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Smart Warehousing Market Size

Report ID: GMI6921
Published Date: Oct 2023
Report Format: PDF

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Smart Warehousing Market Size

Smart Warehousing Market was valued at USD 17.4 billion in 2022 and is anticipated to register a CAGR of over 10.5% between 2023 and 2032. The various investments and initiatives set a precedent for the adoption of automation and robotics in warehousing and logistics, thereby encouraging other players to innovate and invest in similar technologies to remain competitive and meet the evolving customer demands. For instance, in April 2022, Amazon invested USD 1 billion under the Amazon Industrial Innovation Fund (AIIF). By investing in cutting-edge technologies and robotics, Amazon aims to enhance efficiency, reduce operational costs, and improve order fulfillment accuracy within its vast network of fulfillment centers.

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Investments by organizations are fueling the market growth by fostering innovations and accelerating technological adoptions. Companies are allocating funds to research, develop, and implement advanced technologies such as automation, robotics, IoT, AI, and data analytics. These investments will lead to more efficient, agile, and cost-effective warehouse operations. For instance, in February 2023, Saudi Authority for Industrial Cities and Technology Zones (Modon) invested USD 1 billion to build 14 new high-tech warehouses. Asper the agreement, these facilities will operate under a public-private partnership model, which will promote collaborations between the public and private sectors to enhance the industrial & technological infrastructure in Saudi Arabia.

Smart Warehousing Market Report Attributes
Report Attribute	Details
Base Year:	2022
Smart Warehousing Market Size in 2022:	USD 17.4 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	10.5%
2032 Value Projection:	USD 46.9 Billion
Historical Data for:	2018 - 2022
No. of Pages:	250
Tables, Charts & Figures:	347
Segments covered:	Component deployment model, technology, and end-user
Growth Drivers:	Growing e-commerce industry Rising adoption of automation & robotics solutions Rapid integration of Artificial Intelligence (AI) and Machine Learning (ML) Increasing labor expenses
Pitfalls & Challenges:	Integration challenges

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The high initial cost is a challenge in smart warehousing due to the substantial investments required for implementing advanced technologies. These expenses encompass the acquisition and installation of automation equipment, IoT devices, robotics, and sophisticated software systems. Small & Medium-sized Businesses (SMBs) may find these upfront costs prohibitive, thereby limiting their ability to adopt smart warehousing solutions. Careful financial planning, exploring cost-effective options, and assessing long-term benefits to ensure a successful and profitable transition to smart warehousing practices are required to overcome this challenge.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of smart warehousing was worth USD 17.4 billion in 2022 and is set to expand at more than 10.5% CAGR between 2023 and 2032, attributed to the multiple investments and initiatives to promote the adoption of automation and robotics in warehousing and logistics.

The solutions segment held 65% share of the smart warehousing market in 2022 and is estimated to record notable growth through 2032, driven by the increasing demand for comprehensive technology solutions.

North America held more than 30% share of the smart warehousing industry in 2022 and is anticipated to witness considerable growth between 2023 and 2032, attributed to the presence of robust e-commerce sector and the rising adoption of advanced technologies.

Some of the leading smart warehousing companies are Oracle Corporation, SAP SE, Infor, Blue Yonder Group, Inc., Korber AG, IBM Corporation, and Microsoft Corporation.