We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • CSCMP EDGE 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • CSCMP EDGE 2023
    • Upload Your Video
Home » Warehouse automation services market to double by 2025

Warehouse automation services market to double by 2025

Equipment makers, integrators to benefit from demand for service contracts as more companies automate warehouse operations, researcher says.

Warehouse-Automation-Services-scaled.jpg
May 27, 2021
DC Velocity Staff
No Comments
The global market for warehouse automation services is set to double by 2025, creating a “stable and lucrative” business for integrators and equipment makers, according to data from research firm Interact Analysis, released this week.

Growing demand for automation-related service contracts is in line with soaring demand for automation equipment, a market that topped more than $19.6 billion in revenue in 2020. Service contracts were worth $4.3 billion in 2020 and are expected to reach $8.7 billion globally by 2025. The increasing complexity of automation equipment and the pressure to avoid machinery downtime are driving the demand for service, according to the research.

“The research shows that the potential revenue generated from offering a lifetime service contract to an automation project is roughly equivalent to the original cost of the project. So, in broad-brush terms, a whole-life service contract could double the original revenue from the sale of the machinery,” the researchers wrote. “Furthermore, the research shows peaks and troughs in the service cycle, with the highs coming around the 5-, 10- and 15-year marks, corresponding to times when parts are likely to require replacement, and computers and control equipment to need upgrading.”

Automation service growth is strongest in the Americas and Europe, but is expected to catch up in Asian markets by 2024 due to changing market conditions and labor trends.

“In 2020, 80% of the revenues from automation machinery service contracts were generated in the Americas and in the EMEA (Europe, the Middle East, and Africa) region,” Jason dePreaux, principal analyst at Interact Analysis, said in a statement. “Historically, there has always been a much higher adoption rate of service arrangements in those two regions than there has been in the Asia Pacific (APAC) region–due to lower labour costs in Asia, expectations for maintenance to be included in the project sale, and robust in-house service capabilities by large e-commerce companies. But this situation is set to change. As worker expectations rise and wages level up in APAC, and other factors come into play, such as recent experiences with social distancing and the pandemic, we expect the region to be setting the pace where warehouse automation installations are concerned. Indeed we forecast that, by 2024, the rate of growth in the APAC service market will be faster than in the Americas or EMEA.”
Warehouse IT
    • Related Articles

      Warehouse automation market set for long-term gains

      ERP vendor Aptean announces plans to buy Austrian firm to expand European market share

      Warehouse management: Top trends to watch

    Recent Articles by DC Velocity Staff

    AIT Worldwide Logistics acquires British pharma shipment specialist

    Report: Saudi Arabia to see jump in robotics market to meet logistics demand

    UPS to build automated sorting hub at Hong Kong airport

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Warehouse renters could see “significant” rate increases in 2024, Prologis says

    • MercuryGate acquires cross-border customs clearance specialist ITS

    • Intermodal groups applaud White House pick for new Multimodal Freight Office

    • A new outlook that’s a lot like the old outlook

    • DHL Supply Chain to add five more AS/RS installations from AutoStore

    Now Playing on DCV-TV

    Rite hite scraper systems vs

    When it snows – Help get your fleet on the road faster with Scraper Systems™ by Rite-Hite®

    DCV-TV 4: Viewer Contributed
    Designed for fast, effortless, low-maintenance operation in harsh winter conditions, Scraper Systems™ by Rite-Hite® fleet plows automate roof-top snow removal from trailers and trucks. Help clear 24 inches of snow in less than 30 seconds. Scraper Systems fleet plows help comply with snow laws, reduce risks and...

    FEATURED WHITE PAPERS

    • Exploring Forklift Energy Solutions for Maximum ROI

    • Identifying How Sortation Automation Can Address Challenges for Parcel Processors

    • Unlocking efficiency and growth

    • Quarterly Freight Data Report: Q3 2023

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing