Warehouse Automation Market Grows Despite Economic Headwinds
Despite a weak overall macroeconomic backdrop, warehouse automation order intake rose by 7% in 2025, according to a report from London-based Interact Analysis. The increase was fueled in part by an inflation of project values due to rising steel and labor costs, causing order intakes to rise even without a boost in underlying demand.
In addition, slow momentum within the market was offset by large-scale facility investments from retail giants such as Amazon, Walmart, and Tesco. These industry leaders continue to invest in automation infrastructure to maintain competitive advantages and address rising labor costs.
Future Growth Drivers
Future growth in warehouse automation over the coming years will be driven by shifting investment priorities and changing production strategies. Strong industry sectors for growth are expected to be general merchandise, durable manufacturing, and food and beverage.
However, grocery automation is expected to slow in the Americas as we get closer to 2030, as major distribution center programs reach completion. Interact Analysis also predicts renewed growth for the parcel sector, with an average annual growth rate of approximately 6% forecast between 2025 and 2030, fueled by last-mile automation investment.
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