Allied Market Research forecasts that the global warehouse automation market will reach USD 90.73 billion by 2034, growing at a compound annual growth rate of 15.1 percent between 2025 and 2034. The market, valued at USD 21.71 billion in 2024, is expanding due to increasing e-commerce activity, higher labor costs, and demand for scalable and efficient storage and fulfillment systems.
The report attributes the market’s growth to the adoption of technologies such as automated storage and retrieval systems (AS/RS), robotics, artificial intelligence, and the Internet of Things, which enhance inventory accuracy, space utilization, and operational efficiency. Rising consumer expectations for faster deliveries and the development of smart logistics infrastructure are also contributing factors.
Among the solution segments, automated storage and retrieval systems held the largest share in 2024, accounting for nearly one-fifth of global revenue, driven by their ability to optimize warehouse space and reduce manual labor. The “other software” segment is expected to grow at the fastest rate, with a projected CAGR of 21.8 percent, reflecting the increasing use of AI- and IoT-enabled analytics for real-time warehouse management.
By application, the e-commerce sector represented more than half of market revenue in 2024 and is expected to continue growing at a CAGR of 15.9 percent through 2034. The expansion of online retail and demand for rapid order fulfillment are encouraging investment in automated solutions.
In terms of end-user industries, manufacturers and distributors accounted for over three-fifths of the market in 2024, supported by large-scale operations requiring efficient inventory and supply chain management. The retailers segment is projected to record the fastest growth, at 15.4 percent annually, as companies invest in automation to improve omnichannel order processing and delivery performance.
Regionally, North America dominated the market in 2024, generating over two-fifths of total revenue due to early technology adoption, established automation providers, and high labor costs. The Asia-Pacific region is projected to experience the highest growth, with a forecast CAGR of 18 percent, driven by expanding e-commerce, industrialization, and increased investment in logistics automation in China, India, and Southeast Asia.
Key companies operating in the market include ABB, Amazon.com Inc., Atmos Systems, Bastian Solutions LLC, Daifuku Co. Ltd., Fanuc Corporation, Zebra Technologies Corp. (Fetch Robotics Inc.), Honeywell International Inc., Jungheinrich AG, Kion Group AG (Dematic), KUKA AG, SSI Schaefer Group, Omron Corporation, Schneider Electric, Siemens, Yaskawa Electric Corporation, and Falcon Autotech.
