Indian warehouse automation market projected to reach USD 682 million by 2027

Warehouse processes, like moving and assembly, involve mechanics to help move products between facilities or database systems to help track each area or warehouse.

Warehouse automation has become essential for FMCG players dealing with bulk goods and items. Several areas require adequate focus and advancements, from inbound to storage to outbound transit, to make the process seamless. The e-commerce boom in India has benefitted several industries in India, especially the supply and logistics sector, wherein data science is applied increasingly for shipment tracking. The retail fulfilment paradigm shift is witnessing a new dimension, with e-commerce giants competing fiercely for faster deliveries. Warehouse automation and control system sales stimulate growth by boosting operational efficiency.

The Indian warehouse automation market is expected to reach USD 682.1 million in five years, registering a CAGR of 26.1 percent over the forecast period (2017-2027), with the base year taken as 2021, according to the Mordor Intelligence report. The types of solutions covered under the scope have been analysed individually, including conveyor and sortation systems, palletisers, mobile robots (AGV/AMR), vision inspection equipment, and labelling equipment employed in the FMCG industry.

Warehouse automation is employing technology to increase the efficiency of warehouse processes, like moving and assembly. These processes involve mechanics to help move products between facilities or database systems to help track each area or warehouse. A significant component of warehousing and fulfilment operations is proper inventory management. It enables the company to re-order and stock products effectively to avoid excess inventory and stock-outs. Warehouses handle inventory using warehouse management software that provides real-time inventory management capabilities.

Material handling in warehouses has undergone various transformations that have changed the industry’s outlook. Material-handling machines and mobile robots have replaced individual workers. Due to this transformation, many enterprises have grown, including FMCG. The rising infrastructure investment from the government, industries and the ‘Make in India’ initiative are expected to drive the demand for warehouse automation systems. In India, the labour costs are low compared to other developed countries, and high investment in specific warehouse automation systems with additional staff training has restrained the adoption of warehouse automation, especially in SMEs.

In January 2022, due to the spike in Covid cases across the nation, customers stocked up the goods, increasing demand for FMCG businesses, which increased supplies to their stockists to avoid a supply crisis. Companies like Parle Products, Dabur India, and ITC, which are already dealing with inflationary pressures on inputs, are keeping extra stock of raw materials to prevent any supply chain disruptions brought on by the new wave of the Covid pandemic. They do this by applying what they learned from the previous two waves.