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The drive for logistics automation continues, with two recent studies predicting continued growth in demand for warehouse automation equipment and delivery robots over the next five to ten years.
The warehouse automation market is forecast to grow in value from $29.6 billion in 2020 to $69 billion in 2025, driven by demand from the grocery and general merchandise industries, according to a report by Interact Analysis, a global technology market research firm.
Fixed automation solutions, which include automated storage and retrieval systems (AS/RS), conveyors, and conveyor-based sorters, will remain the most common form of automation, but the trend toward more flexible mobile automation solutions for warehouses is growing rapidly.
The general merchandise sector is the largest single sector in warehouse automation and is expected to grow faster than the overall market, reaching $20 billion in revenue by 2025," said Rueben Scriven, senior analyst at Interact Analysis.
General merchandise, which is shipped by companies such as Kyodo, Amazon, and Target, will account for 28 percent of the market by 2025. However, the fastest-growing vertical is still grocery, which is expected to grow from 12 percent to 16 percent in 2025.
The report also notes that delays and disruptions associated with the outbreak will also stabilize over the next year as companies catch up on backlogged system orders. The market will return to normal by 2022, while also facing continued accelerated growth in the aftermath of the epidemic.
Systems integrators Dematic and Honeywell Intelligrated retained the largest market share for warehouse automation projects, with the largest market share in Asia-Pacific at $11 billion.
A separate report by the researcher Allied Market Research forecasts the market for delivery robots will grow at a compound annual growth rate (CAGR) of nearly 25 percent between 2021 and 2030 to reach $30.5 billion. Accelerating growth in e-commerce and the need for contactless delivery since the start of the Covid-19 pandemic is driving global demand, particularly in the food and hospitality industries, the company said.
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