This presentation sheds light on the warehouse automation industry, outlining some of the key trends and future opportunities for players operating in the space. It explores opportunities on both the hardware and software fronts in coming years, especially with the rapid rise of eCommerce and growing consumer demands around a seamless order-to-delivery experience.
Warehouse management consists of multiple processes that can potentially be automated across six key steps: (1) receiving; (2) put-away and storage; (3) picking; (4) packing; (5) dispatching; and (6) returns
The market for automating this process flow is expected to reach USD 30.2 billion by 2026, growing at a compound annual growth rate (“CAGR”) of 10.5%
There are four primary player groups in the warehouse automation landscape who are vying for a piece of this pie: (1) automated guided vehicles (“AGV”); (2) autonomous mobile robots (“AMR”); (3) Personal Assistant (“PA”) AMR; and (4) automated storage and retrieval system (“ASRS”)
The AMR segment of players, in particular, is expected to command a USD 6.7 billion opportunity by 2026, growing at a CAGR of 19.7%
Asia has emerged as a key growth region for the AMR market, with China, in particular, showcasing considerable potential, while other countries also experience rapid growth in their industrial output
There exist several key types of hardware that are being utilised by different players across the warehouse management lifecycle (e.g. automated forklifts, aerial vehicles, etc.)
Robot-as-a-Service (“RaaS”), in particular, has grown in popularity as smaller eCommerce traders emerge, custom development remains expensive, and demand fluctuation hampers direct purchase models
Software-focused offerings are also on the rise, but there remains a shortage of modular offerings for plug-and-play use
Owing to the relatively more flexible payment and renewal terms offered by subscription models, we are seeing a shift away from perpetual licensing deals for software
In terms of tailwinds, there are considerable growth drivers being witnessed in the form of warehouse software, robotic automation, wearable technology, big data, cloud computing, and the internet of things (“IoT”)
However, there remain certain headwinds to be reckoned with as well, including inaccurate inventory, suboptimal picking, poor space utilisation, demand fluctuations, high labour costs, and quality control
Moving forward, we see significant room for improvement for warehouse robotics companies in the following three types of areas: (1) strategic (e.g. customers, channels, offerings, geographic, and partnerships); (2) operational (e.g. scalability, human resources, risk management, regulatory compliance, and corporate governance); and (3) financial (e.g. revenue drivers, cost drivers, and profitability)
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