Application of Artificial Intelligence (AI) in Warehousing Market Sizing

analyze Application of artificial intelligence in warehousing market Nester research shows that the market size will grow at a CAGR of 27.2% between 2025 and 2037, reaching approximately US$242.2 billion in 2037

Also read: Artificial Intelligence – How it is shaping and redefining logistics

The integration of artificial intelligence and the Internet of Things leads the development of next-generation warehouse management solutions

The integration of IoT and AI in warehousing is expected to improve operational efficiency through real-time data collection and analysis. Key market players continuously invest in research and development activities to launch innovative warehouse solutions. AI and IoT integrated solutions are expected to help track inventory and assets in real-time, thereby increasing visibility across the supply chain for informed decision-making.

Traditional systems are often unable to manage large workloads and data speeds, impacting the overall productivity of the warehouse. For example, in July 2021, Sierra Wireless partnered with Microsoft Corporation to develop an asset tracking solution. Sierra Wireless’s Acculink managed IoT solution integrates with Microsoft’s Azure IoT Central to track the location and condition of high-value and sensitive assets. The solution is widely used in warehousing, logistics and transportation applications.

Growth drivers:

• The boom in the e-commerce sector and online shopping has driven the adoption of AI solutions in warehouses.
• A shortage of skilled labor is prompting warehousing and logistics companies to adopt automation and artificial intelligence to increase productivity.

challenge

The increasing adoption of digital technologies such as artificial intelligence in warehouses is increasing concerns about data security and cyber threats. As warehouses become more connected, it opens up multiple entry points for cybercriminals. Such data privacy concerns could severely impact the adoption of AI technology in warehouses.

Many small warehouses run on outdated systems, making the integration of modern AI solutions more complex. This lack of compatibility can also hinder the adoption of digital technologies in warehouses.

Calculated in parts and components, the hardware sector is expected to be valued at US$104.9 billion by 2037. Continuous advancements in sensors, cameras, and robots are aiding the growth of this field. The rapid digital transformation of warehousing companies is driving widespread adoption of advanced hardware technologies. For example, in June 2024, Scanco Software, LLC announced the launch of automated warehouse management technology for Acumatica customers.

By region, the North American warehousing artificial intelligence market is expected to reach US$100.6 billion by the end of 2037, driven by the rapid expansion of online shopping activities and the continuous rollout of advanced warehouse management systems. The United States and Canada have advanced logistics infrastructure compared to other economies in the world, which helps market players earn high profits. Rising labor costs are also forcing companies to install advanced robots and technologies in warehouse operations and management.

The report also provides the existing competitive landscape of key players in the global artificial intelligence in warehousing market, including Amazon Web Services (AWS), Microsoft Corporation, Google LLC, IBM Corporation, Blue Yonder Group, Inc., Honeywell Company Profiles of International, Siemens AG, Oracle Corporation, SAP SE, ABB Ltd, Zebra Technologies, Mytra, Scale AI, Element Logic, Affordable Robotic & Automation Ltd., Lucas Systems, Fulfilld, Inc., Scanco Software, LLC, Sumitomo Corporation, SENKO Co., Ltd., and Daifuku Co., Ltd.

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