2024 saw a 3% decline in warehouse automation orders, a rare slowdown in an industry that has seen rapid growth over the past decade. The reasons for this? Economic uncertainty, high interest rates, oversupply of warehouses and China’s real estate struggles.

But despite this downturn, analysts expect a rebound in 2025 and a surge starting in 2026. In this blog, CrimsonXT’s Warehouse Automation European Consultant James Disney walks you through the question of whether companies should wait or invest in automation now.

 

Mobile robotics

Amongst the financial uncertainty, mobile robotics remains a bright spot across the industry. Mobile robots have remained resilient, signalling that businesses may be shifting toward more flexible automation solutions. The market is projected to exceed $7 billion this year, reflecting a CAGR of 35%.

Leading companies are significantly investing in mobile robotics, a few to note:

Amazon: The e-commerce giant has deployed over 750,000 robots across its fulfilment centers. Innovations like the AMR (autonomous mobile robot) Proteus and the AI-powered robotic arm Sparrow have been introduced to streamline operations. These advancements are expected to contribute to annual savings of $10 billion by 2030.

Agility Robotics: Known for its humanoid robot, Digit, Agility Robotics has partnered with companies like Amazon and logistics provider GXO to integrate advanced robotics into warehouse operations, aiming to improve efficiency and address labor challenges.

Covariant: Specializing in AI-powered robotic systems, Covariant has collaborated with firms such as ABB and Knapp to develop robots capable of handling complex tasks in warehouses, thereby enhancing automation capabilities.

 

warehouse automation steel

 

Why are companies delaying?

On the flip side, we’ve seen a 3% decline in warehouse automation orders, a rare slowdown in an industry that has seen rapid growth over the past decade. This means that businesses are opting to hit the pause button on automation investments. Here’s why:

  • High interest rates – Financing new automation projects has become more expensive, leading companies to wait for better conditions.
  • Excess warehouse space – With a slowdown in demand, many companies have more capacity than they need, reducing the urgency for automation.
  • Economic uncertainty – Global market instability has made businesses more risk-averse, delaying major capital expenditures.
Gaining a competitive edge

While some companies are waiting, others are doubling down on automation to gain a competitive edge.

  • Long-term cost savings – Automation reduces labor costs and improves efficiency, making it a smart investment for the future.
  • Labor shortages – Many regions still struggle with workforce gaps, making automation essential for maintaining operations.
  • Technological advances – Mobile robots and AI-driven solutions are becoming more flexible, scalable, and affordable, making now a good time to invest.

 

So what’s your strategy? Every company will need to evaluate its own situation, but one thing is clear: Warehouse automation isn’t slowing down—it’s evolving. So, what’s your approach? Are you waiting for better conditions, investing now, or testing cautiously?

 

 

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