Global Smart Warehousing Market Size, Forecast, and Trend Highlights Over 2025-2037
Smart Warehousing Market size was valued at USD 24.62 billion in 2024 and is projected to reach USD 145.12 billion by the end of 2037, rising at a CAGR of 14.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of smart warehousing is evaluated at USD 27.55 billion.
The market is undergoing a remarkable transition fueled by shifts in trade dynamics and technological advancements. The warehouse operations are directly dependent upon the export and import of raw materials and goods. Technological advancements such as the inclusion of blockchain, AI, and ML, etc. Additionally, a study showcased that unmanned aerial vehicle systems have also automated the inventory tasks management and upgraded the traceability of products in the supply chain. These concoctions are pivotal for facilitating warehouse processing and ensuring transparency in the supply chain.
The smart warehousing industry is transforming itself to adapt to the technologically advancing landscape. Companies are embracing novel technologies and responding positively, even to the highly volatile trade patterns. Smart warehousing holds the capability to address key challenges of the traditional warehousing systems, such as labor shortage, exhaustive logistics, and managing an intricate supply chain. In 2023, the National Institute of Standards and Technology published a report stating that including automation can reduce 76% of the fulfillment errors in a smart warehouse.
Smart Warehousing Sector: Growth Drivers and Challenges
Growth Drivers
- Thriving online commerce industry: The e-commerce platforms manage millions of daily orders, needing instant processing. Smart warehouses have become integral to managing the burgeoning e-commerce sector that includes robots and guided vehicles. For instance, the leading e-commerce company Amazon utilizes Kiva robots that lowered the processing time for orders by 51% and made same-day delivery feasible. Additionally, e-commerce involves a high rate of product returns and demand for personalized products. The smart warehousing streamlines these complex processes by enabling reverse logistics and dynamic routing.
- Labor shortage and surging wages: The conventional warehouse system faces an acute shortage of labor globally. For instance, data published by the U.S. Bureau of Labor Statistics in 2023, in the U.S., the demand for warehouse labor exceeded by 31% than last year. Smart warehousing, which incorporates AI, IoT, robotics, etc., reduces the dependency on manual labor. For instance, Alibaba Group in 2022 automated its warehouses by including automated guided vehicles, cutting the need for labor by 72% with increased efficiency. Smart warehousing remains an important solution for labor shortages. As Research Netser estimates that in the U.S. alone, by the end of 2025, there will be 1.24 million unoccupied jobs in logistics.
- Rising demand for sustainability: Smart warehousing includes smart lighting systems and leverages IoT sensors to adjust both the lighting and the temperatures based on the energy needs. For instance, Amazon warehouses utilize motion-activated LED lighting, reducing energy usage by 82%. Also, the AI-enabled inventory management reduces the spoilage, particularly in food or pharma logistics. Other than this, the features such as automated storage and retrieval systems help in maximizing the vertical storage, reducing the requirement for larger warehouses. The smart warehouse in DHL Singapore attained 32% of energy savings utilizing automated systems.
Technological Trends Shaping the Smart Warehousing Landscape
The smart warehousing is being adopted widely and evolving as a state-of-the-art solution for overcoming challenges in traditional warehouses. It consists of the AI-enabled predictive analytics for inventory management, robotic arms for handling, sorting, and picking, to raise productivity. Also, the inclusion of 5G and edge computing provides high-speed connectivity supporting real-time decision making. The blockchain is also being highly utilized in warehouses to enhance traceability and reduce errors. For instance, Walmart utilized blockchain in its warehouses and was able to reduce the traceability time from 7-8 days to 2-23 seconds. Here is a tabular representation of some companies that benefited from the smart warehouse.
|
Technology |
Industry |
Adoption Rate |
Statistic |
|
Artificial Intelligence (AI) |
Warehousing |
66% plan to implement within 3 years |
AI-driven demand forecasting improves inventory planning accuracy up to 92% |
|
Robotics |
E-commerce |
Productivity gains up to 86% |
Amazon's use of collaborative robots like Proteus led to a 26% cost reduction |
|
Internet of Things (IoT) |
Logistics |
Market projected to reach USD 17.9 billion by 2030 |
IoT enables real-time inventory tracking and optimization |
|
Blockchain |
Finance |
62% used for fraud prevention |
Upgrades supply chain transparency and security |
|
Augmented Reality (AR) |
Retail |
Improves order picking accuracy and speed |
AR glasses are used for effective inventory management |
Green Logistics: Sustainability Initiatives in the Smart Warehousing Sector
Smart warehousing and sustainability are connected as the inclusion of AI, robotics, automation, etc. results in optimized energy usage. Leading companies are adopting measurable methods to minimize waste and reduce carbon emissions. For instance, AI-driven inventory management reduces overstocking, and the adoption of automated packaging systems causes a 16-21% reduction in material waste. Practices such as using renewable energy sources further decrease dependence on fossil fuels, making warehouses cost-efficient as well as greener. The integration of smart technologies, these warehouses not only promotes the circular economy mandates but also increases operational efficiency. Companies are embracing these initiatives to align with their environmental goals and enhance their brand reputation.
|
Company |
Sustainability Initiatives |
Goals |
Impact |
|
Prologis |
Achieved 510 MW solar capacity by Dec 2023; Targeting 1 GW by 2025 |
Net-zero emissions by 2040; Carbon-neutral construction by 2025; Net-zero operations by 2030 |
Provides renewable energy to customers; Enhances grid resilience |
|
Amazon |
Contracted 15.8 GW of wind and solar power by 2022; Launched carbon credit service in 2025 |
Achieve net-zero carbon emissions by 2040 |
Positions as a leader in renewable energy procurement; Renders carbon credits to suppliers and customers |
|
DHL Supply Chain |
Installed solar panels covering 11,100 m² in Thailand, supplying 39% of energy demand; Implemented motion sensor LED lighting reducing energy use by 22% annually |
100% net-zero carbon warehousing by 2025; 91% green electricity in new buildings by 2030 |
Reduces operational costs; Enhances brand reputation; Supports customer carbon footprint reduction |
|
Prologis (Poland) |
Achieved 100% renewable energy use in distribution parks by 2022 |
Carbon-neutral construction processes globally by 2025 |
Reduces operational costs; Enhances brand reputation; Supports customer carbon footprint reduction |
|
DHL Supply Chain (Australia) |
Installed 5,510 solar panels at HP 8 Warehouse in Sydney, generating 1.8 MW; Saves USD 195,200 per year |
Expand renewable energy use across facilities |
Reduces energy costs; Supplies excess electricity to the grid |
Challenges
- Lack of adequate infrastructure: The successful execution of a smart warehousing solution largely depends on the availability of a resilient digital infrastructure. Some of the emerging economies lack such infrastructure to deploy these technologies. For instance, an inadequate power supply and energy instability issues result in frequent blackouts.
- Unavailability of skilled workforce: The establishment of smart warehouses needs a team of technicians, robotics experts, and data analysts. In underdeveloped regions, these skills are often in short supply and cause disruptions in the execution of various programs. Warehouses in emerging economies may lack training for workers to implement AI-based operations.
Smart Warehousing Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
14.3% |
|
Base Year Market Size (2024) |
USD 24.62 billion |
|
Forecast Year Market Size (2037) |
USD 145.12 billion |
|
Regional Scope |
|
Smart Warehousing Segmentation
Application (Order Fulfillment, Inventory Management, Transport Management, Shipping Management, Labor Management)
The order fulfillment segment is projected to register the largest smart warehousing market share, registering 34.5% by 2037. The growth of the market can be attributed to the surge in e-commerce and customer demand for same-day or rapid delivery services. The inclusion of smart warehousing solutions is speeding up the order processing operation by using real-time inventory trackers. Other than this, the inclusion of automated guided vehicles replaces the manual picking of the products and reduces the reliance on human labor. Big players such as Amazon are investing a significant amount in AI and robotics to streamline order fulfillment.
End user (Transportation & Logistics, Retail & E-commerce, Manufacturing, Healthcare & Life Sciences, Energy & Utilities, Automotive, Food & Beverages)
The transportation and logistics segment of smart warehousing market is expected to garner the maximum revenue with a 30.5% share value. The sector is the backbone of the worldwide supply chains, and embracing smart warehousing to enhance efficiency. There has been a rising reliance on real-time tracking and data-driven decision-making. Companies are adopting IoT and GPS-enabled fleets to integrate logistics analytics for route optimization and speed up the delivery times. For instance, DHL and Maersk utilize AI-enabled logistics dashboards to reduce costs and speed up delivery time. Autonomous delivery bots are also deployed by companies to conduct efficient operations. The last-mile analytics from Amazon cuts the delivery time by almost 21%. Various other companies are also leveraging AI, ML, IoT, and blockchain to get an edge in growth-determining factors such as sustainability and timely delivery.
Our in-depth analysis of the global smart warehousing market includes the following segments:
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Component |
|
|
Deployment Mode |
|
|
Organization Size |
|
|
Technology |
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Application |
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End-Use |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Smart Warehousing Industry - Regional Analysis
North America Market
The North America smart warehousing market is anticipated to hold 35.5% of the share by 2037, fueled by the presence of technologically advanced infrastructure and early adoption of automation technologies. Canada and the United States are dominating the market by integrating modern technologies such as IoT and robotics into various operations. Also, government initiatives are supporting the development of smart warehousing by allocating a budget for ICT initiatives. In the U.S., the smart warehousing market is projected to garner USD 11.8 billion by 2030. The growth is propelled by increasing demand for supply chain management and automation in logistics. In 2022, the Department of Defense (DoD) launched a 5G Smart Warehouse at the Naval Base Coronado in California.
Canada is also witnessing significant growth due to the rising adoption of smart warehousing solutions. Government bodies are actively supporting broadband expansion and ICT developments that are crucial for smart warehousing infrastructure. The Deloitte Smart Factory in Montreal is an exemplary establishment of smart housing in Canada, integrating advanced technologies. These developments showcase countries’ will to expand the smart warehousing operations with the rising demand for modern supply chains. Also, companies such as Shopify are also investing in automated fulfillment centers, fostering efficiency.
Asia-Pacific Market
The Asia Pacific smart warehousing market is anticipated to garner 27.5% share of the global market, driven by government-led initiatives in various countries and the rapid expansion of the e-commerce sector. For instance, the e-commerce sales in China alone have surpassed USD 1.74 trillion in 2022, instilling the need for automated warehousing solutions. Additionally, in South Korea smart factory initiative has been launched, and the government has infused USD 1.08 billion to innovate manufacturing facilities. The development across Asia Pacific countries showcases the efforts made by the public and private sectors to advance the logistics and transportation sector.
Companies Dominating the Smart Warehousing Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The competitive landscape of the smart warehousing market is rapidly evolving as established key players, IT giants, and new entrants are investing in logistics. Key players in the market are focused on developing new technologies and products that cater to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global market:
Top 15 Global Manufacturers in the Smart Warehousing Market
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Honeywell International Inc. |
USA |
12.4% |
|
Siemens AG |
Germany |
10.2% |
|
Daifuku Co., Ltd. |
Japan |
8.3% |
|
Zebra Technologies |
USA |
7.7% |
|
Mitsubishi Electric Corp. |
Japan |
7.2% |
|
Samsung SDS |
South Korea |
xx% |
|
Cognex Corporation |
USA |
xx% |
|
Blue Yonder (JDA Software) |
USA |
xx% |
|
ABB Ltd |
Switzerland |
xx% |
|
Schneider Electric |
France |
xx% |
|
Infosys Ltd |
India |
xx% |
|
Flextronics International |
Singapore |
xx% |
|
Hitachi Ltd |
Japan |
xx% |
|
Telstra Corporation Ltd. |
Australia |
xx% |
|
Scientech Technologies |
Malaysia |
xx% |
Below are the areas covered for each company in the smart warehousing market:
Recent Developments
- In March 2024, Honeywell launched the Forge Warehouse Execution System, integrated with AI-driven analytics to optimize workflows. The early adoption resulted in a 15.5% surge in operational efficiency, driving 12.5% revenue growth in the automation division.
- In January 2024, Siemens launched a digital logistics cloud-based platform for a smart warehousing environment, enabling real-time tracking. The company reported an 11% rise in new acquisitions, showcasing surging demand for such solutions.
- Report ID: 5313
- Published Date: May 26, 2025
- Report Format: PDF, PPT
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