Due to the pandemic, many people were forced to opt for online shopping mode and became used to it. Besides the existing rally in e-commerce, FMCG, retail, and 3PL industries, the Government’s vision to push forward manufacturing in India with initiatives like Make in India and Production Linked Incentive (PIL) are enabling warehousing demand from other sectors like automotive, pharmaceutical, cement and steel to grow at a CAGR of 16% in the next five years compared to 15% in FY 2021.
The main goal of an effective supply chain is to reduce inventory levels in order to avoid locking up capital in storage or transportation and to maximise capital productivity. This strategy depends on the smooth operation of the whole supply chain, and this new tendency necessitates technological innovation in the supply chain across all industries. Grade A facilities that are well-organized, have advanced automation and required manpower are more suited to meet modern expectations, particularly for the e-commerce sector. For others to keep up with the innovation, warehousing automation is also expanding at this moment.
According to a market study, the Indian warehouse automation market will reach USD 512.2 million by 2026, compared to USD 86.2 million in 2020.