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The future of warehouse automation: trends shaping the industry

What’s happening in the world of warehouse automation and how will the market develop? Are scarcity of labour and lack of space still big challenges for customers? And what role do advancing technologies such as robotics play in the modern distribution centre? These are just some of the questions addressed by Erik de Jonge, Vanderlande’s Senior Manager for Strategy & Market Insights Warehouse Solutions, as he takes a look at trends and priorities across the sector.

“On the technology side, growth in robotics and automated mobile robots (AMRs) remains strong, but the market is entering a more mature phase with greater realism about their capabilities.”
Erik de Jonge
Senior Manager for Strategy & Market Insights Warehouse Solutions

Before looking at what the future holds, it’s worth assessing the current market situation. The sector has been relatively stable for several years and is worth around EUR 30 billion annually. This is partly down to global economic uncertainty caused by geopolitical instability, the levying of tariffs, higher interest rates and inflation. According to Interact Analysis, global economic uncertainty reached an all-time high in the first quarter of 2025, although since then it has become less severe.

These challenges have in turn forced businesses to think carefully about their investment decisions. Nevertheless, many projects have made it past the drawing board, including large ones driven by industries that tend to need automation of significant scale, such as food manufacturing and retail. Other non-cyclical sectors like pharmaceuticals, as well as parts and components, have also been filling order books.

On the technology side, growth in robotics and automated mobile robots (AMRs) remains strong, but the market is entering a more mature phase with greater realism about their capabilities. Companies are now focusing on where these solutions truly add value and deliver measurable returns on investment (ROI).

Decent market outlook

Before and during the pandemic, we saw a number of years of double-digit growth powered in no small part by the explosive expansion of e-commerce. For the market in general, we are entering a new phase of steady but realistic growth. Using Vanderlande’s own models, we estimate a general growth rate for warehouse automation of 8% per year, which is in line with the findings of Interact Analysis and Style Intelligence.

We also see that the e-commerce market is starting to grow again after a few flat years. Worldwide, the sector was valued at US$3.66 trillion in 2025, and, according to Statista, is expected to enjoy a compound annual growth rate of 6.3% from 2025 to 2030.

3 key trends

  1. Labour shortages remain a challenge
    A lack of labour remains a problem for the warehousing sector. In many parts of the world, the unemployment rate remains low and many view working conditions in warehouses as unattractive.
    In addition to many being put off by a job with a high level of manual labour, it can be difficult for warehouses to offer steady work patterns due to the fluctuation in orders. Peak times may require 200 people one day, but perhaps only half that number the next.
  2. The pressures of finding space
    Warehouse vacancy rates have increased recently and therefore rents have decreased. At the same time, it remains difficult to find land to build new facilities, especially in or near urban areas. Interact Analysis believes warehouse construction is now expected to contract slightly in 2025 compared to last year. As every cubic metre becomes more valuable, companies are aiming to maximise the use of brownfield sites.
  3. Economic uncertainty remains
    Economic uncertainty looks set to continue, which brings challenges for many businesses. It’s difficult for them to know precisely which assortments to stock or channels their customers will chose when ordering goods. That makes it difficult to plan, and assess the kind and scale of automation required.

Focusing on customer needs

Finding ways to increase productivity

As cost pressures from wages, energy and materials continue to rise, warehouses and distribution centres are looking for ways to improve productivity. Automation is increasingly seen as a key enabler, helping companies to do more with less.

Goods-to-person systems are improving operator efficiency, while robotic picking solutions are evolving rapidly, expanding their range of capabilities in terms of accuracy, speed and what they can pick. At the same time, robots are taking on more physically demanding tasks – such as unloading trucks or transporting goods across facilities – reducing manual strain and supporting safer, more ergonomic workplaces.

Delivering space-effective solutions

By implementing shuttle-based automation, companies can significantly increase throughput within their existing buildings, reducing or even eliminating the need to construct new warehouse facilities. As the search for additional space intensifies, many organisations are repurposing structures such as former shopping malls, parking garages and postal centres into modern logistics hubs. These environments are especially well-suited for automation technologies, including AMRs, which can operate efficiently within irregular or previously non-industrial layouts.

The need for flexibility and scalability

Warehouse operators are looking for automation solutions that can grow along with the business. Having the option to scale up is essential, whether it’s adding more racking to a shuttle system or introducing extra mobile solutions to the warehouse floor. AMRs are a great option, because they have so many applications, the latest of which is the ability to climb into racking, pick up a tote and deliver it to a picking station.

Flexibility is equally important. Operators want systems that allow rapid integration of technologies, such as robotic item pickers and AMRs, so they can respond quickly to seasonal peaks or special promotions without disrupting operations. This ability to scale and adapt ensures warehouses remain efficient and resilient in a dynamic market.

Key enablers for automation

Building a sustainable and resilient supply chain

Sustainability has become a defining priority across the logistics and retail landscape. Companies are under increasing pressure to reduce their environmental impact while maintaining operational performance. This has accelerated the adoption of energy-efficient technologies and solutions to lower consumption and emissions. These include low-friction conveyor systems, optimised drive mechanisms and smarter energy management systems.

Meanwhile, new packaging solutions enable tighter load configurations, minimising the amount of air shipped and reducing the need for excess filling materials. The result is fewer transport journeys, lower fuel use and a measurable reduction in carbon footprint.

Beyond environmental goals, there is a growing recognition that true sustainability also includes people. Ergonomics and workplace design are increasingly viewed as essential for attracting and retaining skilled employees in a tight labour market. Even modest improvements, such as adjustable workstations or the use of warmer, more natural materials at human touchpoints can have a meaningful impact on comfort, safety and job satisfaction.

Finally, as digitalisation becomes integral to warehouse and supply chain operations, cybersecurity has emerged as a vital element of the ESG agenda. Protecting data, networks and connected equipment is now seen as fundamental to business continuity and trust. Leading organisations are strengthening their defences and embedding cybersecurity into every layer of their automated and digital systems.

Smooth integration is key

Integration is a key success factor in warehouse automation. With more robotics, AMRs and other systems – such as packaging machines – entering the market, customers increasingly expect fully integrated, end-to-end solutions. This drives the growing importance of Warehouse Execution Systems (WES) and Warehouse Control Systems (WCS), which connect warehouse management systems with automation and enable real-time orchestration of people, robots and equipment.

Increasing digitisation

The adoption of artificial intelligence (AI) is expected to rise dramatically. According to MHI and Deloitte, around 28% of businesses in the warehousing sector report using it today, while 54% plan on using it within the next five years. Marrying AI with vision technology in item picking robots helps them learn to handle new products.

AI is also driving progress in other areas of warehouse operations. One example is predictive maintenance, where data about equipment performance is interpreted to forecast when an error is likely to occur. Engineers can then address potential issues before a breakdown happens, significantly improving uptime and overall efficiency.

Navigating the road ahead

As warehouse automation continues to evolve, businesses are navigating a landscape defined by economic uncertainty, labour shortages and the need for greater flexibility. Yet, with the right technologies and strategic focus, there are clear opportunities to build more resilient, efficient and sustainable operations. From robotics and AI to space-saving solutions and integrated systems, the future of warehousing is being shaped by innovation and adaptability. Staying ahead means understanding these shifts and making informed decisions that align with long-term goals.

Sources and further reading

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