Global Logistics Automation Market - Growth, Trends, Forecasts (2020 - 2025)

REPORT
GLOBAL LOGISTICS AUTOMATION

MARKET(2020-2025)
The study offers:
• A detailed understanding of the current market dynamics and growth opportunities
• An in-depth analysis of and the market forecast for the warehouse automation market across various end-user
industries and geographies
• Insights into the competitive landscape, along with product innovations and strategies of major players
Domain: Automation Base Year: 2019 Forecast Period: 2020-2025
Industry Reports | Consulting | Intelligence Center

+1 617 765 2493 | info@mordorintelligence.com | www.mordorintelligence.com
1 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET
DISCLAIMER
Any information and/or material provided by Mordor Intelligence, including any and all the analysis and/or research by Mordor Intelligence, is provided to a
selected group of customers, in response to orders for such information, material, analysis, and/or research. As a customer of Mordor Intelligence, you
acknowledge that our information, material, and/or services are for your internal use only, and not for any external use and/or dissemination, or general
publication, and/or disclosure to any third parties.
Any and all the information and/or material provided by Mordor Intelligence are based on primary interviews and/or secondary research, and are, therefore,
subject to fluctuation and variance. Mordor Intelligence takes no responsibility for any incorrect information and/or material supplied to us by the sources
we rely on, and no part of our analysis or research may be given, lent, resold, or disclosed to any third parties, including non-customers, without explicit or
written permission from Mordor Intelligence.
Unauthorized reproduction and/or transmission of our information, material, analysis, and/or research in any form and by any means, including
photocopying, mechanical/electronic recording, or otherwise, without the explicit and written permission of Mordor Intelligence, is expressly and clearly
prohibited.
Any use of the information, material, analysis, and/or research provided by Mordor Intelligence is at your sole risk; you acknowledge that the information,
material, analysis, and/or research is provided “as is”, and that Mordor Intelligence provides no warranty of any kind, express or implied, with regard to the
information, material, analysis, and/or research, including but not limited to, merchantability and fitness for any purpose and/or use.

TABLE OF CONTENTS
1. INTRODUCTION 5.1.1 Exponential Growth of the E-commerce Industry and
1.1 Study Assumptions and Market Definition Customer Expectation

5.1.2 Increasing Manufacturing Complexity and Technology
1.2 Scope of the Study
Availability
2. RESEARCH METHODOLOGY
5.2 Market Challenges
3. EXECUTIVE SUMMARY
5.2.1 High Capital Investment
4. MARKET INSIGHTS 6. MARKET SEGMENTATION
4.1 Market Overview 6.1 Global Warehouse Automation Market Segmentation – By

Component
4.2 Industry Attractiveness - Porter's Five Forces Analysis
6.1.1 Hardware
4.2.1 Threat of New Entrants
6.1.1.1 Mobile Robots (AGV, AMR)
4.2.2 Bargaining Power of Buyers
6.1.1.2 Automated Storage and Retrieval Systems
4.2.3 Bargaining Power of Suppliers (AS/RS)
4.2.4 Threat of Substitutes 6.1.1.3 Automated Sorting Systems
4.2.5 Intensity of Competitive Rivalry 6.1.1.4 De-palletizing/Palletizing Systems

6.1.1.5 Conveyor Systems
4.3 Industry Value Chain Analysis
6.1.1.6 Automatic Identification and Data Collection
4.4 Warehouse Investment Scenario
(AIDC)
4.5 Impact of Macro-economic Factors on the Warehouse Automation
6.1.1.7 Order Picking
Market
6.1.2 Software (Warehouse Management Systems(WMS),
5. MARKET DYNAMICS Warehouse Execution Systems (WES))
5.1 Market Drivers 6.1.3 Services (Value Added Services, Maintenance, etc.)

TABLE OF CONTENTS
6.2 Global Transportation Management Market Scenario 7.1 Dematic Group (Kion Group AG)
6.3 Global Warehouse Automation Market Segmentation – By End 7.2 Daifuku Co. Limited
User
7.3 Swisslog Holding AG (KUKA AG)
6.3.1 Food and Beverage (Including Manufacturing Facilities
7.4 Honeywell Intelligrated (Honeywell International Inc.)
and Distribution Centers)
7.5 Jungheinrich AG
6.3.2 Post and Parcel
7.6 Murata Machinery Ltd
6.3.3 Groceries
7.7 Knapp AG
6.3.4 General Merchandise
7.8 TGW Logistics Group GmbH
6.3.5 Apparel
7.9 Kardex Group
6.3.6 Manufacturing
7.10 Mecalux SA
6.3.7 Other End-user Industries
6.4 Global Warehouse Automation Market Segmentation – By 7.11 BEUMER Group GmbH & Co. KG
Geography 7.12 SSI Schaefer AG
6.4.1 North America 7.13 Vanderlande Industries BV
6.4.2 Europe 7.14 WITRON Logistik + Informatik GmbH

6.4.3 Asia-Pacific 7.15 Oracle Corporation
6.4.4 Latin America 7.16 One Network Enterprises Inc.
6.4.5 Middle East & Africa 7.17 SAP SE
6.5 Others (Industrial Robots, Warehouse Drones, Transportation 8. VENDOR MARKET SHARE ANALYSIS – WAREHOUSE
Management Hardware, Supporting Infrastructure (communication AUTOMATION
and charging systems)
9. INVESTMENT ANALYSIS
7. COMPETITIVE INTELLIGENCE – KEY VENDOR PROFILES
10. FUTURE OF THE MARKET

1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

1. INTRODUCTION
1.1 STUDY ASSUMPTIONS AND MARKET DEFINITION

STUDY ASSUMPTIONS MARKET DEFINITION
▪ Along with warehouse and transportation automation solutions, other offerings
▪ The base currency considered was the US Dollar (USD). Conversion of other included as a part of study are industrial robots, drones, overhead systems, etc.
currencies to USD was considered on the basis of the average exchange rate
for the respective review-period years. The exchange rate conversion for ▪ Warehouses and distribution centers form the most vital part in the logistics
forecast period was determined according to the base year’s conversion sector. They perform products transit that starts from process of production
rates.
facility, acknowledgement, organizing and also the tagging for delivering product
on the required address.
▪ The base year was identified based on the availability of annual reports and
secondary information. The base year considered for this study is 2019,
based on the key market metrics gathered till Q4 2019.
▪ The warehouse automation market study involves segmentation by component
wherein, Hardware (AGV/AMR,AS/AR, order picking, etc.), Software (warehouse
▪ The review period considered for this study is from 2014 to 2018. The CAGR management systems, warehouse execution systems) and services (value added
is considered for the forecast period, 2020-2025. services, maintenance, etc.) sub-segments are being analyzed. The hardware
components’ costs are a significant factor contributing to their larger share.
▪ Market-size estimations for the forecast years were in real terms. Inflation
was not part of the pricing, and the average selling price (ASP) was kept ▪ The warehouses and fulfillment centers perform activities across end users, such
constant throughout the forecast period for each country. as food and beverage, post and parcel, apparel, general merchandise,
manufacturing to name a few. manufacturing industry majorly includes
▪ Distribution of primary interviews conducted was based on the regional automotive, electronics, pharmaceutical sector majorly.
share of the market and the presence of key players in each region.
▪ The study also provides impact of COVID-19 on the market studied and a
▪ As a result of data triangulation through multiple methodologies and geographic coverage on major regions, North America, Europe, Asia-Pacific, Latin
approaches, the weighted averages of resulting estimates are considered to America, Middle East & Africa.
be the final values.
▪ Key insights, such as warehouse investment scenario, impact of macro-economic
factors on the warehouse automation market and global transportation
management market, are also made part of the study.

1. INTRODUCTION
1.2 SCOPE OF THE STUDY
END USER - GEOGRAPHY -

TYPE – WAREHOUSE WAREHOUSE WAREHOUSE
AUTOMATION AUTOMATION AUTOMATION
Hardware Food and Beverage North America
Software Post and Parcel Europe
Services Groceries Asia-Pacific
General Merchandise Latin America
Apparel Middle East & Africa
Manufacturing
Other End-user Industries


■ Mordor Intelligence (MI) advocates an appropriate mix of secondary and primary research to meet client objectives.
■ MI translates market insights (market dynamics, competition, varying consumer demands, and regulations) into actionable business insights.
■ The following phases are practiced at Mordor for efficient delivery of various syndicated and consulting assignments:
STEP 1 STEP 2 STEP 3

SCOPING/ PROJECT INITIATION MARKET ANALYSIS PROJECT DELIVERY
Decipher client requirements/ market to be

Extensive desk research to identify most relevant secondary information available
studied
Tailormade research approach for

Contact Mordor’s empaneled experts and identify industry experts across the market
customized reports
Effective use of Mordor’s knowledge

Conduct primaries and surveys to gather qualitative and quantitative insights
repository to gather relevant insights
Confirm the objectives of the assignment with

Triangulate and analyze data to finalize actionable business insights
the client
Finalize report contents and establish Report delivery with high quality market insights, competitive landscape, etc.,
a deliverable format as per the proposed content

2. RESEARCH PHASES EXPLAINED
2.1 SECONDARY RESEARCH 2.2 PRIMARY RESEARCH

This phase involves a thorough synthesis of existing publications across the web to ◼ At Mordor, we pool in industry experts across the value chain, to gather first-hand
gather meaningful insights on the current situation of the market, technology insights on the market studied. In addition to these knowledgeable industry
developments, and any other market related information. The sources include, but veterans or retired experts, consultants and freelancers are a call away to
are not limited to: collaborate with Mordor on any assignment that requires real-time industry
▪ MHI (Material Handling Institute) - Key insights on equipment sales and insights.
forecasts have been sourced from this association. Key base indicators, such as ◼ We are also equipped to conduct market surveys to gather qualitative insights and
ROI's, general lifespan, and replacement rates for the equipment have been the opinion of individuals related to the industry.
identified. ▪ Primary research is used both to validate the data points obtained from secondary
▪ CEMA (Conveyor Equipment Manufacturers Association) research and to fill the data gaps after secondary research. Data gathered during
▪ NIBA (Association of Conveyor Belting Distributors, Fabricators, and the primary research phase are useful to arrive at critical insights, both qualitative
Manufacturers) - Key market insights and projections for Conveyor and and quantitative; these insights can be used to ascertain the following:
Sortation Systems. • Critical market dynamics (drivers, challenges, and future) and their impact
▪ IFR (International Federation of Robotics) - Key insights on the applications • Market distribution across various segments
of AGV (which are a sub-type of AMH) in the field of logistics and growth • Insights on competitive landscape
forecasts (profitability) for the robotic types have been sourced from this
account.
▪ PMMI (The Association of Packaging and Processing Technologies) - Key
insights on the sales of Palletizers and other packaging automation machinery MODES OF PRIMARY RESEARCH
have been gathered and further validated.
▪ Several other sources, such as IEEE, IMECS, Supply Chain Digest, FEM, AMHSA,
ILO, and World Bank have been referred while compiling the market information •& Others
on AMH. The major market influencers for the study have been quantified and Telephonic Email Chat Virtual
Surveys
Interviews Interviews Interviews Council
provided relevant "weights" while compiling the information.

2. RESEARCH PHASES EXPLAINED
2.3 DATA TRIANGULATION & INSIGHT GENERATION

◼ Based on the factors (both endogenous and exogenous in nature) identified and collected during the secondary and primary phases, our in-house subject matter
experts transform the quantitative data extracted and use them to infer critical insights.
◼ The market size estimations are carried out through ‘bottom-up’ and ‘top-down’ approaches.
◼ Our top-down and bottom-up approaches are integrated into our ‘In-house Model Sheets’, which are used to generate the market estimates and growth rates
(depending upon the historical trends of the respective markets, along with various factors, such as drivers, restraints, and recent developments in the market) of the
product segment in the respective country.
It is a process of combining outcomes from different sources to increase the

validity and reliability of the results. This process also helps strengthen
DATA
conclusions about findings and reduce the risk of false interpretations. The
TRIANGULATION insights obtained from both secondary and primary research are analyzed and
validated by the process of data triangulation to arrive at closer estimates.
An econometric model is a simplified representation of a real-world process.

ECONOMETRIC Here, the tools of econometric theory are used to analyze and forecast
MODELLING economic phenomenon and to solve unknown quantities, such as forecast
demand, supply, investment, production, consumption, etc.
After the data is curated, analysts populate the report. From data and
REPORT forecasts, insights are drawn to visualize the entire ecosystem in a single
WRITING report.


LOGISTICS AUTOMATION MARKET The global logistics automation market (henceforth, referred to as the
Revenue in USD billion, Global, 2019-2025 market studied) was valued at USD 55.15 billion in 2019, and it is
01 expected to reach USD 93.70 billion by 2025, registering a CAGR of
12.42% 12.42%, during the period of (henceforth, referred to as the forecast
CAGR period).
93.70
82.20 By type, warehouse automation occupied the largest share of 41.38% in

02 2019. Transportation automation is expected to register the fastest CAGR
72.73 of 12.84% over the forecast period 2020–2025.
64.81
58.05
55.15 In warehouse automation, by the end-user industry, the manufacturing
52.19
industry occupied the largest market share of 28.28%, in 2019. Groceries
03
are expected to register the fastest CAGR of 13.2% over the forecast
period.
In warehouse automation, geographically, Asia-Pacific occupied the

largest market share of 46.05%, in 2019. The region is also expected to
04
register the fastest CAGR of 13.08% over the forecast period.
2019 2020 2021 2022 2023 2024 2025
SOURCE: Mordor Intelligence

4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Warehouse Investment Scenario
4.5 Impact of Macro-economic Factors on the Warehouse Automation Market

4. MARKET INSIGHTS
4.1 MARKET OVERVIEW

■ Automation in logistics refers to the use of control systems, machinery, and software to enhance the efficiency of
operations. It usually applies to the processes that must be performed in a warehouse or distribution center,
which requires minimal human intervention. Some of the benefits of automation logistics are improved customer
service, scalability and speed, organizational control, and reduction of mistakes, among others.
■ The growth in the e-commerce industry worldwide and the growing need for efficient warehousing and inventory
management are driving the market growth. For instance, according to the National Bureau of Statistics of China,
online retail sales in China totaled about USD 1.33 trillion in 2018, an increase of 23.90% compared with 2017. Of
the total, sales of physical goods were USD 1.03 trillion, up by 25.40%. Online sales of physical products
accounted for 18.40% of the total retail sales of physical consumer goods, up by 3.4 percentage points. Moreover,
according to IBEF, the Indian e-commerce market is expected to account for USD 200 billion by 2026, from USD
38.5 billion as of 2017.
■ Automation in warehousing offers extreme convenience when it comes to cutting down the overall business costs
and reducing errors in product deliveries. According to DHL, a prominent 3PL company and a significant end user
of warehouse automation solutions, despite the advantages, 80% of warehouses “still manually operate with no
supporting automation”. Furthermore, warehouses that use conveyors, sorters, and pick and place solutions,
among other equipment (not necessarily automated), account for 15% of the total warehouses. In contrast, only
5% of the current warehouses are automated.
■ According to the Bank of America, by 2025, 45% of all manufacturing will be performed by robotic technology.
Following this trend, large firms, such as Raymond Limited (an Indian textile major) and Foxconn Technology (a
China-based supplier for large technology manufacturers, like Samsung) have replaced (or plan to replace) 10,000
and 60,000 workers, respectively, by incorporating automated technology into their factories.
■ These factors have had a direct impact on the increasing adoption of warehouse robotics. The rising number of
warehouses and increasing investments in warehouse automation, coupled with the global rise in labor costs and
availability of scalable technological solutions, have been driving the market for warehouse robots across the
world. For instance, prominent logistics brands in the United States, like DHL, XPO Logistics, and NFI Logistics, are
investing in expansion activities, despite the adverse commercial renting climate.
15 REPORT –REPORT
GLOBAL–LOGISTICS AUTOMATION MARKET MARKET
4. MARKET INSIGHTS
4.1 MARKET OVERVIEW

■ It has been estimated that DHL alone expanded its warehouse establishments in North America by
60% in a year (2016-2017). It constructed/leased 256 additional warehouses in 2017. Similar trends TOTAL NUMBER OF WAREHOUSES
have been observed across other regions as well. United States, 2012-2019
■ The emergence of the Industrial Internet of Things (IIoT) and the advent of a network of connected
systems are helping industries perform a multitude of tasks, such as material batching, picking,
ordering, packaging, warehouse security and inspection, and helping improve the operational
18,741
18,171
efficiency by huge margins.
16,544 16,992 17,389
16,083
■ The awareness of industries to increase the efficiency of the warehouse and reduce the capital spent 15,566 15,763
on labor is resulting in the increased adoption of warehouse automation in a global supply chain
scenario. According to the US Census Bureau, an average warehouse worker wastes nearly seven
weeks per year in unnecessary motion, which accounts for more than USD 4.3 billion in labor alone in
the domestic market.
■ To reduce the capital spent on labor, various organizations across the world are adopting robotics
automation in the warehouse, which is resulting in the growth of the warehouse automation market.
For instance, according to IFR, the operational stock of industrial robots is expected to reach 3,971
units (in thousands) by 2022 from 2,440 units (in thousands) in 2018. For instance, Alibaba, the world’s
largest retailer, upgraded to robotic labor in one of its warehouses, which resulted in drastically
reducing the labor workforce by 70%, creating an opportunity for a highly-skilled workforce.
■ Similarly, the use of robotics in Amazon’s Manchester Warehouse helped the company process a
multitude of incoming orders with a high level of efficiency. Advancements in sensors’ artificial
intelligence and mobility enable automated robotic machines to be easily deployed virtually anywhere.
■ Companies, such as IAM robotics, Grey Orange, and Bleum, offer mobile robotic picking solutions that 2012 2013 2014 2015 2016 2017 2018 2019
add a new level of efficiency to the process. Increasing technological advancements, such as
automation of warehouse vehicles, like forklifts and pallet jacks, are drawing attention from companies
with massive warehouses and high throughput transactions. Source: Bureau of Labor Statistics

4. MARKET INSIGHTS
4.1 MARKET OVERVIEW

■ With growing labor costs and supply chain pressures for faster, more accurate, and responsive operations,
automated sortation systems are finding their way into more and more warehouses, offering productivity,
throughput capacity, accuracy, and accountability for businesses, and cost-effective and efficient flow of goods to
consumers.
■ Sorting is said to be one of the time consuming and essential processes for many food processing companies.
The requirements of manufacturing facilities are relatively unique to the food processing plants. The feedstock in
these plants is not uniform. Every good is different, and the plant needs to sort millions of vegetables based on
shape, size, and color.
■ According to Tomra Sorting Solution, a vendor in the food sorting technology, at the end of the 20th century,
states that 90% of food sorting was done with manual labor. And currently, a significant amount of sorting has
been automated. The automation has created a substantial increase in the speed and massive reductions in the
cost of labor and improving yields. The improvements in efficiency are attracting a lot of food companies to
involve automation systems.
■ The growth in overall automation levels is allowing processing and packaging plants to introduce new products
on the same assembly lines. Moreover, one out of five packaging and processing plants already deal with more
than 100 product types, with a majority expecting this number to increase in the next few years.
■ One of the primary goals of each company is to increase the efficiency of the processes by using simulation.
These goals have further resulted in the warehouses equaling the developments in manufacturing segments and
making logistics seamless. It results in removing or mitigating any risk that can lead to creating a bottleneck
situation.
■ The use of IoT technologies allows warehouses for real-time data transfer, flexible communication, and Big Data
analytics. These, along with the cloud-based solution, enable automated, sophisticated, and agent-based control.
■ According to a recent study conducted by Zebra Technologies, around 51% of respondents expected increased
investment in real-time location systems that track inventory and assets throughout the warehouse in 2018.
Furthermore, according to the study, this number might be escalated to 76% of respondents by 2020.
17 REPORT –REPORT
4. MARKET INSIGHT
4.1 MARKET OVERVIEW

IMPACT OF COVID-19 ON THE MARKET
■ Warehouse Robots have been witnessing massive deployments, but amid COVID-19, a significant speed on deployment is expected. The COVID-19 pandemic has led the
warehouse operators to consider accelerating their timetables to adopt automation and robotics. Those who have successfully deployed also depicted the creation of safer
workplaces by reducing interactions among workers by simultaneously enhancing productivity to meet increasing demands for e-commerce. The surge in e-commerce during
the last several months has led thousands of brick-and-mortar stores to close businesses.
■ For instance, as per Numina Group, a warehouse automation software solutions provider, multiple warehouse operators have witnessed a sharp shift in their business toward
direct-to-consumer shipping. New challenges, such as operators who had been fulfilling large cases to retail stores, were asked to fulfill multiple small orders of individual items.
In turn, this has provoked the smaller retailers to compete for e-commerce sales against Amazon, Walmart, and Target.
■ Moreover, Radwell International, a manufacturing parts and equipment supplier, realized the benefits of automation across its global warehouses. A recent warehouse opened in
Texas (July 2020) would include the AutoStoresystem from Swisslog, among other technologies. Also, a partnership between Kroger Co. and Ocado Group shared plans on
developing a network of highly automated e-grocery delivery warehouses amongst the grocery sector. The latest planned locations, measuring from 150,000 to 300,000 square
feet, are expected to open by early 2021.
■ A significant benefit has been realized by end-users in the market studied. As mechanical systems could take years to plan and deploy, a customized robotic automation system
requires 12-14 months. The latter serves a much faster return on investment with a longer useful life due to adaptation to change based on functionality. As e-commerce delivery
times reduce, warehouse automation technology's evolution is focused on increased standardization to further reduce deployment times without compromising functionality.
Likewise, vendors have pivoted to offer similar benefits, such as Swisslog. It offers automation systems for warehouses catering to 400 order lines per hour configuration, 1,000
order lines per hour configuration, and 2,000 order lines per hour configuration.
■ Then, as per a 2020 Honeywell Intelligrated Automation Investment Study, e-commerce (66%), grocery, food, and beverage (59%), and logistics (55%) industries are willing to
invest more in automation. With increased online purchases by 28% globally, the buy online / pick up in-store is expected to increase by more than 60% across 2020. A similar
trend has led to end-users’ attention to deploying comprehensive solutions. For instance, Amazon’s activities, in the form of shifted expectations to next and same-day deliveries,
has not only led its competitors but delivery partners to look for an edge. Shipping giant DHL has been looking to robotics companies, and as of March 2020, DHL committed to
deploying a total of 1,000 LocusBots in its U.S facility.
■ With social distancing becoming more common in the workplace, automation and connected solutions assist in the continuation of daily operations. The use of robotic
technology, guided work solutions, and computer-controlled equipment has been regarded as necessary by companies in Honeywell’s Study. Moreover, warehouse execution
software (48%), order picking technology (46%), and robotic solutions (44%) have been widely implemented solutions currently, which are also most expected to receive further
investment soon.

4. MARKET INSIGHTS
4.2 PORTER’S FIVE FORCES ANALYSIS
THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES ■ The Porter’s five forces model studies the five
identified competitive forces that shape every
industry and market, in order to determine the
intensity of the competition, and thus, the
profitability and attractiveness of the industry.
MODERATE NA
■ The objective of the growth strategy should be
to adapt to these competitive forces in a
manner that may improve the position of the
COMPETITIVE organization.
RIVALRY
■ This study includes an exhaustive Porter’s five
HIGH forces framework, incorporating the factors
influencing each force, to analyze the market
from a microeconomic perspective.
■ In the study, Porter’s five forces are analyzed

considering the factors influencing each force
MODERATELY HIGH MODERATE and quantifying the factors through primaries
and quantitative analysis.
■ The quantified factors are further mapped out

to derive the impact of each force on
BARGAINING POWER OF BUYERS BARGAINING POWER OF SUPPLIERS competitive dynamics.

4.2 INDUSTRY ATTRACTIVENESS - PORTER'S FIVE FORCES ANALYSIS
4.2.1 THREAT OF NEW ENTRANTS

DETAILED DESCRIPTION
MARKET FAVOURABILITY
■ New entrants in the logistics automation market have to
Unfavorable Favorable contend with high capital requirements focused on
0 2 4 6 8 10 R&D. Since the market is technology-intensive new
FACTORS market players would have to continuously keep track of
the incumbent’s progress on technological
Economies of scale advancements.
■ Additionally, the market has strong exit barriers with the
presence of capital-intensive hardware production, and
the presence of well-established players, such as
Product differentiation
Honeywell Intelligrated, Murata Machinery Ltd, Dematic
Group, Daifuku, Swisslog, etc. have strong access to
distribution, which further challenges the new entrants.
Switching costs or sunk costs ■ However, startups have been entering the market as
strong backing from venture capitals is observed. For
instance, Vecna Robotics raised USD 63.5 million in
funding since it was spun off from parent company
Access to distribution Vecna Technologies Inc. back in 2018.
■ Geek+, a provider of advanced robotics for logistics,
announced that it closed its Series C funding round at
Industry profitability (Market CAGR) over USD 200 million in early 2020. The company also
expanded its operations by collaborating With
Decathlon, a sporting goods retailer.
■ Strict Government Policies have been actively
Capital requirements contributing to technology development, which might
add to the market’s profitability. Overall, the threat of
new entrants is moderate and is likely to increase over
the forecasted period.
4.2.2 BARGAINING POWER OF BUYERS

MARKET FAVOURABILITY DETAILED DESCRIPTION
Unfavorable Favorable ■ The buyers of the market include warehouses and
fulfillment centers from various industries, such as
FACTORS 0 2 4 6 8 10
groceries, parcel, general merchandise, and food and
Buyer concentration to firm beverage, among others.
concentration ratio ■ The buyer segment in this market is constantly
evolving as e-commerce drives the installation of
Degree of dependency upon existing new facilities to cater to increasing demands.
channels of distribution ■ Being dependent on OEMs for the
equipment/software and services, these buyers tend
Buyer information availability to form a long-term relationship with market
vendors.
Availability of existing substitute ■ The growing awareness and adoption of automation
products across these end-user industries further contribute
to the growth of the market.
Buyer price sensitivity ■ Growing levels of information availability then
strengthen their bargaining power.
■ Buyers have also grown to become price sensitive as
the volume deployment across multiple, yet
expansive facilities grow.
■ As more and more warehouse operators move to
automation, they strive to look for better options in
the market has led to an influx of newer players
offering flexible and custom offerings. Owing to all
the above factors, the bargaining power of buyers is
rated moderately high.

4.2.3 BARGAINING POWER OF SUPPLIERS

MARKET FAVORABILITY DETAILED DESCRIPTION
■ The suppliers in the market are providers of
Unfavorable Favorable
components, such as Sensors, Actuators, Relays, and
FACTORS 0 2 4 6 8 10
controllers, among others. The hardware
manufacturers depend on these components to
Degree of differentiation of inputs make autonomous machines.
■ The dependency on suppliers for key elements of the
robots is moderate across the longstanding players
Impact of inputs on cost or in the market, considering their huge R&D resources.
differentiation
■ The ability of manufacturers to supply their own
components (like the motors, sensors, etc.) is likely to
reduce the power of the suppliers across the supply
chain. For instance, companies such as Honeywell
and Murata are active in these cases.
Presence of substitute inputs
■ The presence of a large set of suppliers for hardware
components thus leads to reduced bargaining power.
Strength of distribution channel ■ However, long-term contracts to ensure a steady

supply is prevalent and making supplier switching
costs to rise. Adding to the same, as the sensor
Supplier competition: the ability to components are in constant innovations, the
forward vertically integrate and cut likelihood of a supplier to be preferred goes up.
out the buyer
■ Thus, the overall bargaining power of suppliers is
moderate and is expected to increase in the future.

4.2.4 THREAT OF SUBSTITUTES

Unfavorable Favorable ■ There are no direct substitutes available in the
0 2 4 6 8 10 market that can provide similar operational
FACTORS features and flexibility toward hardware/software
automation.
Buyer propensity to substitute
■ Although traditional methods, such as manual
Relative price performance of
labor, can be considered to be a substitute for
substitute
automation in most cases, they are being used to
Buyer switching costs compliment the robotic automation processes.
Perceived level of product ■ The relative propensity to substitute by the buyer

differentiation is decreasing, considering the fact that automation
is incorporated for a long-term project such as 5-
Number of substitute products NOT APPLICABLE 10 years.
available in the market
■ Migrating to automated picking gives productivity
Ease of substitution
gains of 5x–6x as compared to manual pick-to-
pallet fulfillment centers. Manual picking is being
Substandard product increasingly complemented and supplemented by
goods-to-person (G2P) picking solutions, thereby
Quality depreciation cutting down on a lot of labor time and costs.
■ Due to the absence of direct substitutes in the

Availability of close substitute
market, the overall threat of substitute products is
expected to remain very limited over the forecast
period.
4.2.5 INTENSITY OF COMPETITIVE RIVALRY

Unfavorable Favorable ■ The market vendors that can fabricate and integrate
0 2 4 6 8 10 the required equipment within the approved capital
FACTORS budgets and expected leads times have been
continuing to dominate the market.
Sustainable competitive advantage
■ The logistics automation market comprises several
through innovation
global players, vying for attention in a fairly-
contested market space.
Levels of market penetration
■ Technological disruption has been a key factor in
sustainable competitive advantage. Also, in order to
Level of advertising expense differentiate amongst offerings, the players have
been witnessed moving toward the service
capabilities. For instance, Locus considered the
Barriers to Exit training aspect of its technology, and its
LocusEmpower solution aids in training, and the
company claims it would onboard workers in days,
Powerful competitive strategy
rather than months.
■ Some of the prominent players in the market include
Firm concentration ratio Honeywell, Swisslog, Daifuku, Schaefer, among
others. The presence of these players and their
constant innovative activities are intensifying the
market scenario.
■ As the market poses moderate barriers to entry for
new players, several new entrants backed by VC’s
have been able to gain traction in the market. This
could further intensify the market competition.

4. MARKET INSIGHTS
4.3. INDUSTRY VALUE CHAIN ANALYSIS
DISTRIBUTORS AND
COMPONENT SUPPLIERS MANUFACTURERS INTEGRATORS END USERS
■ The value chain depicted above follows solely for hardware components in the market studied.
■ It consists of component suppliers, manufacturers, distributors/integrators, and end users. Component providers supplier sensors, actuators, controllers, relays,
among others, to the manufacturers of warehouse robotics. Some companies offering the same are STMicroelectronics, SMC, Emerson, Infineon, to name a few. The
market vendors or manufacturers of automation hardware are Daifuku, Swisslog, Jungheinrich, Dematic, among others. The presence of players, such as Honeywell
and Murata, has the advantage of being a component manufacturer. This enables cost and time to market parameters to play a significant role in offering
differentiation.
■ Market integrators, like RobotWorx, among others, analyze the need and provide a plan for automating the process, and finally deploy the solution(robot) into
production. Companies have integrators of their own robots spread across regions. Other privately held robot integrators are also present in the market. The
COVID-19 pandemic has pushed warehouse robot vendors to partner with system integrators. Chinese AMR vendor Geek+ announced a distribution partnership
with Kuecker Logistics Group (KLG), a material handling systems integrator located in Belton, Missouri. Nashua, New Hampshire-based Waypoint Robotics, and
Cincinnati-based Advanced Handling Systems LLC (AHS) announced a systems integrator partnership.
■ The final stage involves end users (distribution center and warehouse operators) across food and beverage, groceries, parcel, merchandise, among others.
4. MARKET INSIGHT
4.4 WAREHOUSE INVESTMENT SCENARIO
Retail/Warehouse Developments/Initiatives
In September 2019, grocery retailer, Albertsons, partnered with warehousing robotics

startup, Takeoff Technologies, to pilot a small urban fulfillment center. This was the first
Albertsons
partnership of its kind with a nationwide grocer. Micro-fulfillment focuses on leveraging
software, AI, and robotics to operate small urban warehouses and fulfill online orders.
Kroger intends to open as much as 20 customer fulfillment centers (CFCs), by leveraging its
partnership with Ocado. In September 2019, the company announced that the 350,000-
square-foot customer fulfillment center (CFC), its sixth with UK-based e-grocer, Ocado,
Kroger located in Pleasant Prairie, Wis., will fill online grocery orders for customers in Wisconsin,
northern Illinois, and northwest Indiana. Ocado Solutions platform may allow Kroger to
assemble an order of approximately 50 items in six minutes using robotics in an automated
warehouse.
In April 2019, the company announced its plan to incorporate 1,500 autonomous floor-
cleaning robots, 300 shelf-scanning robots to check inventory, 1,200 delivery-sorting robots
Walmart
to collaborate with the shelf-scanning robots, and 900 automated “pickup towers” for
online orders.
October 2019, DB Schenker introduced autonomous robots manufactured by Gideon

Brothers at Leipzig. The former relying on the flexible solution for automating logistics
DB Schenker
processes are equipped with technology to offer productivity gains without the need to
modify facilities at large.

4. MARKET INSIGHT
4.4 WAREHOUSE INVESTMENT SCENARIO
Retail/Warehouse Developments/Initiatives
As of November 2019, XPO Logistics planned expansion of Intelligent Robotics usage in the United Kingdom in lieu of the Holiday
Shopping Season. The robots work alongside XPO’s employees and help in managing inventory for distribution. The automation
XPO Logistics
products and services were manufactured and delivered by 6 River Systems Inc., part of Shopify and a critical XPO’s robotics
partner in the United States.
In March 2020, DHL Supply Chain and Locus Robotics expanded partnership with 10 new US deployments in 2020. These 10
deployments of Locus autonomous mobile robots are planned across 2020. With the agreement, DHL Supply Chain is expected to
DHL deploy 1,000 LocusBots to support 12 DHL sites in North America.
A Locus Robotics mobile robot includes DHL branding at DHL’s new Innovation Center in Chicago.
On June 9, 2020, Kantsu, a Japanese logistics service provider, selected inVia Robotics to deploy autonomous mobile robots to
Kantsu
automate fulfillment operations in its primary distribution center in Osaka, Japan.
More recently, Geek+, an AMR provider, has extended its partnership with Decathlon. Previous success of a two-year collaboration
across e-commerce and retail fulfillment centers in Shanghai, Decathlon, in light of acceleration of its automation program, has
Decathlon
planned AMR deployments at two new sites in China. The installations were successfully deployed remotely in under 3 months,
following strict pandemic restrictions.
In September 2020, H-E-B tapped Swisslog on potential deployment automation to its micro-fulfillment centers (MFCs). H-E-B has
entered the online micro-fulfillment arena, and Swisslog would offer “a number” of automated tech to support the pickup and
H-E-B Supermarkets delivery business. Besides boosting H-E-B’s online order processing capacity to meet rising demand, the MFCs would also provide
efficiency by being closer to customers and enabling associates to fulfill online orders without getting in the way of shoppers in
stores.

4. MARKET INSIGHT
4.5 IMPACT OF MACRO-ECONOMIC FACTORS ON THE WAREHOUSE

AUTOMATION MARKET
■ Warehousing and logistics is an industry with complex operations requiring flexible and innovative
solutions. Currently, the market landscape within the warehousing and logistics is suggesting the allied
companies are lining up to adopt the digital transformation.
■ On the technology front, developments have been making deployment and operation easier. The robots,
for instance, has been providing a next-generation vision capacity with its visual perception based
robotic autonomy system by combining deep learning and stereoscopic cameras. In addition, these
robots serve the capability to move 800kg, with a hot-swappable battery system to minimize downtime.
■ Macroeconomic trends such as employment and government support have been instrumental in the
adoption of automation across warehouses and distribution centers. Since it is unclear how various jobs
automation could eventually replace and when it would happen, current deployments have been more
focused on how new technologies are changing workers’ day-to-day jobs right, a collaborative effort.
■ As per researchers at the University of Illinois, a study focused on warehouse work automation
suggested that emerging technologies aren’t actually going to replace the 1 million warehouse workers
in the United States. However, over the next 10 years, technology may make their jobs more complex.
■ Another study commissioned by the UC Berkeley Labor Center and labor advocacy organization Working
Partnerships USA depicted that warehousing as a work involved in the storage and flow of goods sees
the employment to increase steadily, as it has been for the past few years largely due to the rise of e-
commerce.
■ For instance, from 2014 to 2017, employment in this field rose 37%, and the US Bureau of Labor
Statistics has been further expecting the employment to continue growing by 21% between 2016 and
2026.
■ However, despite growing e-commerce as a sector, such statistics suggest that workers do not share
these gains. That is, while doing a job, they are twice as likely to be injured than in all other private sector
occupations, as per the US Bureau of Labor Statistics. Such pressure is likely to get more intense now as
the likes of Amazon and its competitors introduce free one-day shipping, on low-cost items, for its
Premium members.
28 REPORT –REPORT
4. MARKET INSIGHT
4.5 IMPACT OF MACRO-ECONOMIC FACTORS ON THE WAREHOUSE

AUTOMATION MARKET
■ Then, the United Kingdom has been lagging behind toward the shift to robots and automation in the
workplace, especially in warehousing and distribution facilities. The same has also been putting jobs,
businesses, and prosperity at risk, as per the country's Members of Parliament (MPs).
■ MPs on the business, energy, and industrial strategy (BEIS) committee announced that UK firms were
losing out to competitors in the rest of the G7 after the government cut support for companies and
failed to encourage investment on the technology front.
■ Those competitor countries, however, has extended significant support to companies from respective
governments. For instance, back in 2018, the South Korean government shared plans on expanding the
adoption of robotics and automation by 2022.
■ Even when deploying automation makes business sense, the rate of adoption can be affected by
multiple other contextual and regional factors (regulatory approval and reaction of users, investments,
etc.).
■ The shift of capital investment into these new technologies requires not only a significant amount of
time but also robust changes in processes and practices to adapt to new technologies. Since
reconfiguring supply chains and ecosystems is laborious, regulatory changes are thus the active drivers.
On the contrary, Government policies could also slow down the adoption, and different business sectors
adopt technologies at different rates.
■ For instance, worker shortages attributable to the COVID-19 outbreak has accelerated the adoption of
automation in China. Similarly, Oxford Economics predicts 12.5 million manufacturing jobs would
become automated, while in the US, machines would take upwards of 30% of such jobs.
■ Moreover, countries, such as India, are looking to prepare a national policy for industrialization and ease
the land acquisition process, with an aim to attract companies that want to shift their operations out of
China and become the next manufacturing base.
29 REPORT –REPORT
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Exponential Growth of the E-commerce Industry and
customer expectations
5.1.2 Increasing Manufacturing Complexity and Technology
Availability
5.2 Market Challenges
5.2.1 High Capital Investment

5. MARKET DYNAMICS
5.1 MARKET DRIVER

5.1.1 EXPONENTIAL GROWTH OF THE E-COMMERCE INDUSTRY AND CUSTOMER
NUMBER OF ROBOT-ENABLED FULFILLMENT CENTERS
(FC’S) AND AVERAGE NUMBER OF ROBOTS PER FC EXPECTATIONS
■ With the introduction of always-on e-commerce, the demand for faster responses, and the need to manage
In Number, Global, 2013 to 2017
a larger number of SKUs with fewer errors, warehouses and fulfillment centers need to scale up and meet
Year Number of robot-enabled FC's Average robot per FC the standards of an intelligent, efficient, and automated warehouse.
2013 461 3
■ The dire need to reduce costs, streamline operations, and enhance efficiency drive robotic innovations.
Furthermore, the economy is getting stronger, and the demand for automation, owing to prevailing
2014 1,500 10 competition in e-commerce, has boosted the growth of the market studied.
2015 2,308 13 ■ With the presence of a relatively mature market across developed nations, as the established players have
2016 2,250 20 set out clear rules, the digital transformation is not over. The drive has been led by the flow of innovation
coming from start-ups and a growing cash flow from Asian economies. This is expected to increase the
2017 3,200 25 warehouses and FCs globally.
SOURCE: CitiGroup; Technology at work v3.0
■ Despite the slowdown in the Chinese economy, a shift in purchasing power has been fueled by the growing
RETAIL E-COMMERCE SALES number of consumers gaining access to eCommerce. Moreover, the digital buyer penetration worldwide
In USD Billion, United States, from 2nd quarter 2018 to increased from 42.7% in 2014 to 47.3% in 2018, according to Invesp.
2nd quarter 2020 211
■ In India, the Indian e-commerce market is expected to grow to USD 200 billion, by 2026, from USD 38.5
153 156 160 billion in 2017. Most of the growth of the industry was triggered by increasing internet and smartphone
135 139 146
129 132 penetration. The ongoing digital transformation in the country is expected to increase India’s total internet
user base to 829 million, by 2021, from 636.73 million in 2019.
■ This has also led to an increasing pressure on supply chain activities. According to a recent survey conducted
by Honeywell Intelligrated, of the 171 US-based material-handling executives, 35% of executives found that
fulfilling more orders (faster and at lower costs) was their primary challenge, while their secondary concern
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 was to reduce errors in order processing/improving order accuracy and obtaining enough labor to support
operations. Thus, creating room for automation in the space.
'18 '18 '18 '19 '19 '19 '19 '20 '20
SOURCE: US Census Bureau
5. MARKET DYNAMICS
5.1 MARKET DRIVER

5.1.2 INCREASING MANUFACTURING COMPLEXITY AND TECHNOLOGY
AVAILABILITY
■ To meet the demand for home delivery (or curbside delivery), warehouses and fulfillment centers have
been witnessed adopting two strategies, that is, increasing in size of the existing facility or adding new
ones. However, the latter is a costly affair than the former. The average size of warehouses in 2000 was
around 65,000 square feet, compared to >200,000 square feet in 2020. The increase in size helps
warehouses to cope with higher volumes and a growing number of SKUs.
■ This further adds functional as well as management complexities. By employing more workers, the centers
would be tormented by costs from salaries to rent, and on the functional aspect, the slowdowns and
injuries would also create a significant impact.
■ Also, as per the Materials Management & Distribution Report, just-in-time ordering, direct-to-consumer
distribution, and shifting retailer-wholesaler relationships are decreasing the number of large-pallet orders
received by distributors. In turn, the growth of small, multiple SKU orders is forcing warehouses to
automate. The availability of technology, in such cases, has led to an ease of deployment by reducing the
time and cost of re-designing the whole facility.
■ Automated, efficient mini-load storage and retrieval systems (AS/RS) address this market challenge by
employing lightweight cranes that can sort individual totes, cases, trays, and crates while optimizing
storage and releasing key delivery and labor resources. These systems maximize supply chain efficiency
through the automation of key processes, including goods arrival, maximized inventory storage, and the
fulfillment of outbound shipping orders.
■ Further, multiple investments have been recorded to boost the technological aspects of automation. In
2019 alone, manufacturing, machinery, and automation saw roughly 800-900 venture-backed fundraising
rounds, close to two-thirds of which were still early-stage (pre-seed to Series B) investments.
■ In June 2020, a warehouse robotics company Locus Robotics announced a raising of USD 40 million, the
bulk of which would be put toward accelerating R&D and the company’s expansion into new markets,
including in the European Union (EU), where it opened a new headquarters. Locus also plans to launch
strategic reseller partnerships throughout 2020, following the year in which its number of customer
deployments passed 50.
32 REPORT –REPORT
5. MARKET DYNAMICS
5.2 MARKET CHALLENGE

5.2.1 HIGH CAPITAL INVESTMENT
■ With a third of supply chain operators use robotics as an automation tech, cost and ROI remain a
significant challenge. With upfront costs high, the longer duration to achieve an ROI has been limiting
the mass adoption of the automation solutions.
■ Developing economies such as China and India have been representative of labor-intensive formats.
With costs so low, an investment of a million dollar for a single system with additional staff training has
been restraining the same.
■ The issues pertaining to cost and return on investment (ROI) also affects the investments from multiple
small and medium-sized businesses (SMB’s). These have been slow to adopt robotics, as per Nancey
Green Leigh, a Georgia Tech professor who is leading a National Science Foundation-funded project
called “Workers, Firms, and Industries in Robotics.
■ As the huge capital expenditure is required to set up and install warehouse robots, the average cost of a
fixed robot accounts between USD 60,000 and USD 140,000, whereas the average cost of a mobile robot
varies between USD 25,000 and USD 40,000. These high costs discourage warehouse operators from
choosing high-end warehouse robots, which challenges the market’s growth.
■ Furthermore, a rapid enhancement in automation technology by market vendors has been leading to
new variations in these product ranges or software functionalities to occur more frequently. This has
been causing existing technologies to become outdated quickly, and the need to be changed or
upgraded regularly accounts for high costs.
■ For instance, when adding an AMR to the operations, end-users account for both initial and ongoing
setup, deployment, and reconfiguration efforts that can become expensive if the robot is not easy to
use. Since these barriers have been realized in the past few years, activeness in the form of forming
associations, government collaborations, etc., hint at overcoming the same in the long-term.
33 REPORT –REPORT
6.1 SEGMENTATION - BY 66.12%
COMPONENT
6.1.1 Hardware Hardware Software
6.1.2 Software
2025
6.1.3 Services
Services

6. MARKET SEGMENTATION
6.1 SEGMENTATION - BY COMPONENT
LOGISTICS AUTOMATION MARKET

Revenue Share (%), by Component, Global, 2019 Revenue in USD million, by Component, Global, 2019-2025
Component 2019 2020 2021 2022 2023 2024 2025 CAGR

24.90%
Hardware 14.84 14.10 15.74 17.63 19.86 22.53 25.78 12.83%

10.07%
65.03%
Software 2.30 2.18 2.42 2.71 3.04 3.44 3.92 12.50%
Hardware Software Services

Services 5.68 5.34 5.91 6.55 7.30 8.20 9.29 11.69%
SOURCE: Mordor Intelligence SOURCE: Mordor Intelligence

6.1.1 SEGMENTATION - BY HARDWARE

6.1.1.2 Automated Storage and Retrieval Systems (AS/RS)
6.1.1.3 Automated Sorting Systems
6.1.1.4 De-palletizing/Palletizing Systems
6.1.1.6 Automatic Identification and Data Collection (AIDC)
6.1.1.7 Order Picking
36 REPORT –REPORT
6.1.1 SEGMENTATION - BY 26.22%
HARDWARE
Mobile Robots (AGV, AMR)
Automated Storage and

Retrieval Systems (AS/RS)
Automated Sorting Systems
6.1.1.2 Automated Storage and Retrieval Systems (AS/RS)
2025 De-palletizing/Palletizing
6.1.1.3 Automated Sorting Systems
Systems
6.1.1.4 De-palletizing/Palletizing Systems Conveyor Systems
Automatic Identification and
6.1.1.6 Automatic Identification and Data Collection (AIDC) Data Collection (AIDC)
6.1.1.7 Order Picking Order Picking


Revenue Share (%), by Hardware, Global, 2019 Revenue in USD billion, by Hardware, Global, 2019-2025
Hardware 2019 2020 2021 2022 2023 2024 2025 CAGR

13.13%
17.84%
Mobile Robots (AGV, AMR) 1.95 2.15 2.47 2.96 3.71 4.88 6.76 25.75%
Automated Storage and Retrieval

11.67% 21.50% 3.19 2.97 3.35 3.79 4.31 4.93 5.70 13.93%
Systems (AS/RS)
Automated Sorting Systems 1.96 1.80 1.95 2.11 2.30 2.52 2.79 9.19%
10.63%
13.20% De-palletizing/Palletizing Systems

12.04%
1.79 1.63 1.74 1.87 2.01 2.19 2.40 8.10%
Mobile Robots (AGV, AMR) Conveyor Systems 1.58 1.42 1.51 1.61 1.73 1.86 2.02 7.27%
Automated Storage and Retrieval Systems (AS/RS)
Automated Sorting Systems
Automatic Identification and Data
De-palletizing/Palletizing Systems
1.73 1.55 1.63 1.71 1.82 1.94 2.09 6.15%
Collection (AIDC)
Conveyor Systems
Automatic Identification and Data Collection (AIDC) Order Picking 2.65 2.58 3.10 3.58 3.99 4.21 4.02 9.27%
Order Picking

6.1.1.1 MOBILE ROBOTS (AGV, AMR)

◼ The primary application of logistics robots is the use of mobile automated guided vehicles (AGVs)
in warehouses and storage facilities to transport goods. These robots operate in predefined LOGISTICS AUTOMATION MARKET
pathways, moving products for shipping and storage around the clock. AGVs play an important Revenue in USD billion, Mobile Robots (AGV, AMR), Global, 2019-2025
role in reducing the cost of logistics and streamlining the supply chain.
◼ AGVs are also used in inbound and outbound handling for replenishment and for picking. For
example, AGVs may be used to transport inventory from receiving to storage locations or from 6.76
long-term storage locations to forward picking locations to replenish stock. Moving inventory
from long-term storage to forward picking locations ensures that adequate inventory is accessible
to pickers, making the order picking process more efficient.
◼ AGVs such as collaborative mobile robots assist in the picking process by guiding warehouse 4.88
associates through tasks and transporting picked orders to packaging and shipping workstations.
◼ Further, according to the Industrial Truck Association, over a quarter-million forklift trucks were 3.71
sold in North America in 2018, representing a 2.8% increase from 2017. However, the cost of
commercial space leasing is expected to increase over the forecast period. As the availability of 2.96
warehouse spaces diminishes, the demand for automated forklifts is expected to grow. 2.47
2.15
◼ Also, interest in automated forklifts is growing, first and foremost, because the US labor market is 1.95
very tight. Unemployment is at its lowest point in 50 years, and warehouses and DCs (Distribution
Centers) are struggling to hire and retain reliable, qualified employees. Automation can help fill
that labor gap, providing continuous, consistent performance 24/7.
◼ In addition, the wider availability and declining costs of sophisticated sensors have reduced costs
for the end-user. Before, only three-shift or four-shift operations with very high hourly pay rates
could find justification for an automated forklift project. Now, a wider range of operations, 2019 2020 2021 2022 2023 2024 2025
including those with just a few trucks, can get a return on their investment. Source: Mordor Intelligence Analysis

6.1.1.1 MOBILE ROBOTS (AGV, AMR)

■ Autonomous mobile robots (AMRs) differ from AGVs by their degree of autonomy. Robotics for
distribution centers (DCs), such as autonomous mobile robots (AMRs) and collaborative picking arms,
are growing at a rapid rate, with well over a dozen robotics vendors aiming at the needs of DC
operators.
■ AMRs are replacing AGVs in logistical applications. This is because, unlike AGVs, AMRs incorporate more
sophisticated on-board computers that are coupled to inertial measurement units (IMU), laser scanning
range finders, 2D and 3D color cameras, and motor controllers. Such AMRs do not require tracking strips
to be placed in a factory or warehouse.
■ It is expected that AMRs would gradually replace forklifts in particular too. Mobile Industrial Robots, Inc.
has taken the first initiative (MiR), has designed The MiR1000 AMR. It can tolerate a payload of 1000kg.
It is equipped with six laser scanners, 3D cameras, and an artificially intelligent camera.
■ While many logistics operations still rely on manual and paper-based picking systems, autonomous
mobile robots can now eliminate a lot of unnecessary walking. According to an analysis of US Census
Bureau data, the average warehouse worker wastes nearly seven weeks per year in unnecessary motion,
accounting for more than USD 4.3 billion in labor.
■ Improvements in sensors, artificial intelligence, and mobility enable these machines to be easily
deployed virtually anywhere. Companies such as IAM Robotics, GreyOrange, and Bleum offer mobile
robotic picking solutions that can add a new level of efficiency to the process. These machines typically
carry carts and can be programmed to travel flexible routes in the warehouse to move product between
workers and stations.
■ AMR also offers new opportunities for inventory monitoring. When combined with RFID-tagged
products and equipment, these machines can now conduct their own inventory sweeps autonomously at
schedules determined by the warehouse.
■ Fetch’s TagSurveyor features three RFID interrogators mounted for optimal coverage and can reliably
and consistently detect tagged products from up to 25 feet away. It not only reduces the need for
manual inventory counts but also offers real-time mapping to managers, which can easily visualize
product storage.
40 REPORT –REPORT
6.1.1.1 MOBILE ROBOTS (AGV AND AMR)

■ While an RFID robot sells for approximately USD 50,000, the typical customer saves up to a million per
year in labor reduction, waste reduction, and inventory optimization.
■ Furthermore, it may still be a while before drones are safely moving large products through the air in
distribution centers or to customers’ homes. But in the meantime, lightweight unmanned autonomous
vehicles (UAVs) are already being equipped with RFID-scanning technology to offer real-time inventory
visibility in the warehouse.
■ Considering the innovation in the AMR space, the applications, and therefore, the total addressable
market for AMRs is likely to increase beyond the retail, warehouse, and hospitality. The companies, such
as Amazon, Dematic, Fetch Robotics, inVia, and Robotics, among others, have been shaping the market
for AMRs and are supporting the industries that are adopting it.
■ In July 2019, the United Kingdom-based Iconsys expanded into autonomous mobile solutions with the
launch of its iAM-R (Iconsys Autonomous Mobile Robot). It is designed to provide autonomous robotic
solutions to the company’s customers.
■ Furthermore, researchers have been working with a mobile robotic platform called Husky A200 that
could be used for autonomous logistic tasks on construction sites. This mobile robot is one of many
projects pursued by the Fraunhofer Italia Innovation Engineering Center to advance the cause of
digitalization in construction and bridge the gap between robotics and the building industry.
Researchers at this center based in Bolzano, Italy, have been developing a software interface that will
enable mobile robots to find their way around in construction sites.
 In addition to warehouse management software, mobile robots also utilize blueprints, sensors, AI, and
vision algorithms to adapt to the warehouse environment and work with diverse totes, as well as
different shelves. One of the most famous instances can be seen in mobile robots manufactured by the
United States-based Vecna Robotics. The robots can take input from many different kinds of sensors and
fuse this information to understand where they are and how they can execute their tasking. This is also
known as autonomy stack.
41 REPORT –REPORT
6.1.1.2 AUTOMATED STORAGE AND RETRIEVAL SYSTEMS (AS/RS)

◼ Automated storage and retrieval system (ASRS) provides various benefits to the warehouse managers,
such as the reduction in labor and energy costs, while also making better use of space and arresting LOGISTICS AUTOMATION MARKET
product damage. The deployment of these systems in warehouses has been decreasing the amount of
Revenue in USD billion, Automated Storage and Retrieval Systems
human intervention in the system. Such benefits ensure a compelling return on investment in (AS/RS), Global, 2019-2025
warehousing and distribution technology. 5.7
◼ According to the Automation Solutions Study, 2020, conducted on 225 participants, about 58% of the
respondents have plans to invest in automated storage and retrieval systems compared to about 47% 4.93
in 2019.
4.31
◼ Stacker cranes have played a dominant role in material handling and find major applications in
warehouses that prefer relatively slow storage and retrieval operations. These systems are generally 3.79
preferred in warehouses that are under construction, rather than established warehouses, as
3.35
modification operations can involve rearranging the entire racking architecture. 3.19
2.97
◼ The capabilities of AS/RS cranes have improved in recent years. From single-load cranes to dual-load,
AS/RS cranes have transitioned into new double-decker cranes with upper and lower levels. These
cranes have the capability to retrieve about eight different items, driven by software. Through retrofits,
advanced cranes and modules are serving both as storage and picking technology. According to
Witron Integrated Logistics, these are common in Europe in other closed-loop applications (with
standardized tote sizes).
◼ Furthermore, shuttle systems have become an essential part of material handling, and since the rise in
e-commerce and technological developments in the fields of sensors, machine intelligence, and
software, shuttle systems have been experiencing significant growth. Even established warehouses are
now turning toward shuttle systems. They are ideal for warehouses with lower SKU counts and high
throughput, which means frequent loading and unloading of a large number of pallets per storage 2019 2020 2021 2022 2023 2024 2025
unit. They speed up the circulation of outgoing and incoming goods and make it easier to manage Source: Mordor Intelligence Analysis
racks with deep storage buffers.


■ However, shuttle systems tend to be expensive, as they require a greenfield warehouse setup. Due to
high prices, the accessibility of these systems is likely to be limited to large distributors only. Moreover,
shuttle systems, in spite of becoming more automated, are challenged by the rise of autonomous mobile
robot storage systems.
■ Carousels have been effectively used to consolidate the picking of slow-moving parts. Order fulfillment
has become much more complex. However, in applications where simple, high-density, space-saving is
required, their automated storage technology fits prominently. A horizontal carousel takes up 70% less
floor space than conventional storage for the same amount of inventory. If someone is picking slow- to
medium-movers, the sweet spot is 250 to 550 lines per hour, which can be increased if the stack units or
add multiple picking pods.
■ In a typical Pareto distribution of slow, medium-and fastmoving SKUs, one can significantly use a
horizontal carousel. There may be a little more walking compared to a mini-load or shuttle system, but
carousels eliminate the walking associated with a conveyor-based picking system. On the other hand, a
carousel doesn’t require a conveyor to deliver a tote to a workstation, which can reduce the cost of the
solution.
■ Carousels can store and transport multiple bulk parts and drive deployments across electronics,
automotive parts, medical devices, and manufacturing plants. For instance, Mazak, a cutting tools
manufacturer, installed Kardex’s thirteen vertical lift module cutting tool builder, which improved the
productivity of the plant by 80%, reduced labor resources by 44%, and increased part numbers on hand
by 95%.
■ Furthermore, Vertical lift modules (VLMs) are mainly suitable for applications that need a fast and secure
movement of small items. These solutions are generally deployed in retail establishments and small-
scale warehouses that make trade movements through multiple channels. The performance of a
warehouse with vertical lift modules is highly correlated with the efficiency of the order picking.
43 REPORT –REPORT

■ A case, such as HCL Logistics, piloted two vertical lift modules (VLMs). As automated high-bay
warehousing systems that are equipped with modular designs that operate on the goods-to-person
principle, the VLMs handled the kitting portion of a specific customer’s contract. The company noticed
positive results soon after the installation, including ten times more employee efficiency. Based on the
efficiencies and the space savings, they grew the system from two units to 21 VLMs.They witnessed a
15% efficiency improvement as a result of the VLMs.
■ Picking, packing, and processing orders is one of the most time-consuming tasks in the order fulfillment
process. In fact, the process of walking and manually picking orders can account for more than 50
percent of the time associated with picking. AS/RS offers an alternative to this using Goods-to-Person
(GTP, or G2P) order picking.
■ Westfalia, a prominent provider of logistics solutions for plants, warehouses, and distribution centers,
provides flexible AS/RS, which ensures the ability to adapt to changing market conditions now and in the
future. The company supplies automated warehouse solutions to various manufacturers and distributors
utilizing a variety of loads (unit, layer, or extra-large).
■ With respect to the demand for automated storage and retrieval systems, as a whole, North America still
remains a prominent market for both domestic and international vendors. Companies have been
expanding their presence and launching new solutions in the region, owing to the acceptance of new
technology and the greater scope the region offers.
■ For instance, Spain-based Interlake Mecalux, after successful business in Europe and Latin America with
its ASRS solutions, in April 2019, announced the expansion into the United States.
■ Interlake Mecalux, which provides both crane and shuttle-based ASRS solutions, is unique, as its
solutions, unlike those offered by most other ASRS providers in the United States, make the racks that
go into the system itself. The company manufactures these racks either in the United States or Mexico,
which means that they have a short lead-time, thus, acting in favor of the company. In April 2019, the
company launched Bastian Solutions Shuttle System, a robotic materials handler made with parts
designed and built through additive manufacturing.
44 REPORT –REPORT
6.1.1.3 AUTOMATED SORTING SYSTEMS

◼ Sorters or automated sorting systems are used in picking environments that require the
movement of a relatively small number of references in respect of the total movements of units or LOGISTICS AUTOMATION MARKET
bulks required in a determined picking period. Crossbelt and bomb-bay flat sorter automated Revenue in USD billion, Automated Sorting Systems, Global, 2019-
sortation systems revolutionize the sortation industry. 2025
2.79
◼ In the warehousing industry, there are typically a variety of similar tasks that need to be performed
hundreds and thousands of times each day. By using automated sorters to replace some of these 2.52
tasks, the labor hours necessary for operations can be reduced. This advantage is especially
2.3
effective in today’s competitive labor market, where the availability of workers is becoming a
greater issue. 2.11
1.96 1.95
◼ Automated sorters help achieve over two times higher process efficiency without needing to 1.8
expand storage space or workforce. The highest potential for these systems is seen in the picking
process. The sorter uses a pick-by-light system where the list of products is replaced by a digital
display of signal diodes. It suggests the actions that should be performed and minimizes the risk
of errors.
◼ According to the Retailers Association of India (RAI) report, currently, the Indian e-commerce
industry is valued at USD 200 billion and is expected to grow to USD 1.2 trillion by 2021. This
increase requires a higher sorting efficiency of parcels. And thus, emerged the persisting need for
parcel sorting robots. The combination of sorting robot system with fast code-reading and
intelligent sorting system of the industrial camera can realize fast sorting and information
recording interaction after the code-reading.
◼ Leading retailers are deploying the sortation system in their warehouses to streamline the SKU
movement. In September 2019, last-mile delivery firm Giao Hang Nhanh (GHN) launched its
2019 2020 2021 2022 2023 2024 2025
automated sortation system with a sorting capacity of 30,000 orders per hour in its warehouse in
Source: Mordor Intelligence Analysis
Hanoi. The company aims to serve the fast-paced development of Vietnam’s e-commerce and the
digital economy.
6.1.1.3 AUTOMATED SORTING SYSTEMS

◼ Furthermore, Thailand Post is currently spending USD 0.32 billion on establishing two fully automated
sorting centers to leverage the growing logistics business, in line with burgeoning e-commerce activities.
This will help the company boost efficiency of the mail and parcel sorting systems through automation
and innovation.
◼ Apart from hubs, some parcel companies, such as DHL, have started to automate delivery bases. Key
advantages of this model are more sorting “depth” that is, less manual sorting and easier same-day
deliveries that are fulfilled close to a city and then just sorted to the route in the delivery base.
Automating in this way allows a company to outcompete some low-cost services offered by rivals.
◼ Recently, a player such as Geek Plus Robotics introduced the parcel sorting robot called S20, which
enables companies to automate their warehouses without having to install expensive fixed elements
such as a traditional conveyor system. It serves as an innovative and cost-effective tool for increasing
parcel sortation efficiency in the warehouse distribution center. Since its launch, a fleet of 200 units of
the S20 robot has been taking sorting tasks around the clock while achieving a benchmark of 10,000
pieces per hour.
◼ Also, with the trend towards growth in the e-commerce sector, players are focused on developing new
technology capability along with significantly focusing on a partnership to compete in the market. For
instance, at Automate 2019, JR Automation launched the RFSS Robotic Sortation System, which
automatically consolidates and sorts multi SKU mixed orders in a drastically reduced footprint to
conventional sort systems.
◼ Furthermore, Daifuku Wynright also innovated in the cross-belt space. In April 2019, the company
reported that it is likely to launch its cross-belt unit sorter for North America. Its cross-belt sorters are
used to sort fragile and/or high friction items, parcels, and cartons at high speeds. The company’s cross-
belt sorter is planned for release in the North American market in 2020.
◼ In March 2019, a bpost group company Radial partnered with OPEX Corporation to pilot the
organization’s Sure Sort technology, a robotics-based, automated, put-wall system that identifies and
sorts items into individual orders, quickly and efficiently, in one go.
46 REPORT –REPORT
6.1.1.4 DE-PALLETIZING/PALLETIZING SYSTEMS

◼ Palletizing refers to the operation of loading an object, such as a corrugated carton on a pallet or a
similar device in a defined pattern. Depalletizing refers to the operation of unloading the loaded LOGISTICS AUTOMATION MARKET
object in the reverse pattern. A Palletizing/de-palletizing robot can detect a load that is slightly
Revenue in USD billion, De-Palletizing/Palletizing Systems, Global,
misaligned or out of position. The robot recognizes objects in three dimensions, identifies objects in 2019-2025
real-time on monitor screens, and can accurately handle the load that is misaligned from the
position.
◼ Regardless of the palletizing strategy, the goal of any supply chain operation is to ship out the most
2.4
product possible. This can only be done by making the best use of the space on each individual
pallet, even if it means just one more package per pallet. According to Swisslog, picking and 2.19
palletizing make up to 60% of warehouse operational costs. 2.01
1.87
◼ Player, such as SICK Inc., offers a solution to optimize the palletizing and depalletizing methods. The 1.79 1.74
Visionary-T is a 3D camera that provides a snapshot of a pallet where one can see if there are 1.63
incomplete layers, misaligned objects or validate a pallet is in the correct location.
◼ Several types of palletizers exist on the market studied, and the industry has been constantly
innovating to manipulate different kinds of products such as cardboard boxes, bags, bottle packs,
etc.
◼ In order to handle multiple products simultaneously, a conventional palletizer collects layers of the
product on an upstream conveyor system before feeding them into a palletizer that automatically
stacks them according to the corresponding pattern. As these systems are easy to troubleshoot and
operate, the end user and business units with a high amount of low-skilled workforce, or those that
have fewer resources for training, are expected to be the prime adopters in the market studied.
◼ Furthermore, high-level palletizers have been gaining traction in the market studied. A high-level
palletizer has a higher throughput as compared to the size of the footprint. When the palletizer is 2019 2020 2021 2022 2023 2024 2025
located far from the case packer or case sealer, the higher elevation of the case conveyor feeding the Source: Mordor Intelligence Analysis
palletizer allows for greater flexibility in plant layout and flow.
6.1.1.4 DE-PALLETIZING/PALLETIZING SYSTEMS

◼ It operates similarly to that of a low-level palletizer, except, instead of raising and lowering full layers of
cases and depositing them onto a pallet, the case layers remain static, and the pallet is raised and lowered
whenever required. High-level palletizers also allow products to be formed into layers much faster than low-
level palletizers.
◼ For conventional palletizers, it functions at up to 200 cases/minute, where conventional palletizers usually
have faster cycle times. However, the series of conveyors needed to orient the product means they also
usually require more space. To cater to such an issue, robotic palletizers play its roles where it functions
2,000-cycles-per-hour.
◼ In order to handle multiple products simultaneously, a robotic palletizer can simplify multi-line palletizing by
eliminating the upstream conveyor system. The costs can be less at times, especially when operating at four
or more simultaneous infeeds.
◼ Palletizing rates can vary anywhere from eight to 30 cases per minute for a single robot, depending on the
stacking patterns, requirements, and the type of products that the robot is picking. As the load-handling
systems are connected to robotic arms, these types of palletizers can handle load up to 1,000 kg. Thus,
industries generally use them for bulk packaging, meant for logistics for distribution channels.
◼ The increasing market share of robotic palletizers is mainly due to new innovations by different vendors
operating in the market. For instance, in March 2019, Brenton launched the RPX-SW series of modular
robotic palletizers integrated with an Orion automatic stretch wrapper. There are four palletizer
configurations, including two with automated pallet handling modules.
◼ Furthermore, depalletizers are capable of handling raw materials in manufacturing facilities or unloading
empty containers. Depalletizing systems include a robotic arm and enhanced computer vision. Just like
palletizing systems, depalletizing systems offer the flexibility to be customized to operational needs.
◼ Player, such as StrongPoint Automation Inc., achieve rates in excess of six layers per minute, exceeding the
industry norm. Their depalletizers range from simple de-stackers to completely automated solutions
featuring full pallet accumulation, tier sheet, and top frame removal with a fully automatic pallet magazine.
48 REPORT –REPORT
6.1.1.4 DE-PALLETIZING/PALLETIZING
SYSTEMS
◼ Furthermore, the ABB depalletizing system is a fully
automated solution that protects people from
repetitive heavy lifting. Cartons are decanted by an
ABB robot with ABB 3D vision and placed into trays
and totes or directly onto a conveyor. The ABB
depalletizing system can handle a large variety of
cartons. Pallets can be brought to the system
manually by operators or automatically by pallet
elevators, conveyors, or AGVs.
◼ Depalletizing robotic systems are commonly
deployed to automatize and speed-up parts of
logistic processes. Despite this, the necessity to adapt
the preexisting logistic processes to the automatic
systems often impairs the application of such robotic
solutions to small business realities like supermarkets.
■ In order fulfillment, there are a few robotic solutions
that are really revolutionizing the material handling
world. These include Layer Forming and inline
palletizing, layer depalletizing and palletizing, and
mixed case palletizing; each has specific benefits that
can truly improve a client’s operations with marked
productivity, flexibility, and reliability.
49
6.1.1.5 CONVEYOR SYSTEMS

◼ Over the last few years, robots have become a major player in automation in collaboration with
conveyors and conveyor equipment. With the transformation of industrial production technology, LOGISTICS AUTOMATION MARKET
people have been increasingly demanding efficiency. The modular belt conveyor has a wide range
Revenue in USD billion, Conveyor Systems, Global, 2019-2025
of applications in logistics.
◼ The automated guided vehicle (AGV) robots are often combined with conveyor belts and monorail
systems. In some cases, they can be treated as complementary solutions. So, the choice between
the two means of transport is dependent on whether the speed or flexibility of transport 2.02
management.
1.86
◼ Due to intense competition, the companies depend on effective strategies in order to keep 1.73
production costs as low as possible. The use of belt conveyor systems enables manufacturers to 1.58 1.61
1.51
reduce their inventory levels, which, in turn, has been reducing their overall cost. The market for 1.42
belt conveyors is relatively mature, and it is expected to witness slow growth over the forecast
period. Furthermore, vendors in the market studied have been making strategic acquisitions to
expand their presence and technical superiority.
◼ For instance, a bulk material-handling company, Mitchells Group acquired the Lincolnshire-based
Guttridge to expand its global footprint. Mitchells is one of the world’s largest bulk material
handling manufacturers, supplying specialist conveying solutions, and handling equipment to agri-
food companies across regions. With this deal, the company has a combined revenue of more than
USD 30 million.
◼ Furthermore, in order to address under-utilization, several warehouse automation vendors now
provide modular solutions that can be scaled up or down depending on demand. Interroll, for
example, has developed its Modular Conveyor Platform (MCP), which enables its customers to ‘re-
wire’ the conveyor network using standard plug-and-play modules. This may result in changes in 2019 2020 2021 2022 2023 2024 2025
purchasing patterns, as warehouse automation equipment providers may purchase components, Source: Mordor Intelligence Analysis
such as drives and rollers, in higher volumes to build the modules in advance.

6.1.1.5 CONVEYOR SYSTEMS

◼ Roller conveyors are an industrial system designed to transport, accumulate, and distribute goods
between different points within a warehouse. They can also be used to connect various logistics
warehouses or production centers to a company’s own warehouses.
◼ A wide variety of circuits can be designed with roller conveyors to link different areas in a warehouse.
The simplest ones can be integrated into standard warehouses in a snap thanks to the plug and play
system. These have a single origin point and a single destination.
◼ They are specifically designed for the rapid loading and unloading of vehicles and other open bodies
with materials, such as rigid bulk packages and roller conveyors, which are the most preferred choice of
conveyors.
◼ The increase in e-commerce means that warehouses have to confront smaller but more frequent orders,
the appearance of new business models based on the long tail (a portion of the distribution having a
large number of occurrences far from the "head" or central part of the distribution) in comparison with
mass markets and the ever-increasing role of urban logistics. This trend will continue growing at a fast
rate for the next few years, and it will lead to greater demand for roller conveyors.
◼ Furthermore, the cost of handling picking errors and inventory errors is most important in the modern
supply chain. The costs of human and inventory errors can be far greater than those of the orders which
produce these errors, which will often be smaller but more frequent. Roller conveyors with integrated
sensors, which work in coordination with the automated order preparation systems, allow greater
traceability inside the warehouse and fewer errors during material handling.
◼ An increasing interest in sustainability, coupled with a robust economy, as a result of cost containment,
has led to the demand for roller conveyors. In the United States, post offices witnessed a 60% energy
savings in parcel-handling applications after employing roller conveyors.
◼ Set of elements designed for transporting, accumulating, and/or distributing goods to specific positions
are majorly required by the logistics operations. The pallet conveyor system represents an ideal
combination between the efficiency of the stacker cranes and the entry, dispatch, and handling
processes of the load unit.
51 REPORT –REPORT
6.1 MARKET SEGMENTATION - BY COMPONENT
6.1.1.6 AUTOMATIC IDENTIFICATION AND DATA COLLECTION (AIDC)

■ Automatic Identification and Data Capture (AIDC) is an automated process used for the
identification and collection of data for classification, storage, and analysis. There is no human LOGISTICS AUTOMATION MARKET
involvement in the AIDC process, and it is generally integrated for the purpose of systematically
Revenue in USD billion, Automatic Identification and Data
identifying and tracking a multitude of items, inventory, tools, assets, and even workers. Some
Collection (AIDC), Global,2019-2025
of the technologies that are part of the system are barcodes, RFID, biometrics, optical character
Recognition, magnetic strips, smartcards, and speech recognition.
■ The adoption of the technology has been gaining further traction due to the automation of 2.09
warehouses and automated inventory management and tracking in small scale stores to large 1.94
store chains. Warehouses have been increasingly becoming touchpoints in reducing the costs 1.82
and enhancing the customer experience; according to a study by the Logistics Bureau, up to 1.73 1.71
1.63
12% of companies are unprofitable after distribution costs are taken into account; thus, 1.55
distribution costs can impact profitability.
■ Most warehouses and distribution centers emphasize taking actions to lower operating costs;
according to Logistics Management’s 2018 Warehouse/Distribution Center study, which found
that respondents took various actions to lower operating costs, including improving the
process, warehouse information technology (IT), inventory control. The study also found that
warehouse IT improvement increased sharply from 38% in the previous year to 50% this year.
■ The use of technologies such as RFID, Barcode, and biometrics, have been helping increase
efficiency in the supply chain. For instance, according to a research study by the Auburn
University RFID Lab and GS1, US brand owners and retailers that are using Electronic Product
Code (EP)-enabled radio frequency identification (RFID) in order to optimize inventory
management and reconcile product shipments were capable of achieving 99.9% order accuracy.
■ Owing to such developments, various AIDC vendors in the market studied have been looking to 2019 2020 2021 2022 2023 2024 2025
enhance their technological capabilities via innovation, research, partnership, and M&A as part
of its competitive strategy.

6.1.1.6 AUTOMATIC IDENTIFICATION AND DATA

COLLECTION (AIDC)
■ For instance, in August 2020, Sole Source Capital LLC's subsidiary Supply Chain Services, a provider of
automatic identification and data capture (AIDC) and factory automation solutions in North America,
acquired Dasco Label, a provider of custom labels, imprinting, serialization, and barcoding services.
■ The use of barcode is another major industry trend that is currently widely used in logistics and tracking
goods. The technology is expected to see major innovation in the coming years; for instance, in March
2020, a study published by GS1 US mentioned that about 82% of retailers, and 92% of brand owners are
in support of transitioning from the universal product code (U.P.C) to a data-rich two-dimensional (2D)
barcode, such as QR Code, GS1 Data Matrix, digital watermark, or RFID, in the coming five years.
■ Major projects, logistics providers, and supply chain management solution providers have been
increasingly adopting AIDC. For instance, in February 2020, Indian Railways has decided to adopt the
solution as part of its network; for implementing RFID project over the Indian Railways, Center for
Railway Information Systems (CRIS, the IT arm of the Indian Railways), GS1 India, and the Indian Industry
have come together in alignment with the ‘Make in India’ initiative. Such developments are expected to
increase over the coming years.
■ Apart from this, logistics automation providers and adopters have been increasingly looking to adopt
new technologies, such as wearable to improve tracking and automated identification and data
collection; for example, in March 2020, Wanzl partnership with warehouse wearables innovator ProGlove.
Such developments are expected to further intensify over the forecasted period.
53 REPORT –REPORT
6.1.1.7 ORDER PICKING

■ With the exponential growth in warehouse automation, the demand for robotics solutions that
help operate the facility at optimal levels have been gaining traction, and order picking LOGISTICS AUTOMATION MARKET
solutions are an important part of this process, and various vendors in the market studied have Revenue in USD billion, Order Picking, Global, 2019-2025
been focusing on enhancing their presence in this space.
■ Automated order picking helps customers enhance their throughput, costs, time, and space. For 4.21
3.99 4.02
example, a semiconductor firm increased its customer order fulfillment capacity, increased order
accuracy, and cut cycle times with the help of DHL Supply Chain solutions; automated storage 3.58
and order picking have helped the customer increase throughput by 40% with no extra staff.
■ Automated order picking helps in optimal usage of space and efficiency in time consumption. 3.10
For instance, Decathlon, a sports equipment chain's new 30,000 m2 logistics center in Lodz
2.65 2.58
(Poland), was fitted with Mecalux order picking solutions to speed up its order picking.
■ Order picking helps increase the workflow significantly and enhances the operations in any
warehouse and distribution center. For example, bolt maker Spax installed Mecalux's Easy WMS
in its 5,000 sq m distribution center in Madrid; this helped increase the order picking workflows
of Spax by 21% since the adoption of the technology.
■ Moreover, order picking solutions are known to increase the speed of operations in warehouses.
For example, Van Heck Interpieces, an automotive spare parts distribution business, owns a
4,000 sq m warehouse on the outskirts of Lyon (France), which incorporated Mecalux's order
picking solutions, which resulted in speedy order picking at its automobile spare parts
warehouse.
2019 2020 2021 2022 2023 2024 2025


6.1.1.7 ORDER PICKING

■ With the growing e-commerce influence across the
world, demand for order picking solutions is on the
rise, which has been influencing vendors to enhance
their offering in the section as well. For instance, in
May 2020, ABB enhanced its robot picking and
packing portfolio to transform omnichannel order
fulfillment and retail logistics with the launch of its
new robot IRB 390 FlexPackerTM.
■ Vendors in the market studied have been focusing on
enhancing their solution's capability with the addition
of AI technology. For example, in March 2020, KNAPP
and Covariant introduced the Pick-it-Easy robot,
which is powered by AI and expected to be focused
on the North American region. Such technological
innovations are expected to further increase over the
forecasted period.
■ With the recent outbreak of OVID-19 in the market
studied, the demand for warehouse automation has
been further increasing, in order to cope with the
growing demand for e-commerce solutions. For
instance, in June 2020, Gap ordered 73 piece-picking
robots to meet the e-commerce surge caused by the
pandemic; such instances are expected to surge over
the forecasted period as businesses are faced with
high safety regulations and low workforce.
55
6.1.2 SOFTWARE
■ In order to manage automation and automated solutions, software components of the complete
system are vital; such solutions include Warehouse Management Systems(WMS) and Warehouse LOGISTICS AUTOMATION MARKET
Execution Systems (WES). WMS has been around for decades, and in recent times, the Revenue in USD billion, Software, Global, 2019-2025
incorporation of machine learning as part of the offering is gaining traction; for example, vendors,
such as Manhattan WMS, have been using advanced technologies to enhance their core offerings,
its order streaming now incorporates machine learning that helps shippers sense and adapt to 3.92
changing conditions within the warehouse.
■ The demand for systems that can interject last-minute orders is expected to see growth over the 3.44
coming years. According to a recent study, waving/batch picking, which is common across most 3.04
of the advanced WMS offerings, found that this capability is less used by 30% of the companies
2.71
that have less sophisticated, complex warehouses that are still using onesie-twosie, paper-
printout, ad-hoc processes. 2.42
2.30
2.18
■ The use of wave-less fulfilment is gaining traction in the fast-paced e-commerce space over the
forecasted period, as more companies have been turning toward warehouse control systems
(WCS) and automation to help support those activities.
■ WMS vendors have been working with their OEMs to further democratize automation; the market
studied has been seeing even more creative financing opportunities increase for companies that
are looking to infuse new technology into their warehouses. WMS vendors that sell the systems
that run the automated equipment are now working more closely with their OEMs to help make it
more affordable for a wider swath of customers.
■ A major share of the focus is expected to be over enhancing the WMS user interface and coming
2019 2020 2021 2022 2023 2024 2025
up with ways to present data in a more logical format to users. For example, Manhattan WMS's
DM Mobile product is one such example of a user interface that helps supervisors interact and
affect change among employees and tasks while they are out on the warehouse floor.
6.1.2 SOFTWARE
■ For instance, in May 2019, Touchpoint launched a
new warehouse management system with
TouchWMS power-picking Control Centre, which
delivers proven productivity increases of 50% is
supported by real time graphical KPI screens that
display the progress and performance of individual
pickers against the picks that have been assigned to
them.
■ Software vendors have been incorporating faster
return-to-inventory features as part of their
management software solution, as more companies
are rushing to put the right business processes in
place to deal with these different kinds of returns. As
items get returned, shippers need to be able to
return those goods to inventory. The WMS needs to
be able to handle that task as well.
■ Vendors in the market studied have been focusing on
developing and offering WMS solutions specific to
particular industries to attract consumers by offering
specific and niche features with a focus on offering
cloud-based solutions. For instance, in May 2020,
Manhattan Associates announced cloud-native WMS
with Manhattan Active Warehouse Management.
57
6.1.3 SERVICES
■ Companies that use third-party logistics providers (3PLs) for core fulfillment services, such as
warehousing, transportation, and shipping. In the urrent growing expansion of 3PLs in the
Revenue in USD billion, Services, Global, 2019-2025
logistics space, these vendors are also offering a multitude of more modern amenities, often
known as “value added services.” These value-added services can include anything from
9.29
specialized distribution to customized labeling or final assembly.
■ As 3PLs are set up to handle end-to-end fulfillment needs, offering value-added services can be 8.20
an easy add-on for their clients. One of the most significant benefits of using a 3PL is that they
7.30
offer more flexibility in the space, labor, and equipment they have to respond to fluctuations in
orders and meet consumer needs. 6.55
■ Various small and regional vendors that are offering similar services for industrial level facilities 5.91
5.68
5.34
are expected to command dominance in the market. Apart from this, customers are expected to
opt for solution providers that offer integrated solutions along with services such as
maintenance; owing to this, the demand for partnership and alliance with service providers is
expected to increase over the coming years.
■ In order for automated equipment to function at optimal levels without any downtime, these
solutions require predictive maintenance, which is gaining traction in the market, and the
market space is seeing a surge in the number of vendors offering these services.
■ For instance, in March 2020, MHS, a single-source provider of material handling automation
and software solutions, announced the launch of its MHS Insights, a condition-based
maintenance solution that monitors assets through IoT sensors and system data to provide
timely maintenance recommendations and strategic health assessments. 2019 2020 2021 2022 2023 2024 2025

6.1.3 SERVICES
■ A significant share of adopters has been looking for
bundled service packages as part of their offering; for
instance, according to the 2020 Automation
Solutions Study by MMH, about 89% of the
respondents from 225 respondents from the industry
mentioned that they want good durability and
uptime, followed by support/service response time
(81%).
■ Over the forecast period, services in the industry are
expected to maintain a steady growth pace along
with value-added-services.
■ For instance, a study by MMH in February 2020
found that an increasing number of respondents
mentioned maintenance and service is the area
where they'll be spending over the next 18 months,
which increased by 5% to reach 42%, along with
outsourcing/3PL services, which maintained a steady
pace at 13%.
59
6.2 GLOBAL TRANSPORTATION MANAGEMENT MARKET SCENARIO
■ Global transportation management has been seeing a growing consensus that new technology
and visibility will define the successes of the coming supply chain. As demand changes to
Revenue in USD billion, Global Transportation Management
reflect limited transportation capabilities due to the coronavirus and its potential association
Market Scenario, 2019-2025
with an unknown mode of transmission, spot rates will change in terms of trucking spot rates in 18.97
the market.
■ One of the important trends in the industry is that a major share of upcoming strategies and 16.58
developments in the market studied are expected to revolve around the use of cloud-based
14.62
systems as a software-as-a-service (SaaS) model, in order to effectively give companies
unlimited scalability and a hassle-free way to use innovative IT resources. 12.98
■ Cloud sees a surge in demand, and vendors in the market studied have been expanding their 11.58
10.91
presence along with enhancing their capabilities in the space. Solution providers have been 10.37
increasingly adopting M&A and partnership as part of competitive strategy to further enhance
their market presence; for instance, in October 2018, E2open announced the acquisition of
Cloud Logistics, a leading innovator of transportation management systems (TMS) for the
global supply chain market.
■ Moreover, in January 2020, Transplace, a leading provider of transportation management
services and logistics technology solutions, acquired Lanehub, a cloud-based platform, and
community that encourages shipper-carrier collaboration by automatically identifying and
connecting companies with complementary freight lanes to save on shipping expenses.
■ Another major trend in the market studied is the use of Artificial Intelligence and Machine
Learning to improve ETAs. Machine learning is expected to play a prominent role in other 2019 2020 2021 2022 2023 2024 2025
aspects of transportation management, such as increasing efficiencies and last-mile routing, SOURCE: Mordor Intelligence
among many more.
6.2 GLOBAL
TRANSPORTATION
MANAGEMENT MARKET
SCENARIO
■ IoT and connected trucks are expected to gain
traction in the market, which helps optimizing data
when assets are on the move for optimal operations.
This includes both fleet safety and route optimization,
and there are various vendors in the market the offer
to enhance fleet management solutions. For instance,
Tata Consultancy Services (TCS) is an example of a
company that is leveraging IoT for fleet management
capabilities and offering to provide industry
versatility, mapping industries with both fleet
management capabilities as well as integrated
logistics capabilities.
61
6.3 GLOBAL WAREHOUSE
20.89%
AUTOMATION SEGMENTATION Food and Beverage
BY END-USER INDUSTRY Post and Parcel
6.3.1 Food and Beverage (Including Manufacturing Facilities Groceries

2025
and Distribution Centers)
General Merchandise
6.3.2 Post and Parcel
Apparel
6.3.3 Groceries
Manufacturing
6.3.4 General Merchandise
6.3.5 Apparel
6.3.6 Manufacturing
6.3.7 Other End-user Industries

6.3 SEGMENTATION BY END-USER INDUSTRY
LOGISTICS AUTOMATION MARKET LOGISTICS AUTOMATION MARKET

Revenue in USD billion, by End-user Industry, Global, 2019-2025
Revenue Share (%), by End-user Industry, Global,
2019 End-user Industry 2019 2020 2021 2022 2023 2024 2025 CAGR (%)
7.63%
21.17% Food and Beverage 4.83 4.57 5.07 5.66 6.34 7.15 8.14 12.27
Post and Parcel 3.30 3.13 3.49 3.91 4.40 4.99 5.70 12.75
28.28%
14.44% Groceries 2.28 2.18 2.44 2.74 3.10 3.53 4.05 13.20
General Merchandise 2.17 2.06 2.30 2.58 2.90 3.30 3.77 12.90
8.98% 10.01%
9.49%
Food and Beverage Post and Parcel Apparel 2.05 1.94 2.16 2.41 2.71 3.06 3.49 12.49
Groceries General Merchandise

Manufacturing 6.45 6.10 6.79 7.57 8.49 9.59 10.92 12.34
Apparel Manufacturing
Other End-user Industries 1.74 1.65 1.82 2.03 2.27 2.56 2.90 12.04

6.3.1 FOOD AND BEVERAGE

◼ Rapidly changing food habits, heightened demand for packaged food, and stringent
regulations regarding packing and storage have resulted in a power shift from manufacturers
to retailers. Tight processes focusing on zero contamination, precise storage, and high-speed Revenue in USD billion, Food and Beverage, Global, 2019-2025
storage and retrieval operations are the key reasons driving automation in the food and
beverage logistics process.
8.14
◼ Factors Driving Automation in the F&B Industry :
➢ Bio-mechanical Injuries : 7.15
➢ Food and beverage distribution centers primarily handle case goods. Case goods tend to be 6.34
heavy, especially when the worker handles these caseloads for an entire shift of operation.
5.66
Workers would bend, lift, and twist hundreds of times a day while handling cases of a food
product. Injuries can be devastating to the health of workers. Also, the turnover rate in these 5.07
4.83
job functions can be high. 4.57
➢ Need for Speed and Accuracy

➢ Orders for the product must be processed, packed, and shipped with ever-increasing speed.
Accuracy in order fulfillment is of major importance. Picking errors cannot be tolerated from
customer service and cost standpoint.
➢ Spikes in Throughput
➢ Seasonal increases in throughput rates need the addition of seasonal labor. Seasonal labor
could be difficult to hire, train, motivate, and manage.
◼ Food and beverage are one of the largest industries in the world, with about 80% of the total
investment in equipment and machinery every year. Additionally, the consumption of flavored 2019 2020 2021 2022 2023 2024 2025
drinks, juices, and energy drinks are also on the surge, owing to diverse lifestyles and evolving Source: Mordor Intelligence Analysis
consumer habits.


◼ For instance, America’s leading flavored drinks company, Dr. Pepper Snapple Group, has more than 100
warehouses and distribution all over the region and is representative of the immense need for
warehouse robots in the beverage industry.
◼ In perspective, there are numerous small players in the industry, besides global giants, like Coca Cola
and Pepsi, suggesting a never-ending requirement of efficient material and inventory management.
Consumer trends that are shaping the future of the food and beverage industry include local sourcing,
on-the-go eating, and a significant rise in the organic food section. While all these factors seem to be
far-fetched regarding the manufacturing of food, and they do have a significant influence on the way
products are made.
◼ Coca-Cola Amatil is one of the largest bottlers of non-alcoholic ready-to-drink (RTD) beverages in the
Asia-Pacific. As well as Coke and its numerous derivatives, it produces several other soft drinks. The
company operates in six countries, employs 14,900 people, has more than 700,000 active customers, and
access to 270 million consumers.
◼ In New Zealand and Australia, vendors, such as Swisslog, have been involved in several projects for
Coca-Cola Amatil, including:
➢ Development of new distribution centers (DC’s) in Sydney (Northmead) and Melbourne (Mentone and
Moorabin)
➢ Improvements to operations in Brisbane, Perth and Eastern Creek, Sydney
➢ Designed and implemented new DC in Auckland, New Zealand
➢ Refurbished distribution center in Christchurch, New Zealand.
◼ Additionally, the high bay warehouse at Coca-Cola Amatil, Northmead (Australia), handles 60 million-
unit cases of soft drinks per year and 2,000 cans and 600 PET bottles per minute. Swisslog’s automation
solution is supported under the lifetime partnership approach and includes storage systems,
transportation hub, and staging systems. In operation 24/7, the warehouse needs just 26 staff.
65 REPORT –REPORT

◼ A company such as Refresco is one of the largest soft drink and juice producers globally. It has various
production centers both in Europe and North America. The company has one of the largest production
facilities in the city of Mogielnica (Poland). Recently, it reorganized its warehouse’s distribution to
increase its efficiency.
◼ The company was looking for a solution that maximized the storage capacity and guaranteed the quick
entry and exit of the goods. Hence, the company approached Mecalux when it came to equipping the
warehouse. The solution consists of ten 9-meter-high double racks on mobile bases and six 8.8-meter-
high fixed racks.
◼ It is a compacting storage system that makes the most of the available space for a bigger overall storage
capacity. Movirack mobile pallet racks allowed the company to store many pallets with several SKUs in a
limited space.
◼ Also, Lechtom’s frozen food distribution center in Plewiska (Poland) features pallet racks and Movirack
mobile pallet racking from Mecalux. The combination of both solutions means the center now has a
4,407-pallet storage capacity and can sort items according to their dimensions, characteristics, and
rotation. Other customers of Mecalux include Nestle, Masgrau Alimentació, and Grupo Siro, among
others.
◼ A company such as Dematic offers a portfolio of warehouse logistics solutions for food and beverage.
The company’s food and beverage industry solutions include automated material handling that
integrates high-density pallet storage systems, mixed-case palletizing, piece picking, case picking, and
layer picking.
◼ With the current COVID-19 outbreak scenario, the use of automated systems can ensure a continued
supply of food products with minimal human movement. The major automation applications in the food
and beverage industry have been observed in the supply chain and logistics segment, owing to the
increasing pace and scale of business.
◼ Before, the major chunk of investment for automation went into food processing. However, currently, the
focus is more on the distribution management of the whole warehouse automatically. An ASRS is one of
the most successful processes to efficiently automate warehousing.
66 REPORT –REPORT
6.3.2 POST AND PARCEL

◼ The growth of the post and parcel industry, along with partnerships by vendors, is driving the
market’s growth positively.
◼ For instance, In September 2020, LiBiao Robot, a specialist in automated robot-based parcel
Revenue in USD billion, Post and Parcel, Global, 2019-2025
sortation solutions, announced that it is entering the European market with its ‘Mini Yellow’
range of autonomous mobile robots (AMRs). Concurrently, the company is also seeking 5.70
strategic alliances with distribution partners in the United Kingdom, Germany, France, Italy, and
Spain.
4.99
◼ According to the company, the robot range has been specifically developed as a cost-efficient
and flexible alternative to high-cost, fixed tilt-tray, and crossbelt conveyor-based sortation 4.40
systems. Initially, two models would be offered to the European market, a 5 kg tilt-tray robot 3.91
and a 30 kg crossbelt model.
3.49
◼ According to the founder of LiBiao Robot, demand for more efficient and smarter warehouse 3.30
3.13
management is strong in Europe, where online shopping has been increasing at a tremendous
pace and driving up the number of parcels handled, so we believe that the market will benefit
from our advanced mobile robot technology.
◼ With parcel growth expected to rise at a rate of 17% to 28% annually, between 2017 and 2022
(according to the Pitney Bowes Parcel Shipping Index), mainly due to immense activities in the
e-commerce sector, post and parcel and e-commerce are projected to be the largest
consumers of sortation systems.
◼ Factors, such as increasing labor costs and changing consumer buying behavior, have bolstered
the demand for faster and more accurate delivery operations, which have, in turn, developed a
considerable demand for automated sortation systems. For instance, Thailand Post is currently
spending USD 0.32 billion on establishing two fully automated sorting centers to leverage the 2019 2020 2021 2022 2023 2024 2025
growing logistics business, in line with burgeoning e-commerce activities. This will help the Source: Mordor Intelligence Analysis
company boost efficiency of the mail and parcel sorting systems through automation and
innovation.

◼ The outlook for the post and parcel segment is also quite promising. Milan P.B.
Sorting Center, the most important node in the Italian postal network, provides
fully automated mail processing and handles more than 25% of the Italian mail
traffic currently. In addition, the Italian parcel sorting solutions supplier, OCM,
installed automated sorting systems with the Dutch postal operator, TNT, in
Italy.
◼ In November 2019, Deutsche Post DHL Group also opened a mega parcel
center in Bochum with a sorting capacity of up to 50,000 shipments per hour.
The center is expected to reach its full capacity by 2020 end. The United
Kingdom’s Royal Mail would open a parcel superhub in Warrington to handle
ever-growing parcel traffic. The hub would be fully automated, and the
company has opted to deploy a system developed by Beumer Group.
◼ Scheduled to be fully operational by 2022, the Cheshire hub would be able to
handle 800,000+ parcels per day, and to achieve the desired levels of parcel
sortation Royal Mail specified widespread use of automation.
◼ According to the Royal Mail’s national operations director, the company has
witnessed a major rise in parcel demand over the past few years. Speeding up
the passage of parcels within the system through automated sorting
technology is key to boosting Royal Mail’s parcel processing capacity.
◼ Additionally, Royal Mail installed automated machinery consisting of conveyor
belts and scanning technology in its Bristol center in July 2019 to speed up the
sorting of parcels. The company is planning to increase the use of machines for
sorting parcels to 80 % in that time, up from 12 % currently.


◼ Moreover, Germany is home to the leading post and parcel logistics solutions providers – Hermes and
Siemens Logistics (Earlier Siemens Postal, Parcel & Airport Logistics). The country is bracing for growth in
the post and parcel sector. For instance, in September 2019, DPD opened its parcel sorting center in
Hamm, Germany, that would initially handle 80,000 parcels per day, rising to 200,000 parcels when the
final expansion is complete.
◼ Deutsche Post DHL plans to invest up to EUR 150 million annually in personnel, automation, and the
expansion of its mail and parcel network in Germany to further improve its delivery quality.
◼ FedEx has also announced to invest EUR 10 million during 2020-2021 to upgrade parcel sorting systems
in Lille and Valence in France. In July 2020, FedEx completed the installation of four robotic sortation
arms from Yaskawa America and Plus One Robotics at its Memphis Hub. The process began in March
2020 as part of the carrier's efforts to handle increased parcel volume amid the COVID-19 pandemic.
◼ The four arms use suctions to pick up and transfer small parcels from bins onto the conveyor belts in the
hub. Together, their throughput is equivalent to that of three FedEx employees. FedEx attributes
automation as an opportunity to enhance its team members' jobs, make them more comfortable and
easier, and as safe as possible.
◼ Demand has come early for the e-commerce industry this year, driven by consumers ordering goods
online rather than shopping in brick-and-mortar stores. According to the DHL, the company was
witnessing peak season volumes as early as April 2020 and hired additional staff in June 2020 as the
volume uptick is anticipated to continue. FedEx's and UPS' operations have been strained by the COVID-
19 pandemic, resulting in the suspension of service guarantees and the imposition of peak surcharges.
◼ Scaling operations to meet demand while keeping workers safe is the concern, particularly for carriers
and warehouse operators designated as essential services. This has led to a growing number of firms
looking to automation to help workers maintain a safe distance from one another.
69 REPORT –REPORT
6.3 SEGMENTATION BY END USER INDUSTRY
6.3.3 GROCERIES
 For grocery operations, logistics represents a significant portion of the product cost. Given the
industry’s high volume and small margins, any savings can add significantly to a company’s profit LOGISTICS AUTOMATION MARKET
margin. But logistics is a highly complex system that has evolved from a linear to a dynamic Revenue in USD billion, Groceries, Global, 2019-2025
process capable of adapting to shifting supply and demand scenarios for maximum efficiency
and value, driving the need for automated solutions.
 Many distribution centers and warehouses that work with consumer-packaged grocery goods 4.05
already use a combination AGVs, Palletizers/Depalletizers, Automated Storage and Retrieval
Systems, etc. in their operations. However, for use with certain kinds of grocery products, 3.53
warehouse automation is still at a nascent stage. For instance, the supply chain for produce,
meats, and unpackaged food still depend heavily on human labor to process, inspect, and sort 3.10
the food as it moves past on conveyor belts. 2.74
 According to the Adobe Analytics Digital Economy Index 2020 report, e-commerce has grown 2.44
25% from March 13–15 compared to the baseline period of March 1–11, driven primarily by 2.28
2.18
online grocery shopping due to the ongoing situation with COVID-19 in the United States.
Additionally, daily online grocery sales have doubled YoY for two weeks. The shift to consumer-
delivery models during the COVID-19 pandemic has upended the need for logistics automation
in the grocery retail sector.
 Significant investment in technology and automation, such as mobile robots and warehouse
management software, would be necessary to meet the delivery movement. According to the
Food Industry Association’s annual US Grocery Shopper Trends study, with 40% of essential items
being bought online, supply chains need to evolve operations to accommodate much higher
volumes of direct-to-consumer shipping.
 A Warehouse Management Software (WMS) would enable grocery companies to comply with
ever-changing and ever-tightening regulations. Core capabilities, such as expiration date 2019 2020 2021 2022 2023 2024 2025
tracking, batch tracking, FIFO (first-in/first-out) and FEFO (first-expiration/first-out) allocation, Source: Mordor Intelligence Analysis
and robust transportation routing and planning, are vital areas where WMS is expected to excel.

6.3.3 GROCERIES
 Moreover, micro-fulfillment is a growing trend that puts mini distribution centers in the back of grocery
stores. The most effective models use carefully configured spaces supported with a combination of
intelligent material handling hardware and warehouse management software (WMS) to optimize
fulfillment. It's a strategy that enables retailers to significantly cut down the distance to customers and
increase delivery speed.
 Multiple warehouse automation vendors are partnering with grocery stores to provide efficient micro-
fulfillment sites. For instance, in April 2019, Knapp AG announced the expansion of its partnership with
Massachusetts-based e-grocery solutions provider Takeoff Technologies, announcing a USD 150 million
order for 50 micro-fulfillment grocery sites for immediate pickup points using grocery-sorting robots to
assemble orders across North America. The sites would process USD 1.5 billion in e-commerce grocery
sales annually.
 In September 2020, H-E-B, an American privately held supermarket chain, entered the automated micro-
fulfillment centers (MFC) space through a partnership with warehouse automation vendor Swisslog. H-E-
B's latest MFCs would feature Norway-based AutoStore's cube storage and retrieval system coupled with
Swisslog's SynQ software and pick stations. With more than 170 AutoStore integrations worldwide,
Swisslog has developed three standard AutoStore configurations that will meet a wide range of e-grocery
retailer business models.
 Multiple food logistics companies are engaging in expansion activities. For instance, in September 2020,
third-party food logistics company FreezPak Logistics has announced its plans to build a 140,000 square-
foot facility in the United States equipped with an automated storage and retrieval system. The location to
be outfitted with 12 robots that can automatically retrieve and store goods.
 Companies, such as Walmart, have been investing significantly in automated grocery selection robots have
now moved beyond testing and into the real-world applications, where they're working alongside staff in a
warehouse. The company's Alphabot makes order picking within the warehouse using autonomous carts
to pick frozen and refrigerated items and groceries stored at room temperature. The robot locates an item,
picks, and brings it to a workstation to be checked by a staff member.
71 REPORT –REPORT
6.3.4 GENERAL MERCHANDISE

 General Merchandise includes all the non-food and non-apparel, such as cleaning products and
toiletries and housewares, including tableware, furniture, and decorative objects, etc. LOGISTICS AUTOMATION MARKET
 As per the Wall Street Journal, stores across the United States face a lack of storage capacity. The Revenue in USD billion, General Merchandise, 2019-2025
reduced capacity zone and the inability to meet the demand for e-commerce is increasing the usage
of general merchandise warehouses that provide an advantage to companies seeking more storage 3.77
space to increase production for e-commerce, which is expected to drive the demand for automated
solutions in this sector.
3.30
 Several companies offering automated warehouse solutions are entering the general merchandise
space from groceries. For instance, in January 2020, Intralogistics solution provider Dematic 2.90
announced at the National Retail Federation (NRF) Conference & Expo the expansion of its Dematic
2.58
Micro-Fulfillment solution for general merchandise industries to help retailers address the increasing
consumer demand for rapid e-commerce order fulfillment and delivery. 2.30
2.17
 According to its 2019 annual report, Ocado, a British online supermarket, is also looking forward to 2.06
entering the general merchandise market. This would position the Ocado Smart Platform (OSP),
including Ocado's fulfillment assets, end-to-end software, and many more additional services, in
competition. Such developments are expected to impact the market positively.
 During the second quarter of 2020, JD.com, a Chinese e-commerce company, opened a warehouse
in Langfang, Hebei province, near Beijing that marks the company's first foray into automated
storage and retrieval of large and bulky goods. The system is significantly improving efficiency in
handling general merchandises, such as furniture.
 In July 2020, Amazon India announced its plant to expand its fulfillment network in India, with ten
extra Fulfillment Centers (FC) and expansion of 7 existing buildings. With this expansion, Amazon is
poised to have more than 60 FCs in 15 states, with a storage capacity spread of almost 32 million
2019 2020 2021 2022 2023 2024 2025
cubic feet. The new FCs are equipped with automated solutions and include the specialized network
Source: Mordor Intelligence Analysis
of FCs for general merchandises, such as large appliances and furniture category and Receive
Centers.
6.3.4 GENERAL MERCHANDISE

USE CASE OF AUTOMATION IN GENERAL MERCHANDISE
■ A general merchandise retailer had a new order fulfillment
system requirement for one of its primary distribution
centers (DCs). To provide more efficient support to its
stores, the retailer was planning to consolidate several
operations into a single DC. The challenge was to optimize
labor productivity at the stores, where the inventory
needed to be delivered aisle-ready (in totes with
merchandise grouped specifically by store aisle and shelf).
■ Dematic, an American supplier of integrated automated
supply chain technology, software, and services, provided
the solution such that empty pallets are placed on a return
conveyor. Inventory totes are conveyed through a scanner
to a narrow belt sorter, which feeds the totes into the
Multishuttle staging buffer. The Multishuttle is an
automatic storage and retrieval system (AS/RS) with
100,000 discrete storage positions.
■ Next, order processing requests from the retailer's business
system are sent to the Warehouse Management System
(WMS). The WMS allocates the inventory to orders and
estimates the outbound shipping requirements. The
Dematic Warehouse Execution Software (WES) plans the
store tote contents by aisle, optimizes operational
processes, and directs the Multishuttle to the inventory
totes needed for order fulfillment.
■ The system allows merchandise to be shipped to every
store every day. The distribution center supports
throughput rates of up to 150,000 pieces picked in two
shifts (18 hours) while increasing productivity and accuracy.
73
6.3.5 APPAREL
 E-commerce has enabled significant growth within the apparel industry in recent years due to
the permanent product availability and quick delivery. The process of trying on clothing at home, LOGISTICS AUTOMATION MARKET
combined with low incentive pricing due to increased competition and free returns, has seen a Revenue in USD billion, Apparel, Global, 2019-2025
drastic rise in the demands on internal material flows for both manufacturers and retailers.
Serving multiple sales channels vastly increases the logistics processes' complexity, which is
driving the need for automated solutions for logistics in this sector.
3.49
 Several apparel companies focus on streamlining logistics and automating its warehouse
technology, making them better compete worldwide amid significant changes in the industry. 3.06
The rapid rise of online competitors, from e-commerce upstarts, like Boohoo and Nasty Gal, to
established giants, like Amazon, drives greater online fashion consumption. 2.71
 For instance, Mango is a Spanish clothing design and manufacturing company, so far invested 2.41
EUR 232 million in the 186,000-square-meter facility, which can stock up to 7 million hung 2.16
2.05
garments and 20 million folded garments and accessories at the same time, which became fully 1.94
operational in 2019. Using the latest automation technologies, the center can process almost
75,000 garments an hour, tripling the retailer's former capacity. Items are selected to be shipped
to stores with the usage of predictive models and data analysis systems carried out by the
company's integrated Warehouse Management System.
 Multiple apparel retail chains are investing in logistics automation solutions by forming a
partnership with vendors in the market. For instance, Fast Retailing, a Japan-based owner of
popular clothing retail chain Uniqlo, announced the expansion of its partnership with logistics
firm Daifuku and invested JPY 100 billion to automate its warehouse and distribution system.
 Also, in December 2019, Fast Retailing has partnered with Mujin, a Japanese startup, to create a
two-armed robot that can pick up t-shirts and box these up to be sent out to customers. Suck 2019 2020 2021 2022 2023 2024 2025
tasks could previously only be done by a human. This factor is expected to significantly help the Source: Mordor Intelligence Analysis
company, which is facing labor shortages in Japan's warehouses.

6.3.5 APPAREL
 In September 2019, Honeywell signed an agreement with The Apparel Logistics Group, a provider of third-party
logistics and order fulfillment services for apparel, footwear, and accessories. Honeywell Intelligrated would
deliver material handling solutions and services for the company, which is expected to triple its daily e-
commerce order output. The 240,000 square-foot facility houses a wide range of dedicated automation
solutions, such as a high-volume sortation system, and more than five miles of controlled conveyors.
 Furthermore, mobile robots are utilized in the apparel sector, which packages directly to the warehouse worker,
reducing costs, increasing picking efficiency, and making the work easier on the warehouse operators. In
February 2020, Nike, one of the largest sportswear company, has integrated robots from Geek+ into its Japan
warehouse. Geek+ already provides advanced robotics solutions to Nike's distribution center in Chiba. The
installation utilizes more than 200 robots from Geek +'s goods-to-person P series robot range.
 In the United States and Europe, fashion has been among the categories hit hardest by COVID-19. In May 2020,
according to the US Census Bureau, sales at US clothing and accessories shops were down 62.4% compared to
last year. According to Eurostat, retail sales of clothing, textiles, and footwear in Europe were 50.5% below their
2019 level in May 2020. Many shoppers have curbed discretionary purchases and have turned to e-commerce
for clothing, where online retailers witness significant traction.
 However, several apparel companies are undergoing financial woes during the pandemic. For instance, Gap Inc.
faced a cash shortage, prompting it to borrow USD 2.25 billion. At the same time, Gap has kept shops in China
in business and has started re-opening 800 others in May 2020. For several such companies' e-commerce
operation has been a lifeline for sales; building pressure makes distribution networks more efficient, which
boosts the need to adopt logistics automation solutions.
 Apparel chains, such as Gap Inc., are significantly speeding up warehouse robots' usage for assembling online
orders so it can limit human contact during COVID-19. The company formed a deal early in 2020 to more than
triple the number of item-picking robots it uses to 106 by the fall. Kindred's sorting machines are helping Gap
assemble multi-item purchases from customers. Such instances showcase how a pandemic might speed up
logistics automation in the apparel industry.
75 REPORT –REPORT
6.3.6 MANUFACTURING
 In the manufacturing sector, discrete manufacturing industries, such as automotive, aerospace,
and process manufacturing industries, such as pharmaceuticals, are considered under the scope.
 The automotive industry is one of the most competitive sectors in which rigor, flexibility, quality, Revenue in USD billion, Manufacturing, 2019-2025
and agility constitute success's critical factors. Warehouse activities and their associated costs
play a significant role in logistic functions. Their optimization and performance assessment is
expected to result in substantial value gains for the company. 10.92
 For automotive logistics, a combination of pressure on costs, worker shortages, and an aging
9.59
workforce have led to even more focus on logistics automation in recent years. According to
loading equipment maker MasterMover, most automotive manufacturers have been replacing 8.49
traditional forklift trucks and other manually operated materials handling equipment with
7.57
automated solutions. Manufacturers, such as BMW, Audi, and General Motors, have been
employing more advanced automated guided vehicles (AGVs) to support logistics processes. 6.79
6.45
6.10
 Warehouse Management Systems (WMS) are gaining significant traction in the logistics of the
automotive industry. They can be used to support stock inventory and its location. Besides,
elements, such as Key Performance Indicators (KPI) and warehouse productivity, can be identified
by WMS.
 The aerospace supply chain is very complex and is made of many different links that are spread
around, driving the need to adopt logistics automation in this sector. As logistics providers
continue to invest in their infrastructures with the addition of warehouse automation and mobile
robots to their advanced technological capabilities, it is expected that more aerospace
companies could leverage their logistics expertise.
 The logistics and distribution requirements of pharmaceutical products are continually changing,
where lead times are shorter, and orders are more frequent but smaller. Logistics and distribution 2019 2020 2021 2022 2023 2024 2025
of this type of product are not easy, as it is necessary to ensure appropriate conditions for the Source: Mordor Intelligence Analysis
drugs to maintain their properties and effectiveness.

6.3.6 MANUFACTURING
 Multiple pharmaceutical companies are partnering with third-party logistics providers, who are engaging in
expansion activities. For instance, in January 2020, pharmaceutical companies in Benelux started to have access
to the expanded logistics facilities as Yusen Logistics, a logistics provider for pharmaceutical products, added a
13,000 pallet highly automated warehouse to its Antwerp operation.
 Moreover, to continue to meet the demand, Yusen logistics further expanded its pharma facilities. The company
announced to construct an efficient, sustainable, and semi-automated 17-meter-high warehouse. This new
warehouse would have a storage capacity of more than 13,000 pallets, and it would fully comply with the
European GDP regulations for the storage and handling of pharmaceutical products. The new 'smart
warehouse’ would feature a 'narrow aisle racking' installation with induction-driven, unmanned trucks that
locate the correct pallet through sensor-controlled positioning.
USE CASE OF AUTOMATION IN THE PHARMA INDUSTRY
 Novartis, a Swiss-born international pharmaceutical and biotechnology company, develops,

produces, and sells generic drugs, vaccines, and anticancer drugs, among others. One of the
Novartis plants operates in Strykow. A distribution center and warehouse also operate there, and
the plant management decided to extend the warehouse at the drug packaging center. The
warehouse is an integral part of the plant where the packaging of finished products for distribution
takes place.
 The warehouse has an area of almost 2,000 square meters and a height of 27 meters. There are
double-deep racks on both sides of four 70 m long aisles with over 14,000 pallets with finished
products, semi-finished products, and packaging. A dedicated warehouse management system is
responsible for ensuring that the goods always arrive at the right rack. It allocates a storage location
for each product.
 AGVs took over internal transport. The AGVs perform functions in the warehouse, in which non-
automated facilities are performed by traditional means of transport, e.g., forklift or pallet trucks.
The advantage of the vehicles is their high efficiency and the fact that they occupy a relatively small
space and do not generate unnecessary traffic in the aisles.
77 REPORT –REPORT
6.3.7 OTHER END-USER INDUSTRIES

 The other end-user industries include the chemical and paper industries. Many companies depend
on a variety of chemicals to continue their business activity. Whether they contain finished
merchandise, raw materials, or semi-finished goods, installations utilized as warehousing chemicals
Revenue in USD billion, Other End-User Industries, 2019-2025
must comply with strict safety requirements, as, in several cases, these goods are hazardous.
Optimal storage conditions are directly related to the kinds of chemicals to be stored. Chemicals
must always be segregated and stored in accordance with their incompatible physical and chemical
characteristics. 2.90
 WMS warehouse management software plays a crucial role in the chemical industry as it provides
real-time inventory data in terms of both stock levels and characteristics. Examples include 2.56
information on receipt/dispatch date, goods traceability, hazard level, and production batch, among 2.27
other logistics parameters.
2.03
 In many chemical installations, operations have been significantly automated to make goods
1.82
handling safer and more accurate. For instance, Chemical multinational BASF and Mecalux S.A. 1.74
1.65
formed a partnership to design and outfit its new warehouse in Brazil. There, Mecalux built a fully
automated installation with stacker cranes and conveyors for pallets, in addition to incorporating
automatic picking robots. The automatic elements, governed by the Easy WMS warehouse
management system, contribute toward eliminating human error from the movement of chemicals.
 The paper and publishing industry is generally equipped with high-density and multiple deep
storages due to the high number of similar newsprint rolls and Free-Standing Inserts (FSI's)
generally stored. Most operations store newsprint four or five stacks high and floor stored in
multiple deep floor lane locations, which drives this industry to utilize warehouse automated
solutions.
 Certain companies provide automated logistical systems explicitly designed for both rolls and 2019 2020 2021 2022 2023 2024 2025
formatted paper stock for the paper and publishing industry. For instance, Westfalia Technologies, Source: Mordor Intelligence Analysis
Inc. provides Automated Storage and Retrieval Systems (AS/RS), Warehouse Management Systems
(WMS), and Conveyor Solutions for the paper and publishing industry.
6.3.7 OTHER END-USER

INDUSTRIES
USE CASE OF AUTOMATION IN THE CHEMICAL INDUSTRY
■ Lakma Strefa is a Polish chemical products company whose

goods are used in multiple industrial sectors, such as
household care, construction, professional chemicals, and
thermal insulation. The firm contacted Interlake Mecalux to
build it a new 1.05-acre fully-automated distribution center.
This project was known as 'Multisoft.'
■ Multisoft is an automated rack supported warehouse that

is equipped with four aisles of double-deep racks on each
side. These racks dimensions are 105' high and 265' long,
with fourteen storage levels, and provide a 15,428-pallet
storage capacity. The logistics center is managed
completely by the Easy WMS warehouse management
system of Interlake Mecalux.
■ Every day, the installation receives almost 70 pallets from

other manufacturing centers or suppliers. Workers insert
pallets onto the input conveyors, and, soon after, the
goods pass through a checkpoint where their size, weight,
and status are verified to see if they match the quality
requirements laid down for the AS/RS. Once the pallet is
accepted, a double-capacity transfer vehicle collects the
load and takes it right up to the storage aisle assigned by
Interlake Mecalux's Easy WMS warehouse management
software.
79
6.4 SEGMENTATION - BY 21.74%
GEOGRAPHY North America
Europe
6.4.1 North America 2025
6.4.2 Europe Asia-Pacific
6.4.3 Asia-Pacific
Latin America
6.4.4 Latin America
Middle East & Africa
6.4.5 Middle East & Africa

6.4 SEGMENTATION - BY GEOGRAPHY
LOGISTICS AUTOMATION MARKET LOGISTICS AUTOMATION MARKET

Revenue Share (%), by Geography, Global, 2019 Revenue in USD billion, by Geography, Global, 2019-2025
7.02% Geography 2019 2020 2021 2022 2023 2024 2025 CAGR (%)
5.58% 22.15%
North America 5.05 4.77 5.30 5.90 6.61 7.45 8.48 12.17
Europe 4.38 4.14 4.60 5.13 5.75 6.48 7.38 12.25
19.20%
46.05%
Asia-Pacific 10.51 10.00 11.19 12.57 14.19 16.13 18.50 13.08
Latin America 1.27 1.19 1.31 1.44 1.60 1.79 2.02 11.10
North America Europe
Asia-Pacific Latin America

Middle East & Africa 1.60 1.51 1.67 1.85 2.06 2.32 2.62 11.68
Middle East & Africa

6.4 SEGMENTATION – BY GEOGRAPHY
6.4.1 NORTH AMERICA

■ Growth in eCommerce is the primary reason for the increasing application of robots in warehouse
and distribution centers in the United States in addition to advancements in technology that have
made robots better and smaller, lower costs, and a shortage of labor in some places further
Revenue in USD billion, North America, 2019-2025
helping the market to grow.
8.48
■ Also, the major companies with many warehouses and distribution units are utilizing acquisition
strategies to reduce the labor cost and increase their profitability. For instance, Amazon, the giant
retail, has spent USD 775 million in 2012 to acquire a young robotics company called Kiva 7.45
Systems that gave it ownership over a new breed of mobile robots. This investment gave a
6.61
technical foundation on which it has to build new versions of warehouse robotics, setting the
stage for a potential future of the robots. 5.9
■ For instance, until 2020, Amazon has installed more than 200,000 mobile robots that work inside 5.3
5.05
its warehouse network, alongside hundreds of thousands of human workers in the United States. 4.77
This robot army has helped the company fulfill its ever-increasing promises of speedy deliveries to
Amazon Prime customers.
■ The growing expectation of fast, free delivery driven by Amazon has led to a boom in the robot in
the warehouse industry, as start-ups, like IAM Robotics, are attempting to build smarter and
cheaper robotic solutions to help both traditional retailers and younger e-commerce operations
keep up with a behemoth like Amazon.
■ Further, universities in the region have been a great contributor to the country’s dominance in the
R&D aspect of warehouse robots. Recently, in 2020, UCLA engineers have developed minuscule
warehouse logistics robots that could help expedite and automate medical diagnostic
technologies and other applications that move and manipulate tiny drops of fluid. The robots are
disc-shaped magnets about 2 millimeters in diameter, designed to work together to move and 2019 2020 2021 2022 2023 2024 2025
manipulate droplets of blood or other fluids with precision. For example, the robots can cleave
one large droplet of fluid into smaller drops that are equal in volume for consistent testing. Hence
such innovation is expected to drive the market’s growth over the forecast period.
6.4.1 NORTH AMERICA
QUARTERLY E-COMMERCE SALES OF TOTAL RETAIL SALES ◼ According to the International Federation of Robotics, sales
of robots in the United States has hit a new peak of almost
In percentage (%), United States, 2019-2020
38,000 units and set a record for the eighth year in a row
from 2010 to 2018. Robot density in the US manufacturing
11.8% industry is more than double that of China and ranks
seventh worldwide. The trend to automate production in
both domestic and global markets is the main driving force
of robot installations in the United States.
◼ The outspread of coronavirus has across the world has
beneficiated the studied market as large and small
companies are expanding the use of robots to maintain
social distancing and reduce the number of staff that have
10.5% to physically come to work.
◼ For instance, in the warehouse of Amazon and Walmart has
increased the use of robots for sorting, shipping, and
packing, which is expected to reduce the number of
complaints by warehouse workers as they cannot social-
distance from their colleagues under the current
conditions. This is creating more opportunities for logistic
automation to grow in the region.
◼ With the integration of artificial intelligence and other
Q1 2019 Q1 2020
improvements in robotics (e.g., better machine vision,
Ecommerce Sales better sensors, etc.), robotics promises to see significantly
improved pricing and performance over the next decade
and is expected to drive the studied market in the forecast
SOURCE: U.S. Department of Commerce
period.

6.4 SEGMENTATION – BY GEOGRAPHYMENTATION – BY GEOGRAPHY
6.4.1 NORTH AMERICA

■ The US manufacturing sector is one of the largest across the world, with the GDP from the manufacturing
sector in the country reaching USD 2190.40 Billion in the third quarter of 2019. The manufacturing
production in the country, however, witnessed a significant decrease over a year earlier in Apr 2020, which
is the biggest decline since May 2009, primarily owing to the coronavirus pandemic, which led multiple
factories to suspend their operations.
■ In July 2020, Geek+, a manufacturer of autonomous mobile robots for warehouses, entered into a
distribution partnership with Kuecker Logistics Group, a material handling systems integrator. The two
companies would work together to provide smart logistics solutions to customers across North America.
The companies at the distribution agreement allow KLG to offer Geek+ robotics solutions to improve
efficiency, provide flexibility, and reduce costs associated with warehouse and logistics operations.
■ The Canadian manufacturing industry accounts for approximately CAD 174 billion of its GDP, representing
more than 10% of the country’s total GDP. The manufacturing sector is the largest investor in R&D, and it
implements new technologies that are expected to drive the demand for automation solutions.
■ In April 2020, Ocado announced the launch of its first robotic automated warehouse in North America,
which would be used by the Empire company to begin testing orders in Ontario, Canada. It is the second
Ocado customer fulfillment center to be opened internationally in 2020, following the launch of a
warehouse for an Ocado solutions partner in France.
■ Some of the players are investing in developing disinfection robots due to the sudden increase In
demand during the coronavirus pandemic. For instance, in July 2020, Next Generation Manufacturing
Canada (Ngen) invested USD 5 million in projects leading to the development and production of
automated hands-free disinfection technologies to help stop the spread of coronavirus.
■ The region has a high trading profile and a highly active e-commerce sector, which increased the demand
for warehouse space. Besides, the provision for new services, autonomous mobile robots (AMR) is
bringing automation rather than upgrading an aging fleet of narrow-aisle turret trucks that are used to
replenish pick faces in a pallet flow area. For instance, according to the Robotic Industries Association
(RIA’s) data, 35,880 robots were shipped, in 2018, to Canada, along with the United States and Mexico, up
by 7% from the previous year. Of those shipments, 16,702 were directed to non-automotive companies, a
Y-o-Y increase of 41%.
84 REPORT –REPORT
6.4.2 EUROPE
◼ The industrial automation in Europe has been witnessing an increased adoption rate since the
last decade, with companies and industries spending heavily on new technologies. The region LOGISTICS AUTOMATION MARKET
Revenue in USD billion, Europe, 2019-2025
has been the most prominent adopter of industrial automation, owing to the increasing
investments in Industry 4.0 revolution.
7.38
◼ According to the CBI Ministry of Foreign Affairs, Europe accounts for more than one third of
global Industry 4.0 investments. Western and Northern Europe are its main markets; especially 6.48
Germany, where the term was originally coined, being the frontrunner.
5.75
◼ Currently, Europe is leading the Fourth Industrial Revolution (dubbed as 4IR), with various
industry verticals investing in automation, IoT, and machine learning systems, to optimize the 5.13
performance. The growth in the rate of adoption of warehouse automation in this region is 4.6
mainly fueled by the rapid growth of e-commerce and retail investments. 4.38
4.14
◼ According to the UNCTAD’s Business-to-Consumer (B2C) E-commerce Index released in
December 2019, Europe remains by far the most prepared region for e-commerce, with eight
countries ranking in the top 10 of a global index. The index scores 152 nations on their
readiness for online shopping (worth an estimated USD 3.9 trillion globally, in 2017, up by 22%
from the previous year). Countries are scored on (a) the access to secure internet servers, (b)
the reliability of postal services and infrastructure, and (c) the portion of their population that
uses the internet and has an account with a financial institution or mobile-money-service
provider.
◼ There has been an increasing trend in the number of warehouses across various regions.
According to P3 Logistic Parks, a European manager and developer of logistics properties,
regions, such as Poland, showed higher growth of warehousing stock. Poland added 17% of its 2019 2020 2021 2022 2023 2024 2025
capacity last year alone (2018). Companies like P3 and Logicor also pushed their expansions at
an incredible rate. Furthermore, investments from Asia and the United States were evident, SOURCE: Mordor Intelligence
prompting the potential market in the region.
6.4.2 EUROPE
■ Warehouse robots are becoming the backbone of warehouse management in Europe, with companies
innovating to automate most of the labor processes in warehouses. With Western Europe being a
developed economic zone, there is a strong presence of major players and the availability of capital in
the region. Therefore, the adoption of logistic automation is also witnessing healthy growth.
■ A strong presence of automation and robotics companies in the region is also a considerable advantage,
with industries finding it more comfortable to procure and deploy warehouse robotics solutions.
■ While traditional warehouse automation solutions need human supervision, innovation in AI and IoT
technologies is further pushing complete automation. New robotic technologies are being explored to
drive automation, with companies, such as Amazon, testing indoor drones in warehouses. Countries
focusing heavily on the industrial sector, as well as raising awareness and availability of technology and
services, are fueling the market in Europe.
■ While the need for significant capital is challenging the market’s growth, Europe is expected to hold a
steady position and maintain it in the coming years. The United Kingdom is expected to be one of the
critical markets for warehouse automation and robotics, considering the increasing investments and
growing size of the retail market sector. The rising consumption rate of goods is accelerating the need
for more massive warehouses, thus influencing the demand for warehouse robots.
■ The UK manufacturing, mainly the automotive sector, has witnessed healthy levels of investment in
recent years, often centered on industry clusters. The transport companies that serve these clusters are
looking to grab new spaces and are, therefore, investing in existing infrastructure to fulfil these needs,
which is, in turn, driving the overall market.
■ The lack of warehouse spaces is a vital issue, which may hinder the market growth. However, the
increasing need from the logistics sector for various industries is likely to fuel the growth rate during the
forecast period. Thus, the United Kingdom is expected to be one of the leading markets in Europe over
the coming years.
86 REPORT –REPORT
6.4.2 EUROPE
■ The competition for AMH products is quite high in the country, as it is home to one of the largest
suppliers of logistics automation, including KUKA, ABB Robotics, Staubili, and others. Following different
trends and innovations related to multiple AMH product groups, the role of automation in Germany,
across various industries, is expected to increase moderately, thus boosting the growth of the AMH
industry in the country.
■ The automotive sector in European countries is implementing a range of supply chain and logistics
technologies that support better control, planning, and handling of parts and material in its supply
chain. For instance, in 2018, Seat, part of the Volkswagen Group, opened a major automated logistics
center covering a total area of 5,700 sq. m divided into two facilities, including the tallest warehouse in
Spain at 43.7 meters high which store and feed inbound parts to the Martorell assembly line.
■ Seat is currently using at least 125 automated guided vehicles (AGVs) for material deliveries both on the
assembly line and from parts and material locations across the Martorell plant complex. These intelligent
robots transport 23,800 parts every day and cover a distance of 436,000 km every year. The logistics
robotic technology used at the Martorell plant includes machines supplied by companies such as Kivnon,
Aristeril, and Rari. The robot-based transportation system eases and optimizes factory workers’ jobs and
reduces production time by 25%.
■ As the Covid-19 pandemic continues to keep people indoors and away from public places, instances of
online shopping especially purchasing groceries, are rising, which means there is a lot of pressure on the
supermarket to supply products through fast deliveries at a low cost in order to retain their existing
customer and to stay competitive in the market.
■ Similarly, in March 2019, MOV.AI has successfully installed its operating system in industrial logistics
robots at the parcel sorting handling center of CTT, the Portugal Postal Services. This enables CTT to
process over 10,000 parcels per hour around the clock while eliminating the risk of injured workers.
■ Furthermore, in 2019, Grey Orange, Georgia based robotics and warehouse automation company,
launched its latest modular sortation system, designed for modern distribution and logistics centers
serving retail, and courier and express companies. The new Flexo modular sortation system fits well in
most warehouses due to its fluidic layouts, requiring minimal additional infrastructure.
87 REPORT –REPORT
6.4.3 ASIA-PACIFIC
■ The market in the developing economies of the region poses a key advantage in implementing LOGISTICS AUTOMATION MARKET
automation, since they are not tormented with rebuilding legacy automation systems and Revenue in USD billion, Asia-Pacific, 2019-2025
machine investments, further helping the logistic automation market grow.
■ Manufacturing serves as a significant industry in Asia-Pacific, and with China’s economy being 18.5
a significant contributor, it is undergoing a rapid transformation as labor costs have risen and
the conventional model of migrant workers has lost sustainability. Such trends have pushed 16.13
the economy to adopt automation as a part of their manufacturing processes.
14.19
■ China is one of the world’s largest economies, with a gross domestic product of about USD 14
trillion and a purchasing-power-parity of USD 25 trillion. China is the prominent contributor of 12.57
warehouse robots in the Asia-Pacific region across industries, such as automotive, 11.19
manufacturing, and e-commerce, among others. This is, in turn, boosting the market's growth. 10.51
10
■ Companies that already deployed these robots in their warehouses have been witnessing the
results during the pandemic. JD.com, a Chinese e-commerce giant based out of Wuhan, has
been using a fleet of robotic vehicles in its automated warehouses to deliver essential goods to
residents stuck at homes and shopping online. The company claims that it witnessed an
increase in the daily orders from about 600,000 to nearly double in a single week during the
pandemic.
■ Furthermore, the players operating in the country are also expected to witness exciting
opportunities in other regions. For instance, in May 2020, Geek+, a Chinese robotics company
specializing in logistics automation for warehouses and factories and supply chains,
announced a strategic partnership with Conveyco, an order fulfilment and distribution center
2019 2020 2021 2022 2023 2024 2025
system integrator.

6.4.3 ASIA-PACIFIC
■ With logistics services across the world facing labor shortage during the COVID-19 outbreak, the
company witnessed increasing demand for its automation systems that could replace repetitive
warehouse work, with an aim to respond to an uptick in e-commerce sales and undertake disease
prevention methods.
■ Furthermore, China is expected to be one of the critical markets for warehouse automation, considering
the increasing investments and growing size of the retail market sector. The rising consumption rate of
goods accelerates the need for more massive warehouses, thus influencing the demand for warehouse
robots. The lack of warehouse spaces and overflow of existing warehouse spaces with goods that cannot
be exported for lack of transportation are vital issues that may hinder the market growth.
■ The vendors in the market are collaborating to develop robotic systems for the retail industry due to the
rising demand for online services in the country. For instance, LG Electronics Inc. partnered with a Korean
retail outlet E-mart Inc. that would result in the development of automated AI-driven shopping cart-like
robots. The partnership encompasses nearly every aspect of development on retail service robots with
the goal of eliminating the need for any given shopper to push around a shopping cart.
■ The adoption of robots in corporate Japan has largely been confined to the manufacturing sector, with
fields such as retail lagging behind. However, the current efforts by the retailers will drive the use of
robots in the sector.
■ For instance, in November 2019, Japanese fashion group Fast Retailing Co Ltd, owner of clothing chain
Uniqlo, partnered with two robotics startups to help improve efficiency in warehousing and distribution.
Japanese robotics controller maker Mujin Electronics Co. Ltd and Exotec Solutions SAS, a French robotics
startup, will introduce more automation at their global warehouses, including in picking and shipping
processes.
89 REPORT –REPORT
6.4.3 ASIA-PACIFIC
■ Additionally, the shortage of labor in Japan further drives the robots in the manufacturing sector. Within
the manufacturing sector, the food industry is also starting to adopt robots in response to labor
shortages, and logistics is a very promising sector and one that has already started to automate through
robots.
■ Also, Fast Retailing Co Ltd is Asia's biggest fashion retailer by sales, and the world's second-biggest after
Zara owner Inditex, in 2018, partnered with logistics firm Daifuku and invested JPY 100 billion (USD
916.59 million) to increase automation at its facilities. After automating its Ariake distribution center on
Tokyo's waterfront with Daifuku's aid has helped the company cut staff by 90% and also achieved 24
hour-operation.
■ In addition, the Japanese government set a goal of creating a new industrial revolution driven by
robotics. Japan’s “New Robot Strategy: Vision, Strategy, Action Plan,” with the ultimate goal of
establishing and maintaining the country’s position as an international robotics superpower, is expected
to drive the studied market.
■ In December 2019, OOCL Logistics launched AI-equipped “EVE” robots in the Ibaraki, Japan. The newly
developed smart warehouse is northeast of Tokyo and will be a major logistics hub for OOCL Logistics
(Japan) Ltd.
■ The company has added 39 Automated Guided Vehicle (AGV) warehouse management robots called
“Electric Vehicle” (EVE) on the first floor of the new Ibaraki warehouse to overcome labor shortages and
increase efficiency. The company is leveraging AI and the adoption of robotic process automation and
customized technologies to improve operational performance, eliminate manual errors, and reduce
costs.
■ Digitization is also expected to drive e-commerce. With an increase in the number of supermarkets and
hypermarkets in Indian cities and the rising real estate costs in urban regions are forcing the warehouses
and distribution centers to opt for automation, in order to stay competitive, and cut the costs incurred
by prolonged storage.
90 REPORT –REPORT
6.4.3 ASIA-PACIFIC
■ Natural resources and their procurement create market opportunities for conveyors, which automate the
process flow. The vast landscape offers new avenues for the logistics parties to introduce robotic
systems, in order to ease the transition of materials. The airport, post and parcel, and warehouse
segments have boosted the demand for conveyors and sortation systems in India further propelling the
growth of logistic automation market.
■ Further, e-commerce would continue to grow the industry and boost sales. Australian warehouses are
already getting used to the influx of orders. The industry would face more individual orders instead of
conventional bulk orders. Owing to the increase in sales and growth of the business, warehouses are
expected to expand and hire more people. The country is adopting modern technology and
implementing more automated processes to help fulfil orders more quickly, thereby increasing the
growth of logistic automation in the country.
■ Moreover, Toyota Australia is expected to usher in a fleet of autonomous autopilot vehicles at its Altona
warehouse in 2020. The project, which is organised in coordination with Toyota Material Handling
Australia and Toyota Fleet Management, will utilize a fleet of six autopilot tow trucks (TAE500) and the
flagship model, autopilot reach truck (RAE160).
■ The manufacturing industry in Australia has recorded an increase in the demand for automatic
palletizers, which limit error chances, thus eradicating any associated supervision and loss. Additionally,
the manufacturing industry has recorded an increase in the demand for automatic sortation system
integrated across the conveyor belt, which reduces the error rate, thereby increasing the overall
efficiency of the overall warehouse logistic module, and in turn, eradicating any associated supervision
and loss.
■ Furthermore, in February 2020, logistics automation specialist Swisslog, member of the KUKA Group,
received an order from IKEA Supply (Malaysia). Located at Pulai Indah, the Distribution Center run by
Inter IKEA would be its largest regional distribution center in the Asia-Pacific region. Inter IKEA selected
Swisslog Malaysia for its local experience in implementing pallet warehouse solutions for major projects.
Swisslog would provide a fully integrated, end-to-end material handling automation solution for Inter
IKEA.
91 REPORT –REPORT
6.4.3 ASIA-PACIFIC
■ The manufacturing sector remains the biggest
contributor to economic growth in Indonesia.
■ According to Statistics Indonesia (BPS) data (August
2018), the manufacturing sector employs about
14.72% of the workforce and contributed a significant
part to the GDP growth of 5.1% in first quarter 2019.
■ Moreover, Indonesia is categorized as an aggressive
automation-adopting nation. The country has
recorded increased robotic usage for industrial work.
Since Japan is both its supplier and consumer,
Indonesia is expected to benefit from the trade with
Japan, thus increasing the demand for logistic
automation in the region.
92
6.4.4 LATIN AMERICA

■ Latin American nations have transformed themselves into a set of fast-growing, emerging
economies. Companies that have their manufacturing plants located in China are moving some LOGISTICS AUTOMATION MARKET
production to Mexico and Brazil, in a bid to reduce supply chain risk. Revenue in USD billion, Latin America, 2019-2025
■ Automation has revolutionized the warehouse business in the region, thereby helping companies
reduce overhead costs and increase productivity with consistency and accuracy, with artificial
intelligence playing a big role in achieving this. Online retailers are making every effort to reduce
the time it takes to deliver products to customers. 2.02
■ Manufacturing is seen as a reliable and viable occupation in many Latin American countries, such 1.79
as Mexico, thus stressing on the need for IoT and further the increasing demand for Industry 4.0 in
1.6
the region. Manufacturing businesses in Mexico are facing many challenges namely narrowing
1.44
margins, changing customer demands, smaller product lifecycles, and the requirement to be more
1.27 1.31
flexible in general.
1.19
■ According to OICA, Colombia produced more than 72,800 vehicles in 2018. It has eight assembly
companies, of which four are relatively large: GM, Colmotores; Sofasa, Hino; Motors Manufacturing,
and Foton. Thus, it offers an opportunity for the deployment of warehouse robotics due to the
country’s heavy concentration of automotive assembling plants.
■ Also, as per United Nations Conference on Trade and Development (UNCTAD) B2C e-commerce
Index 2018, Colombia was ranked 74th out of the 151 countries, and was behind other Latin
American countries, like Uruguay and Argentina. This provides an opportunity for the country to
concentrate on this sector, making way for automation.
■ Warehouse management in Columbia has become crucial, owing to the increased construction of
warehouses for various industries. According to the National Administrative Department of 2019 2020 2021 2022 2023 2024 2025
Statistics Columbia (DANE), the area of warehouse construction completed in Colombia increased
from 0.68 million square meters in 2017 to 0.86 million square meters in 2018. Moreover, in 2018, SOURCE: Mordor Intelligence
warehouses were the fifth-largest constructed area occupier in the country, with a share of 4.3%
6.4.4 LATIN AMERICA

■ Apart from warehouses, the market is anticipated to benefit from the automotive sector. According to
OICA, Colombia produced more than 72,800 vehicles in 2018. It has eight assembly companies, of which
four are relatively large: GM, Colmotores; Sofasa, Hino; Motors Manufacturing, and Foton. Thus, it offers
an opportunity for the instalment of AS/RS machines due to the country’s heavy concentration of
automotive assembling plants.
■ Argentina has traditionally been the most advanced Latin American country, in terms of internet usage.
Many multinational e-commerce industries are investing in Argentina, and this is expected to increase
the automation adoption in the country, over the forecast period.
■ Paypal and Dragoneer invested USD 750 million and USD 100 million in Argentina-based e-commerce
giant, MercadoLibre. As a result, in June 2019, it opened three new distribution centers in Argentina,
Brazil, and Mexico to double its logistics capacity further helping the logistic automation market to grow.
■ Latin America is gradually continuing its recovery in the manufacturing sector. As per the United Nations
Industrial Development Organization, it expanded its manufacturing output by 2.7% in first quarter of
2018, as compared to the first quarter of 2017. This was mainly due to 4.4% of Y-o-Y growth rate of
Brazil’s economy. Thus, Brazil is a promising market for logistic automation.
■ Owing to the decreasing operating cost, a few of the companies in Brazil are focusing on automating
their logistics and increasing the warehouse robotics capabilities. For instance, Aromaty Fragrances, a
Brazilian fragrance manufacturer, has completely turned its logistics around by opening an automated
warehouse in Louveira (a town in São Paulo State). The warehouse, designed to house raw materials, also
features the Mecalux Easy WMS management system.
■ Automotive industry is undergoing a positive transition in Brazil and Columbia. In October 2019, Brazil
and Argentina signed a free trade agreement for the automotive sector, in which both the countries will
gradually phase out trade tariffs for each other in the automotive sector. Steps such as these are
expected to bring automation in the automotive sector thus paving the way for logistic automation in
this region.
94 REPORT –REPORT
6.4.4 LATIN AMERICA

■ The automotive sector in Brazil is leading the digital transformation.
Volkswagen Brazil, for instance, announced a digital transformation plan to
transform client and staff experience, using data analytics and artificial
intelligence as critical pillars. The company aims to increase efficiency by 15%
to 20% efficiency with the new layouts of logistics and production.
■ The expanding millennial population and the increase in disposable incomes
are creating many opportunities for retailers, like Amazon, to introduce new
product lines, thereby, creating a considerable need for advanced warehouse
facilities. In the case of such high throughput warehouses, AMRs can help in
scaling up the efficiencies and mitigating the challenges related to labor.
■ Moreover, with the majority of the Peruvian population residing in two urban
cities, which account for two-thirds of the total population, the demand for
logistic automation in the country is expected to increase during the forecast
period. The developing e-commerce industry contributes to the need for
sorting systems across warehouses for retail and online retail companies.
■ Due to the Covid-19 pandemic, manufacturing activities in Latin America were
hampered leading to a decline in the growth of logistic automation in the
region as a result of the considerable slowdown in Argentina, Brazil, and
Mexico, the region’s most industrially competitive economies.
■ According to UNIDO, March month figures show a 4.8% drop in manufacturing
output in Mexico compared with the previous month, while in Brazil, output in
March sank by 9.9% on the month. On a year-on-year basis, manufacturing
output fell by 6.4% and 9.1% respectively in each country. Moreover, in
Argentina, manufacturing activity fell by 19.2% in March alone.

6.4.5 MIDDLE EAST & AFRICA

■ The Middle Eastern region is highly dependent on food and beverage imports each year, due LOGISTICS AUTOMATION MARKET
to low agricultural capacity. In July 2019, the Saudi Arabian government announced its third Revenue in USD billion, Middle East & Africa, 2019-2025
tender for 2019, to import 715,000 metric tons of wheat for supply during the period
September-November 2019, distributed over 12 vessels. Thus, there is a rise in the demand for
storage areas, which can be fulfilled by various warehouses which are using robotic systems. 2.62
The high demand for warehouses in the region is proliferating the growth of logistic
automation in the region. 2.32
■ The Saudi Arabian automotive industry is still in the nascent stage. Currently, it is developing a 2.06
car manufacturing city, as a part of 2030 Vision reform plan. This move is expected to increase
1.85
the demand for warehouse robotics. Parking solutions using these systems are expected to
1.67
gain more traction in the region over the forecast period with a focus on efficient use of 1.6
1.51
parking spaces.
■ Saudi Arabia is one of the major tourist destinations in the world and is attracting many
foreign tourists. This increase in the average air traffic in the country is propelling the demand
for robotic equipment in the airport end-user segment.
■ King Abdulaziz International Airport, known for its Hajj Terminal, is the busiest airport of Saudi
Arabia. Currently, it is undergoing expansion, which is expected to increase the airport’s
capacity from 13 million passengers per year to 80 million passengers per year. The project is
expected to be completed by 2035. This is propelling the growth of the market studied.
■ Many mega projects, such as Saudi’s NEOM city, are also driving advanced control systems and
automation in infrastructure development. Focus on the manufacturing sector led by Industry
2019 2020 2021 2022 2023 2024 2025
4.0 indicates the company's readiness to adopt new technologies to boost production output,
at a better quality, further augmenting the growth of Industry 4.0 in the country.


■ Notably, Saudi Arabia’s 2030 Vision calls for leveraging the country’s location, strategic partnerships,
energy sources, and logistics to stimulate a new phase of industrialization and automation in the
country. It aims to bring manufacturing the half of the country’s military needs within the country by
2030, and automate the renewable energy and industrial manufacturing sector.
■ Most recently, on January 2019, the Government of Saudi Arabia announced an infrastructure plan to
attract SAR 1.6 trillion in investments. The core focus of the event was on industrial development and
logistics programs.
■ South Africa is one of the largest economies in the African continent. The GDP value of South Africa
represents 0.59% of the world economy and was worth USD 366.30 billion in 2018. According to the IMF,
the growth is expected to expand by 0.7% in 2019 in the region. The increasing number of industries and
manufacturing units is expected to drive the demand for logistic automation in the region.
■ Intra-Africa trade is on the rise. African countries signed a trade agreement in March 2018 called the
African Continental Free Trade Area Agreement (AfCFTA), which permitted countries to remove tariffs on
90% of goods, progressively liberalize trade in services, and address a host of other non-tariff barriers.
These kind of agreements are expected to increase the need for robotics for the easier management of
goods.
■ In 2019, Quicktron announced the launch of the first intelligent robot logistics center in the Middle East
in Dubai, marking the success of Quicktron's global intelligent robot solutions across the Middle East
and North Africa.
■ The cooperation with Quicktron IQ Fulfilment of the project is located in the Dubai investment park, and
its business is through the use of advanced intelligent robot and advanced software platform for
enterprise users with efficient and revolutionary innovation of supply chain logistics solutions.
97 REPORT –REPORT

■ Recently, Israel-based Common Sense Robotics, announced its first Micro-
Fulfilment Center in Tel Aviv. The site is said to be the world’s smallest
automated e-commerce facility. Initiatives such as these are expected to drive
the adoption and awareness of robotic systems as well as logistic automation
in the region.
■ Besides, in 2018, the Israeli government adopted a EUR 59.2 million resolution,
which aims to encourage the Israeli industry, entrepreneurship, and research in
the field of smart mobility. This move is expected to position Israel as a global
leader in the field. Robotic systems can help in fulfilling the resolution at a
faster pace by increasing labor efficiency.
■ The Covid-19 pandemic is providing many opportunities for the region to re-
examine and re-build its manufacturing industry on a secure foundation and
thus move closer to its goals of improving domestic production and economic
diversification.

6.5 OTHERS (INDUSTRIAL ROBOTS, WAREHOUSE DRONES, TRANSPORTATION MANAGEMENT
HARDWARE AND OTHER SUPPORTING INFRASTRUCTURE SUCH AS COMMUNICATION AND
CHARGING SYSTEMS)
◼ This segment discusses trends related to Industrial Robots, Warehouse Drones, Transportation Management Hardware and Other Supporting Infrastructure such as
communication and charging systems.
◼ The demand for industrial robotics is majorly observed in industries, such as automobiles and heavy engineering. Robotic investments in January 2019 totaled at least
USD 644 million worldwide, with a total of 25 robotics transactions. In 2020, an estimated 1.64 million industrial robots were in operation worldwide (As per IRA).
◼ According to CGTN, China's industrial robot production rose by 29.2% year-on-year in June 2019 to 20,761 units, reaching its highest growth rate in the first half of
2020. According to the data provided by the National Bureau of Statistics, with the growth accelerating from 16.9% in May 2020, the country produced 93,794 units of
industrial robots in the past six months, up by 10.3% from the same period last year. Such instances are catering to the high adoption rate of industrial robots in the
warehouse activities.
◼ Deploying collaborative robots (cobots) is a significant move for companies looking to enhance productivity and drive efficiency in order fulfillment operations. Rather
than hiring more employees during peak periods and laying them off, businesses can deploy cobots as needed. For example, some collaborative robot companies
allow warehouse operators to rent, buy, or do both.
◼ Further, warehouses are large, which means associates walk long distances to find SKUs and transport orders to packing and shipping areas. An average warehouse
wastes an estimated 6.9 weeks each year on unnecessary walking and other motion, which amounts to about 265 million hours of labor at the cost of USD 4.3 billion.
Collaborative robots also eliminate the need for long walks between functional areas during each picking process stage.
◼ While some automation solutions can pose safety risks for operators or associates, collaborative robots are not hazardous in the workplace. In fact, they are designed
with multiple motion and force sensors that help them detect objects and people to avoid collisions.
◼ Collaborative robots’ low cost and ease of deployment mean small and medium-sized warehouses can selectively deploy automation and reap its benefits at a
fraction of the cost of other automation technologies during the COVID-19 pandemic.
◼ Further, when designing and configuring an automated warehouse, one design goal is to keep the system as light and compact as possible. Depending on the size of
the load being moved, there are two common types of automated warehouses. In lighter applications, aluminum structures can handle loads up to 100 kilograms,
while steel structures are suitable for heavier loads of more than 100 kilograms.
◼ Most traditional warehouses use forklifts with limited height, while automated warehouses make use of vertical space. Choosing the right components is key to
making sure an automated warehousing system optimizes logistics management.

CHARGING SYSTEMS)
◼ One recent critical handling application in the medical industry used linear actuators to give this automated warehouse a new look. This pick-and-place system moves
test tube containers for blood tests in a refrigerated warehouse. The robot moves along a network of axes to reach shelves positioned along the automated
warehouse corridors, adopting a perpendicular trajectory and changing direction by 90 degrees.
◼ Another popular industrial robot is SCARA (Selective Compliance Articulated Robot Arm) robots for small robotic assembly applications. Most pick and place and
small assembly applications that involve moving apart from point A to point B are perfect for SCARA robots, because this typically involves relocating the part in X-Y-
Z with some rotation in the Z-axis.
◼ However, the SCARA robot lacks the pitch and yaw motion of six-axis robots. So in applications where pitch and yaw are required, there are mechanisms that can be
added to achieve the additional axis motion, as long as the SCARA can accommodate payload requirements.
◼ The cycle time and product specifications determine which type of robot is necessary for an automated packaging operation in the packaging context. Parallel and
SCARA robots are ideal for high-speed packaging and sorting, while articulated robots are better suited for packaging large products. Whatever the need, robots
ensure packaging processes run more smoothly and efficiently.
◼ Retailers’ growing needs also help explain why the number of fulfillment-related jobs jumped by 41% between 2018 and 2015 to 1.2 million warehousing and storage
jobs from 785,000 in 2015, according to the US Bureau of Labor Statistics. Those conditions have driven retailers, such as Gap and Best Buy to deploy the latest
generation of sophisticated robotics.
◼ Those robots can handle a range of tasks from autonomous mobile robots that can transport inventory to articulated robotic arms that can manipulate items to
automated storage and retrieval robots that retrieve items for use.
◼ Although articulated robots can handle an increasingly complex variety of applications, manufacturers and materials handling companies sometimes need another
solution. Such companies are considering gantry robots. Caterpillar Inc. uses a two-axis gantry robot to move 3,000 kg (6,600 lb.) cylinder blocks. NSH Simmons is
using a gantry with two robots, a 5 m X axis and a 1 m Z axis, to handle payloads up to 950 kg (2,094 lb.) for rail car wheel machining. Other gantries, featuring other
designs, are used for other rail car applications.
◼ While articulated and SCARA robots are easily recognized, and Cartesian robots are widely deployed, the gantry design overcomes their inherent limitations in load,
speed, reach, and repeatability, with an unmatched level of customization and flexibility.
◼ As more countries adopt industrial automation, the public policy towards this technology will grow in importance. Governments need to strike a balance between
ensuring that humans can safely coexist with robots and that companies employing these machines can make full use of them. Additionally, the United States and
Canada have also developed a uniform regulation ANS/RIA R15.06 Industrial Robot Safety Standard, which lays out guidelines for the “collaborative operation of
robots.

CHARGING SYSTEMS)
◼ Autonomous drones live on nests in a warehouse. The nests keep the drone's batteries charged when they're sleeping. The drones wake up on a schedule, take off,
capture data, and return to their nest to recharge. The use of drones is especially popular in the area of in-house spare parts transport, where the required items are
flown to the conveyor belt where they are needed. The time saved in this way helps reduce or even avoid machine downtimes and losses of production. The car
manufacturer Audi, presently has spare parts flying through the air at 8 kilometers per hour.
◼ The business benefits from drones are significant due to low capital expenditure & infrastructure investments, access to off-the-shelf drone hardware, and SaaS-based
solutions for warehouse operations. The cloud-connectivity of drones, coupled with API-based integration, make it easy for warehouse owners to adopt autonomous
drone fleets into enterprise workflows.
◼ Some of the most popular warehouse uses cases for drones are as follows –
➢ Inventory Reconciliation -- Drone-based inventory inspection can directly reduce human errors and risks involved in counting items stored in hard-to-reach
locations
➢ Cycle Counting -- Revenue loss can be minimized by increasing the frequency of cycle counting, powered by repeatable, automated drone-based inventory counts.
➢ Security & Surveillance -- Drone missions for perimeter security can augment manual surveillance, resulting in affordable, reliable protection of human and capital
assets
➢ Inventory Audit -- Annual inventory audits, that can take weeks to complete and result in long shut-downs, can be done much faster via 24×7 automated drone
missions
➢ Roof Inspection -- Warehouse structures can develop cracks, leaks, rust, etc. due to environmental conditions – periodic drone-based inspections can spot such
damage early on
➢ Item Search -- Order fulfillment, and accounting for missing/stolen items, can both benefit from drone-based search and recognition of items using standardized
markers
➢ Buffer Stock -- By improving inventory accuracy using drones, warehouse stakeholders can free up valuable capital locked up in buffer stock, especially during peak
seasons
➢ Empty & Full Slot Detection -- Expensive warehouse real estate can be optimally used by drone-based detection of empty and full slots, thus improving operational
metrics
➢ Worker Productivity -- By highlighting items with worn out or missing barcodes, drone-based counting can shift expensive human time to higher value inventory
management activities

RELEVANT PRODUCT LANDSCAPE

CHARGING SYSTEMS)
■ With the advantages of strong adaptability, high flexibility, and automatic cruise, automatic guided
vehicles (AGVs), also referred to as mobile robots with guidance lane, have been widely applied in the
automated and intelligent logistics industry.
■ An AGV system must be built to satisfy a specific need and suited to different situations. For collision-
free travel and safety, sensors are attached to AGVs. Further, the choice of the location of pick-up and
delivery points is essential. It influences the operational performance. The goal is to reduce the distance
travelled and waiting times of loads avoiding bottlenecks at pick-up and delivery points. Nowadays,
AGVs have played an important role in logistics and transportation, automatic processing, mechanical
assembly, and other related fields.
■ Batteries in the AGVs are used as a fueling system. Like any other battery, it needs to be charged or
changed at a given time. The charging or changing time should not be forgotten because it impacts
system performance (vehicles required, throughput, congestion, and costs).
■ However, the battery needs to be energized and recharged cycle by cycle, resulting in a high use cost
and low utilization rate. At present, traditional charging systems require a plug-in operation, and there
are some potential security issues. In order to realize automatic charging and solve the safety problems,
there is significant economic value to adopt a new charging method to increase the effective working
time of AGVs.
■ In recent years, wireless power transfer (WPT) has witnessed considerable adoption. With the
characteristics of a flexible charging position and freedom to plug the charger, WPT is regarded as a
practical charging technical solution. It is a trend to apply WPT to energize AGVs. Making utilization of
the parking gap, continuous operation can be implemented by intermittent charging.
■ Further, the choice of an AGV for Transportation Management depends upon a host of customer-specific
application requirements, such as Distance, Capacities (transports per hour), intake-discharge-matrix
(number of positions, floor-to-floor, conveyor to conveyor/floor, shelf), among others.
102 REPORT –REPORT

CHARGING SYSTEMS) - TYPES OF AGV CHARGING
Manual Swap In AGV – Overhead

Mobile Cart or Cart on track Charge plate and Collector
AGV automatically routed to recharge location when swap is AGV automatically routed to recharge station when charge is
required required
Operator manually exchanges battery and releases the AGV into the AGV arrives at charging station and initiates the charging process
system
Operator plugs the battery into the charger to recharge battery AGV stays powered on during charge. Once complete, the AGV is
released into the system automatically
On AGV Automatic Swap

Charge plate and Collector AGV automatically routed to autoswap location for swap
AGV automatically routed to recharge station when charge is Auto Cart removes the depleted battery and installs fully charged
required battery
Operator manually exchanges battery and releases the AGV into the AGV is released into the system
system
Operator plugs the battery into the charger to recharge battery Cart places the depleted battery back in the rack and recharging
begins
Source: Mobile Automation Group (MAG)

RELEVANT PRODUCT LANDSCAPE
6.5 OTHERS (INDUSTRIAL ROBOTS, WAREHOUSE DRONES, TRANSPORTATION

MANAGEMENT HARDWARE AND OTHER SUPPORTING INFRASTRUCTURE SUCH AS
COMMUNICATION AND CHARGING SYSTEMS)
■ In the logistics sectors, the Internet of Things (IoT) is delivering highly integrated and efficient
transportation and warehouse management solutions. Installed sensors in transport vehicles continue to
capture, share, and process data that can be acted upon in real-time.
■ Installing smart sensors in the warehouse turns out to be helpful for automatically creating orders when
there are fewer items left. Even if one has limited space in the warehouse, one can store the items
efficiently using smart sensors. Companies use RFID tags to manage their products and warehouses.
These sensors automatically send information to the database when the item has left the storage house.
■ Smart sensors such as AIDC (automatic identification and data capture) and RFID (radio-frequency
identification) are helpful techniques for tracking the shipments and managing them efficiently.
Microchips in RFID sensors utilize radio waves to detect the location of goods. These sensors provide
information about what the product is and its location and final destination.
■ In February 2019, Kerry Logistics Network Ltd. introduced a sensor-based logistics solution that utilizes
smart sensor devices to monitor cargo across the ocean, air, and ground transportation around-the-
clock. The sensor-based logistics solution is ideal for the environmental and time-sensitive shipments,
such as the healthcare and pharmaceutical industries. It is also ideal for premium goods, including high-
value consumer electronic products. Both shippers and consignees are able to obtain first-hand
information about the physical environment of the cargo through constant personalized alerts or via the
KerrierVISION visibility portal.
■ Further, based on the type of goods to be picked up, for example, perishable or non-perishable
products, trucks, and warehouses are selected for exchange or delivery. Trucks embedded with IoT
sensors provide real-time analysis of route optimization, ensuring reliability, and reducing transit times.
Alerts and information captured by sensors are sent to logistics service providers.
■ The applications of digital sensors powered by IoT are causing an unprecedented transformation in
logistics management by creating new business operation models that are reshaping businesses and the
marketplace.
7. COMPETITIVE INTELLIGENCE
7. KEY VENDOR PROFILES

■ 7.1 Dematic Group (Kion Group AG)
■ 7.2 Daifuku Co. Limited
■ 7.3 Swisslog Holding AG (KUKA AG)
■ 7.4 Honeywell Intelligrated (Honeywell International Inc.)
■ 7.5 Jungheinrich AG
■ 7.6 Murata Machinery Ltd
■ 7.7 Knapp AG
■ 7.8 TGW Logistics Group GmbH
■ 7.9 Kardex Group
■ 7.10 Mecalux SA
■ 7.11 BEUMER Group GmbH & Co. KG
■ 7.12 SSI Schaefer AG
■ 7.13 Vanderlande Industries BV
■ 7.14 WITRON Logistik
■ 7.15 Oracle Corporation
■ 7.16 One Network Enterprises Inc.
■ 7.17 SAP Se
105 *List Not Exhaustive

7.1 DEMATIC GROUP (KION GROUP AG)- OVERVIEW

 Dematic Corp. is a global player in the material handling solutions and intelligent intralogistics. The
company claims to be a pioneer in providing customers a unique perspective in material handling
solution design. Dematic is an intralogistics innovator that designs, builds, and supports intelligent,
automated solutions for manufacturing, warehouse, and distribution environments for customers that
are powering the future of commerce. With engineering centers, manufacturing facilities, and service
centers located in more than 25 countries
Founded in 1819
 It has a wide presence, which includes manufacturing and R&D facilities across various regions, like the
United States, Europe, China, and Australia. This widely spread infrastructure enables it to possess the
reach and capability to offer flexible, cost-effective, and reliable solutions on a global scale. Grand Rapids, United States
 It was able to maintain a positive track record over a considerable period of time, which has eventually
led to the development and implementation of more than 6,000 integrated systems for a customer https://www.dematic.com
base comprising of some of the biggest companies of the world. It provides its offerings under three
segments, including solutions by Vertical market, Supply Chain function, and Technology. Dematic is a
1 (877) 725-7500
member of KION Group, a global vendor in industrial trucks, related services, and supply chain
solutions.
DEMATIC GROUP
EUR 8,806.5 EUR 155.3 Revenue in EUR million, 2017-2019
+34,604
million Employees
million
Net Sales R&D Expenditure 8806.50
7995.70
7598.10
EUR 448 24.1% 59.7%

million Revenue – Supply Revenue – Western
Net Income Chain Solutions Europe
2017 2018 2019
Source: Financials of the Parent Company (Kion Group. Annual Report for the Financial Year Ended in December 2019)

7.1 DEMATIC GROUP (KION GROUP AG)- BUSINESS SEGMENTS
DEMATIC GROUP DEMATIC GROUP

Revenue Breakdown, by Geography, 2019 Revenue Breakdown, by Operating Segment, 2019
11.0% Western Europe 16.9%

Industrial Trucks and Services
2.2%
Eastern Europe
18.6% Middle East & Africa Supply Chain Solutions

North America 24.1% 59.1%
59.7%
1.2% Central and South America
7.4% Corporate Services
Asia-Pacific
 EMEA saw an increase in revenue by 10.1% from the previous year, mainly due  The Industrial Trucks and Services segment has a revenue share of 59.1%,
to the growth of unit sales in the Industrial Trucks and Solutions segment signifying the reliance of the company on this segment. The company significantly
expanded its market position due to a smaller decline in the segment compared
 North America was the second-largest market, with a market share of 18.6% in to the entirety of the market.
2019. The Americas region saw a y-o-y decline of 6.7% in the Industrial Trucks
 The Supply Chain Solutions segment is the biggest provider in the global market
segment. The APAC region reported moderate growth of 3.9%.
for warehouse automation in terms of revenue, even though it only encompasses
 The developing region of Middle East stands third, with the highest
opportunities for growth in the future. The development and increasing 24.1% of the company’s revenue.
technological adoption in this region is a positive sign for the future of the  Net income was up by 10.7% from EUR 401.6 million in 2018 to EUR 444.8 million
market.
in 2019. This increase is attributable to better operating profits and declining
purchase price allocation effects.

7.1 DEMATIC GROUP (KION GROUP AG)- PRODUCTS AND STRATEGIES
◼ Automated Mixed Case Order Fulfilment : Rapid Fulfilment of Store-Ready Mixed

PRODUCTS Case Orders
◼ Case and Tote Transport : Modular Conveyors That Meet Fast and Reliable
Transportation Needs ◼ Case Picking to Conveyor : Reducing Cost per Case — One Case at a Time
◼ Cross-Docking : The Direct Connection Between Inbound Freight and Outbound ◼ Case Picking to Pallet : Hands-Free Directed Picking Improves Speed and Accuracy
Orders
◼ Dynamic Pick Face Picking : Combine High-Density Storage with Operator-Friendly
Ergonomics
◼ Eaches Transport : A Better Way to Move Individual Items for Omni-Channel
Fulfillment ◼ Layer Order Fulfilment : Automated Fulfilment of Rainbow Pallets for a Wide Range
of Packaging Types and Shapes
◼ Pallet Transport : Reliable Conveyors, AGVs, and Monorails
◼ Batch to Putwall Picking : Waveless Fulfillment for E-Commerce and Omni-Channel
◼ Receiving : The First Step in Improving Efficiency Orders
◼ Returns Handling : Fast, Accurate Processing of Returned Merchandise ◼ Batch to Sorter Picking : High-Volume Piece Picking Made Simple
◼ Cluster Picking : Accurate and Efficient Hands-Free Each Picking

◼ Dematic iQ Overview : Performance Optimizing Software
◼ Goods-to-Person Picking : Maximize Picker Efficiency with over 1,000 Picks per
◼ Garment-on-Hanger Storage : Faster Cycle Times, Reduced Costs for the Hour
Warehouse and Customers
◼ Goods-to-Robot Picking : The Ultimate in Automated Split Case Picking
◼ Pallet Storage : A Smarter Way to Optimize Storage Space
◼ Zone Route Picking : Maximize Throughput in High-Density Picking Environments
◼ Tote (Carton) Storage : Save Labor Costs, Increase Speed and Accuracy
◼ Packing : Efficient Packing, Value-Added Services
◼ AutoStore : Ultra High-Density Storage and Buffering for Goods-to-Person Piece
◼ Shipping : Fast and Accurate Shipping with Real-Time Visibility
Picking

7.1 DEMATIC GROUP (KION GROUP AG)- PRODUCTS AND STRATEGIES
STRATEGIES
TECHNOLOGIES ACQUISITIONS
◼ The company has a broad range of offerings with an intent to capture maximum market share. The offerings have been listed under different categories so that the
prospect could better relate to the products, and thus the conversion rate of a prospect to a client would increase.
◼ The company has been coming up with new products or upgrades in the existing offerings to remain competitive in the market. This also enables them to fill any
possible gaps which might occur in their offerings and customers’ needs. With engineering centers, manufacturing facilities, and service centers located in more
than 25 countries, Dematic’s global network of 8,000 employees have helped achieve more than 6,000 worldwide customer installations for some of the world’s
leading brands.
◼ The company has been into mergers and acquisitions over the long tenure of its existence. This not only enables them to strengthen their core competency but
also counter any possible competitive threat. For instance, in March 2020, Dematic Group announced that its parent company KION GROUP AG completed the
acquisition of Digital Applications International Limited (DAI), a UK-based software company specializing in logistics automation solutions, on its behalf. Valued at
around EUR 120 million, the transaction is KION’s largest investment since acquiring Dematic in 2016. The addition of DAI significantly expands Dematic’s
intralogistics software offerings to support the movement, storage, and distribution of goods through the entire supply chain.
◼ In May 2020, DKSH Business Unit Technology, a leading Market Expansion Services provider for technology companies seeking to grow their business in Asia and
beyond, entered into a partnership with Dematic. The company is a leading global supplier of integrated automated technology, software, and services to optimize
supply chains. Under this new partnership, DKSH will provide marketing, sales, and solution engineering for Dematic’s automated system solutions to help expand
the market reach.
7.1 DEMATIC GROUP (KION GROUP AG)- SWOT ANALYSIS
STRENGTHS WEAKNESSES
◼ The company has been surviving for more than a century, ◼ The net financial expenses maintained a steady number from
which has enabled it to build a trusted brand among the EUR 97.4 million as of 2018 to EUR 95.1 million at the end of
customers, giving it a competitive edge over most players. 2019, thus making the company vulnerable to the financial risk
of defaulting to pay back the liabilities.
◼ Dematic has strong R&D capabilities that keep the company’s
product portfolio up to date with the market needs.
S W
OPPORTUNITIES O T THREATS
◼ The company’s new product launches and upgradation of
◼ The company faces threats from competitors from different
existing products are estimated to enhance its revenue.
regions intending to penetrate the market by injecting huge cash.
Moreover, after the spread of COVID-19, warehouses are looking
◼ The company’s strategic mergers and acquisitions are aimed to
to automate their shop floors in order to maintain social
enable it to expand to a larger customer base as well as
distancing, which would cause the vendors to increase the
increase its brand recognition.
offerings further.

7.1 DEMATIC GROUP (KION GROUP AG) - RECENT DEVELOPMENTS
M Merger and Acquisition I Product Innovation E Expansion P

E Partnership
Dematic announced plans to automate the central storage facility for RS Components
GmbH in Bad Hersfeld, Germany. Dematic will install a 10-aisle Dematic Multishuttle
system with 300,000 container storage positions for the electronics distributor. There
will be 300 shuttles to automatically access the containers and transport them directly
to the goods-to-person (GTP) commissioning station, to dispatch or to inventory
storage, where they are repacked in order to prepare them for dispatch. The goal for
RS Components is to increase its picking capacity to up to 38,000 order lines per day
through automation. The plan is for the highly modern logistics center to become
operational in the second quarter of 2021. OCT 2020
P P
Dematic automated the returns and shipping logistics of HABA Group BV & Co. KG.
SEP 2020 To do this, the intralogistics specialist installed a space-saving Dematic pouch sorting
system in its distribution center in German Bad Rodach, where it supports the toy
manufacturer in the fast and efficient processing of e-commerce orders. The company
distributes its products from there under the brands HABA, Qiero!, Fitz, and Jako-O.
The automated suspension system on roller adapters stores and sorts hanging and
flat goods as well as flat-packed items and cartons in a single system. Articles are
automatically placed in pouches and taken out. This makes the system suitable for
fully automated order processing for pureplay e-commerce and also for omnichannel
retailing.
7.2 DAIFUKU CO. LTD – OVERVIEW

◼ Daifuku Co. Ltd provides engineering, consulting, designing, manufacturing, installation, and
after-sales services. The company is engaged in the manufacturing and sales of material-handling
systems and equipment.
◼ Through its subsidiaries, such as Contec Co. Ltd, the company is also involved in the design and Founded in 1937
manufacture of logistics equipment, the maintenance and management of buildings, the
development, manufacture, and sale of personal computers (PC) peripheral equipment, industrial Nishiyodogawa-ku Osaka, Japan
computers, and network equipment, as well as the manufacture and sale of baggage
transportation systems used in airports. https://www.daifuku.com/
◼ As of March 2020, the company has 10,863 employees. The company operates across Europe, the
+81 6-6472-1261
Americas, and the APAC region with sales sites across 26 countries. The company has 3,068
patents in more than 30 countries.
DAIFUKU CO. LTD
Revenue in JPY million, 2018-2020
JPY 443,694 Cost of Sales
10,863
million JPY
Employees
Net Sales 357,870 million 4,59,486.0
4,43,694.0
4,04,925.0
JPY 8,936
JPY 85,824
million
million
R&D
Gross Profit 2018 2019 2020
Expenditure
Source: Daifuku Co. Ltd, Financial report published till March 2020

7.2 DAIFUKU CO. LTD – BUSINESS SEGMENTS
DAIFUKU CO. LTD DAIFUKU CO. LTD

Revenue Share (%), by Geography, 2020 Revenue Share (%), by Reportable Segment, 2020 Estimated Revenue Share (%), by Product and Service Offering, 2020
18.0% Daifuku 4%4%

34.9% 21% Logistic Systems Electronics
Contec
9.8%
45%
7%
Daifuku North
15.8% America
21.5% Clean
23% Others
4% Factomation
Japan U.S.A China Others 92%
S. Korea Other
 Orders remained strong, driven by large projects, such as systems for ◼ The unit load automated storage and retrieval system (AS/RS), mini load AS/RS,
semiconductor factories in East Asia and North America, and systems for picking system, high-speed automated sorting system, and other equipment in
pharmaceutical wholesalers and distributors, including e-commerce in Japan. this center are all Daifuku products, which control the flow of goods from
receiving to shipping.
 Sales were favorable, underpinned by the high level of orders. As a result, the
company recorded net sales of JPY 443,694 million, de-grew by 3.43%,
◼ The Logistic Systems segment contributed the majority of the revenue share of
compared to 2019. the company with 92% and JPY 410,526 million by value. It de-grew by 3.37%
 Moreover, the Others segment faced weak sales from its main customers, such over last year.
as car service stations and car dealerships. However, its profits reflected an
intensely competitive environment. ◼ The automotive factory automation provides automakers with systems for
automobile production lines worldwide, including the United States, China,
 As a result, Others segment recorded sales of JPY 93,986 million, de-grew by South Korea, Thailand, and countries in Latin America and Europe. The systems
15.3% YOY. convey car bodies through the entire manufacturing process, including press,
weld, paint, and assembly.

7.2 DAIFUKU CO. LTD – SERVICES AND STRATEGIES

PRODUCTS OFFERED STRATEGIES
Daifuku provides storage, transport, sorting, and picking systems to
manufacturers, including the food, pharmaceutical, and machinery sectors, for
their factories and to distributors for their delivery centers.
1. Unit Load AS/RS: It includes high-density pallet storage, the ability to reach a TECHNOLOGIES ACQUISITIONS
lift height of 40 meters, and high operation speeds.
2. Mini load AS/RS: The mini load AS/RS stores small-quantity goods in
containers and cartons.
◼ Daifuku focuses on introducing high-value-added products to differentiate
3. Rack-supported building AS/RS: A building-type automated storage
system, which combines a building and racks widely used in large distribution themselves from competitors. It also strengthened its local existence in Asia by
centers. expanding its manufacturing and distribution sites across the region.
4. Standalone mini load AS/RS: It allows operation without waiting time
◼ In September 2019, Daifuku Co., Ltd. announced the establishment of a
through continuous retrieval for up to eight load-receiving platforms.
Vietnamese subsidiary, which commenced operations on October 1, 2019. Daifuku
5. Automatic Guided Vehicle: Daifuku’s automatic guided vehicle systems work
around-the-clock, making the continuous flow and just-in-time delivery easier Intralogistics Vietnam manages local sales, installation, and after-sales services of
to achieve.
material handling systems for the manufacturing and distribution sectors.
6. Automatic Trailer Loading Vehicle SmartLoader
◼ In particular, the company is focusing on innovation in material-handling systems
7. Heavy-duty Automatic Guided Vehicle
as part of the ‘smart logistics’ concept and will continue to advance the airport
8. Sorting and Picking Systems, Cleanroom Production Line: Clean Stocker,
Zip Tower 30, Cleanway, Cleanway for Reticle Transfer, Clean Space Carrier and technologies segment as one of four core businesses.
Clean AGV, ◼ One of the aims of the new business plan of the company is to ‘pursue the best
9. Automotive Production Lines and Airport Baggage Handling Systems. combination of localization and globalization.’ This requires establishing an
The company has other broad portfolios of solutions, such as conveyor and
optimal corporate governance system to realize further growth outside Japan.
sorting and picking systems to meet the customized needs.

7.2 DAIFUKU CO. LTD – SWOT ANALYSIS
◼ Daifuku is the only material-handling company that operates in ◼ The company is mainly focused on the Asian market, which has
the three sectors: manufacturing and distribution systems, limited the amount of exposure to other markets.
semiconductor and flat-panel display (FPD) production line
systems, and automobile production line systems. ◼ The company’s orders and sales are greatly affected by foreign
currency translation. Due to this, there was a huge order
◼ The company has a strong product portfolio spanning six backlog.
different business segments, which helps in maintaining its
brand value.
S W
OPPORTUNITIES O T
◼ The company’s further penetration into significant North THREATS
American markets, where there is an ongoing trend of industrial
and logistics automation, may provide it opportunities to ◼ Intense competition across other regions, except the Asian
increase its brand recognition and make it less dependent on market, can be a challenge for global expansion.
Asian markets.
◼ The presence of the company in various global markets
◼ The manufacturing, textile, and e-commerce industries are exposes the company to various risks, such as currency and
growing in India, which can help the company to expand the government regulations.
client base, owing to its strong position in Asia.

7.2 DAIFUKU CO. LTD – RECENT DEVELOPMENTS
M Merger and Acquisition I Product Innovation E Expansion P Partnership
AUG 2019
I M M
SEP 2018 Daifuku Co. Ltd announced that it would acquire APR 2019
Netherlands-based Scarabee Aviation Group BV and
Australia-based Intersystems (Asia Pacific) Pty
Limited. Scarabee provides a range of airport
solutions to many of the world’s leading airports and
airlines.

7.3 SWISSLOG HOLDING AG(KUKA AG)- OVERVIEW

◼ KUKA Aktiengesellschaft (KUKA), a subsidiary of MECCA International (BVI) Limited, is one of the
prominent automation company. It supplies robots and automated production systems and
solutions for diverse industrial and general applications. The company operates in five business
segments, such as KUKA Systems, KUKA Robotics, Swisslog, Swisslog Healthcare, and China.
◼ The Robotics segment provides the core component for automating production processes. The Founded in 1900
segment manufactures industrial robots together with robot controllers, cells, and software. The
Swisslog division implements integrated automation solutions for warehouses and distribution
centers. Swisslog serves customers in over 50 countries across the world. Augsburg, Germany
◼ The company offers robot systems, production machines, and production systems. The company
caters to the market of electronics, general industry, consumer goods, e-commerce, retail, and https://www.swisslog.com
healthcare.
◼ The company has various partners in the industry that include AC-Automation GmbH, AED +41-62-837-41-41
Automation GmbH, Anthon GmbH, Arisar GmbH, Arnold & Rath GmbH, ARO Welding
Technologies GmbH, and many others.
KUKA AG
Revenue in EUR million, 2017-2019
EUR 3,192.6
+14014 EUR 47.8
million
Employees million EBIT 3,479.1
Revenue
3,242.1
3,192.6
EUR 3,427 EUR 160.5
million Total million R&D
Assets Expenses 2017 2018 2019
Source: KUKA AG, Annual Report for the Fiscal Year Ended on December 31st , 2019.

7.3 SWISSLOG HOLDING AG (KUKA AG)- - BUSINESS SEGMENTS
KUKA AG KUKA AG
Revenue Share (%), by Geography, 2019 Revenue Share (%), by Operating Segment, 2019
13.6% Systems
18.4% EMEA
27.5%
6.6% Robotics
Swisslog
51.6% Americas
17.8%
Swisslog Healthcare
30.0%
Asia/Australia China
34.4%
Revenues without consolidations of (172.4) million
 The sales revenues of EUR 925.4 million were at the same level as in 2018. The
 About 51.6% of revenue was generated from the EMEA region, making it the lower revenues due to reduced order volume were offset by the start of
most significant region for the company. The revenues increased from EUR production at KTPO.
1,578 million in 2018 to EUR 1646.2 million in 2019.  The revenues for the Robotics segment decreased by 7.1% from EUR 1,247.3
 The revenue from Americas contributed to 30% of the revenues but declined million in 2018 to EUR 1,159.2 million in 2019. The revenues decreased due to
marginally from EUR 1024.9 million in 2018 to EUR 958.8 million in 2019. The the difficult ongoing situation of the global economy. The revenues from the
revenues from Asia/Australia also decreased from EUR 639.2 million to EUR Swisslog segment decreased by 1.2% YoY from EUR 607.1 million in 2018 to
587.6 million in 2019. EUR 600 million in 2019.
 The revenues for Swisslog Healthcare increased by 4.4% from EUR 212.9 million
in 208 to EUR 222.3 million in 2019. The revenue increased due to growth in the
areas of Pharmacy automation and Transport Automation.
 The revenue in the China segment decreased by 13.2% YoY due to a lower
volume of orders received.
7.3 SWISSLOG HOLDING AG(KUKA AG)- PRODUCTS AND STRATEGIES

PRODUCTS OFFERED
The company offers a wide range of products. Some of the significant products are STRATEGIES
mentioned below.
KUKA Storage and Retrieval (ASRS): The company provides robots which can be
customized according to the requirement of the customer. The package consists of a
robot, controller, operator control element, and software. It comprises of TECHNOLOGIES ACQUISITIONS
◼ High bay warehouse based on Vectura stacker cranes (heavy load)
◼ Tornado: Reliable miniload Stacker Crane
 The company’s vision of becoming the first choice for intelligent automation and thus
◼ PowerStore Shuttle System (heavy load) ensuring the long-term success of the company, KUKA is focusing on three strategic
◼ CycloneCarrier: Fast and efficient shuttle system directions. In 2019, around 50% of the total sales revenues were generated from
automation solutions, making it an important pillar of growth.
◼ AutoStore: Space-saving ASRS for small parts  The company has been focusing on innovation for growing and competing in the
◼ CarryPick: Scalable Storage and picking market. For instance, the group filed 108 patent applications, and 280 patents were
granted in 2019. Moreover, at the start of 2019, KUKA launched a new generation of the
◼ PowerStore: High-density pallet shuttle system KR QUANTEC series. The robot for high payloads is KUKA’s bestseller.
Mobile Robots- The company offers a wide range of robots. Some of the products  The focus of the company will be on the general industry pertaining to Handling,
include- Machining, and Processing. The company’s key thrust will be to penetrate non-
automated markets as opposed to the traditional high growth markets the company has
◼ KMR iiwa- A combination of LBR iiwa lightweight robot and a mobile, flexible usually dealt with.
platform.  There will also be a substantial expansion in the company’s Chinese base due to the push
◼ KMR Quantec- Consists of KUKA omniMove platform, KUKA Qantec robot as well of the Chinese government’s “Make in China 2025” initiative. The company has also
as software, and a controller. started making strides in the Pharmaceutical and Medical industry with Sculptura, a
mobile platform developed by Sensus Healthcare for intraoperative radiotherapy and X-
Automated Guided Vehicle Systems- KUKA develops and integrates AGVs for ray imaging and radiotherapy robots.
barrier free, versatile, and flexibly expandable networking of production and  The company’s second-quarter results were significantly affected by the COVID-19
warehouse logistics. The systems are suitable for automotive, electronics, warehouse pandemic as sales declined from EUR 624 million in Q-1 to EUR 544 million in Q2. The
logistics, consumer goods, aerospace and healthcare, and other industries. revenue of the robotics segment declined by 27.5%.
7.3 SWISSLOG HOLDING AG(KUKA AG)- SWOT ANALYSIS
◼ The company has a strong financial position with a current ratio ◼ KUKA Group's order backlog amounted to EUR 1967.5 million
of 1.47 in 2019. Furthermore, the company invests heavily in in 2019, which decreased from EUR 2055.7 million in 2018. The
R&D activities, which helps it cater to the wide customer base order backlog affects the financial position of the company and
and have a distinguished and broad product portfolio weakens the position in the market along with plans for next
dedicated to several end users. The company spent EUR 160.5 year.
million on R&D activities in 2019.
S W
O T
OPPORTUNITIES THREATS
◼ KUKA is subject to environmental laws and regulations in the
◼ The transition of expectations for shorter lead times and a more
countries in which it operates. The company's business
efficient flow of goods, which pushes the demand for
operations are subject to numerous governmental laws and
decentralized warehouse and logistics capacity. As a result,
regulations. Furthermore, KUKA operates in a highly
digitization and automation in traditional industries, like
competitive market, which can lead to less profit margin for the
supermarket, grocery, retail, and food and beverage
company. Another threat that builds on the pressure on the
manufacturing, automotive are likely to boost bringing new
company is the threat of COVID-19 as it has badly affected the
opportunities for the company as it has a wide portfolio of robots
company’s business in Q-2, and still, the future impacts are
and AGVs.
unknown on the market.

7.3 SWISSLOG HOLDING AG(KUKA AG)– RECENT DEVELOPMENTS

The company launched KR 4 Agilus, which is a

small robot for automated production processes
and payload category of 4 kg. The compact robot
has been designed for robot-based automation in
electronics manufacturing and for handling tasks
in other industries. SEP 2020
I I
The company launched the KR SCARA horizontal jointed-
AUG 2020
arm robots from KUKA are ultra-compact and, at the
same time, deliver maximum cost-effectiveness. The
robot has a reach of 500 or 700 millimeters, an extremely
short cycle time of just 0.36 or 0.38 seconds, and the KR
SCARA robots are ideal for pushing ahead with
automation in cost-sensitive markets.

7.4 HONEYWELL INTERNATIONAL INC. - OVERVIEW

 Honeywell International Inc. is a multinational conglomerate company, which manufactures a
wide range of commercial and consumer products and provides engineering services and
solutions. The company operates through the following segments -- Aerospace, Home and
Building Technologies, Performance Materials and Technologies, and Safety and Productivity
Solutions.
 For the studied market, the Safety and Productivity Solutions segment provides products and Founded in 1885
software that improve productivity, workplace safety, and asset performance. The Productivity
Solutions segment’s products and services include mobile devices and software for computing,
data collection and thermal printing; supply chain and warehouse automation equipment, New Jersey, United States
software and solutions; custom-engineered sensors, switches, and controls for sensing and
productivity solutions; and software-based data and asset management productivity solutions.
 In August 2016, Honeywell International Inc. acquired Intelligrated, which belongs to the new https://www.security.honeywell.com/
business segment of Honeywell, i.e., Safety and Productivity Solutions. Honeywell Intelligrated
designs, manufactures, integrates, and installs complete material handling automation
solutions, including conveyor, IntelliSort sortation, Alvey palletizers and robotics, automated +1.800.663.4164
storage and retrieval systems, and voice- and light-directed picking technologies.
USD 36,709 USD 9,067 million HONEYWELL INTERNATIONAL INC.

+113,000
million Cash and Cash Revenue in USD million, 2017-2019
Employees
Net Sales Equivalent
41,802
40,534
USD 1,556 USD 848
USD 6,230
million million 36,709
million
R&D Expenditure Revenue -
Net Income
Sensing and IoT
Source: Annual Report Published in February 2020, Revenue as of Year Ended December 2019 2017 2018 2019

7.4 HONEYWELL INTERNATIONAL INC. - BUSINESS SEGMENTS
HONEYWELL INTERNATIONAL INC. HONEYWELL INTERNATIONAL INC.

20.09% United States 16.6%

Aerospace
38.3%
Europe Honeywell Building Technologies
20.22% 59.69%
29.5% Performance Material and Technologies
Other International
15.6% Safety and Productivity Solutions
 The United States accounted for a majority of the company’s revenues. The The Safety and Productivity Solutions, which entails the Electromagnetic Flow
sensors portfolio, consists of four sub-segments, mainly
revenue from the United States reached USD 23,841 million in 2019, as
 Safety and Retail fell from USD 2,278 million to USD 2,215 million, reflecting a
compared to USD 21,910 million in 2018.
2.8% decrease from 2018 to 2019.
 The United States manufactured exports included 15% of the total sales in
 The revenue from Productivity Products fell by 20% from USD 1,373 million in
2019, 13% in 2018, and 12% in 2017. Non-US manufactured products and 2018 to USD 1,110 million in 2019.
services, mainly in Europe and Asia, included 40% of the total sales in 2019,  Warehouse and Workflow solutions saw a 6% increase in revenue from USD
43% in 2018, and 44% in 2017. 1,829 million in 2018 to USD 1,931 million in 2019.
 The net sales in Europe decreased significantly, amounting to USD 7,424 million  Sensing and IoT fell by 1% from USD 857 million in 2018 to USD 848 million in
2019.
in 2019 compared to USD 10,066 million in 2018.

7.4 HONEYWELL INTERNATIONAL INC. - PRODUCTS AND STRATEGIES

PRODUCTS
◼ Honeywell Robotics: Warehouse automation solutions from the STRATEGIES
company provide the speed, accuracy, and efficiency to satisfy a wide and
growing range of operational requirements for high-performance
distribution, fulfillment, and manufacturing operations. The company TECHNOLOGIES ACQUISITIONS
provides robotics solutions for various applications, which include Mobile
Robotics, Order Picking Technology, Robotic Sorter Induction, Robotic
Unloader. ◼ Honeywell is wholly committed to providing maximum productivity to its customers in its
◼ AS/RS Systems: The company provides automated shuttle solutions for operations by providing automated material handling solutions, warehouse execution software,
storage and retrieval. The products are powered by Honeywell and lifecycle services designed to increase their bottom lines and make digital transformations.
Intelligrated's innovative momentum warehouse execution system. AS/RS ◼ The company is prepared to provide customers with intelligent solutions expertly tailored to the
systems are a key component of integrated systems that combine the customer-specific operations in terms of material handling, automation, and warehouse
right mix of automation and software. The company’s robust AS/RS execution. The company focuses on organic growth through intensive R&D and technological
solutions provide the flexibility and speed for every application, from e- excellence to deliver customer value through innovative products and services. Furthermore, it
commerce and omnichannel fulfillment to grocery distribution and aims to expand its customer base and geographical footprint, particularly in high-growth
everything in between. Products in this segment include One-level regions.
Shuttle (OLS) System, Goods-to-operator Systems, High-volume Single ◼ In October 2019, the company established a “Robotics Innovation Hub”, called Honeywell
Aisle Shuttle (HVSAS) System, and High-volume Buffer Shuttle (HVBS) Robotics, aiming to develop artificial intelligence and machine learning for warehouse
System. technology.
◼ Sortation and Conveyor Systems: Honeywell Intelligrated offers robust ◼ The company believes that as artificial intelligence, machine learning, and computer vision
and diverse sortation and conveyor systems for addressing today’s become commonplace, it (Honeywell Robotics) is poised to create innovative, breakthrough
escalating commerce and manufacturing challenges. The company’s technologies to help customers alleviate skilled labor shortages, reduce safety risks, and
solutions cover the full spectrum of throughput requirements, up to eliminate inefficient tasks.
20,000 items per hour. ◼ Honeywell Robotics may also benefit from working with Honeywell Ventures (investment wing),
◼ Sortation systems: It includes sweeper sorters, cross-belt sorters, sliding which invests in robotics start-ups and academia, and Carnegie Mellon University's National
shoe sorters, tilt-tray sorters, push tray sorters, strip-belt sorters, popup Robotics Engineering Center. As of October 2019, Carnegie Mellon and Honeywell have been
wheel sorters, bomb bay sorters, and vertical sortation system. working together on robotics for more than a year.
◼ Conveyor systems: It includes pallet conveyors, accumulation ◼ The company has invested over 50 Million USD through Honeywell Ventures in 2019. These
conveyors, Transportation conveyors, and vertical indexing conveyors. investments aimed to provide access to emerging technologies in key focus areas, such as
warehouse automation and robotics, urban air mobility, and cybersecurity.
7.4 HONEYWELL INTERNATIONAL INC. - SWOT ANALYSIS
◼ Honeywell provides a broad portfolio of automation equipment,
warehouse execution system software, services, and support. ◼ Safety and Productivity Solutions sales decreased from USD 6,337
Furthermore, it has been at the forefront of warehouse automation million in 2018 to USD 6,104 million in 2019, primarily due to lower
technology for more than 25 years. organic sales and the unfavorable impact of foreign currency
translation, partially offset by acquisitions.
◼ Honeywell focuses strongly on R&D directed toward the discovery
and development of new products, technologies, and processes. It
aims to be a software-industrial company. As a part of its robotic
focus, the company is collaborating with AI researchers at Carnegie
Mellon University's National Robotics Engineering Center to develop
S W
breakthrough robotics technologies for distribution centers.
◼ The growing adoption of automation across different
industries, such as e-commerce and manufacturing, are ◼ Government enforcement actions are expensive to the enterprise
expected to create opportunities for the company’s Safety and and interrupt the regular operation of the company, and
Productivity segment. violations of data privacy laws can result in fines, reputational
damage, and civil lawsuits.
◼ A recent study by Honeywell shows that companies are
Planning to Increase Automation Investments due to COVID-19
◼ Sensing and IoT is a growing market as there is a rapid increase

in the internet population, and the company possesses the
potential and chance to rapidly develop and capitalize on this
market.
7.4 HONEYWELL INTERNATIONAL INC. - RECENT DEVELOPMENTS

E Partnership
Honeywell announced the signing of an

agreement with the retail supply chain services
provider, The Apparel Logistics Group, to help the
company expand the e-commerce order output
at its distribution center in Dallas. Under this
agreement, Honeywell Intelligrated plans to
provide automated material handling solutions to
The Apparel Logistics Group, a provider of third-
party logistics and order fulfillment services for
apparel, footwear, and accessories. OCT 2019
P E
SEP 2019 Honeywell International Inc. announced the creation of
Honeywell Robotics, an advanced technology center of
excellence focused on innovating and developing AI,
machine learning (ML), computer vision, and advanced
robotics for use across supply chains.

7.5 JUNGHEINRICH AG - OVERVIEW

◼ Jungheinrich AG is a global company in the material handling equipment, warehousing, and
material flow engineering sectors. The company manufactures battery, diesel, and gas-
powered merchandise stackers and forklifts. The products are used in warehouses, production
facilities, and point-of-sales retail storage.
Founded in 1953
◼ The company operates through two segments, such as IntraLogistics and Financial Services.
The Intralogistics segment encompasses the development, production, sale, and short-term
rental of new material handling equipment and warehousing equipment products, including Hamburg, Germany
logistics systems, along with the sale and short-term leasing of used equipment and after-
sales services.
http://www.jungheinrich.com/
◼ In 2019 Jungheinrich AG’s R&D expenditures were EUR 86 million, compared to EUR 84 million
in 2018. The number of patent applications was 149, and the number of patents granted was
127. 49 40 69480
JUNGHEINRICH AG
75.6% of Revenue Net Sales in EUR million, 2017-2019
EUR 4,073 million +18,381
Intralogistics
Net Revenue Employees
Segment
4,073
3,796
3,435
EUR 1,184.78
EUR 86 million 47.41%
million Revenue held by
Gross Profit on R&D Expenditure
Western Europe
Sales 2017 2018 2019
Source: JUNGHEINRICH AG Annual report published for the fiscal year ended December 2019

7.5 JUNGHEINRICH AG - BUSINESS SEGMENTS
JUNGHEINRICH AG JUNGHEINRICH AG
13.38%
Western Europe
24.4%
15.49% Germany
47.41%
Intralogistics Financial Services
Eastern Europe
23.72% Other Countries 75.6%
 As of the year ended December 2019, Jungheinrich’s revenue increased from  The Intralogistics segment registered a year-on-year growth by 3.95%, and the
the previous year by 7.3%. 87% of the total revenue was attributable to Europe. incoming orders of the business fields new truck business, short term rental and
The growth in revenue in Europe was primarily driven by the growth in used equipment and after-sales services came to EUR 3,992 million as
Germany, Italy, Poland, France, and the United Kingdom. compared to EUR 3,971 million last year.
 The foreign revenues increased by 9%, correspondingly. The foreign ratio  Financial services grew by EUR 160 million, or 19.10%, during fiscal 2019. The
amounted to 76%, compared to 75% in 2018. The revenue generated outside segment offers financing, leasing, and renting activities of equipment. The
Europe amounted to EUR 545 million, compared to EUR 500 million in 2018. company expects these activities to grow exponentially.

7.5 JUNGHEINRICH AG - SERVICES AND STRATEGIES

STRATEGIES
PRODUCTS OFFERED
Automated Guided Vehicles: Products from the offering are used in mixed
operations mode. Navigation of the product is done via laser navigation; hence TECHNOLOGIES ACQUISITIONS
no floor work is required. To achieve this, reflectors are attached to suitable
objects along the travel route, such as racking, columns, walls, or natural
landmarks.  Jungheinrich’s strategy is based on sustainable and profitable growth for increasing
company value. The company’s primary goal is to become the number 1 intralogistics
◼ ERC 215a - Automated Stacker
brand in all European markets and to be ranked among the top 3 global suppliers of
◼ EKS 215a - Automated Vertical Order Picker material handling equipment in the long term.
◼ ERE 225a - Automated Pallet Truck  Jungheinrich’s target is to achieve EUR 4 billion and an increase of 7% in revenue
annually by 2020. To achieve the 2020 goal, the company’s strategy is to focus on the
◼ EZS 350a - Automated Tow Tractor APAC market, especially China, and strengthen its core business, mail order business,
◼ EKX 514a/516ka/516a - Automatic high rack stacker logistics systems business, and counterbalance the truck business segment.
 The company focuses on providing automation solutions under its logistics systems
◼ ETX 513a/515a - Automatic high rack stacker
business, targeting APAC and European markets, as the regions hold 34% and 41% of
Automated Storage/Retrieval systems: The offering combines rack systems, the global market share of material handling equipment, respectively, according to
software, and operating equipment into a compact warehouse system. The the company.
 The company’s focus is on SMEs, for which it provides consulting and sales concepts
emphasis is on maximum dynamics and precision, given optimal energy
under its mail-order business segment. Concentration on online marketing activities
efficiency. The products can be customized according to the requirements of the will be paramount to acquire new customers. For instance, hagebau Logistik will rely
customers. The products include automatic pallet warehouse, automatic mini- entirely on Jungheinrich material handling equipment in the future. At hagebau
Logistik’s five logistics sites in Westerkappeln, Neumünster, Herten, Schleinitz, and
load warehouse, and dynamic small parts storage.
Burgau, various brands’ material handling equipment used to date will be replaced
by some 200 Jungheinrich trucks.

7.5 JUNGHEINRICH AG - SWOT ANALYSIS
◼ The company has the highest share of customers from the food ◼ There is a short-term pressure on margins due to investments
industry, which exhibits a low correlation with the economic into new products, the distribution network and manufacturing
cycle and adds strength to the company’s growth. facilities.
◼ The company has strong manufacturing capabilities that help it ◼ The implementation of Brexit, the high levels of debt in
to meet the growing demand for its products. countries, like Italy, and geopolitical uncertainties may have a
negative impact on economic stability as 87% of the revenue is
generated from Europe itself.
S W
OPPORTUNITIES
O T
THREATS
◼ Expansion of distribution networks in high-growth regions, like
◼ The material handling equipment market is characterized by
Asia and Latin America. This drives the demand for automation
fierce competition and increasing consolidation tendencies.
(material handling equipment), thus becoming an opportunity for
Therefore, unless the company continues to provide innovative
the group.
solutions, it cannot sustain in the market.
◼ The growth of e-commerce opened various avenues for the
growth of the company.

7.5 JUNGHEINRICH AG - RECENT DEVELOPMENTS

Jungheinrich AG acquired a stake in the Munich-based

robotics start-up Magazino. Representatives from the
two companies signed the corresponding contracts in
Dingolfing, near Munich. At the same time, Jungheinrich
and Magazino agreed on a broad strategic collaboration
and intended to combine their skill sets in the field of
mobile automation. SEP 2020
M P E
Jungheinrich started building a new logistics center for
SEP 2020 WEGMANN automotive in Veitshöchheim, Lower Franconia. APR 2019
This major project at the company’s headquarters is
scheduled to be completed by the end of 2021. WEGMANN
automotive is a market leader for balance weights and battery
bushings for automotive production. The company is the
exclusive supplier to Formula 1 and supplies all notable
automotive manufacturers and leading retail organizations.

7.6 MURATA MACHINERY LTD - OVERVIEW

◼ Murata Machinery Ltd entered automated material-handling in 1962, and it is one of the top
five installers of AMH systems. It offers products ranging from ASRS, AGV, monorail/transfer
vehicles to conveyors, WMS, and shuttle systems. The Muratec brand is a product brand that
serves as a testament to the reliability of Murata Machinery Group products and services.
Founded in 1935
◼ The company is into design, fabrication, installation, and personal service. The company boasts
of a huge installed product base, which it claims to be 24,000 S/R cranes, 6,000 AGVs, 11,000
systems, and system control on nearly every operation platform. Kyoto, Japan
◼ The company has an employee base of 3,100. It has 10 subsidiaries, including Cimcorp Oy,
Silex Technology Inc., and TMT Machinery Inc., etc. It is also a corporate brand that was https://www.muratec.net/
established in 1991 as a means of visually conveying the Murata Machinery Group corporate
philosophy and social responsibility. The company focuses on the creation of new
technologies, the provision of products that satisfy customers' needs, and innovation that can +81 756728111
help create a more prosperous society.
MURATA MACHINERY LTD
Revenue in JPY million, 2018-2020
JPY 2,99,439 million
+3,430 Employees
Net Sales 3,00,958.00 2,99,439.00
2,53,082.00
JPY 352,952 million
JPY 102,660 million
Total Asset
Gross Profit
2018 2019 2020
Source: Murata Machinery Ltd, Audited Financial Statements for financial year ended on March 2020

7.6 MURATA MACHINERY LTD - SERVICES AND STRATEGIES

PRODUCTS OFFERED
STRATEGIES
❖ Automated Storage and Retrieval Systems: The offerings include automated
solutions, which provide the optimal solution for pallet storage and retrieval.
❖ Pallet AS/RS: A three-dimensional structure AS/RS that provides the
optimal solution for pallet storage. In addition to an integrated construction
(building supported AS/RS), it is also possible to easily install a single three-
dimensional rack unit in the existing facility. Bucket AS/RS: Products of
indeterminate shape, as well as loose and small parts, can be stored in
buckets in the Bucket AS/RS. Free-Size AS/RS: Flexible storage for products
regardless of size, shape, or weight. Depending on specific features of the ◼ The company expects to expand the boundaries of technological advancement,
stored products, it is possible to store in or retrieve products using the provide meaningful products that enrich the lives of the customers, bring
hoisting carriage Moving Rack: The aisle space required by moving rack is prosperity to employees, and lead society to a better tomorrow.
much less than that of a fixed rack and thus provides twice the storage ◼ The company has a high focus on customers’ satisfaction, quality control, and
efficiency of fixed shelves. Vertical Rotating Shelves (Auto-Shelves), and
R&D. The company is a solution company that accurately grasps the flow of the
Refrigeration/Freezing type AS/RS: Constant control of temperature and
times and constantly focuses on bringing the world new technology that the
humidity for storage of refrigerated and frozen products.
❖ Transportation Systems company needs.
❖ Magnetic-guided automated transportation vehicles (AGV), Laser-guided ◼ In June 2020, it partnered with Prestar Resources Bhd for the supply
automated transportation vehicles (LGV), Automated transportation & of automated storage and retrieval system (ASRS) racking systems for Murata’s
sorting vehicles (RTN-X), Overhead transportation systems (SKY RAV), global market. The collaboration will enable both companies to leverage their
Conveyor systems
respective core for greater success in the factory automation sector.
❖ Picking Systems
❖ Layer picking system/Vision sensing palletizing, de-palletizing robot/ ◼ The company is likely to continue to benefit from strategic acquisitions and
Genetic algorism palletize system, Digital picking system partnerships with other leading global companies. For instance, it has acquired all
❖ Sorting Systems the share of Horibe Machinery, a leading manufacturer of machine tools. Through
❖ Steal-belt sorter/Tilt-tray Sorter this acquisition, Muratec is strengthening its core competencies and is able to
❖ Chute Sorter/Cross Belt Sorter / In liner provide unique production systems that can fulfill the needs of its customers for
further enhancement of productivity.

7.6 MURATA MACHINERY LTD - SWOT ANALYSIS
◼ The company’s advanced solutions and improved international ◼ Language barriers within the company create a communication
delivery model allows it to sustainably improve its market gap, which, in the long run, lead to the poor performance of
share. the company.
◼ Murata has recently acquired AGVE AB, which has bolstered its
◼ The company has a huge presence in the domestic country,
product portfolio and increased its scope for the possible
Japan, thus high dependency on the local market. It should
customers it can cater to.
expand its presence in other countries in order to expand its
◼ The company caters to a wide range of end users, thereby business, as well as to reduce the risk over the local market.
S W
extending its presence in various domains.
O T
◼ Using technological developments in systems, as reflected by the company’s ◼ Continuous competition from the industry’s top five players
new product development and investment in R&D. regarding revenue.
◼ In addition to that, its ability to form strategic partnerships to attain
technological knowledge as well as to expand its business. For instance, in ◼ Changing government regulations and taxation systems may
2019, it signed an agreement on a strategic partnership with US material expose the company to risks.
handling system supplier Alert Innovation, Inc. Though this the company will ◼ New players with disruptive technology can change the market
get the technological knowledge on the ALPHABOT system (developed by scenario rapidly, which provides practically no time for the
Alert) and will have exclusive rights to market and sell, design, manufacture,
company to adjust to such changes.
and service systems based on ALPHABOT throughout Japan.

7.6 MURATA MACHINERY LTD - RECENT DEVELOPMENTS

Murata Machinery Ltd signed a contract with Alpen

Co. Ltd for the construction of Japan’s first 3D robot
warehousing system, “ALPHABOT.” ALPHABOT will be
introduced at the Alpen Komaki Distribution Center,
one of Alpen Group's main distribution centers, with
the aim of complementing its storage capacity and
reducing picking, sorting, and packaging operations
by approximately 60%. The system is scheduled to go
into operation in July 2021.
P
AUG 2020

7.7 KNAPP AG – OVERVIEW

◼ Knapp AG is engaged in providing all-in-one intralogistics solutions, automated warehouse
systems, and logistics software solutions. The company caters to customers from various
industries, such as healthcare, retail, and food retail.
◼ KNAPP is building an innovation center that may incorporate a showroom and 500 office
workstations at the headquarters in Hart bei Graz, Austria. The company’s smart software solutions Founded in 1952
cover all levels, from warehouse management to individual optical sensors, guaranteeing
performance, productivity, and transparency, along the entire supply chain.
◼ The company delivers one-stop intelligent automation solutions and all-in-one services, such as Hart bei Graz, Austria
consulting, sales and design engineering, project management, production, installation and
startup, and customer service and support.
https://www.knapp.com/
◼ During fiscal 2018, the company recorded an order intake of EUR 926 million. This enabled the
company to increase the R&D budget exponentially. KNAPP IT Solutions provides the control for
complex and highly technological products such as dynamic shuttle systems (OSR Shuttle Evo), +43 5 04952 0
industrial robots (Pick-it-Easy Robot), driverless transport systems (Open Shuttles), and other
pioneering innovations, globally.
KNAPP AG
EUR 954.27 EUR 65.19 Revenue in EUR million, 2017-2019
million +5000 million
Revenue Employees Net Operating
Income 954
632 710
EUR 47.82
EUR 41.5
million
million
R&D 2017 2018 2019
Net Profit
Expenditure
Source: KNAPP AG Financials as per D&B Hoovers for the year ended in March 2019.

7.7 KNAPP AG – PRODUCTS

PRODUCTS
• KNAPP Medication Dispenser: It is an innovative automation solution for fast,
 Automated Picking:
efficient, and accurate picking of patient-specific orders into vials.
• Automatic picking is particularly useful in high-performance applications or when • Automatic Tablet Dispenser: It is a fully automatic picking solution for picking
consistent quality and performance are required over long periods of time, as the individual tablets required for specific patient prescriptions.
autopickers or robots take care of order processing.  Conveying and Sorting: Conveyors play an important role within intralogistics
systems, as they supply and interconnect areas used for storage and picking, or for
• The company offers several picking systems catering to different turnover rates production and assembly. KNAPP has an extensive portfolio of conveyor systems
and article characteristics. KNAPP technologies like KiSoft RF, KiSoft Voice that are tailored to a wide range of requirements.
Picking, KiSoft Pick-to-Light, and Vision Manual Picking provide support in • Streamline and Powerline: The classic conveyor system Streamline, which is used
manual picking areas. for containers, cartons, and trays, together with Powerline, which is used for pallets,
• Paperless picking systems guarantee efficient and accurate order processing in is ideal for high-performance applications. Streamline is the KNAPP group’s
manual picking areas. KNAPP has a range of paperless picking systems on hands container and carton conveyor system. Powerline is the KNAPP group’s pallet
conveyor system.
such as Voice Picking, Vision Manual Picking, KiSoft Pick-to-Light, and RF picking.
• Overhead Conveyor systems: These flexible and powerful systems bring new
• Goods-to-person: This picking guarantees an ergonomic way of working and momentum to warehouse processes, particularly when combined with the innovative
efficient order processing. The company has an extensive range of goods-to- Sorter Pocket. It is designed to convey goods on hangers.
person workstations such as KiDesign, easyUse, and Pick-it-Easy • Open Shuttle: These are automated guided vehicles (AGVs) that can move
completely freely across available spaces without any guiding lines. Open Shuttles
• Central Belt System: The Central Belt System is an all-in-one, automatic picking
are ideally suited for complex conveying jobs within a warehouse. The flexible Open
solution.
Shuttles support numerous processes in the warehouse, combining flexibility,
• KNAPP-Store: The KNAPP-Store is an innovative storage and picking system economy, safety, efficiency, and scalability.
used along the entire pharmaceutical supply chain, whether in wholesale or for • Puck conveyor system: Pucks are reliably transported by the puck conveyor system.
online pharmacies. Pucks are special holders in which objects are conveyed while held in a specific
orientation.
• Pick-it-Easy Robot: It is an industrial robot developed for automatic picking. The • The KNAPP group also offers various solutions for sorting and sequencing
Pick-it-Easy Robot works flexibly and individually not only when it comes to bin shipments efficiently, such as the OSR Shuttle Sorter, the innovative Sorter Pocket or
picking, but it also acts flexibly and offers various functions when moving the the Split Tray Sorter.
article to the target position.
7.7 KNAPP AG – PRODUCTS AND STRATEGIES

PRODUCTS
STRATEGIES
 Software: With smart software solutions, the company covers all software levels,
from warehouse management to controlling individual optical sensors, thereby
guaranteeing performance, productivity, and transparency along the entire supply
chain. The product line KiSoft and SAP EWM by KNAPP are products that offer TECHNOLOGIES PARTNERSHIPS
customers the best of both software worlds.
• KiSoft: KiSoft is the KNAPP group’s own software product line. The extensive
KiSoft series has been tried and tested countless times and combines a wealth of
experience with innovation. ◼ The campus at Dobl is the development center for innovative technologies for
• SAP EWM: It is the right solution for anyone wanting to implement an SAP IT industry and logistics. The strategic location in Dobl with good transport links is
strategy and looking for an outstanding logistics solution. opening new opportunities for the company as several of its current employees
 Storage: Automated storage systems play a central role in an intralogistics are from Carinthia with excellent skills.
system, efficiently storing a large proportion of stock in minimal space.
◼ The company is planning on numerous new developments and innovations to
• OSR Shuttle Evo: It is essentially designed as a storage and picking system and is
gain a strong position in the automation and management of storage and
uniquely versatile. The OSR Shuttle contains racks, shuttles, lifts, and a pre-zone,
production processes; hence, the increase in R&D expenses year-on-year.
as well as customized software.
• Fastbox: Fastbox is a fast storage and buffer tower with an integrated lift system. ◼ The company has numerous partnerships with several companies and educational
It is usually connected to a Pick-it-Easy workstation. The Fastbox complies with institutions, such as Alpha Nova, BVL, Consumer Goods Forum, ECR Austria, EHI
the strictest security standards in the same way as the OSR Shuttle station. It is the Retail Institute, Erlebniswelt Wirtschaft, GIRP, Trade Association, Ökoprofit Graz,
ideal addition to a storage system, like the OSR Shuttle. SAP, Styrian Service Cluster, VLB, Wiki, htl Kapfenberg, htl Weiz, etc. This helps the
• Smart Shuttles: Shuttles with its all-in shuttle concept making complex tasks company undertake various research initiatives on a timely basis.
manageable. Storage, picking, buffering, sequencing, replenishment, and supply; ◼ Knapp is moving aggressively into the pharmaceutical industry. For instance, the
the all-in shuttle simplifies and consolidates a multitude of warehouse processes, company expanded its participation in the KHT/Apostore Group to 100% at the
new generation of shuttle systems the OSR Shuttle Evo. beginning of 2018. Apostore develops and produces pharmacy auto pickers for
The company offers a wide range of products in this market. Only the significant ones are pharmacies, hospitals, and wholesale.
listed here.

7.7 KNAPP AG – SWOT ANALYSIS
◼ The company continuously invests in R&D activities. It invested ◼ There is a visible gap between production and distribution, due
EUR 47 million in R&D activities in 2019. About 6% of the to lack of proper efficiency in production.
revenue of the previous year was invested in R&D activities. ◼ Lack of proper presence in the global market has been one of
◼ Its presence in diverse industries makes sustainable the factors inhibiting the company’s growth into a global brand,
development possible. The company's growth in healthcare with increased income.
from the previous year and presence in the fashion and lifestyle
sector has been the key to its growth.
S W
OPPORTUNITIES
O T
THREATS
◼ In Germany, the production capacity in the area of sorter
◼ Increasingly faster delivery times, highly dynamic brick-and-
technology is undergoing an expansion, leading to new
production areas and campus, along with site and infrastructure mortar business and e-commerce, changing and
expansion in the United States and the United Kingdom, due to unpredictable markets, and consumer behavior are the
increasing demand for intralogistics solution. The company has factors that are expected to hinder the company’s growth.
been increasing its globalization activities and is planning to focus ◼ The company faces intense competition in the market with
on the expansion of its global network. new organizations that are entering the market with
disruptive technologies and innovative ideas,

7.7 KNAPP AG – RECENT DEVELOPMENTS

Zalando commissioned Knapp to automate its new distribution

center in Bleiswijk near Rotterdam. The new online distribution
center of 140,000 m² will be equipped with a combination of
shuttle system and pocket sorter technology to ensure the
The company partnered with Selfar SA. Selfar SA is highest efficiency and flexibility. Zalando invested EUR 200
expected to open a logistics center in 2020, where million \ in the overall project. Out of all nine logistics locations
Knapp would be providing all the shuttle solutions, of Zalando, the new distribution center in Rotterdam will have
which would help Selfar SA to expand. Knapp is the highest degree of automation. The logistics center will
expected to deploy its OSR Shuttle Evo system provide a space for around 16 million articles, with several
comprising two rack line systems. OCT 2019 hundred thousand items leaving the warehouse on peak days. JAN 2020
P P P I
SEP 2019 Apostore GmbH became the official partner of the NOV 2019 KNAPP exhibited its innovations in robotics at
Zukunftspakt Apotheke launched by Noweda LogiMAT. The company’s industrial-grade solution
Apothekergenossenschaft eG. The collaboration will Pick-it-Easy Robot is a powerful and intelligent
help the developer of automation solutions for the robot station for fully-automatic single-item
healthcare sector in maintaining comprehensive stock picking. KNAPP launched the latest generation of
at brick-and-mortar pharmacies. The aim is to develop pick-it-easy robots, by presenting it for the first
digital solutions to foster customer loyalty and time at the LogiMAT.
improving customer service. Apostore is a 100 %
subsidiary of KNAPP AG.

7.8 TGW LOGISTICS GROUP GMBH - OVERVIEW
 TGW Logistics Group provides reliable and sustainable

supply chain technologies, products, and turnkey solutions.
The company, which is owned by TGW Future Private
Foundation, implements customized internal logistics
solutions, ranging from small material handling
applications to complex logistics centers worldwide.
 The solutions delivered by the company include project-
specific intralogistics solutions, including mechatronic
equipment, controls, robotics, and software that will grow
Founded in 1969 and develop over its lifetime to meet the customer's
changing requirements.
 The company has a strong employee base of 3,200 spread
Wels, Austria across 23 different facilities in the United States, the United
Kingdom, France, Spain, Benelux, Switzerland, Italy, Austria,
Germany, Sweden, Poland, Turkey, and China.
https://www.tgw-group.com/
 TGW has been successful in implanting its solutions in
various industries, such as apparel, grocery, general
merchandise, e-commerce and omnichannel, spare parts
+43 72424860
and components, and third-party logistics.
 In the business year 2019/2020, the TGW Logistics Group
generated revenues of EUR 835.8 million, which exhibited
an increment of EUR 115.8 million from the previous year.
The company EBIT has increased to EUR 37.1 million.

7.8 TGW LOGISTICS GROUP GMBH – PRODUCTS
 Automated Mini-Load Warehouse (Storage Systems): The offering is a single-mast storage and retrieval machines (SRM) capable of storing loads at heights of up
to 25 meters, the twin mast machine STRATUS is used for heavy load trays with a weight of up to 300 kg, and for several load-handling devices (LHD). The offering
includes Mustang, Stratus, Twister, Spectra, And Combi Telescope devices.
 Unit Load S/R Machines (Storage Systems): These pallet storage and retrieval machines allow for extremely high throughput performance for payloads of up to
1500 kg. Its Customized TGW Commander IT and controls solution optimizes all TGW storage and retrieval equipment.
 Lifting Beam Machines (Storage Systems): TGW’s Commissioner can be implemented in storage applications with a lifting beam length of up to 10 meters and a
height of up to 20 meters. COMMISSIONER machines may be used as standalone solutions or blocks depending on the customer's requirements.
 Robotics and Automation: In order to simplify material handling processes and increase handling efficiency, these robotic and gripping solutions carry out a variety
of different automation tasks. When these robots are integrated with TGW’s 360° logistics solutions, they help the company to step into the age of Industry 4.0 and
intelligent warehousing. It comprises of Industrial Robots, Gantry Robots, Palletizing, and Depalletizing Robots, and Stacking and De-stacking Robots.
 Carton and tote conveyor system: Its TGW’s Natrix Shoe Sorter provides high-performance sortation of goods with very different dimensions into multiple
discharge lanes on both sides of the machine. It has a capacity to deliver up to 12,000 cartons or totes (400 x 400mm / 16” x 16”) per hour, each weighing up to 50kg
(110lbs).
 Unit Load Conveyor System: Its ULC Conveyor Elements consist of Straight Conveying and Transfer Elements. Its Straight Conveying’s Roller conveyors are used to
transport pallets, grid boxes, and similar conveyor goods with unit weights of up to 1,500 kg (3306 lbs).

7.8 TGW LOGISTICS GROUP GMBH - PRODUCTS AND STRATEGIES

PRODUCTS OFFERED
STRATEGIES
FlashPick: The offering is an automated split case picking, which consists of
innovative software to manage the system’s high-performance and provides
efficient handling. Products from the offerings include;
◼ TGW PickCenter ONE (high-performance picking workstations support high TECHNOLOGIES ACQUISITIONS
throughput capacities while optimizing worker ergonomics)
◼ TGW Stingray Shuttle (capable of operating at heights up to 82 feet (25
meters) and it delivers the shortest lead times and enables high storage
density with the tightest possible distances between the stored goods to ◼ TGW Logistics' growth strategy is to have satisfied customers, both internal and
maximize storage volume in a small footprint) external. The company focuses on developing a global supplier network to have a
◼ TGW KingDrive (adapt to unique facility requirements and can be expanded one-point sale purchase development and to cut the additional cost of having the
and adapted with modular drive rollers as needs change) same department at every location.
◼ TGW Software Suite (organizes automated warehouses, keeps track of stock, ◼ The company focuses on innovation for offering solutions for omnichannel and e-
controls the movement of all goods, optimizes material flow, picks and commerce challenges. In 2019, TGW focused on automating the entire order
dispatches goods, and allows managers to monitor end-to-end system status. fulfillment with the innovative zero-touch hanging bag solution through its
OMNIPICK: The offering is a smart PTG (person-to-goods) or GTP (goods-to- OmniPick pocket sorter solution. This OmniPick features automatic loading by the
person) order fulfillment solution for zero-touch operation; the system robot as well as automatic unloading.
automatically adapts to changing order structures. Based on research from the ◼ The company provides various offerings through its projects in various locations,
fields of artificial intelligence(AI), machine learning(ML), and smart robotics. which also increases its brand awareness and provides an opportunity to
TGW’s pocket sorter system is capable of preparing the intralogistics for the showcase its solutions. For instance, in Feb 2020, TGW equipped the third
challenges of the future while setting new standards in terms of flexibility, greenfield facility in a row with highly automated conveying and sorting
productivity, and momentum. technology. In another project for Europe´s leading online platform for fashion
Shuttle and Miniload System (Storage Systems): It provides direct handling of and lifestyle in Northern Italy, the acceptance is planned for mid-2020. This deal
a broad range of goods and sizes, giving high storage density and energy was in between TGW and Zalando.
efficiency. These automated storage solutions can be tailored to warehouses that
are up to 82 feet (25 meters) high and more than 328 feet (100 meters) long.
7.8 TGW LOGISTICS GROUP GMBH - SWOT ANALYSIS
◼ The company possesses the capability to offer ◼ Supplier dependency is high, and the company is still
project-specific intralogistics solutions in expanding the supplier base to overcome this. The dependency
can lead to high order backlog, which might reduce customers’
various geographic locations to the customers satisfaction.
with its innovative approach.
◼ Its presence in government deemed "essential" industries such
as grocery and industrial goods ensures a regular source of
income.
S W
O T
◼ The changing political and economic scenario is an
◼ Strict regulations for labor safety and the efficient use of space
expected threat, as the business is mostly in
are the factors making industries look for MH equipment. The
developed/developing economies.
development of the intralogistics industry is expected to lead to
the growth of the company. ◼ The emergence of new players providing similar solutions
might lead to a decrease in the profit margins for the
company.

7.8 TGW LOGISTICS GROUP GMBH - RECENT DEVELOPMENTS
TGW announced that it started building a highly

automated intralogistics system in Berkel and
Rodenrijs for Fource. By carrying out this project, the Zhongjing Semiconductors partnered with TGW in building a
customer will bundle its intralogistics at one location and high-performance combination system near Shanghai. The
taking an important step in optimizing the supply chain, system consists of an automatic mini-load warehouse and
where FlashPick is the core of the highly automated Commissioner lifting beam system. Plans call for the system to
solution. JUL 2020 go live as soon as mid-2021.
E P P
FEB 2020 OCT 2020
TGW is the key partner for the fully robotised fulfillment
center for Picnic in the Netherlands. The online supermarket
will use a FlashPick® system, which is powerful but flexible at
the same time, with three temperature zones and a shuttle
system at the core of the solution.

7.9 KARDEX GROUP- OVERVIEW

◼ Kardex AG is a global industry partner for intralogistics solutions and a leading supplier of
automated storage solutions and material-handling systems. The company operates through two
operating segments; Kardex Remstar and Kardex Mlog.
◼ The Kardex Remstar division develops, produces, and maintains shuttles and dynamic storage and
Founded in 1898
retrieval systems, and Kardex Mlog provides integrated automated material handling systems and
automated high-bay warehouses. The company’s portfolio of products includes dynamic storage
and retrieval systems, storage and retrieval machines, and conveyor systems. Zürich, Switzerland
◼ The company also provides individual storage, office technology, material handling, and
automation solutions. It operates worldwide through its subsidiaries. Remstar is a global market https://www.kardex.com/
provider of dynamic storage, retrieval, and material-handling solutions. Kardex Mlog has a strong
position in Central Europe for automated stacker cranes, conveyor systems, and automated
+ 41 44 4194444
material-handling systems.
KARDEX GROUP
EUR 471.2 1,913 EUR 171.3 Revenue in EUR million, 2017-2019
million Employees million
Revenue Gross Profit 471.2
423.4
376.1
EUR 392.4 million of +30

Revenue Gross Profit
Countries
from Kardex Margin 36.4%
2017 2018 2019
Remstar Segment
Source: Kardex Group, Annual report for financial year ended on December 31st, 2019

7.9 KARDEX GROUP- BUSINESS SEGMENTS
KARDEX GROUP KARDEX GROUP

6.5% 0.9% Europe 16.8%

18.8%
Americas Kardex Remstar
Asia-Pacific Kardex Mlog

73.8%
83.2%
Middle East and Africa
 Revenues increased particularly strong in the major European countries, North  Bookings increased by 1.91% for the Kardex Remstar segment to EUR 388.6
America, and China for Remstar. In the Middle East & Africa, however, revenues million; revenues increased by 12.9% during fiscal 2019, owing to the reduction
remained at a low-level due to political and economic uncertainties. of internal logistics costs and investments made in the sales teams and sales
methodology. The revenue from the segment generated in 2019 was EUR 392.4
 Americas accounted for 18.8% of the revenue of EUR 88.5 million, Kardex Mlog
million as compared to EUR 347.5 million in 2018.
benefited in particular from the high-level of investment activities in Germany,
 OEM sales channel revenues declined due to internal organizational
Austria, Poland, Slovakia, and the Czech Republic.
challenges. Bookings decreased by 36% to EUR 64 million for the Kardex Mlog
 The Asia-Pacific region observed significant growth from EUR 25.9 million
segment in 2019 as compared to EUR 100 million in 2018. The revenue
during 2018 to EUR 30.5 million in 2019. The region accounted for 6.6% of the
generated by the segment in 2019 was EUR 79.1 million as compared to EUR
total revenue generated by the company in 2019.
75.9 million in 2018.
7.9 KARDEX GROUP - SERVICES AND STRATEGIES

PRODUCTS
STRATEGIES
◼ Storage Retrieval Machines (SRMs): The company has a wide portfolio of
products in this segment. More than 3,000 SRMs in use throughout the world.
They are modular and configurable, with maximum output with minimum
energy consumption. Some of them include: TECHNOLOGIES ACQUISITIONS
◼ MDynamic: Automatic storage container consists of automatic storage and
retrieval machine with telescopic table, racking, picking station, and Autom.
Storage location management.
◼ MDynamic and LR 35: The system consist of container buffer storage with ◼ Kardex plans to increase its investment in other automated technology provider
high-performance picking modules (Kardex Remstar LR 35) in the e-commerce companies in order to strengthen its intralogistics solutions. For instance, it has
environment. Properties include automatic container and picking warehouse, acquired the majority share in Robomotive -- the company develops and
clear ABC article structuring, and high throughput. The combination is implements smart robot technologies. With this investment, Kardex is expanding
particularly suitable for heterogenous order structures with a karge variety of its range of services in the field of order picking.
articles in an e-commerce environment. ◼ Product innovation is focused on speed and availability to meet the clients’ very
◼ Vertical Carousel Storage System: It is designed for parts storage and order first needs. The sales approach is increasingly focused on the dedicated industry
picking applications handling like-sized items, carriers can be subdivided for a segment solutions.
customizable solution. With a maximum height of 32 feet, the vertical carousel ◼ For instance, it showcased its innovative intralogistics solutions for the e-
storage solutions are most used in operations with ceiling heights of 15 to 22 commerce industry at LogiMAT 2019. The company’s solutions based on modular
feet. logistics systems and intelligent software elements are catering to increasing
◼ Vertical Lift Modules: VLMs are the perfect systems for parts storage and order demands on intralogistics and material flow. This helps the company by increasing
picking and can be combined with barcode scanners, conveyor systems, lifting its visibility in the market.
devices, and robotic technology to create a fully-automated process.
◼ Marketing efforts have started to penetrate additional markets, with a focus on
◼ Horizontal Carousel: The Kardex Remstar Horizontal carousel is used wherever
emerging economies, especially in Asia and Eastern Europe.
it is essential to store and retrieve goods quickly, reliably, and cost-effectively,
whether in the area of production or distribution or for applications with high ◼ The company is expected to continue sales push in North America and Asia-
retrieval rates or moderately fast- and slow-moving goods. Pacific, alongside an effort to stabilize the business in the Middle East & Africa.

7.9 KARDEX GROUP - SERVICES AND STRATEGIES
◼ Material Flow Systems: Material flow control processes can be managed ◼ MCrossDrive 3D system solution: It is an implementation of especially
more rapidly and more efficiently with the Kardex Mlog Control Centre economical and efficient transport solutions. The shuttle makes use of
(MCC). From user administration through interface networking and robust and low-maintenance rail construction, which requires significantly
visualization of the entire facility to an intelligent energy management lower investment than conventional continuous conveying technology. It
system, the MCC offers flexible solutions for your material flow system. It performs a taxi function that secures the material flow between the
provides a high level of flexibility through which different packages or individual stations and processes such as goods receipt, picking, and goods
individual modules can be integrated into the warehouse management issue. It is designed to accommodate containers, and its high travel speeds
system. In addition, the system can be individually tailored to meet your and efficient energy usage enable continuously high goods-handling loads.
requirements.
Conveyor Systems: The company manufactures all the key components in-
Storage Technology: The company offers advance storage technological house to ensure reliable and smooth operation, even under adverse
systems, which reduce the space requirement by approximately 10% compared environmental conditions and temperatures. It presents a high-load handling
to the conventional high-bay warehouse with double-deep storage. Some of capacity with outstanding energy efficiency.
them are mentioned below
◼ Chain Conveyor: The offering transports the load in a transverse direction
◼ MSpacer: The offering is an automated telescopic fork, which is jointly
and has optional lateral guide rails. It is used for europallets, industrial
developed with a German research institute and is used to store pallets in pallets, cage pallets, and special pallets with a conveying speed of 0.2- 1
the back row on the same level as those in the front row. This means that m/s.
the user can use more storage space efficiently.
◼ Roller conveyor: The offering transports the load in a longitudinal direction
◼ MMove: Offering is the new universal transport platform for pallets and and provides load guidance with wheel flanges. It is used for europallets,
cages, etc., up to a weight of 1,200 kg; With reduced acceleration and industrial pallets, cage pallets, and special pallets with a conveying speed of
speed. The energy supply is provided by powerful energy storage devices, 0.2- 1 m/s.
MMove communicates with its environment and provides information on
current orders and statuses.

7.9 KARDEX GROUP - SWOT ANALYSIS
◼ The company's core strength has been its presence in the
◼ The company has a production base solely in Germany. This
market, for more than a century. Furthermore, the wide range
may make it vulnerable to the import-export regulations
of product offerings at different geographic locations helps in
maximizing the company’s revenue. imposed by regions the customers of the group belong to.
◼ The company is concentrated mostly in the European market,

◼ Continued investments in employee development, in the
products and solutions portfolio, and in the digitalization of which has limited the amount of exposure to other markets,
processes indicate its sustainable and profitable growth such as Asia, which is growing exponentially. Also, it has a huge
strategy. dependency on Europe, as 73.8% of revenue was generated
S W from it.
O T
◼ Increasing demand for warehousing solutions, driven by strong ◼ Increasing labor and material costs may affect the operations of
e-commerce market growth, would stimulate demand for space- the company.
efficient storage systems and can be a great money-making
opportunity for the Kardex Group. ◼ Unstable economic conditions in various regions, such as Brexit,
high inflation rates, and lack of ideal conditions for the growth
◼ Increasing demand for stand-alone logistics systems across of business could affect the company.
regions has provided numerous opportunities for the growth of
the companies

7.9 KARDEX GROUP - RECENT DEVELOPMENTS

Kardex acquired the majority share in the Dutch company

Robomotive, which develops and implements smart robot
technologies. Robomotive's unique selling point is mimicking the
adaptive eye-hand coordination of humans with the help of robots,
3D cameras, grippers, and smart software algorithms. This
combination of soft- and hardware makes it possible to recognize,
locate, and grip objects without the need for teach-in processes.
Through this investment, the Kardex AG group is expanding its
range of services in the field of order picking. AUG 2020
M M
MAY 2020 Kardex invested in the start-up company Rocket
Solution GmbH, based in Unterhaching near Munich.
The company develops innovative, standardized
automatic storage and retrieval systems of the latest
generation. Its innovative technology features open
IoT and Web interfaces and can therefore be easily
integrated into complete systems. Through Rocket’s
innovative technology, Kardex is taking another step
towards standardized sub-systems and expanding its
portfolio in the strategically important light goods
area.
7.10 MECALUX SA – OVERVIEW

 Mecalux SA provides storage system solutions, including
design, manufacture, sale, and servicing of steel rack,
warehouse automation, and other storage solutions.
Through its technological centers, the company is also
involved in the design and manufacture of warehouse
storage equipment and solutions.
 The Mecalux group has a few brands operating under the

company’s group, such as Esmena and Interlake. The
company has an extensive distribution network in Europe,
Latin America, and North America with sales in more than
Founded in 1966 70 countries.
 The company has 11 production centers in Spain, Poland,

Silici, Cornellà, Barcelona the United States, Mexico, Brazil, and Argentina, and it
operates through its 10 subsidiaries. The company has its
own technological centers in Spain, Poland and the United
https://www.mecalux.com States, with offices in Barcelona, Gijon, Gliwice, and Chicago.
 The company offers warehouse storage solutions, such as

+34 931 221 460 pallet racking, picking, cantilever racking, and Automated
warehouses for pallets and boxes.
 The end-user industries that the company deliver its

products and solutions are automotive and auto parts,
chemical and pharmaceutical, retail, food and beverage,
industrial manufacturing, third-party logistics (3PL), and
consumer electronics.
7.10 MECALUX SA – PRODUCTS

PRODUCTS
 Warehouse Management System: Easy Mecalux WMS
• Easy WMS can control a manually operated warehouse run by paper or
radiofrequency devices, a mixed warehouse, or a large automated warehouse with  Storage systems: The company provides complete automated warehouse
the same efficiency. solutions for various storage units type, including pallets and boxes. The wide
portfolio of the offerings includes, but is not limited to:
• It is powerful and versatile software with multi-owner, multi-site, and multi-
language functionalities, which streamline warehouse management, no matter the  Automated warehouses: Automated warehouse are for automating solutions
size or type of warehouse is running. It controls, coordinates, and manages all for managing and optimizing the storage, preparation and dispatch of goods.
movements, processes, and operations, multiplying profitability in all areas: receipt,  Automated warehouses for pallets:
storage, picking, and dispatch of exit orders.
• Automated solutions for the reception, storage, and outbound operations of
• Easy WMS comes in three different packages to suit a company’s specific business palletized items. This improves the speed and safety of the storage procedure.
requirements and reduce setup costs, such as Pro, Advanced, and Enterprise. The offering includes complete automated solutions to enable customers with
• The company also provides solutions, such as Easy Mecalux Basic and Easy automated material handing solutions, such as Stacker cranes for pallets,
Mecalux Education. automatic pallet shuttle, automatic trilateral stacker cranes, automated
warehouses for boxes, and stacker cranes for boxes.
• Easy WMS features:
➢ Stacker cranes for pallets: These machines designed for the automated
➢ Flexibility, adaptability, and scalability. storage of materials. They travel along the aisles of the warehouse, where they
➢ Real-time inventory control. enter, position, and extract materials.
➢ Customer service ➢ Automatic trilateral stacker crane: The automatic trilateral stacker crane is a
fast an economical way to automate warehouses.
➢ Manage workflows
➢ Pallet Conveyor Systems: Set of elements designed for transporting,
➢ Integrate with any ERP
accumulating and/or distributing goods to specific positions required by the
➢ Profitability logistics operations.
➢ Automation of the flow of information and processes
7.10 MECALUX SA – PRODUCTS AND STRATEGIES
PRODUCTS STRATEGIES
 Automated warehouses for boxes: Automatic storage systems for boxes or
trays integrating the shelves, machinery, and warehouse management
software into one single product. The offering is an integration of automated
systems in handling process. Solution includes automated stacker cranes, TECHNOLOGIES ACQUISITIONS
automatic shuttles, sorters, etc.
➢ Stacker cranes for boxes
➢ Box Conveyor Systems: The distances within an installation can be covered  The company’s growth strategy is based on the investment in R&D, new products
by different transport devices, which are combined with requirements of and services, logistics portal, and their automated products and solutions. It offers
functionality and frequency. a variety of products specific to client needs, like conveyors, handling and lifting
 Storage Solutions: Under storage solutions, the company provides Movirack system forklifts, pallet trucks, and warehouse vehicles, containers, pallets, and
mobile pallet racking, which is automated for the convenience of moving the receptacles.
whole rack.  Mecalux Group's growth and development strategy is based on the opening of
 Automated storage with pallet shuttle: The offering is an incorporation of new branches, the expansion of its sales distribution networks, its automated
automated equipment in handling process of high-density warehouses. warehouse division, and the logistics portal Logismarket. The company has strong
Automated pallet shuttle with LGV, automated pallet shuttle with transfer car, long-term relationships that they maintain with their clients. The company is
and warehouse management solution. committed to provide them with, and, when applicable, maintain for them,
products and services that are safe and of excellent quality.
 The company also offers racking and shelving, Pallet racking offering
solutions, such as drive-in pallet racking, mobile pallet racking Movirack, live  Thriving on its innovative motions, Mecalux has ambitious expansion plans. It has
pallet racking, and pallet shuttle. consolidated its status as an across-the-board supplier of warehouse and
technological solutions, in order to remain at the forefront of the industry and
offer solutions developed in accordance with its clients’ needs.

7.10 MECALUX SA – SWOT ANALYSIS
◼ The company is a one of the market leaders in Spain, and this ◼ Operating with production centers and distribution centers in
factor has enabled it to control the market and expand as only the Western hemisphere has led to high response time for
opportunity comes. customers located in distant areas. This has reduced the growth
of the company.
◼ Advantages of Mecalux over its competitors are the existing
distribution and sales networks, skilled workforce, high growth
rate, experienced business units, monetary assistance provided,
reduced labor costs, etc.
S W
O T
◼ The market being located strategically near production centers ◼ Big players have been diversifying their markets in areas
provides the opportunity to provide flexible services, as served by the company, thereby, intensifying the
compared to the competitors. competitiveness in the market.
◼ High demand, new markets, new products and services, ◼ Change in technology at a very fast rate threatens to make
acquisitions, growth rates, and profitability are some of the the present products obsolete and competition is growing as
opportunities for the company. well. For example tax changes in the international and
national scenarios and rising cost of raw materials.

7.10 MECALUX SA – RECENT DEVELOPMENTS

NouveauxMarchands.com automated its

warehouse management with software from
Mecalux. It is an e-commerce business
specialising in household goods. It has optimised
operations at its distribution center in Gémenos,
France, with the implementation of Mecalux’s
Easy WMS warehouse management system. OCT 2020
E
JULY 2020 Eurotex, a leading manufacturer and distributor of
high-quality industrial and decorative paints, seeked
to make its online channels more efficient. The
company will revamp and streamline its logistics
processes with the construction of a new warehouse
in Seville, Spain, and Mecalux will assist Eurotex in this
endeavor by installing pallet racks and the Easy WMS
warehouse management system.

7.11 BEUMER GROUP GMBH & CO. KG - OVERVIEW
 BEUMER Group GmbH & Co. KG develops and produces

intralogistics systems. The company specializes in
designing technologies for loading, conveying,
palletizing, sortation, and distribution. It has operations
in the United States, the United Kingdom, India, Mexico,
Australia, Germany, Denmark, Brazil, and China.
 The company has a 4,000-strong workforce spread over
70 countries.
 The company has been focusing on conveying and
loading technology where they supply pipe conveyors for
Founded in 1935 complex and long-distance applications, palletizing
technology where BEUMER robotpac and BEUMER
paletpac series offers a diverse and broad range of
Beckum, Germany capacities and packing patterns, sortation and
distribution systems. The company supplies advanced,
computer-controlled distribution systems for e-
https://www.beumergroup.com commerce and mail order companies, package and
parcel express couriers, and even frozen food
distributors.
+91 124 4799999  The company and its subsidiaries serve many industries,
including cement, fertilizer, food and beverage, chemical,
post and parcel, warehouse logistics, and others,
spreading over countries, such as Germany, Denmark,
India, the United States, the United Kingdom, Australia,
China, and Mexico.

7.11 BEUMER GROUP GMBH & CO. KG - PRODUCTS AND STRATEGIES

PRODUCTS OFFERED
STRATEGIES
◼ Palletising and Depalletising : Palletising of load units is done by its two products; Beumer
Paletpec (particularly suited for sensitive bagged goods, granulated material and pulverized or TECHNOLOGIES ACQUISITIONS
micronized products) and Beumere Robotpac (it features energy efficiency and maximum
accuracy when the layers are formed on pallets. They are also suitable for bagged products and
 For intralogistics companies, the comfortable market situation brings challenges when it
can be reconfigured very easily for frequent product changes). comes to quality and adherence to schedules. To face these challenges, BEUMER Group has
committed itself to its ‘The best, not the biggest’ strategy.
There are various industry solutions required for handling materials, some are-
 BEUMER Group continues to build on its already extensive experience of supplying
 Conveying and loading in the mining industry: It comprises overland belt conveyor, pipe baggage handling systems and solutions to airports across India. Till date, it has supplied
either baggage sorters or complete baggage handling systems to all airports in the country
conveyor, and bucket elevator. that have required automated, high-speed sortation, including Delhi Airport T3, Kolkata
International Airport and Mumbai T3. Also, in October 2019, BEUMER Group was selected
 Beumer Group Logistic Systems: It comprises Automatic Parcel Singulator, ls-4000flexbelt.
by Bengaluru International Airport in India to supply its new second terminal with flexible
and efficient baggage handling systems that support increased capacity.
 The company tries to permanently improve products and launch new ones to increase the
its competitiveness, so that the customers can reduce their costs and optimize their
processes. These are the strategies planned by the company.
 Over the next five years, BEUMER Group is expected to focus consistently on product and
system quality, in line with its aforementioned strategy.
 The company offers designs builds and installs systems tailored in detail to the specific
project requirements, and the company group will continue to expand internationally and
fill in the gaps on the BEUMER Group globe. The goal of the company is to be able to care
for its customers intensively.

7.11 BEUMER GROUP GMBH & CO. KG - SWOT ANALYSIS
◼ Diversified global presence, strong operational capabilities, and ◼ The Group manufacturers different variants of conveyors for
the ability to serve diverse industries are the key to success for different applications. For the manufacturing of these
the BEUMER Group. variations, the group relies on selected suppliers for the camera
systems or sensors. This increases the risks when calculating the
◼ The company has a strong consumer base in Asia, which has
scope of services and developing the schedules.
been providing substantial orders for the growth of the
company.
S W
O T
◼ The e-commerce boom in industrial countries and emerging ◼ Rapid technological change and global economic instability
markets provide huge money, thus, making opportunities for may affect the operations of the group.
BEUMER Group.
◼ The company needs to expand its consumer base to build a
diversified source of income and mitigate from various risks.

7.11 BEUMER GROUP GMBH & CO. KG – RECENT DEVELOPMENTS
BEUMER offered tailor-made systems for the entire

material flow chain, from receiving and unloading
Kuwait International Airport opted for a tote-based the delivery vehicle to storing, sampling, and
baggage handling system of BEUMER Group for its conveying the materials. The system provider
iconic new Terminal 2 airport project. Once developed a screw weigh feeder suitable for a variety
operational, it will bring Kuwait at the forefront of of materials to provide precise and controlled
global aviation. JUN 2019 feeding.
E P I
APR 2019 Davert GmbH partnered with BEUMER Group to get JAN 2020
BEUMER stretch hood A for packaging its palletized
organic products. Davert GmbH specializes in
organic foods and stands for continuous and further
development of processing methods and careful
monitoring of these products.

7.12 SSI SCHAEFER AG – OVERVIEW
◼ SSI Schaefer AG provides complete solutions from a single

source. The company manufactures all its own components,
from racks to fully-automated systems. The company has
ten production facilities that manufacture its products and
systems using advanced technology.
◼ With 70 subsidiaries operating around the world and more
than 9,500 employees, the company has a strong presence
Founded in 1937 in the material handling market.
◼ SSI Schaefer AG operates as a solution provider and
Neunkirchen, Germany component manufacturer in logistics systems, storage and
conveying, workstation, logistics software, and waste
https://www.ssi-schaefer.com/ management technology sectors.
◼ It offers SAP consulting, project management, and SAP MFS
+32 2 7250240 integration services; WAMAS, an integrated solution for
controlling and optimizing logistics processes; order picking
systems; business process consulting, training, and
commissioning services; and automatic systems, manual
systems, and supply chain execution services.

7.12 SSI SCHAEFER AG – SERVICES AND STRATEGIES

PRODUCTS OFFERED
STRATEGIES
 SHELF-RETRIEVAL MACHINES (SRM): The offering provides automated pallet
handling and maximize efficiency, provides rapid access, integration of the
solutions via. SSI Schaefer's Wamas software, and complete solutions from a
single source. Offering includes Schaefer Lift&run and Exyz Storage-retrieval TECHNOLOGIES ACQUISITIONS
Machine.
 High Bay Warehouse: SSI Schaefer also offers fully-automated storage
systems containers, cartons, or trays
 SSI Schaefer believes in expanding and developing forward through
 AUTOMATED GUIDED VEHICLES (AGV): AGVs have become an integral part
of the solution portfolio for fully-automated intralogistics systems. The AGV comprehensive technological advancements.
fleet from SSI SCHAEFER features a range of solutions for large and small load
carriers. AGV WEASEL, AGV 2Pick, AGV 2Stack, AGV 2Store, and AGV 2Move.  The company strives to provide complete solutions from one source and highly
 Conveying and Transporting Large Load Carriers: Pallet conveying systems, customized and task-based solutions for every industry need.
roll container conveyors, plastic link conveying systems, tray conveying systems
 Container Handling Systems: Automatic container handling ensures a rapid  It offers material handling products, which can be used with the existing third-
material flow and significantly enhances productivity. The automatic container party logistics and warehouse software, like SAP. It also provides independent
handling systems from SSI SCHAEFER carry out the individual steps of the
container handling process at the speed of the goods flow. warehouse management software for the customers.
 Depalletizing and Palletizing: Fully automatic systems for palletizing and
depalletizing represent an economically advantageous solution for
implementing a fully automated process chain. At the same time, they also
ensure consistent performance regardless of external influences.
 Automated Order Picking: SSI SCHAEFER picking systems ensure maximum
productivity and an optimum material flow in warehouse.

7.12 SSI SCHAEFER AG – SWOT ANALYSIS
◼ The company works as a long-term partner by providing ◼ The company is heavily dependent on intralogistics, which has
customer all solutions at one window, along with providing led to a loss of revenue from other domains of logistics.
broad spectrum of solutions for almost all load carriers
◼ Low focus on new market trends has resulted in low
◼ The products have long-term productivity and throughput adaptability of the company to latest trends.
through high quality and reliable components.
S W
O T
◼ New mobility trend in the market studied provides immense ◼ Operating its business from multiple locations makes the
opportunity for investments. company prone to currency rate changes.
◼ Emergence of new-middle class with the increasing disposable ◼ Raw material procurement from different countries may be
income and increase in e-commerce activities in the market risky, as there is no global regulation.
studied, with rapid developments also offer opportunities for the
growth of the company.

7.12 SSI SCHAEFER AG – RECENT DEVELOPMENTS

SSI Schaefer expanded the AGV competence. In
order to meet the increasing demand for SI Schaefer and the solution provider of automatic picking and digital
Automated Guided Vehicles (AGVs), SSI Schaefer applications, BD Rowa, agreed to continue to collaborate. The two
expanded its product portfolio in this future- companies extended the corresponding contract by five more years.
oriented area by cooperation with and The aim of the cooperation is to provide customers in the healthcare
investment in the Austrian AGV specialist DS sector an overall solution to prepare them for future processes, such as
Automotion. e-prescriptions or establishing Hub & Spoke models.
NOV 2019 JAN 2020
P P P
Misumi, a global manufacturer and provider of mechanical
JUNE 2018
components and indirect materials for special machine
construction and assembly automation, commissioned SSI
Schaefer to implement a new logistics center in Frankfurt/Main.
Until the beginning of 2020, the distribution center with a
capacity for 450,000 items in about 10,000 sq m of storage area
will be built in several stages.

7.13 VANDERLANDE INDUSTRIES BV - OVERVIEW

◼ Vanderlande is one of the prominent vendors for value-added
logistic process automation at airports, and in the parcel
market. The company is also a leading supplier of process
automation solutions for warehouses.
◼ Vanderlande’s baggage handling systems move 4.2 billion

pieces of luggage around the world per year, which is
equivalent to 11.5 million pieces of luggage per day. Its
systems are active in 600 airports, including 14 of the world’s
top 20. The company employs over 6500 employees
worldwide and generated a revenue of EUR 1,563 Million in
the previous fiscal year.
Founded in 1949
◼ More than 20 million parcels (300 packages per second) are
sorted by its systems every day, which have been installed for
Veghel, Netherlands a variety of leading parcel companies. In addition, 12 of
Europe’s top 20 e-commerce businesses and many
distribution firms have confidence in Vanderlande’s efficient
https://www.vanderlande.com
and reliable solutions.
(041)349-4949 ◼ The company has been focusing on the optimisation of its

customers’ business processes and competitive positions.
Through close cooperation, it strives for the improvement of
their operational activities and the expansion of their logistical
achievements. Vanderlande’s extensive portfolio of integrated
solutions – innovative systems, intelligent software and life-
cycle services, which results in the realisation of fast, reliable,
and efficient automation technology.

7.13 VANDERLANDE INDUSTRIES BV - PRODUCTS AND STRATEGIES

PRODUCTS
◼ Warehousing Solutions ◼ Airports
▪ Logistic Services : Vanderlande’s logistic services solutions can be as fundamental as streamlining ▪ PAX CHECKPOINT combines state-of-the-art automated
support for numerous suppliers. It can also be as complex as taking full control of the operations. screening lanes with a configurable multiplex screening software to
Vanderlande can be a partner in logistic services, taking over the logistics operations of the create a fully integrated checkpoint solution. Being scalable and
company entirely. flexible, it offers increased throughput and an improved passenger
➢ AIRPICK combines efficient picking with flawless automated sortation to individual orders in experience while allowing for easy expansion.
pocket sorter, AIRTRAX Pocket. ▪ BAGFLOW is a scalable, modular and innovative concept that
➢ FASTPICK is a goods-to-person order fulfilment system that uses the advanced ADAPTO shuttles integrates the complete journey of a bag. BAGFLOW guarantees
for product storage and retrieval for day-to-day operations. success for airports, airlines, and passengers. It creates a stable and
resilient baggage flow that handles more bags in the same
➢ HOMEPICK is a goods-to-person order fulfilment system designed to support food retail
footprint, optimises resources, and keeps costs under control.
operations. It facilitates the fast and efficient processing of online grocery orders.
▪ FLEET is a flexible and sustainable baggage logistics solution. By
➢ STOREPICK is a robotised, end-to-end warehouse solution that allows to optimise the processes of
using autonomous vehicle technology and intelligent software, it
the entire value chain.
enables the seamless handling of individual bags or ‘batches’ of
◼ Parcel Solutions bags (in uniform loading devices – ULDs – or carts) inside the
▪ Vanderlande offers a range of CROSSORTERs, including the 700, 1200, and 1500 varieties. These baggage hall and up to the aircraft stands on the apron. FLEET
systems provide highly flexible solutions to handle products up to 1,500 x 800mm (including odd- consists of three individual solutions that can be used either
shaped item individually, or as part of an integrated end-to-end baggage
handling concept: FLEET Bag, FLEET Batch and FLEET Apron.
▪ Vanderlande’s COMPAXORTER provides a highly flexible solution to handle a wide range of
products, from very small (as thin as 2mm) through to larger parcels (up to weighing 10kg). ▪ The VIBES software suite, which provides flexible, effective, and
integrated control. It is a smart solution that fully supports
▪ The Telescopic Belt Conveyor is a solution for handling the loading and unloading of parcels.
baggage handling operations, from check-in through to final
▪ VISION software suite offers a flexible, modular solution for end-to-end planning and control. It is reconciliation and loading. Its highly accurate tracking-and-tracing
crucial to be able to optimise processes every day, or even every hour. VISION provides an functionality means passengers can always be kept informed of the
operational performance dashboard that supports daily planning, gives real-time information on status of their belongings. This results in fewer delays, a reduction
system status, workload and performance, and allows remote access to the total sorting system. of mishandled bags, and accelerated turnaround times.
This enables operations to be constantly monitored and offers the decision support intelligence
needed for scheduling, planning, and forecasting to a hub’s management.
7.13 VANDERLANDE INDUSTRIES BV - STRATEGIES
STRATEGIES
◼ Vanderlande has enhanced its strategy to focus on key customers. This gives the company the foundation to discuss what takes
precedence for it as a business, thereby, prioritizing customers or operations to provide a smooth and efficient experience.
◼ As such, it needs to satisfy at least two of the three criteria - customer, solution, and geography (in this order). Highlighting
Vanderlande’s increased focus, its long-term partnerships drive the company’s research and development and life-cycle services
activities.
◼ Vanderlande is careful to avoid unwanted levels of risk by not agreeing to accept every new order. ‘Sustainability’ is evident in the
company’s long-term vision, with respect to the environment.

7.13 VANDERLANDE INDUSTRIES BV - SWOT ANALYSIS
◼ Strong solvency ratio indicates the company’s financial strength ◼ Vanderlande has recently enhanced its strategy to focus on key
to take on future ventures customers. The company is now more focused, and selling
more overall. With this in mind, there are occasions when the
◼ The company’s advanced solutions and improved international demand for its solutions is larger than its capacity to supply
delivery models has allowed the company to become a major those.
player in the market.
◼ High degree of dependency on airports has resulted in various
complications for the company
S W
◼ Increasing passenger number with higher expectations and ◼ Constantly changing international laws and regulations related to
tighter security legislation, is leading to investment in smarter, airports increase the volatility and risk associated with the
digital technology, and high-level security in airports. business
◼ The improvement of the company's operational activities and ◼ Increasing automation and IT-related operation could disrupt the
the expansion of the logistical achievements have been aiding existing technologies in the domain
the growth of the company.

7.13 VANDERLANDE INDUSTRIES BV - RECENT DEVELOPMENTS

Vanderlande created the HOMEPICK, based on a M Merger and Acquisition I Product Innovation E Expansion P
E Partnership
goods-to-person (GtP) picking solution that
makes use of ADAPTO, Vanderlande’s unique 3D,
shuttle-based automated storage and retrieval Vanderlande is set to be highly involved in Walmart
system (AS/RS). It is ideal for food retailers that Canada’s USD 3.5 billion investment plans over the next
want to realise economies of scale through five years, which are aimed at generating significant
centralised fulfilment centers (CFCs). By using growth and improving the online shopping experience for
ADAPTO and modular workstations, HOMEPICK’s its customers. The investment will lead to faster e-
scalability also makes it future-proof. The commerce processes and see the construction of two new
sequenced flows of orders ensure the right order distribution centers (DCs) to speed up the flow of products.
per delivery route and maximum delivery Vanderlande is set to be involved at the Vaughan site,
performance, which results in significant time and where it will furnish a 550,000 ft2 DC with next-generation
SEP 2020
cost savings. automation technology. The facility is scheduled to open in
2024.
P E
.
JUL 2020 German hypermarket chain Kaufland selected Vanderlande to OCT 2019
install a new robotised, end-to-end automated case picking (ACP)
warehouse solution at its Geisenfeld distribution center (DC) near
Ingolstadt. Vanderlande has already equipped four Kaufland DCs
in Germany with advanced automation technology, as well as one
in Poland. A sixth site in the Czech Republic is also under
construction. At its Geisenfeld DC, Kaufland will use Vanderlande’s
next-generation STOREPICK solution for the first time to handle
both incoming and outgoing goods, and guarantee store-friendly
deliveries across multiple store formats.
7.14 WITRON LOGISTIK - OVERVIEW
 WITRON Logistik is involved in the planning and

realization of highly dynamic storage systems and
picking systems in intralogistics.
 The company classifies its broad portfolio into four
segments, namely Logistics Design, Information and
Control Technology, Mechanics Design, and Mechanics
Production. The company generated 70% of orders
from Europe and the remaining were generated from
North America.
Founded in 1971
 The company offers individual service and operator
models that are customized as per user requirement. It
Parkstein, Germany also designs and implements innovative logistics and
material flow systems with ergonomic workplaces and
processes that offer customers sustainable competitive
http://www.witron.de advantages.
 Top companies throughout Europe and North America
0049 9602 600 0 have been operating their distribution centers
efficiently with WITRON‘s solutions. WITRON is
recognized for having more than 2,200 implemented
logistics projects.
 The company has approximately 4,000 employees
worldwide and EUR 600 million revenues as of 2019.

7.14 WITRON LOGISTIK – PRODUCTS AND STRATEGIES

PRODUCT
STRATEGIES
Automated Storage and Picking System
◼ Automated Tote System: The offering enables fully automated picking of
shipping totes, which have already been filled with goods from the in-house
production department or by the supplier. These totes are automatically TECHNOLOGIES ACQUISITIONS
collected in ATS, buffered, picked, stacked onto a dispatch unit in a customized
and/or store-friendly manner, and staged for outbound delivery.
◼ Box Order System (BOS): The product is used for picking and stacking
standardized totes/cartons/beverage boxes.  The company is focused toward expanding its operations worldwide to strengthen
its global footprint. The company is partnering with several companies worldwide
◼ Dynamic Picking System - The highly dynamic and automated picking of
to implement this strategy. The company began construction of the sixth fully
small parts in DPS is supported by a pick-by-light system. DPS works according
automated frozen food logistics center for the market-leading Spanish food
to the principle goods-to-person or person-to-goods. Depending on the order
retailer, Mercadona.
structure, the articles are provided permanently or on demand in the pick front,
enabling continuous optimization.  Moreover in March 2020, the company was hired by De Leeuw, a leading food
retailer in Belgium to expand its automated flow-through freshness logistics
◼ Forklift Guiding Systems - The forklift guiding system ITM (Integrated Transfer
center in Zellik. The output of the plant is expected to increase by 40% post
Management) ensures the transport optimization in a manual warehouse -
expansion which is expected to complete by mid-2022.
starting with the inbound registration, via the storage process, the relocations
and order picking through to dispatch. Many other functions like automated  The company also expanded its performance portfolio by marking its footsteps as
order assignment, route optimization of the forklift trucks, or the creation of a service provider for the entire warehouse operation, using its own personnel -
packages are also integrated in this solution. The inventory process is also from receiving, over the logistics processes, order picking, route scheduling,
supported by the forklift guiding system. dispatch, through to administrative tasks, such as human resources, occupational
safety, property protection, and cleaning.
◼ Other types of Automated Storage and Picking Systems are - E-DPS basic
module (Ergonomic-Dynamic Picking System), Optimal Fresh Picking  WITRON demonstrated its newly developed Box Order System (BOS), at its
(OFP), Display Pallet Picking, Order Picking Machinery, and Food Multi headquarter, to a host of logistics experts from the food retail, beverage
Channel (FMC). companies, industrial bakeries, etc. Compared to a conventional warehouse
logistics, the BOS convinces with its cost-effectiveness, efficiency, flexibility, and
ergonomics.
7.14 WITRON LOGISTIK - SWOT ANALYSIS
◼ The company has been actively providing product offerings for
◼ The company is highly dependent on the food and beverage
legacy and automation systems, which lead to the creation of a
retailers for its logistics operation. Lack in diversification in its
customer base with varied number of consumers.
market presence may lead to reduction in revenues and
◼ The company caters tailor-made products to its customers, profitability.
which has resulted in high customer loyalty.
◼ The company also lacks collaborations and acquisitions, which
has led to the slowdown of the company’s growth.
S W
OPPORTUNITIES
O T
THREATS
◼ Expansion of warehouses, as well as storage systems of major
food and confectionary manufacturers will provide the company ◼ Paradigm shift of the distribution logistics, which may lead to
with several opportunities to enter diversified markets in different continuous digitization of value-added supply chain, may
regions. hamper the demand for the company’s solutions due to a lack
in continuous innovation.
◼ Increase in revenue by diversification and product differentiation
may establish sustained revenues for the company. ◼ Lack of presence in many major markets may reduce the
◼ The focus on automation in the coming years may lead to the exposure for the company and opportunity for growth.
growth of the market.

7. 7. KEY VENDOR PROFILES
7.15 ORACLE CORPORATION – OVERVIEW

◼ Oracle Corporation engages in the provisioning of products and services in the field of
information technology. The company operates through the segments of Cloud and On-premise
Software, Hardware, and Services. Oracle has 287 office locations around the world in 73
countries with its primary locations in the United States, the EMEA and Asia-Pacific.
◼ Oracle cloud license and on-premise license deployment offerings include Oracle Applications, Founded in 1977
Oracle Database, and Oracle Middleware software offerings. The Hardware segment comprises
hardware products and hardware-related software products, including Oracle engineered
systems, servers, storage, industry-specific hardware, virtualization software, operating systems, California, The United States
management software, and related hardware services, including hardware support. The Services
segment comprises consulting services, advanced support services, and education services. https://www.oracle.com
◼ The company offers products and solutions that cater to various end-user industries, such as
industrial manufacturing, automotive, construction and engineering, public sector, and utilities. +1 800 633 0738
The company offers infrastructure and middleware products, which are highly useful to
application integrators and developers.
ORACLE CORPORATION
Revenue in USD million, 2018-2020
USD 39.06 USD 10.13
+135,000
billion billion 39,831
Employees
Revenue Net Income 39,506
39,068
USD 13.89 55% of the
billion Revenue Share
Operating by United 2018 2019 2020
Income States
Source: Oracle Corporation, Annual Report for FY 2020; Revenues as of year ended May 31, 2020

7.15 ORACLE CORPORATION – BUSINESS SEGMENTS
ORACLE CORPORATION ORACLE CORPORATION

Revenue Share (%), By Product Segment, 2020 Revenue Share (%), By Geography, 2020
7.95% 16.56%
8.81% Cloud and License
Americas
Hardware
55.19% Europe, Middle East
28.25%
Services Asia - Pacific
83.24%
◼ The cloud services and license support revenues increased as more customers ◼ Total revenue growth in the EMEA and Asia-Pacific regions were partially offset
purchased applications and infrastructure technologies via cloud deployment by a decline in the Americas region. Revenues were adversely impacted due to
models and license deployment models and renewed their related cloud the COVID-19 pandemic.
contracts and license support contracts to gain access to their latest
technologies and support services. ◼ Most of the cloud and license revenue came from the Americas. The Americas
were contributing to 56% of the cloud and license revenue as compared to 28%
◼ The Hardware business’ revenue decrease was due to reductions in the and 16% of EMEA and Asia-Pacific, respectively.
hardware products revenues and hardware support revenues, primarily due to
the emphasis placed on the marketing and the sale of their cloud-based ◼ The Hardware revenue was mostly contributed by America, which was 51%, and
infrastructure technologies EMEA and Asia-Pacific at 29% and 29%, respectively. The Americas were
contributing 48% of the Service revenue, and EMEA and Asia-Pacific
◼ The Services business’ revenue fall was attributable to declines in consulting contributed 32% and 20%, respectively.
revenues and education revenues.

7.15 ORACLE CORPORATION – PRODUCTS AND STRATEGIES

◼ Oracle Transportation Management (OTM) Cloud provides a single platform for
PRODUCTS companies to manage all transportation activity throughout their supply chains.
The solution allows companies to minimize cost, optimize service levels, and create
flexible business process automation within their global transportation and
◼ NetSuite Application Suite: It is a cloud-based ERP solution that is generally logistics networks. Oracle Transportation Management Cloud enables companies
marketed to small to medium-sized organizations and is designed to run back- to manage their transportation networks on a global basis in terms of supply chain
office operations and financial processes, and includes financial management, flows, modes of transport, and geographic area.
revenue management and billing, inventory, supply chain and warehouse ◼ Oracle Warehouse Management Cloud introduces supply chain execution
management capabilities, among others. solutions and robust extended warehouse management functionality at
significantly lower total cost of ownership. The solution is highly configurable for
◼ Infrastructure offerings also include new and innovative services such as the Oracle
rapid, cost effective implementation with the added structure to change and
Autonomous Data Warehouse Cloud Service, Oracle Autonomous Transaction evolve. Oracle Warehouse Management Enterprise Edition Cloud offers robust
Processing Cloud Service and emerging technologies such as IoT, digital assistant, multichannel functionality, which enables complete warehouse and logistics
and Blockchain. fulfillment from any browser-based device. The solution includes inbound and
outbound fulfillment execution, yard management, cross dock and to-store
◼ Oracle Autonomous Data Warehouse Cloud Service (ADW): It is designed to be
management, value-added services, as well as reverse logistics, which deliver
a fully managed, high-performance and elastic service optimized for data management of inventory from manufacturer to distribution center to store, and
warehouse workloads. ADW’s self-patching and self-tuning capabilities are ultimately to the consumer.
designed to enable upgrades while the database is running, eliminating human
◼ Oracle Global Trade Management Cloud uses an integrated logistics framework,
error. Oracle ADW automates manual IT tasks such as storing, securing, scaling and
a solution that delivers unparalleled visibility and control over both orders and
backing-up of data. In addition, the machine learning based technology of ADW is shipments. Oracle GTM Cloud enables companies to optimize and streamline
designed to enable customers to deploy new or move existing data marts and business processes related to crossborder trade by layering trade data and
data warehouses to the cloud. milestones over the physical flow of goods. With well structured compliance
policies and trade automation tools to help implement and enforce, companies
can begin to achieve best trade practices across and beyond the organization.
Oracle Global Trade Management Cloud acts as a centralized trade data repository
for all legal, regulatory, and corporate trade compliance purposes. This centralized
approach creates greater visibility and control over the end-to-end trade
processes, eliminating silos and fostering information sharing.
7.15 ORACLE CORPORATION – PRODUCTS AND STRATEGIES
STRATEGIES
TECHNOLOGY ACQUISITIONS
◼ Oracle is focusing on investing in the R&D of artificial intelligence, analytics, cloud computing, blockchain, and advanced computer architecture, as innovation is a
core element of the company’s strategy. The company dedicates resources to R&D and related product and service opportunities through internal investments and by
the acquisition of intellectual property from companies they have acquired.
◼ With the constant investments in R&D, the company is aiming to enhance its existing portfolio of offerings and products, primarily to develop new technologies and
services. Oracle is focusing its developmental efforts on improving the performance, security, operation, and integration of its existing technologies, primarily to
improve the computing performance of its products and services, to compete with the offerings of its competitors. The company also aims to be more cost-effective,
while developing technologies that can be easier for the customers to deploy, manage, and maintain.
◼ Oracle expects to continue capitalizing on acquisitions. The company made 16 acquisitions over the last three years. These acquisitions have led to an increase in the
company’s revenue and customer base. Through the acquisition activities, the company seeks to strengthen its product offerings, accelerate innovation, meet
customer demand more rapidly, and expand partner opportunities.
◼ Oracle acquired Crowdtwist, a leading cloud native customer solution on October 2019. Furthermore, it acquired Livedata Utilities (industry solutions) and Sauce video
(industry application) in March 2020.

7.15 ORACLE CORPORATION – SWOT ANALYSIS
STRENGTHS WEAKNESS
◼ The company has established a strong software business, which
◼ The company is in deep debt. As of May 31, 2020, the company
has enabled it to maintain a stream of recurring revenues. The
had an aggregate of USD 71.6 billion of outstanding debts. The
company adopts an inorganic growth strategy to enhance its
company will have to manage its business operations, in order
products and services and expand its customer base. to generate enough cash flows to pay the debts.
◼ Oracle has a diversified geographic presence and customer base.
The company has strategically expanded its presence across the
world with a huge distribution network that can reach majority of
its potential markets worldwide. It has offices in 73 countries.
S W
◼ The worldwide demand for cloud computing services is expected ◼ Intense competition from rivals could impact Oracle's
to rise significantly in the coming years. Its strong portfolio of operations and business prospects, resulting from fewer
cloud products is expected to provide Oracle a better growth customer orders, reduced pricing, lower revenues, or lower
opportunity to gain new customers and increase its revenues. profits.
◼ The number of connected devices in the industry are increasing ◼ Oracle conducts its businesses in various foreign currencies,
rapidly, owing to the increased adoption of IoT, which could fuel which exposes it to currency fluctuation rates. The company
market growth, as well as provide better opportunities for the established a program that offsets the risks associated by
providers, to penetrate the untapped market across the world. entering foreign-currency-forward contracts, so that, increases
or decreases in foreign currency exposures are offset by gains.

7.15 ORACLE CORPORATION – RECENT DEVELOPMENTS

The company reintroduced Oracle Content and

Experience, enabling organizations to utilize one
universal asset hub to intelligently apply digital
assets across both front and back-office
applications spanning HR, ERP, SCM, CRM, and CX
applications. Built on Oracle Cloud Infrastructure,
Oracle Content and Experience merges and
expands on what traditional content
management systems and digital asset
management tools are usually relied upon.
JULY 2020

7.16 ONE NETWORK ENTERPRISES INC. - OVERVIEW

◼ One Network Enterprises was created with a vision to
create consumer-driven business networks. The
founders developed a network platform that enabled
entire business communities to collaborate and work
together to serve the consumer.
◼ In 2013, the company was awarded the patent for

intelligent demand sensing and forecast adjustment.
One Network became the subject of pioneering
research in Science of Theoretical Minimums in Supply
Chain at University of North Texas.
Founded in 2002
◼ In 2019, the company released NEO Platform 3.0 to
accommodate One Network’s rapidly evolving
Dallas, Texas, United States intelligent agent technology and to incorporate new
NEO-driven UI that helps users find and fix problems
faster and more effectively.
https://www.onenetwork.com
◼ The company offers its solutions to industries such as
automotive, manufacturing, parcel carriers, logistic
9724553538 service providers, and consumer goods.
◼ The company’s client list is vast and consists of brands

such as Albertsons, Philip Morris, XPO Logistics, DHL,
Coles and Argos.
◼ The company has partnered with brands such as

Cognizant, Tech Mahindra and Resolve to further
innovate and offer superior products to customers.
7.16 ONE NETWORK ENTERPRISES INC. - PRODUCTS AND STRATEGIES

PRODUCTS ◼ The Inventory Planning Network Service provides sense-and-respond agents to
◼ The Scheduling Network Service provides a set of business process and user help you automatically calculate ideal inventory policies, such as safety stock,
interfaces for scheduling access to shared resources. For example, scheduling dock across the inventory.
door deliveries to distribution centers and other warehousing locations.
◼ ONE’s Manufacturing Network Service provides features such as factory-floor
◼ The Transportation Management (TMS) Network Service covers all aspects of management, production order management, bill of materials management,
Transportation execution, including carrier tendering, shipment tracking, carrier demand translation and more.
contract management, transportation optimization algorithms, and more.
◼ ONE’s Order Management Network Service provides a full end-to-end solution
◼ ONE’s Asset Management Network Service provides functionality for managing for the management of multiple order types, including Purchase Orders, Sales
the lifecycle of serialized assets, including tracking and maintenance. Orders, Deployment Orders and more. It also supports Contract Management and
numerous vendor analytics.
◼ Blockchain-enabled chain of custody for real-world applications like lot splitting
and merging, and partial chains of custody. ◼ The Replenishment app provides a rich set of sense-and-respond agents which
◼ Community Master Data Management Network Service enables multi-party help to automatically re-order product based on both long-term projected
networks to connect to ONE’s Community Master Data service for sharing and demand and near-term execution realities.
replicating master data in a federated network. ◼ The Sales and Operation Planning Network Service allows ONE to conduct
◼ One Network’s Control Tower is a network-based Command & Control SNOP planning, marrying it with actual execution data from other ONE Network
Monitoring station, that gives insight and control over the client’s network. Service and legacy sources.
◼ Demand Planning app provides traditional demand forecasting algorithms, along ◼ Social Network Services provides unstructured collaboration tools that include
with additional innovations such as Continuous Forecasting. Chat, with point-to-point live chat; Chat Rooms for group discussions and Blipper,
a twitter-like micro-blogging platform. Blipper enables the client to follow people,
◼ The Financials Network Service provides an implementation of financial business companies and products on the network, and broadcast to their followers.
processes including invoicing, invoice holds, and the management of financial
accounts. ◼ The Warehouse Management (WMS) Network Service covers all aspects of
Warehouse operation, including the modeling of warehouse locations, tracking of
◼ The Supply Demand Match (SDM) Network Service provides a rich UI
inventory (including lot & serial assets), cycle counting, license plating and more.
environment for visualizing and reconciling supply and demand in an international
setting. Orders can be prioritized and allocated among multiple ocean containers ◼ The Yard Management app allows the client to manage trailers in a yard,
to optimize the supply chain. providing visibility into current yard slots and operations like check-in/check-out.
7.16 ONE NETWORK ENTERPRISES INC. - PRODUCTS AND STRATEGIES

STRATEGIES
◼ One Network optimizes, automates, and tracks execution of the entire inbound and outbound logistics lifecycle, from order to delivery,
for a global, multi-modal network with thousands of transportation providers.
◼ One Network’s Logistics Control Tower assists companies with streamlining transportation and appointment scheduling functions to
drive on-time performance, improve supply chain visibility and predictability, and reduce overall transportation costs.
◼ One Network eliminates silos, unifies the end-to-end process, and brings unprecedented resilience, efficiency, and shared business
benefits to the entire logistics network of shippers, 3PL’s, carriers, and service providers.
◼ After more than 14 years of research, development and testing, One Network’s patented cloud platform, The Real Time Value Network,
has proven itself to simplify business systems technology, increase speed and agility, and deliver higher service levels at dramatically
lower costs.

7.16 ONE NETWORK ENTERPRISES INC. - SWOT ANALYSIS
◼ The company invests heavily in R&D, constantly aiming to ◼ The company has a one-track portfolio that does not explore
innovate and present next-gen technology to customers. This various aspects of the market, thus limiting the company’s
has provided them with a solid foothold in the market. market presence.
S W
◼ Growing demand for sortation systems is expected to offer
◼ The company faces a threat of competitors who possess large
potential opportunities for the company’s sortation systems
amounts of capital that give them an edge over ONE NETWORK.
revenue over the forecast period. The company recently came
up with Robotics Center of Excellence, which can open the
doors for a vast range of opportunities in the region driven by
innovation

7.16 ONE NETWORK ENTERPRISES INC. - RECENT DEVELOPMENTS

E Partnership
One Network Enterprises announced the availability of a

Telematics-Enabled Control Tower with real time tracking
through its Telematics Network. For global carriers,
freight forwarders and other logistics service providers,
the solution includes pre-integrated connections to
telematics services, making it easy to connect and
collaborate with shipping partners on One Network’s
Real Time Value Network, which includes more than
75,000 companies. This educational webinar provides
more information.
OCT 2020
E
APR 2020 One Network Enterprises, announced that it was awarded
a USD 61.9 million contract from the USAF for its Item
Master Logistics Capability Initiative (IMLCI). The Indefinite
Delivery/Indefinite Quantity (IDIQ) contract enables One
Network and its partner, Alion Science and Technology
Corporation, to support the Air Force Material Command’s
logistics initiatives. The award is the result of a competitive
acquisition process by the USAF.

7.17 SAP SE- OVERVIEW

◼ SAP SE is one of the leading providers of management, analytics, and business intelligence, while
also providing enterprise application software. The SAP group consists of 264 companies that
develop and distribute the products, solutions, and services.
◼ SAP currently has three reportable segments which are namely Application, Technology, and
Service, Intelligent Spend Group, and Qualtrics ( Acquired in 2019). Through these segments, the
company is committed to support United Nations Sustainable Development Goals by ensuring
Founded in 1972
focus on social investments for building digital skills and guiding principles for Artificial
Intelligence.
◼ The Application, Technology, and Service segment offers cloud-based Software as a Service (SaaS) Walldorf, Germany
and Platform as a Service (PaaS). The segment also offers Intelligent ERP Solutions; which is
trending as there is observed increase in demand.
http://www.sap.com
◼ Intelligent Spend Group comprises of cloud solutions from SAP Arabia, SAP Concur and SAP
Fieldglass and offers services in cloud-based Software as a Service (SaaS) and Platform as a Service
(PaaS). + 49 (6227) 747474
◼ Qualtrics offers solutions in Experience Management (XM) and offers products such as Qualtrics
CoreXM, Qualtrix CustomerXM, Qualtrix productXM, BrandXM and Qualtrix EmployeeXM SAP SE
Net Sales in EUR million, 2017-2019
EUR 27,553 +99,157 EUR 3,387
billion Employees million Net 27,553.00
Sales Income 24,708.00
23,461.00
86.4% Revenue From 55 Locations EUR 4,297

Application, with million
Technology and ISO14001 R&D(2019) 2017 2018 2019
Service Certification
SOURCE: IBM Corporation Annual Report for the Financial Year ended on December 31, 2019

7.17 SAP SE - BUSINESS SEGMENTS
SAP SE SAP SE SAP SE

Revenue Breakdown (%), by Geography, 2019 Revenue Breakdown (%), by Service Model ,2019 Revenue Breakdown (%), by Operating Segment, 2019
15.44% Applications, Technology, and

11.69% 1.87%
EMEA 16.47% Services
Cloud and Software
43.93%
Intelligent Spend Group
Americas
40.63% APJ Service

83.53% 86.44% Qualtrics
 In 2019, the EMEA region generated EUR 12,104 million revenue with a 9% increase in revenue from the Cloud and Software segment year over year. Additionally, the
Cloud revenue experienced an increase of 47% with Germany, the Netherlands, and the United Kingdom being the major contributors.
 In the Americas region, Cloud and Software segment grew by 15% (IFRS) and 16% (non-IFRS). The cloud revenue experienced an increase of 34% (IFRS) and 35% (non-
IFRS), with Canada and Brazil being the major contributors. The total revenue in the APJ region generated EUR 4,254 million revenue. Despite the challenging market
environment, Cloud revenue increased 43% with China and Japan being the highlights
 The Applications, Technology, and Services segment recorded a strong increase of 5% to EUR 6.97 billion year-over-year with major contributions from SAP
S/4HANA,Human Experience Management (HXM), SAP C/4HANA, and Business Technology Platform. For instance, approximately 1,200 new customers adopted SAP
S/4HANA in the fourth quarter, increasing the total adoption to 13,800 customers, 24% year over year
 The Intelligent Spend Group segment increased its revenue by 15% to EUR 830 million year-over-year. Its portfolio showcases one of the largest commerce platforms
globally with over USD 3.6 trillion in global commerce annually transacted in more than 180 countries while Qualtrics segment revenue in Q4 contributed to EUR 156
million.
 The IFRS operating profit, and operating margin and earnings per share were heavily impacted majorly due to the charges associated with the acquisition of the
Qualtrics and the charges from SAP’ global restructuring program.
7.17 SAP SE - SOLUTIONS

SOLUTIONS
Warehouse Management SYSTEM: It provides flexible, automated support in processing all goods movements and in managing stocks in warehouse complexes. The system
supports scheduled and efficient processing of all logistics processes within warehouses. The WMS allows the user to map the entire warehouse complex in detail to storage bin
level. It not only gives an overview of the entire quantity of a material in the warehouse, but also determines where a certain material currently is in the warehouse complex. With
WMS, the user can optimize the use of all of the storage bins and warehouse movements, and store material stocks from several plants together in warehouses with random
storage.
The WMS has the following benefits:

Storage Bin Management
Goods Movements
Planning and Monitoring
Radio Frequency Connection
Decentralized WMS
Warehouse Control
SAP Extended Warehouse Management System: The user can embed SAP Extended Warehouse Management in SAP S/4HANA by deploying only basic warehouse management
or advanced functionality as both levels serve as stepping-stones to full supply chain convergence in SAP S/4HANA. The solution provides the following benefits:-
◼ Inbound processing management ◼ Storage and internal process control ◼ Fine-tuning for outbound processes ◼ Cross-functional features:
➢ Validate data for advanced shipping notifications ➢ Multiple stock ownership ➢ Schedule pick/pack/ship activities in two ➢ Specify packaging
waves
➢ Manage batches, serial numbers,
➢ Receive goods and optimize receipt processes ➢ Physical inventory and cycle counting
➢ Create optimized work packages and catch weights
➢ Accept direct receipts from production ➢ Visibility of stock in the yard ➢ Stock selection according to attributes ➢ Schedule dock appointments
and packaging
➢ Support put-away activities and bin determination ➢ Status of material handling equipment ➢ Perform cross-functional analytics
➢ Augmented reality and voice picking and support compliance and
traceability processes
7.17 SAP SE – STRATEGIES
STRATEGIES
◼ The company aims to build an intelligent enterprise with event-driven Realtime business by focusing on creating end to end customer experience, achieving step
change in productivity and helping companies in engaging their work forces. To do so, the company enforces strong R&D to bring out new products for its
customers.
◼ The company capitalizes on acquisitions to broaden, complement, and enhance its cloud-based product and service offerings, add new customers and certified
personnel, and expand the sales channels. The group exercises integrating complementary businesses, to bring in new products and services that would add to its
revenues and profitability.
◼ The acquisition of Qualtrics International Inc. who developed products in Experience Management (XM) Software category generated a revenue of EUR 508
million and helped the company scale its revenue to 26.91 billion in 2019. SAP aims to identify consumer-favorite products and their brand preference through
Qualtrics products and power the economy by combining experience data and operational data.
◼ The company aims at delivering a step-change in productivity through the next level of automation in business processes powered by AI/ML that will be
embedded in every part of the business process (across financials, supply chain, manufacturing, procurement, travel, and human resources). The key to doing this
is improving the cycle time of business processes and injecting speed everywhere.
◼ For instance, in 2018, SAP bought Coresystems AG, a Switzerland-based developer of cloud-based workforce management software. Coresystems uses
artificial intelligence tools in its Crowd Service software to help companies pair the right technician with a task.
◼ SAP also supports entrepreneurs who aspire to build industry-leading businesses, through venture capital funds. The company offers SAP.io Fund which is
currently being managed by Sapphire Ventures to focus on strategic early stage investments in enterprise software startups and commits to invest up to 40% of
investable capital to foster startups founded or led by female entrepreneurs

7.17 SAP SE – SWOT ANALYSIS
◼ SAP has an extensive partner network, comprising more than ◼ Low liquidity is an indication of the decreasing ease in funding
13,000 partners to help companies of all sizes identify, the company’s day-to-day operations, which also limits its
ability to capture growth opportunities in the market.
purchase, and deploy ideal solutions, in order to address their
business needs. ◼ Claims and lawsuits against the company, such as for IP
infringements, or its inability to obtain or maintain adequate
◼ With customer base across diverse industries, the company is licenses for third-party technology, may have an adverse effect
best placed to have cross selling opportunities for its PIM on the business, financial position, profit, cash flows, and
solutions by providing PIM accelerators and add-ons reputation. Moreover, similar adverse
S W
O T
◼ The company operates in highly competitive markets and
◼ With growing labor costs and supply chain pressures for faster, faces competition from major vendors delivering PIM
more accurate, and responsive operations, automated robotic solutions. The factors that determine the level of
systems are finding their way into more and more warehouses, competition within the industry include performance, price,
offering productivity, throughput capacity, accuracy, and and sales, and distribution capabilities.
accountability for businesses, and cost-effective and efficient flow ◼ The constantly evolving cyber threats may disrupt the
of goods to consumers. This creates more opportunities for the security of the company’s systems and business applications,
company’s warehouse software offering impair the ability to provide solutions to its customers, and
hamper the privacy of data.

8. VENDOR MARKET SHARE
ANALYSIS

8. VENDOR MARKET SHARE ANALYSIS
■ Dematic Group’s revenue increased by 10.14% in 2019 with EUR 8,806.8 million as compared to
that of EUR 7,995.7 million in 2018, which was a combined result of R&D investment of EUR 155.3 LOGISTICS AUTOMATION VENDOR MARKET SHARE
million. It has also automated the new distribution center of the Dutch wholesaler of packaging
Market Share (%), by Company, 2019
solutions for Dillewijn Zwapak B.V. flowers and floristry items in Amstelveen. It introduced the
Dematic iQ Virtual, a new emulation and simulation platform that is used to validate and visualize Dematic Group
the operational aspects of automated intralogistics systems for the warehouse.

Daifuku Co. Limited
■ In addition to that, its parent company also acquired Digital Applications International, a UK-
based software company specializing in logistics automation solutions, which in turn has helped it 10.56%
gain market share. Swisslog Holding AG
(KUKA AG)
9.10%
■ DAIFUKU CO. LTD has experienced a steady growth of revenue over three years as a result of
Honeywell Intelligrated 8.93%
enhanced production capacity in line with robust demand from a range of industries, including e-
45.01%
commerce and other distribution sectors, semiconductor, flat-panel display, automotive, and
Jungheinrich AG 5.15%
airport systems.
■ Also, the company strengthened its position in the warehouse automation market through
Murata Machinery Ltd
acquisition, as in 2019, it acquired Netherlands-based Scarabee Aviation Group B.V. and Australia- 6.32%
based Intersystems Pty Limited, and India based Vega Conveyors & Automation Private Limited. 4.50%
Through this, the company’s revenue increased, and in the future, it is expected to grow at a rapid Knapp AG 4.32%
pace due to better synergy.
■ Swisslog Holding AG focuses on innovation and spends tremendously to develop automation Schaefer Holding
solutions for the warehouse. In 2019, the Group spent approximately EUR 160.5 million in R&D International GmbH
Others 6.11%
and filed 108 patent applications, and 280 patents were granted. Moreover, it received a contract
worth EUR 5.5 million to build a pallet warehouse for Rapunzel. The expansion featured Swisslog's
automated pallet technology in the form of five Vectura pallet stacker cranes and a ProMove
conveyor for the high-bay warehouse.


■ Warehouse automation is expected to become an increasingly desirable option to the manual alternative
over the next few years. There were also relatively high levels of adoption expectations for AS/RS (stacker
cranes) and traditional AGVs showing that these well-established technologies continue to address the
needs of modern warehouse requirements.
■ Apart from AIDC (data capture) and AMR (Mobile Robots), shuttle systems, and some new technology
innovations like Automated Storage and Retrieval System (ASRS), Automated Guided Vehicles (AGVs –
working with other navigation methods like Optical Tapes, Sensors) and Picking Systems (Pick by Voice,
Pick by Vision, Pick by Light) that can make the warehouse more effective seem to be increasing
significantly in the market.
■ As the demand for these products is increasing significantly in the market, it has led the key players to
focus primarily on innovating and developing new products with innovations and technologies. For
instance, in August 2020, Swisslog launched KR 4 Agilus, a small robot for automated production processes
and a payload category of 4 kg. It has been designed for robot-based automation in electronics
manufacturing and for handling tasks in other industries. The same company, in September 2020, launched
the KR SCARA horizontal jointed-arm robots from KUKA, which are ultra-compact and can deliver
maximum cost-effectiveness.
■ Similarly, in January 2020, KNAPP launched the latest generation of its pick-it-easy robots, a powerful and
intelligent robot station for fully-automatic single-item picking.
■ In the same way, Vanderlande, in June 2020, created the HOME PICK, based on a goods-to-person (GTP)
picking solution that uses ADAPTO, Vanderlande’s unique 3D, shuttle-based automated storage and
retrieval system (AS/RS).
■ Some of the players have also been investing in the expansion of product line, expansion of manufacturing
facilities, expansion of their operations to various geographies, and new production facilities to strengthen
their presence globally. For instance, in October 2019, Honeywell announced the creation of Honeywell
Robotics, an advanced technology center of excellence focused on innovating and developing AI, machine
learning (ML), computer vision, and advanced robotics for use across supply chains.
■ Similarly, in February 2020, TGW announced that it started building a highly automated intralogistics
system in Berkel and Rodenrijs for Fource. By carrying out this project, all its intralogistics team will be at
one location.

■ The market has been witnessing many mergers, acquisitions, and partnerships by its players as part of their
strategy to strengthen their presence and meet customer's requirements for various applications.
■ Moreover, various acquisitions, such as Intelligrated by Honeywell and Demantic by Kion Group, indicate
the need for the most advanced levels of systems integration, intelligence software and controls, and data-
driven efficiency. For instance, in September 2019, Honeywell announced the signing of an agreement with
the retail supply chain services provider, The Apparel Logistics Group, to expand the e-commerce order
output at its distribution center in Dallas.
■ Similarly, in August 2020, Murata Machinery signed a contract with Alpen for the construction of Japan's
first 3D robot warehousing system, ALPHABOT.
■ In October 2020, Zhongjing Semiconductors partnered with TGW in building a high-performance
combination system near Shanghai. The system consists of an automatic mini-load warehouse and a
Commissioner lifting beam system.
■ Similarly, in May 2020, Kardex acquired the majority share in the Dutch company Robomotive, which
develops and implements smart robot technologies. Robomotive's unique selling point mimics the
adaptive eye-hand coordination of humans with the help of robots, 3D cameras, grippers, and smart
software algorithms.
■ Some of the players are partnering with startups for new experiences that offer unique solutions for the
entire business in terms of products, services, and productivity. The investment in startups helps the players
identify new business models and boost market-driven innovation. For instance, in August 2020, Kardex
invested in the startup company Rocket Solution GmbH, based in Unterhaching near Munich. The company
develops innovative, standardized automatic storage and retrieval systems of the latest generation. Its
innovative technology features open IoT and Web interfaces and can therefore be easily integrated into
complete systems.
■ Honeywell in October 2019, established a "Robotics Innovation Hub", called Honeywell Robotics, aiming to
develop the artificial intelligence and machine learning for warehouse technology. The company has
invested over USD 50 million through Honeywell Ventures in 2019. These investments aimed to provide
access to emerging technologies in key focus areas such as warehouse automation and robotics, urban air
mobility, and cybersecurity.


■ Due to the availability of many vendors in the market, customer expectation is increasing, and they
expect to get goods faster, with more flexibility to schedule the arrival timings and at no delivery cost. In
addition to that, manufacturing is becoming more and more customized, which is beneficial for
customers but challenging for the logistics industry, and the vendors are under acute and growing
pressure to deliver a better service at an ever-lower cost.
■ Therefore, major vendors in the market are adopting the maximum and intelligent use of technology,
from data analytics to automation, to the ‘Physical Internet,’ which promises lower costs, improved
efficiency, and the opportunity to make genuine breakthroughs in the way the logistic industry works.
■ The sector is experiencing a variety of innovative technological solutions being introduced every day. For
instance, the arrival of the automated guided vehicles (AGVs) that move cases and pallets and help floor
labor in assisting various shifting tasks. Many vendors are currently working to innovate the standard
forklifts by automating them, which will enable them to lift and move goods without having any
dependency on human resources. This will free one resource to carry some other important task in the
warehouse.
■ The world's largest forklift OEMs, like Toyota, Crown, Jungheinrich, Kion, Hyster, Raymond, and Yale, are
signing on it and developing complete automated forklifts, which promises the replacement human lift-
truck operators. Industrial automation equipment vendor Teradyne Inc. has acquired autonomous forklift
vendor AutoGuide Mobile Robots for USD 165 million in October 2019 and enlarged its share of the
small but fast-growing autonomous mobile robot (AMR) sector.
■ As the functions in the current scenario demand 360-degree digitization, the industry is moving forward
to paperless by leveraging a complete range of servers and cloud infrastructures. Optical Character
Recognition (OCR) will enable an electronic docket facility where a huge chunk of documents can be
saved and triggered as EDI messages (such as customs documents, bills of lading, certificates of origin,
commercial invoices, or drivers’ logs) on a need basis. This will ultimately foster an environment for
remote working and reduce the need for physical presence. It will also reduce the operating cost of the
company as time, as well as a human resource, are saved from multiple scanning.
■ In the future, the processes on a micro as well as macro scale can be digitized for improved processing.
OCR is already integrated by various tech platforms such as cargo community systems, single window
systems, and trade facilitation suites.
■ Due to the powerful benefits of OCR data capture, logistics firms have seen an overall operating cost
reduction of 28% after the OCR software implementation. Currently, its is being used by some of the
famous firms such as WOW Logistics, US Foods, AFS, which stated that through it, they were able to
strengthen their client relationships by providing faster and more reliable service than manual data
entry.
■ With the growing dependence on e-commerce services, efficient sorting has become increasingly
important, particularly in parcel operations. Advanced conveyor systems utilize scanners that can read
bar codes on any side of a package to decide the next action. Robotic arms are used by Autonomous
palletizers to build pallets from single units and cases, mostly using advanced analytics to determine the
proper placement for each box.
■ Currently, drones are in use in the warehouse for inventory management and outside the four walls for
yard management but in the future, there can be much greater adoption of drones. But one of the main
concerns is the safety of drones for warehouse workers. Many companies are working to increase the
safety measures of the drones as these are the future of big warehouses where they can be handy to
carry inspections of goods or to scan the goods placed on the rooftop.
■ UAV flight control software, AutoModality, has designed a new technology that allows for workers and
drones to coexist. It uses advanced Perceptive Navigation technology to allow a DJI drone to fly
autonomously in an indoor environment while avoiding people and machinery, and it is more than 50%
faster than manual inspection and avoids putting humans in harm’s way.
■ Thus, in order to achieve success in logistics, all companies in the sector are expected to meet two
critical areas: speed and variety. Large e-commerce giants such as Amazon and JD.com have established
their own logistics credentials over the past few years in order to attain success in the field by offering
better customer experience. The future of automation in logistics is unfolding as many of the tech firms
are investing in research to develop autonomous systems or equipment, which can reduce work pressure
on a human at the same time it is safe to be around.
FEEDBACK AND AUDIT
Our research team puts in sincere efforts in making sure that the data and insights
you receive as part of this report are accurate and robust. We would really appreciate
it if you could take some time to fill out a quick feedback around this. Your inputs go a
long way in ensuring a product quality, we are proud of. Filling out this form will not
take you more than 2-3 minutes.
Link: FEEDBACK
Thank You!
150 REPORT – GLOBAL COMMUNICATION-PLATFORM-AS-A-SERVICE (CPaaS) MARKET

FOR MORE INFORMATION,
PLEASE CONTACT
5th Floor, Brigade Towers, Financial District,
+1 517-755-2493
Gachibowli, Hyderabad – 500032, India
info@mordorintelligence.com www.mordorintelligence.com
Industry Reports | Consulting | Intelligence Center
+1 517 755 2493 | info@mordorintelligence.com | www.mordorintelligence.com

151 REPORT – GLOBAL COMMUNICATION-PLATFORM-AS-A-SERVICE (CPaaS) MARKET

Global Logistics Automation Market - Growth, Trends, Forecasts (2020 - 2025)

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Global Logistics Automation Market - Growth, Trends, Forecasts (2020 - 2025)

Uploaded by

Copyright:

Available Formats

REPORT

GLOBAL LOGISTICS AUTOMATION

Domain: Automation Base Year: 2019 Forecast Period: 2020-2025

Industry Reports | Consulting | Intelligence Center

2 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

1.1 Study Assumptions and Market Definition Customer Expectation

4.1 Market Overview 6.1 Global Warehouse Automation Market Segmentation – By

4.2.5 Intensity of Competitive Rivalry 6.1.1.4 De-palletizing/Palletizing Systems

3 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

Geography 7.12 SSI Schaefer AG

6.4.1 North America 7.13 Vanderlande Industries BV

6.4.2 Europe 7.14 WITRON Logistik + Informatik GmbH

4 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

1.2 Scope of the Study

5 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

1.1 STUDY ASSUMPTIONS AND MARKET DEFINITION

6 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

1.2 SCOPE OF THE STUDY

END USER - GEOGRAPHY -

Software Post and Parcel Europe

Services Groceries Asia-Pacific

General Merchandise Latin America

Apparel Middle East & Africa

Other End-user Industries

7 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

8 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

STEP 1 STEP 2 STEP 3

Decipher client requirements/ market to be

Tailormade research approach for

Effective use of Mordor’s knowledge

Confirm the objectives of the assignment with

9 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

2.1 SECONDARY RESEARCH 2.2 PRIMARY RESEARCH

10 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

2.3 DATA TRIANGULATION & INSIGHT GENERATION

It is a process of combining outcomes from different sources to increase the

An econometric model is a simplified representation of a real-world process.

11 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

12 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

82.20 By type, warehouse automation occupied the largest share of 41.38% in

In warehouse automation, geographically, Asia-Pacific occupied the

2019 2020 2021 2022 2023 2024 2025

SOURCE: Mordor Intelligence

13 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

4.2 Industry Attractiveness - Porter's Five Forces Analysis

4.2.1 Threat of New Entrants

4.2.2 Bargaining Power of Buyers

4.2.3 Bargaining Power of Suppliers

4.2.4 Threat of Substitutes

4.2.5 Intensity of Competitive Rivalry

4.3 Industry Value Chain Analysis

4.4 Warehouse Investment Scenario

4.5 Impact of Macro-economic Factors on the Warehouse Automation Market

14 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

4.1 MARKET OVERVIEW

4.1 MARKET OVERVIEW

16 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

4.1 MARKET OVERVIEW

4.1 MARKET OVERVIEW

18 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

4.2 PORTER’S FIVE FORCES ANALYSIS

■ In the study, Porter’s five forces are analyzed

■ The quantified factors are further mapped out

19 REPORT – GLOBAL LOGISTICS AUTOMATION MARKET

6.1.1.1 MOBILE ROBOTS (AGV, AMR)

6.1.1.1 MOBILE ROBOTS (AGV, AMR)

6.1.1.1 MOBILE ROBOTS (AGV AND AMR)

6.1.1.2 AUTOMATED STORAGE AND RETRIEVAL SYSTEMS (AS/RS)

6.1.1.2 AUTOMATED STORAGE AND RETRIEVAL SYSTEMS (AS/RS)

6.1.1.2 AUTOMATED STORAGE AND RETRIEVAL SYSTEMS (AS/RS)

6.1.1.3 AUTOMATED SORTING SYSTEMS

6.1.1.3 AUTOMATED SORTING SYSTEMS

6.1.1.4 DE-PALLETIZING/PALLETIZING SYSTEMS

6.1.1.4 DE-PALLETIZING/PALLETIZING SYSTEMS

6.1.1.5 CONVEYOR SYSTEMS

6.1.1.5 CONVEYOR SYSTEMS