How robotics and automation systems are transforming the warehouse operations landscape.

Robotics-as-a-service (RaaS) is helping companies adopt robotics without huge upfront investments, making automation more accessible to many companies.

As companies continue to struggle with labor shortages and supply chain hiccups, warehouses and distribution centers are increasing the use of robotics, automation solutions, and other technologies.² It means working smarter, better, and faster without additional labor. And once in place, robotics frees up existing employees to work on more meaningful, value-added projects while leaving mundane, repetitive, and more strenuous tasks to the machines.

According to a recent Mordor Intelligence report,³ the global warehouse robotics market is expected to grow from $7.93 billion in 2024 to $17.91 billion by 2029, a CAGR of 17.70%. The double-digit increase underscores the fact that 80% of today’s warehouses are still manually operated with no supporting automation, presenting a huge opportunity for warehouse operators. Robotic solutions can improve delivery times, reduce waste, and offset labor shortages by performing essential tasks like receiving, inventory management, loading and unloading, put-away, picking, packing, shipping, and transport with little to no human intervention.

Thinking beyond traditional mechanized automation, which is used in about 15% of warehouses⁴ and typically encompasses automated storage and retrieval systems and conveyors, companies are adopting more sophisticated solutions, including:

In 2012, Amazon bought Kiva Systems⁵—a maker of mobile robotic fulfillment systems—and accelerated the e-tailer’s push into the world of automation. Today, Amazon operates about 750,000 robots, shifting the number of its human employees into other areas by about 100,000 since 2021.⁶ Automating specific tasks has both freed human employees to focus on other priorities and provided the ability to maintain growth without the hindrance of tough labor markets. The most recent member of Amazon’s robot fleet is Proteus, the company’s first fully autonomous mobile robot, which uses video, lidar, and ultrasonic sensors to navigate and continuously learn about its environment, improving its performance.

Worker shortages, a huge uptick in e-commerce orders, and increased overall demand for automation in logistics are just some of the key trends that are pushing more companies to invest in robotics and automation. Indeed, robotics technology with more sophisticated sensor arrays and AI training has made steady progress in the warehousing sector over the last decade. Robotic systems also improve ergonomics, minimize repetitive strain injuries, and boost overall workplace safety.

Logistics operators are improving throughput and efficiency by implementing robotics across their operations, which dovetails naturally with warehouse automation. And the cost of entry is rapidly coming down as more robotics companies offer robotics-as-a-service (RaaS) subscriptions that make automation and robotics more attainable. Renting instead of buying outright can also significantly shorten return-on-investment timelines, which is why RaaS is being used in applications ranging from cleaning and sanitation to security patrols and automated valets.⁷

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