can reduce total cost of ownership by up to 30 percent, largely because vendors handle maintenance and software updates. This model also lowers entry barriers for regional logistics providers and companies in emerging markets that may lack access to large capital investments.
Role of IoT and AS/RS Systems
IoT technologies are enabling machines to perform repetitive and labour-intensive tasks while improving operational visibility through real-time monitoring. This supports predictive maintenance, enhances safety, and improves resource efficiency.
The automated storage and retrieval systems (AS/RS) segment led the market in 2024, driven by demand for faster, more accurate inventory handling. Adoption has been strongest in e-commerce and manufacturing warehouses where precision and throughput are critical.
