Report Overview

GCC Warehouse Automation Market – Industry Trends & Forecast Report, 2030

GCC Warehouse Automation Market size was estimated at USD 1.09 billion in 2023. During the forecast period between 2024 and 2030, GCC Warehouse Automation Market size is projected to grow at a CAGR of 16.02% reaching a value of USD 3.10 billion by 2030. Prominent drivers of the market include substantial investments by countries such as the UAE and Saudi Arabia in infrastructure to support e-commerce growth. This investment encompasses enhancements in internet access, data centers, cloud computing, and logistical infrastructure, leading to a notable increase in warehouses across the region. The surge in e-commerce has driven businesses to enhance their operational capabilities, thereby escalating the demand for warehouse automation solutions. As the region strives to establish itself as a global e-commerce hub, the demand for automation solutions is rising to ensure efficient order fulfillment in a dynamic market. Furthermore, the emphasis on strengthening manufacturing sectors has led to the establishment of additional facilities and warehouses, generating significant demand for warehouse automation technologies, such as Automated Storage and Retrieval Systems (AS/RS), robotic picking systems, conveyor systems, and inventory management software, to optimize manufacturing processes.

Warehouse Automation – Overview

Warehouse automation refers to the use of technology and machinery to perform tasks traditionally handled by human labor within a warehouse. This includes systems and equipment designed to enhance efficiency, accuracy, and speed in the handling, storage, and retrieval of goods. Key components of warehouse automation can include automated storage and retrieval systems (AS/RS), conveyor systems, robotic picking systems, automated guided vehicles (AGVs), and inventory management software. By integrating these technologies, warehouse automation aims to streamline operations, reduce labor costs, minimize errors, and improve overall productivity in warehouse environments.

GCC Warehouse Automation Market

Growth Drivers

Booming E-commerce Sector

The GCC region boasts a digitally proficient population, characterized by a high percentage of young residents and extensive internet access. Significant investments in infrastructure, including internet connectivity, data centers, and logistics, have spurred e-commerce growth, resulting in a remarkable 33% increase in sales from 2019 to 2022, surpassing the global average of 17%, according to Dubai CommerCity. This e-commerce surge has driven a rise in warehouse establishments, essential for order fulfillment, thereby increasing the demand for warehouse automation solutions as businesses seek to enhance operational efficiency in the evolving e-commerce environment.

Governments’ Supportive Initiatives

The GCC countries have embarked on comprehensive digitalization strategies as part of their National Visions to enhance supply chain efficiency and management. For instance, the UAE’s Vision 2030 focuses on integrating advanced technologies like AI and blockchain to streamline supply chains and improve operational productivity. Similarly, Saudi Arabia’s Vision 2030 aims to establish the country as a global logistics hub through improved digital infrastructure and services. Qatar’s Smart Qatar Program, with its substantial investment, is also pivotal in advancing digital logistics and transportation. These initiatives collectively foster a robust digital ecosystem, propelling the demand for warehouse automation solutions as businesses and governments alike seek to modernize and optimize supply chain processes amidst growing market dynamics.

Challenges

High Initial Investment

High initial investment could restrain the growth of GCC Warehouse Automation Market, as the substantial upfront costs required for implementing advanced automation technologies can be a significant barrier for many businesses. These initial expenses, which include purchasing and integrating sophisticated systems such as Automated Storage and Retrieval Systems (AS/RS), robotic picking systems, and advanced inventory management software, may deter smaller enterprises from adopting such solutions. Consequently, the high capital expenditure limits the market’s expansion potential, particularly for businesses with constrained budgets, and slows down the overall adoption of warehouse automation across the GCC region.

Impact of Escalating Geopolitical Tensions on GCC Warehouse Automation Market

Escalating geopolitical tensions among countries across regions could have a significant impact on the growth of GCC Warehouse Automation Market. These tensions can disrupt supply chains and create uncertainty in international trade, leading to interruptions in the flow of goods and raw materials essential for automation systems. Additionally, heightened geopolitical risks may deter foreign investments and delay critical infrastructure projects needed for automation. This environment of uncertainty can prompt businesses to adopt a cautious approach, prioritizing short-term stability over long-term investments, thus slowing the growth and adoption of warehouse automation technologies in the GCC region.

GCC Warehouse Automation Market

Segmental Coverage

GCC Warehouse Automation Market – By Component

By component, GCC Warehouse Automation Market is bifurcated into Hardware and Software segments. The hardware segment holds a higher share in GCC Warehouse Automation Market by component, due to its fundamental role in automation systems. Key hardware elements, including Automated Storage and Retrieval Systems (AS/RS), conveyor systems, and robotic picking devices, are essential for streamlining warehouse operations and improving efficiency. These technologies are critical for enhancing storage capabilities, optimizing order fulfillment, and reducing manual labor. As businesses in the GCC invest in advanced automation solutions to meet growing e-commerce demands, the substantial investment in hardware reflects its central importance in driving operational improvements and market growth.

GCC Warehouse Automation Market – By Product Category

Based on product category, GCC Warehouse Automation Market is split into Semi-Automated and Fully Automated segments.

GCC Warehouse Automation Market – By Technology

Based on technology, GCC Warehouse Automation Market is divided into Automated Storage & Retrieval Systems (AS/RS), Automatic Guided Vehicles (AGVs), Autonomous Mobile Robots (AMRs), Voice Picking & Tasking, and Automated Sortation Systems segments. The automated storage and retrieval systems (AS/RS) segment holds the highest share in GCC Warehouse Automation Market by technology. AS/RS employs advanced technologies, including robotics, conveyors, and warehouse management software (WMS), to automate the storage and retrieval of goods. This technology optimizes floor space, enhances vertical storage capacity, and improves inventory density and throughput. It also offers significant benefits such as improved ergonomics, increased safety, and reduced labor costs. AS/RS systems streamline production and shipping processes, minimize accident risks, and are widely used across various industries including semiconductors, food and beverage, automotive, healthcare, e-commerce, and chemicals, making it the leading technology in warehouse automation.

GCC Warehouse Automation Market – By End User

On the basis of end user, GCC Warehouse Automation Market is divided Healthcare, Retail, BFSI (Banking, Financial Services, and Insurance), IT & Telecom, Manufacturing, and Others (Government, Travel & Tourism) segments.

GCC Warehouse Automation Market – By Country

The in-depth research report on the GCC Warehouse Automation Market covers the market in the region’s major countries including Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, and Oman. Saudi Arabia holds the highest share in GCC Warehouse Automation Market and is expected to maintain its dominance during the forecast period, driven by the expansion of its manufacturing, retail, and e-commerce sectors. According to the International Trade Administration, the country had a high smartphone penetration rate of 97% and surpassed many developed markets in mobile broadband internet subscriptions as of 2022. This high connectivity has fueled the e-commerce boom and, in turn, increased investment in warehouse automation solutions. Government initiatives to improve supply chain management have significantly contributed to the growth of the Warehouse Automation Market. Additionally, Saudi Arabia's strategic goal to achieve an annual container capacity of over 40 million containers has spurred the development of port infrastructure and logistics zones, further boosting market growth. The government's substantial investments in expanding the manufacturing sector, including consumer electronics, transportation, and pharmaceuticals, are expected to drive up storage needs and, consequently, the demand for warehouse automation solutions in the coming years.

Competitive Landscape

Major players operating in GCC Warehouse Automation Market include Honeywell International Inc., SSI Schaefer, Omron Corporation, Schneider Electric, ABB Ltd, Toshiba Corporation, ALS Logistic Solutions DMCC, Falcon Autotech, Daifuku, Swisslog, Acme Intralog Fzco, Savoye Designs, Kardex, and Infor Designs. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2023 - Addverb, a global provider of warehouse automation solutions, partnered with Logsquare, a leading logistics system integrator, to enhance their presence in the Middle East, particularly in the GCC and Iraq. The alliance combines Addverb's expertise in Industry 4.0, IoT, and robotics with Logsquare's local engineering and comprehensive logistics solutions. The collaboration will integrate Addverb's Autonomous Mobile Robots and Fleet Management System into Logsquare’s offerings, aiming to improve supply chain efficiency and operational performance.

Scope of the Report

By Component

• Hardware

• Software

By Product Category

• Semi-Automated

• Fully Automated

By Technology

• Automated Storage & Retrieval Systems (AS/RS)

• Automatic Guided Vehicles (AGVs)

• Autonomous Mobile Robots (AMRs)

• Voice Picking & Tasking

• Automated Sortation Systems

By End User

• Healthcare

• Retail

• BFSI (Banking, Financial Services, and Insurance)

• IT & Telecom

• Manufacturing

By Country

• Saudi Arabia

• UAE

• Qatar

• Bahrain

• Kuwait

• Oman

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. GCC Warehouse Automation Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. E-commerce Boom
         2. Government Initiatives
         3. Labor Cost and Shortages
      2. Restraints
         1. High Initial Investment
         2. Return on Investment (ROI) Justification
         3. Data Security Concerns
      3. Opportunities
         1. Growth in Non-Ecommerce Sectors
         2. Advancements in Technology
         3. Integration with Existing Systems
      4. Challenges
         1. Power Supply and Infrastructure
         2. Skill Gap for New Technologies
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. GCC Warehouse Automation Market: Marketing Strategies
5. GCC Warehouse Automation Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
         1. Hardware
         2. Software
      2. By Product Category
         1. Semi-Automated
         2. Fully Automated
      3. By Technology
         1. Automated Storage & Retrieval Systems (AS/RS)
         2. Automatic Guided Vehicles (AGVs)
         3. Autonomous Mobile Robots (AMRs)
         4. Voice Picking & Tasking
         5. Automated Sortation Systems
         6. Others
      4. By End User
         1. Healthcare
         2. Retail
         3. BFSI (Banking, Financial Services, and Insurance)
         4. IT & Telecom
         5. Manufacturing
         6. Others (Government, Travel & Tourism)
      5. By Countries
         1. Saudi Arabia
         2. UAE
         3. Qatar
         4. Bahrain
         5. Kuwait
         6. Oman
6. Saudi Arabia Warehouse Automation Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
      2. By Product Category
      3. By Technology
      4. By End User
7. UAE Warehouse Automation Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
      2. By Product Category
      3. By Technology
      4. By End User
8. Qatar Warehouse Automation Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
      2. By Product Category
      3. By Technology
      4. By End User
9. Bahrain Warehouse Automation Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
      2. By Product Category
      3. By Technology
      4. By End User
10. Kuwait Warehouse Automation Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Component
       2. By Product Category
       3. By Technology
       4. By End User
11. Oman Warehouse Automation Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Component
       2. By Product Category
       3. By Technology
       4. By End User
12. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. GCC Warehouse Automation Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
13. Impact of Escalating Geopolitical Tensions on GCC Warehouse Automation Market
14. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Honeywell International Inc.
    2. SSI Schaefer
    3. Omron Corporation
    4. Schneider Electric
    5. ABB Ltd
    6. Toshiba Corporation
    7. ALS Logistic Solutions DMCC
    8. Falcon Autotech
    9. Daifuku
    10. Swisslog
    11. Acme Intralog Fzco
    12. Savoye Designs
    13. Kardex
    14. Infor Designs
    15. Other Prominent Players
15. Key Strategic Recommendations
16. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       GCC Warehouse Automation Segmentation

Figure 2       GCC Warehouse Automation Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       GCC Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Figure 5       GCC Warehouse Automation Market Share, By Component, By Value, 2019–2030

Figure 6       GCC Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Figure 7       GCC Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Figure 8       GCC Warehouse Automation Market Share, By End User, By Value, 2019–2030

Figure 9       GCC Warehouse Automation Market Share, By Country, By Value, 2019–2030

Figure 10     Saudi Arabia Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Figure 11     Saudi Arabia Warehouse Automation Market Share, By Component, By Value, 2019–2030

Figure 12     Saudi Arabia Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Figure 13     Saudi Arabia Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Figure 14     Saudi Arabia Warehouse Automation Market Share, By End User, By Value, 2019–2030

Figure 15     UAE Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Figure 16     UAE Warehouse Automation Market Share, By Component, By Value, 2019–2030

Figure 17     UAE Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Figure 18     UAE Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Figure 19     UAE Warehouse Automation Market Share, By End User, By Value, 2019–2030

Figure 20     Qatar Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Figure 21     Qatar Warehouse Automation Market Share, By Component, By Value, 2019–2030

Figure 22     Qatar Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Figure 23     Qatar Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Figure 24     Qatar Warehouse Automation Market Share, By End User, By Value, 2019–2030

Figure 25     Bahrain Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Figure 26     Bahrain Warehouse Automation Market Share, By Component, By Value, 2019–2030

Figure 27     Bahrain Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Figure 28     Bahrain Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Figure 29     Bahrain Warehouse Automation Market Share, By End User, By Value, 2019–2030

Figure 30     Kuwait Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Figure 31     Kuwait Warehouse Automation Market Share, By Component, By Value, 2019–2030

Figure 32     Kuwait Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Figure 33     Kuwait Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Figure 34     Kuwait Warehouse Automation Market Share, By End User, By Value, 2019–2030

Figure 35     Oman Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Figure 36     Oman Warehouse Automation Market Share, By Component, By Value, 2019–2030

Figure 37     Oman Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Figure 38     Oman Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Figure 39     Oman Warehouse Automation Market Share, By End User, By Value, 2019–2030

List of Tables

Table 1        GCC Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Table 2        GCC Warehouse Automation Market Share, By Component, By Value, 2019–2030

Table 3        GCC Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Table 4        GCC Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Table 5        GCC Warehouse Automation Market Share, By End User, By Value, 2019–2030

Table 6        GCC Warehouse Automation Market Share, By Country, By Value, 2019–2030

Table 7        Saudi Arabia Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Table 8        Saudi Arabia Warehouse Automation Market Share, By Component, By Value, 2019–2030

Table 9        Saudi Arabia Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Table 10      Saudi Arabia Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Table 11      Saudi Arabia Warehouse Automation Market Share, By End User, By Value, 2019–2030

Table 12      UAE Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Table 13      UAE Warehouse Automation Market Share, By Component, By Value, 2019–2030

Table 14      UAE Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Table 15      UAE Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Table 16      UAE Warehouse Automation Market Share, By End User, By Value, 2019–2030

Table 17      Qatar Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Table 18      Qatar Warehouse Automation Market Share, By Component, By Value, 2019–2030

Table 19      Qatar Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Table 20      Qatar Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Table 21      Qatar Warehouse Automation Market Share, By End User, By Value, 2019–2030

Table 22      Bahrain Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Table 23      Bahrain Warehouse Automation Market Share, By Component, By Value, 2019–2030

Table 24      Bahrain Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Table 25      Bahrain Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Table 26      Bahrain Warehouse Automation Market Share, By End User, By Value, 2019–2030

Table 27      Kuwait Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Table 28      Kuwait Warehouse Automation Market Share, By Component, By Value, 2019–2030

Table 29      Kuwait Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Table 30      Kuwait Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Table 31      Kuwait Warehouse Automation Market Share, By End User, By Value, 2019–2030

Table 32      Oman Warehouse Automation Market Size, By Value (USD Billion), 2019–2030

Table 33      Oman Warehouse Automation Market Share, By Component, By Value, 2019–2030

Table 34      Oman Warehouse Automation Market Share, By Product Category, By Value, 2019–2030

Table 35      Oman Warehouse Automation Market Share, By Technology, By Value, 2019–2030

Table 36      Oman Warehouse Automation Market Share, By End User, By Value, 2019–2030

Table 37      Honeywell International Inc. Company Overview

Table 38      Honeywell International Inc. Financial Overview

Table 39      SSI Schaefer Company Overview

Table 40      SSI Schaefer Financial Overview

Table 41      Omron Corporation Company Overview

Table 42      Omron Corporation Financial Overview

Table 43      Schneider Electric Company Overview

Table 44      Schneider Electric Financial Overview

Table 45      ABB Ltd Company Overview

Table 46      ABB Ltd Financial Overview

Table 47      Toshiba Corporation Company Overview

Table 48      Toshiba Corporation Financial Overview

Table 49      ALS Logistic Solutions DMCC Company Overview

Table 50      ALS Logistic Solutions DMCC Financial Overview

Table 51      Falcon Autotech Company Overview

Table 52      Falcon Autotech Financial Overview

Table 53      Daifuku Company Overview

Table 54      Daifuku Financial Overview

Table 55      Swisslog Company Overview

Table 56      Swisslog Financial Overview

Table 57      Acme Intralog Fzco Company Overview

Table 58      Acme Intralog Fzco Financial Overview

Table 59      Savoye Designs Company Overview

Table 60      Savoye Designs Financial Overview

Table 61      Kardex Company Overview

Table 62      Kardex Financial Overview

Table 63      Infor Designs  Company Overview

Table 64      Infor Designs  Financial Overview

Table 65      Other Prominent Players Company Overview

Table 66      Other Prominent Players Financial Overview