In the data-driven world, automation is not limited to automating manual tasks.
Every automated process has its own behavior, and technology is evolving for each of these in multiple ways and methods. Industries have started utilizing warehouse automation software to build smooth and efficient workflows.
With the e-commerce market at an all-time high, more organizations are looking to adopt automation in their operations and processes to minimize errors, increase efficiency & inventory accuracy, reduce labor costs, and improve worker safety. All of these changes will inevitably lead to higher productivity and profit levels and increase effectiveness when it comes to warehouse management.
Warehouse automation is expected to grow along with the e-commerce industry in the coming years. These statistics are a valuable resource to understand the powers of automation and their impact on the market.
Warehouse automation statistics
Technologies that handle end-to-end tasks or assist employees are categorized as part of warehouse automation. Warehouse operations are known for their complexity, a large number of processes, inventory optimization, and distribution of goods.
Warehouse automation solutions are equipped with various technologies designed to speed up processes when the inventory enters the warehouse until it leaves.
- €24.8 billion increase (10.41% CAGR) is predicted in the global warehouse automation market by 2026, highly influenced by e-commerce growth.
87%
of industry decision-makers surveyed are in the process of or planning the expansion of warehouses by 2024.
Source: Zebra
- 80% of the warehouse activities are outsourced, and 20% remain in-house as your company diversifies geographically.
- In 2022, the global automated guided vehicle (AGV) market size was valued at $2.12 billion & is projected to grow to $4.43 billion by 2030.
- 18,736+ private warehousing establishments are present as of now.
- 181,370 sq ft is seen as the average size of warehouses. The trend of larger size warehouses is increasing every year.
- 70% supply chain professionals view automation as a positive impact for warehousing as of 2024.
- 79% of high-performing supply chain companies achieve revenue growth superior to the average within their industries.
- Up to 12% of companies aren't cost-effective when it comes to distribution.
- According to a study by Gartner, over 75% companies will adopt some form of cyber-physical automated warehouse processes by 2027.
- By 2026, The global warehouse automation market is estimated to surpass 30 billion U.S. dollars.
- Online sales of physical goods amounted could surpass $563.3 million by 2024.
- Transportation Management System leads 56% of the warehouse management software usage.
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Warehouse automation efficiency statistics
Warehouse efficiency is the primary key performance indicator (KPI) of warehouse automation. Researchers are using the latest technologies to make order fulfillment an efficient process. That doesn’t imply that everything is dependent on robots or machines; even human workers are being equipped with instruments that help them fetch accurate data and track and improve their productivity.
The utilization of software for inventory management and tracking, purchasing, sales, and deliveries helps businesses become efficient. Many companies use inventory control software to identify and eliminate inefficiencies in the movement of inventory between locations.
- 4 million commercial warehouse robots are to be installed in over 50,000 warehouses by 2025.
- 38% of companies in the U.S are planning to add more SKUs (scannable barcodes) and barcode scanners for inventory accuracy.
- Over 2.3 billion square feet of new warehousing space will be required by 2035.
- 77% of organizations are serious about automated warehouse systems and mapping a plan to maximize data-driven performance.
- $22 trillion traditional retail industry started undergoing a significant transition to Omni-channels to offer unified customer satisfaction.
- Automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) will make up close to a quarter of the 4 million robots expected to be installed by 2027.
67%
of our respondents indicated that being out of stock after an order is placed or simply overselling as the top inventory mistakes lead to lost customers.
Source: Stitchlabs
- Wrong product packaging and delivery cause 17% of inventory mistakes that lead to lost customers.
- 88% of industry leaders are more likely to actively recruit supply chain professionals with analytics expertise and cross-functional experience, and 83% recruit those with global experience.
- According to a study, the impact of robotics on logistics until 2025 will increase productivity by between 25% and 70% and a reduction of logistics costs by between 20% and 40%.
- 89% of distribution centers are currently using racks and shelving (down from 93% last year), while 85% rely on forklifts (versus 92% in 2019).
Warehouse automation labor statistics
According to studies, the highest operating cost in a warehouse is labor, which takes around 50 to 70 percent of the company’s warehousing budget. Therefore, finding the right technology, and workforce, and high productivity levels are essential to keeping labor management cost-effective.
An automated warehouse is also a great solution to reduce the accident rate during work.
- Amazon Robotics uses 80,000+ autonomous mobile robots to automate the order fulfillment centers.
- 10x growth opportunity is predicted for Autonomous Mobile Robots (AMRs) by 2025.
- 15% to 20% growth in cross-border e-commerce will increase the demand for modern warehouses and automation systems.
- 89% of organizations surveyed will be using modernized Warehouse Management Systems functionality for labor planning and management by 2024.
- Increased use of robotics has the potential to drive a 25%–30% reduction in average manufacturing and labor costs.
- The rate of nonfatal occupational injuries and illnesses among private industry employees was 2.8 cases per 100 full-time equivalent workers in 2019.
- 2.5 percentage points higher unemployment rate can be seen compared to pre-pandemic level.
54%
of organizations are increasing supply chain and technical training to retain laborers and develop a career path for valued employees.
Source: Logisticsmgmt
- The average hourly earnings for production and nonsupervisory employees is at the current level of 9.77, up from 9.60 one year ago.
- The US Bureau of Labor Statistics reported 707,000 employees in the warehousing and storage industry in 2013, the number has gone up to 1,933,000 in 2023.
- The number of establishments in warehousing and storage has grown to 19,267 in Q3 (2020) from 18,736 in 2019. In 2020, All of the ten largest counties had an over-the-year percentage decrease in employment by -15.9%.
- 73% believe that the optimum balance in warehousing includes human interaction. 39% support partial automation, and 34% support Augmentation (Equipping workers with devices).
Warehouse automation adoption statistics
Increased flexibility and better scalability are the advantages of modern warehouse automation technologies. Companies can rent other robots to help warehouse operators accommodate increased demand during peak season, returning them when the demand levels become stable. This is a way to maintain the budget and to decrease the number of stationary units.
- 27% of decision-makers from Manufacturing, Transportation & Logistics, and other departments plan to utilize full automation by 2024.
- Over 250,000 logistics robots were sold across the world in 2023 to meet the increasing efficiency needs of global trade relations as compared to 75,000 in 2019.
- 62% of respondents reported human error from manual process management as the no.1 root cause of inventory fulfillment issues, which can be improved with a sound fleet management system.
- On-time delivery of orders is the solution to 40% of respondents for making happy & lifelong customers. This can be achieved by implementing automated inventory solutions, automated storage, and retrieval systems, reducing human errors.
- 96% of industry leaders identify innovation as an essential factor to growth (vs. 65 percent of followers).
60%
of companies expect to invest in conveyor systems and sortation systems over the next three years.
Source: PARCEL
- 48% of leaders believe in early adopters of disruptive technologies and use 3D-Printing "extensively.”
- 75% of industry leaders believe in the utilization of software for extensive analytics.
- According to a survey conducted by Zebra Technologies, 43% of organizations plan to invest in real-time location systems (RTLS) to improve inventory accuracy.
- 55% decision-makers plan to continue evolving their RTLS solutions in 2024.
- 80% warehouse operators plan to have their warehouse management systems communication with both their yard and transport management to ensure synchronization across the supply chain.
- 80% out of 1,400 IT and Operational Decision-Makers agree that over the next five years, new technology is needed to keep up with e-commerce demands
- 40% of companies are looking forward to investing in shuttle systems for warehouse processes.
Source
- US Bureau of labor statistics
- Statista
- Zebra Technologies
- Robotics Business Review
- Westernacher Consulting
- Modern Material Handling
- Deloitte
- Logistics Bureau
- Logistics Management
- ABI Research
- Amware Logistics
- Euro Monitor
- Stitch Labs
- Roland Berger
- DHL
- Tractica
- ARC research
- Gartner
- Zerba
-
The RobotReport
Warehouse automation is critical to maintaining efficient inventory management
Industries have considered the adoption of warehouse management and automation extensively. Automating processes doesn’t mean cutting down on human labor; it can and should be integrated into operations where workers are handed devices to get more work done.
Want to learn more about crucial areas of the e-commerce business and handling resources in the supply chain? Learn more about the global supply chain.
Sujith Nair
Sujith Nair is a Content Promotion Specialist at G2. He love machines and believes in the potential of combining mechanism and automation. In his free time, you can find him reading books, running, or chilling with his coffee.