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Warehouse Robots Will See a Population Explosion

By 2025, the population of commercial robots in warehouses is expected to increase to four million worldwide, says ABI Research. They’ll be installed in 50,000 warehouses globally, up from just under 4,000 as of 2018. The rapid rate of adoption will be driven by the need for flexible, efficient, and automated e-commerce fulfillment, as same-day delivery becomes the norm, says ABI.

Global adoption of warehouse robotics will also be spurred by the increasing affordability and ROI of a growing variety of infrastructure-light robots. These are viewed as an attractive and versatile alternative to traditional fixed mechanical automation or manual operations.

“Flexibility and efficiency have become primary differentiators in the e-commerce fulfillment market, as retailers and 3PLs struggle to cope with volatile product demand, seasonal peaks, and rising consumer delivery expectations,” said ABI’s Nick Finill, based in London. “Robots enable warehouses to scale operations up or down as required, while offering major efficiency gains and mitigating inherent challenges associated with labor and staffing.”

Along with advances in the technology, which have given rise to automated guided vehicles (AGV) and autonomous mobile robots (AMR) goods-to-person systems, there have been advances in staffing. Vendors such as Fetch, Geek+ and Invia enable robots to be added to or removed from a warehouse’s fleet as operational demands require.

These vendors also facilitate relatively rapid reconfiguration of entire workflows and operations if product lines or fundamental operational requirements change. ABI notes that this presents a major advantage in the unpredictable and dynamic e-commerce market.

“By lowering the barriers to adoption for robots in the warehouse, vendors are disrupting the wider logistics value chain,” said Finill. “If advanced automation becomes possible for mid-size e-retailers, they will be able to fight back against the dominant players and also bring fulfillment operations back in-house, disrupting the relationship between retailers and 3PLs.”

Pictured: RightPick mobile robot sorter from RightHand Robotics

For comments, questions or concerns, please contact Paul Bubny

Connect

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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