Automated Storage & Retrieval System Revenues to Surpass US$15 Billion by 2030 as Supply Chains Aim to Resolve Exposed Weaknesses

Investment in warehouse automation and management systems continues to rise as supply chains look to resolve exposed weaknesses and create greater resilience to macroeconomic headwinds. According to global technology intelligence firm ABI Research, Automated Storage & Retrieval System (AS/RS) revenues are expected to surpass US$15 billion globally by 2030, and Warehouse Management System (WMS) revenues are expected to exceed US$10 billion by the same period.

“Global supply chain challenges over the last three years have highlighted the need for digitalization and a deeper restructuring of inventory management. Labor constraints, geopolitical trade shifts, and inventory gluts continue to pressure warehouse operations, and the most impacted organizations continue to be those with lower focus on digital transformations,” states Ryan Wiggin, Supply Chain Management & Logistics Industry Analyst at ABI Research.

AS/RS vendors, including AutoStore, Ocado, and Swisslog, as well as Autonomous Mobile Robot (AMR) vendors such as inVia Robotics, Locus Robotics, and Vecna Robotics, are leading the structural automation charge, while established and emerging WMS vendors such as Blue Yonder, Manhattan Associates, and Snapfulfil continue to add new functionalities to orchestrate and optimize both the manual and automated workflows. In addition to the growth in automation and management systems, high investment in hardware and devices is expected to increase worker productivity, as manual worker involvement remains necessary alongside the adoption of automated equipment. Global shipments of handheld devices for warehouse workers will grow at a CAGR of 20% to 2030, led by market leaders such as Zebra and Honeywell.

New warehouse building is expected to drop by as much as 35% in 2023 compared to 2022. It is creating an even greater incentive to invest in the automation of current facilities to ease operational constraints. Disruption to new developments will be short-lived, with steady growth in warehouse construction expected to 2030, led by a much greater CAGR in global e-commerce fulfillment center development at 18%.

“Successful deployments by Tier One organizations continue to spur the adoption of technologies within small-medium enterprises. Solutions providers must continue to offer accessible adoption through as-a-service models and scalable structures, and exploring partnerships with complementary technology will be key to deploying market-leading end-to-end solutions,” concludes Wiggin.

These findings are from ABI Research’s Smart Warehousing market data report. This report is part of the company’s Supply Chain Management and Logistics research service, which includes research, data, and ABI Insights. Market Data spreadsheets comprise deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight into where opportunities lie.