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    Europe Warehouse Automation Market

    ID: MRFR/SEM/12401-HCR
    128 Pages
    Aarti Dhapte
    October 2025

    Europe Warehouse Automation Market Research Report Information By Component (Software, Services, and Hardware {Mobile Robots (AGV, AMR), Automated Conveyor & Sorting Systems, Automated Storage and Retrieval Systems (AS/RS), De-palletizing/Palletizing Systems, Automatic Identification and Data Collection (AIDC), and Piece Picking Robots}), By End-User (Food & Beverage, Post & Parcel, Groceries, General Merchandise, Apparel, Manufacturing, and Others) –and Europe Market Forecast Till 2035

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    Europe Warehouse Automation Market Infographic
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    Europe Warehouse Automation Market Summary

    The Europe Warehouse Automation Market is projected to grow significantly from 5.95 USD Billion in 2024 to 27.94 USD Billion by 2035.

    Key Market Trends & Highlights

    Europe Warehouse Automation Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 7.84% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 541.32 USD Billion, indicating robust growth potential.
    • in 2024, the market is valued at 5.95 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of automation technologies due to increasing demand for operational efficiency is a major market driver.

    Market Size & Forecast

    2024 Market Size 5.95 (USD Billion)
    2035 Market Size 27.94 (USD Billion)
    CAGR (2025 - 2035) 15.10%

    Major Players

    Apple Inc (US), Microsoft Corp (US), Amazon.com Inc (US), Alphabet Inc (US), Berkshire Hathaway Inc (US), Tesla Inc (US), Meta Platforms Inc (US), Johnson & Johnson (US), Visa Inc (US), Procter & Gamble Co (US)

    Europe Warehouse Automation Market Trends

    Various strategies adopted by key players drive market growth.

    The European warehouse automation market CAGR is expanding due to the expanding demand for efficient and cost-effective operations in the e-commerce, retail, and logistics sectors. Key drivers include the need for enhanced productivity, accuracy, and reduced labor costs. Key players employ strategies such as partnerships, acquisitions, and product innovations to stay competitive. They focus on integrating advanced technologies like robotics, AI, and IoT to optimize warehouse processes, streamline supply chains, and meet evolving customer expectations.

    For instance, in February 2022, DHL Supply Chain deployed the first fully automated auto store logistics system with robot picking for the omnichannel auction site 1-2-3.tv in Braunschweig, Germany. The Autostore system was created by Element Logic, a logistics technology company, and it uses robot picking and a software solution to expand the processing speed of each order, improve operational efficiency, and maximize the location's storage capacity.

    Furthermore, the widespread adoption of automation and robotics technology in the industrial sector has significantly bolstered the demand for warehouse automation on a regional scale. In order to expand operational efficiency and ensure the safety of workers, businesses are increasingly opting for advanced components, such as RFID tags, sensors, and scanners. These innovative technologies are capable of monitoring inventory in real-time, thereby streamlining the logistics process and minimizing manual errors driving the warehouse automation market revenue.

    The ongoing evolution of technology in logistics and supply chain management suggests that warehouse automation is poised to enhance operational efficiency and reduce costs across various sectors in Europe.

    European Commission

    Europe Warehouse Automation Market Drivers

    Labor Shortages

    Labor shortages across Europe are driving the Global Europe Warehouse Automation Market Industry towards increased automation. The difficulty in finding skilled labor has prompted companies to invest in automated solutions to maintain productivity levels. Automation technologies, such as robotic systems and automated storage and retrieval systems, help mitigate the impact of labor shortages by enhancing operational efficiency. This trend is likely to continue, as businesses seek to reduce reliance on human labor while ensuring seamless operations. The anticipated compound annual growth rate of 7.84% from 2025 to 2035 underscores the urgency for warehouses to adopt automation.

    E-commerce Growth

    The surge in e-commerce activities significantly influences the Global Europe Warehouse Automation Market Industry. With online shopping becoming a preferred choice for consumers, warehouses are compelled to adapt to increased order volumes and faster delivery expectations. This shift necessitates the implementation of automated systems to manage inventory and streamline order fulfillment processes. As e-commerce continues to expand, the market is expected to grow substantially, with projections indicating a rise to 541.32 USD Billion by 2035. The integration of automation technologies is essential for warehouses to meet the demands of this evolving landscape.

    Regulatory Compliance

    Regulatory compliance is becoming increasingly stringent in Europe, influencing the Global Europe Warehouse Automation Market Industry. Companies are required to adhere to various safety and environmental regulations, prompting them to invest in automated systems that ensure compliance. Automation technologies can help streamline processes and maintain accurate records, thus reducing the risk of non-compliance. As regulations evolve, warehouses are likely to adopt more sophisticated automation solutions to meet these requirements. This trend not only enhances operational efficiency but also positions companies favorably in a competitive market.

    Market Growth Projections

    The Global Europe Warehouse Automation Market Industry is poised for substantial growth, with projections indicating a market size of 235.94 USD Billion in 2024 and an anticipated increase to 541.32 USD Billion by 2035. This growth reflects a compound annual growth rate of 7.84% from 2025 to 2035, driven by various factors including technological advancements, e-commerce expansion, and labor shortages. The increasing adoption of automation technologies across warehouses is likely to reshape the industry landscape, presenting opportunities for innovation and efficiency improvements.

    Sustainability Initiatives

    Sustainability initiatives are gaining traction within the Global Europe Warehouse Automation Market Industry, as companies strive to reduce their carbon footprints. Automation technologies can significantly enhance energy efficiency and minimize waste, aligning with the growing emphasis on sustainable practices. For example, automated systems can optimize energy consumption during operations, leading to lower operational costs and reduced environmental impact. As businesses increasingly prioritize sustainability, the demand for automated solutions that support these initiatives is expected to rise. This shift may further contribute to the market's growth trajectory in the coming years.

    Technological Advancements

    The Global Europe Warehouse Automation Market Industry is experiencing rapid technological advancements, particularly in robotics and artificial intelligence. These innovations enhance operational efficiency and accuracy, allowing warehouses to optimize their processes. For instance, automated guided vehicles and robotic picking systems are increasingly deployed to reduce labor costs and improve throughput. As a result, the market is projected to reach 235.94 USD Billion in 2024, driven by the need for more sophisticated automation solutions. Companies are investing heavily in these technologies to stay competitive, indicating a strong trend towards automation in warehouse operations.

    Market Segment Insights

    Warehouse Automation Component Insights

    The Europe warehouse automation market segmentation, based on vehicle type, includes software, services, and hardware {mobile robots (AGV, AMR), automated storage & retrieval systems (AS/RS), automated conveyor & sorting systems, de-palletizing/palletizing systems, automatic identification and data collection (AIDC), and piece picking robots}. The hardware category dominated the market due to the growing demand for efficient and cost-effective supply chain solutions. Automation hardware, such as robotic systems and smart sensors, plays a pivotal role in enhancing productivity and reducing operational costs.

    The adoption of cutting-edge technologies, including artificial intelligence and the Internet of Things (IoT), further accelerates the evolution of warehouse automation, offering improved speed, accuracy, and scalability in logistics and distribution processes. However, services are the fastest-growing category due to the rising need for improved order accuracy, labor cost reduction, and enhanced operational efficiency. Automation services, such as robotics, conveyor systems, and warehouse management software, play a crucial role in streamlining processes, optimizing inventory management, and meeting the evolving demands of modern supply chains.

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Warehouse Automation End-User Insights

    The Europe warehouse automation market segmentation, based on end-users, includes food & beverage, post & parcel, groceries, general merchandise, apparel, manufacturing, and others. Groceries hold a major market share due to the rising demand for online grocery shopping, companies are increasingly adopting warehouse automation solutions to enhance order fulfillment speed and accuracy, ultimately improving overall customer satisfaction in the competitive grocery industry. However, manufacturing is the fastest-growing category owing to the region's increased demand for efficient and cost-effective manufacturing processes.

    Automation technologies such as robotics, AI, and IoT are driving this growth by enhancing production efficiency, reducing errors, and optimizing supply chain management. Manufacturers are adopting automation solutions to streamline operations, improve productivity, and stay competitive in the rapidly evolving industry landscape.

    Warehouse Automation Country Insights

    The warehouse automation market in Europe is experiencing robust growth due to increasing demand for efficient order fulfillment, labor shortages, and the need for enhanced operational precision, which are key drivers. Automation technologies such as autonomous vehicles, robotics, and advanced warehouse management systems are gaining traction, optimizing logistics and reducing manual errors. The emphasis on cost-effectiveness and the desire to stay competitive in the e-commerce sector further fuel the adoption of warehouse automation solutions. Moreover, regulatory support for automation and a focus on sustainability contribute to market expansion.

    As companies in Europe strive for greater efficiency and competitiveness, the warehouse automation market continues to thrive, offering innovative solutions to meet evolving logistical challenges.

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Get more detailed insights about Europe Warehouse Automation Market Research Report – Forecast till 2034

    Key Companies in the Europe Warehouse Automation Market market include

    Industry Developments

    July 2021: ABB has announced the acquisition of ASTI Mobile Robotics Group (ASTI), a leading autonomous mobile robot manufacturer with a broad portfolio of products enabled by the company's software package. ABB's robotics and automation offerings will be expanded due to the acquisition, making it the only business to offer a complete portfolio for the next generation of flexible automation.

    Europe Warehouse Automation Market Segmentation:

    Warehouse Automation Component Outlook

    Software

    Services

    Hardware

    Mobile Robots (AGV, AMR)

    Automated Storage and Retrieval Systems (AS/RS)

    Automated Conveyor & Sorting Systems

    De-palletizing/Palletizing Systems

    Automatic Identification and Data Collection (AIDC)

    Piece Picking Robots

    Warehouse Automation End-User Outlook

    Food & Beverage

    Post & Parcel

    Groceries

    General Merchandise

    Apparel

    Manufacturing

    Others

    Warehouse Automation Regional Outlook

    Europe

    Germany

    France

    UK

    Italy

    Spain

    Sweden

    Denmark

    Luxembourg

    Norway

    Austria

    Rest of Europe

    Future Outlook

    Europe Warehouse Automation Market Future Outlook

    The Europe Warehouse Automation Market is projected to grow at a 15.10% CAGR from 2025 to 2035, driven by technological advancements, increasing e-commerce demand, and labor shortages.

    New opportunities lie in:

    • Invest in AI-driven robotics to enhance operational efficiency and reduce costs. Develop integrated software solutions for real-time inventory management and analytics. Expand automation solutions tailored for small and medium-sized enterprises to capture emerging market segments.

    By 2035, the Europe Warehouse Automation Market is poised for robust growth, reflecting evolving industry dynamics and technological integration.

    Market Segmentation

    Warehouse Automation End-User Outlook

    • Food & Beverage
    • Post & Parcel
    • Groceries
    • General Merchandise
    • Apparel
    • Manufacturing
    • Others

    Warehouse Automation Regional Outlook

    • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Luxembourg
    • Norway
    • Austria
    • Rest of Europe

    Warehouse Automation Component Outlook

    • Software
    • Services
    • Hardware
    • Mobile Robots (AGV
    • AMR)
    • Automated Storage and Retrieval Systems (AS/RS)
    • Automated Conveyor & Sorting Systems
    • De-palletizing/Palletizing Systems
    • Automatic Identification and Data Collection (AIDC)
    • Piece Picking Robots

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 USD 5.95 Billion
    Market Size 2025 USD 6.85 Billion
    Market Size 2035 27.94 (Value (USD Billion))
    Compound Annual Growth Rate (CAGR) 15.10% (2025 - 2035)
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2020 - 2023
    Market Forecast Units Value (USD Billion)
    Report Coverage Market Competitive Landscape, Revenue Forecast, Growth Factors, and Trends
    Segments Covered Component, End-User, and Region
    Region Covered Europe
    Countries Covered Germany, France, UK, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, and Rest of Europe
    Key Companies Profiled Swisslog Holding AG, WITRON Logistik + Informatik GmbH, SSI Schaefer AG, BEUMER Group GmbH & Co. KG, TGW Logistics Group GmbH, Kion Group AG (Dematic Group), Knapp AG, Jungheinrich AG. Vanderlande Industries BV, and Mecalux SA
    Key Market Opportunities The growing demand for efficiency & cost reduction in supply chain operations.
    Key Market Dynamics Rise in the investment for research & development

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    How much is the warehouse automation market?

    The European warehouse automation market size was valued at USD 5.95 Billion in 2024.

    What is the expansion rate of the warehouse automation market?

    The market is projected to expand at a CAGR of 15.1% during the forecast period, 2025-2034.

    Who are the key participants in the warehouse automation market?

    The prominent players in the warehouse automation market are Swisslog Holding AG, WITRON Logistik + Informatik GmbH, SSI Schaefer AG, BEUMER Group GmbH & Co. KG, TGW Logistics Group GmbH, Kion Group AG (Dematic Group), Knapp AG, Jungheinrich AG. Vanderlande Industries BV, and Mecalsux SA.

    Which component led the warehouse automation market?

    The hardware category dominated the warehouse automation market in 2022.

    Which end-user had the most extensive share in the warehouse automation market?

    The grocery category had the largest share of the warehouse automation market.

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