Europe Warehouse Automation Market Size (2024 - 2029)

Europe Warehouse Automation Market Analysis

The Europe Warehouse Automation Market size is estimated at USD 4.28 billion in 2024, and is expected to reach USD 8.37 billion by 2029, growing at a CAGR of 14.40% during the forecast period (2024-2029).

Furthermore, whereas warehouse robots have had enormous deployments, COVID-19 is likely to significantly increase deployment speed. The COVID-19 outbreak has prompted warehouse owners to explore expediting their automation and robotics implementation timelines. Those who have successfully adopted automation have also demonstrated the establishment of safer workplaces by limiting worker interactions while raising productivity to meet rising e-commerce needs. Thousands of brick-and-mortar stores have closed their doors due to the recent increase in e-commerce.

• In Europe, the warehouse automation growth increased post-pandemic. This results from two interconnected trends: a seemingly unstoppable rise in e-commerce and a persistent labor shortage resulting in rising labor prices. The market for warehouse robots in Europe has been driven by the growing number of warehouses and increased expenditures on warehouse automation, rising labor costs, and the availability of scalable technical solutions.
• Regarding demand and the presence of OEMs and System Integrators, Germany is one of the leading countries in warehouse automation. OEMs are well-represented in Europe, with strongholds in Germany, Italy, France, the Netherlands, and Spain. Central and Eastern Europe is a rapidly growing region within Europe, with Poland and the Czech Republic emerging as logistical hubs with promising economic potential. However, expansion and investment plans have been put on hold due to the present geopolitical circumstances, including the Russia-Ukraine conflict.
• The Internet of Things is driving inventory and warehouse automation developments. It's contributing to the transformation of the warehouse into a connected and coordinated system. In 2021 and beyond, lower costs and enhanced IoT sensors are expected to boost the use of IoT in warehouses. For Instance, In May 2020, DHL, a German logistics company, said that it had partnered with Cisco, a US technology company, to introduce IoT to three large warehouse operations across Europe.
• However, warehousing automation is extremely beneficial when it comes to lowering overall business expenditures and eliminating product delivery faults. Despite the benefits, 80 percent of warehouses are "still manually operated with no supporting automation," according to DHL, a notable 3PL business and a major end-user of warehouse automation technologies. Furthermore, conveyor-based, sorter-based, and pick-and-place warehouses account for 15% of all warehouses. In comparison, only 5% of today's warehouses are automated.

Europe Warehouse Automation Industry Segmentation

The European warehouse automation market study involves segmentation by component wherein hardware (AGV/AMR, AS/AR, piece picking, etc.), software (warehouse management systems, warehouse execution systems), and services (value-added services, maintenance, etc.) sub-segments are being analyzed.

Further, the warehouses and fulfillment centers perform activities across end-users, such as food and beverage, post and parcel, apparel, general merchandise, and manufacturing, to name a few. The manufacturing industry majorly includes the automotive, electronics, and pharmaceutical sectors. The study also provides the impact of COVID-19 on the market studied.