Growth driven by technology adoption
India’s warehousing automation market is expected to expand at a compound annual growth rate (CAGR) of ~13.38% during the 2020-2024 period, to reach a value of Rs.421.5 billion by 2024.
It was Rs.202 billion in 2019, according to a ResearchAndMarkets report the “Warehouse Automation Market in India 2020”.
India has been witnessing a rapid growth in the adoption of warehouse automation technologies by different sectors and industries including logistics units, manufacturing units, e-commerce sectors, automobile and retail industries, said the report.
Growth in e-retail operations and the implementation of the Goods and Services Tax (GST) facilitated the expansion of the warehouse automation market in India.
Moreover, the evolution of advanced technological solutions in India like the evolution of artificial intelligence (AI), Industrial Internet of Things (IIoT) and Blockchain, and their application in warehousing, are impelling warehouse and supply-chain operators to adopt automated systems.
The implementation of warehouse automation systems benefits supply-chain operators by way of reducing operating costs and labor charges, and allowing inventory transparency.
However, with the growing popularity of warehouse automation, corporations are downscaling their workforce on account of replacing laborers with robotics.
This is contributing to the escalating unemployment rate in the country. Installation and maintenance costs of automated warehousing systems are quite high, which may stand as an obstacle for the growth of the market.
The warehouse automation market is highly fragmented, said the report released on 15 May 2020.
It is driven by small organizations, new in the market, like Addverb Technologies Private Limited, Falcon Autotech Private Limited and Grey Orange India Private Limited. The players are mostly of identical financial strength, and many of them offer differentiated warehousing solutions.
Grey Orange is a leading provider of AGV and AMR solutions in the market, whereas Falcon Autotech and Addverb Technologies provide warehouse management software (WMS) to their clients.
These companies offer warehouse automation solutions to major clients like Asian Paints Limited, Flipkart Private Limited, Amazon India Limited, Coca-Cola India Private Limited, and Hindustan Unilever Limited; operating in different sectors in India.
With technological innovations and advancements in the market, companies intend to expand their verticals in other warehousing solutions as well. With the extension of their service and solution offerings, players will have better opportunities at netting greater shares in the market. Therefore, within a few years, an intense industrial rivalry may be anticipated among players in the warehouse automation market in India.
Armstrong Machine Builders Private Limited, Falcon Autotech Private Limited, Godrej Consoveyo Logistics Automation Limited, Hinditron Services Private Limited, The Hi-Tech Robotic Systemz Limited, Vega Conveyors & Automation Private Limited, Bastian Solutions India Private Limited and Grey Orange India Private Limited. fiinews.com
