The market for warehouse automation is expected to grow to $55 billion by 2030, alongside an ever-expanding e-commerce boom that has created new, complex challenges for businesses. 

According to a report from supply chain research firm LogisticsIQ, the expansion of automation has been a direct result of the rapid rise of online shopping, with e-commerce having transformed into a $5 trillion logistics industry worldwide. Between 2024 and 2030, the firm estimates that the warehouse automation market will expand at a compound annual growth rate of 15%. And with online retail calling for massive volumes of picking, packing and shipping services, automated warehouses are rapidly becoming more of a necessity. 

"This surge in online retail, coupled with the increasing need for faster delivery times, is putting immense pressure on logistics providers to automate," LogisticsIQ's report reads. 

In recent years, new technologies have also begun to surface, including automated systems for picking, cold storage, and robotic arms. LogisticsIQ says that there are now more than 700 companies developing and offering automated technologies for retailers, spread across warehouse management systems, micro-fulfillment, robotic components, and material handling. 

According to LogisticsIQ, the U.S., China and Germany make up more than half of the global market for warehouse automation in terms of demand, with online grocery shopping emerging as the top industry. As grocery distribution centers have become more and more labor intensive, many companies have turned to automation to lighten the load. In the U.S., both Kroger and Walmart have announced plans in 2024 to ramp up their use of automation at fulfillment centers, with robotic picking arms that can carry and group groceries, and then load them onto large, heavy pallets that are sent to stores.