AI, Automation To Drive Growth In Warehouse Sector: Report

New Delhi: As India’s warehousing sector is expanding rapidly, companies are increasingly adopting artificial intelligence (AI) and automation to improve efficiency and safety, a new report said on Tuesday.

The report by Zebra Technologies showed that 63 per cent of warehouse leaders globally, including in the Asia-Pacific (APAC) region and India, plan to implement AI-driven software in the next five years.

About 65 per cent of APAC warehouse operators, including those in India, are set to adopt augmented reality (AR) within the same period, it said.

With warehouses handling larger order volumes, businesses are focusing on technology to streamline operations.

The report highlighted that 64 per cent of warehouse operators globally and 63 per cent in APAC, including India, plan to increase investments in warehouse modernisation over the next five years.

According to research firm Interact Analysis, global warehouse spaces will grow by 27 per cent, reaching 42 billion square feet by 2030 from 33 billion square feet in 2023.

Meanwhile, warehouse labour costs are expected to grow at a compound annual rate (CAGR) of 7 per cent throughout the decade. Companies are also pushing for faster adoption of automation. The study found that 85 per cent of warehouse associates, including 88 per cent in APAC and India, believe companies that fail to invest in technology will struggle to meet business goals.

Additionally, 74 per cent of global workers and 77 per cent in APAC, including India, feel they spend too much time on tasks that could be automated.