South Korea Warehouse Automation Market Examining Size, Share, Latest Trends, and Growth Forecast 2022-2029

1. South Korea Warehouse Automation South Korea Warehouse Automation Market: Examining Size, Share, Latest Market: Examining Size, Share, Latest Trends, and Growth Forecast 2022 Trends, and Growth Forecast 2022- -2029 2029 The warehouse automation market in South Korea is poised for substantial growth in the coming years, fueled by the rising need for efficient logistics solutions and the pursuit of enhanced supply chain management. According to industry reports, the global warehouse automation market was valued at US$12.7 billion in 2019 and is projected to exceed US$53.2 billion by the end of the forecast year, 2029, with a strong compound annual growth rate (CAGR) of 15.4%. Read More: https://www.fairfieldmarketresearch.com/report/warehouse-automation- market Success in logistics is closely tied to increased efficiencies, optimal warehouse space utilization, higher production rates, cost reduction, improved inventory control, increased customer and supplier satisfaction, and an enhanced customer experience. Effective management of the logistics department plays a vital role in ensuring the proper delivery of goods and services in any business process. As organizations seek ways to improve their logistics segment, the demand for warehouse automation solutions is expected to experience strong growth. The global warehouse automation market is anticipated to reach a value of US$47 million by 2027, registering a CAGR of 22% during the forecast period. The growing awareness of the importance of logistics management sets the stage for substantial sales in the warehouse automation market. In recent years, the logistics and warehouse sector has faced a scarcity of resources, leading to a shortage of skilled labor. According to the US Bureau of Labor Statistics, 244,000 workers in that segment quit their jobs in August 2022, with many resources preferring secure white-collar positions. This trend has prompted logistics companies to rely on automation systems in their business processes. E-commerce giant Amazon, for example, has embraced automation in its warehouse segment to expedite order processing and enable faster last-mile delivery to its clients. As a result, the shortage of labor has indirectly influenced the growth of the warehouse automation market. However, the high initial investments and exorbitant maintenance costs associated with warehouse automation systems pose challenges to the market's growth. While the adoption of automation processes such as automated storage and retrieval systems (AS/RS) is expected to reduce labor costs and increase productivity in the long run, the upfront costs of purchasing and installing AS/RS can be more expensive than hiring in-house personnel to operate them.

2. For instance, the installation of robotic cube storage can amount to US$1.5 million, while unit-load ASRS installation costs around US$1 million. Similarly, the installation of multi- shuttle and mini-load ASRS systems would cost US$1 million and US$750,000, respectively. Moreover, the annual maintenance costs for these equipment can be expensive, especially for small-scale industries or organizations. Thus, the high initial investments and maintenance costs present challenges for these organizations. North America dominated the warehouse automation market in 2020, holding the largest market share. The region benefits from numerous significant market participants, as well as a thriving small and medium-sized business sector, which contributes to the growing adoption of warehouse automation technology in the local market. The Asia Pacific region, particularly countries like China and India, is predicted to experience the fastest compound annual growth rate (CAGR) between 2021 and 2029. The expansion of the warehouse automation market in the Asia Pacific region can be attributed to the increasing demand for cutting-edge technical solutions from businesses in these nations. In the competitive landscape of the global warehouse automation market, major vendors such as ABB Ltd., Bastian Solution LLC, Daifuku Co Ltd., FANUC Corporation, Fetch Robotics Inc., Jungheinrich AG, KUKA AG, Omron Corporation, SSI SCHAEFER Group, and Yaskawa Electric Corporation have implemented various organic and inorganic growth strategies. These strategies include new product launches, product upgrades, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. Key players in the market space are also pursuing joint ventures, new product launches, and contracts and agreements to further enhance their market position. In recent notable developments, ABB Ltd announced the acquisition of PowerTech Converter (PTC) business, a leading supplier of auxiliary power converter solutions for light rail vehicles and metros, in September 2022. This acquisition forms an important part of ABB Motion's external growth strategy. Additionally, in January 2023, Jungheinrich AG acquired Storage Solutions Group, a leading provider of racking and warehouse automation solutions in the U.S., to gain enhanced access to the attractive U.S. warehousing and automation market. Jungheinrich has signed a share purchase agreement with Merit Capital Partners, MFG Partners, and the management of Storage Solutions for the acquisition of 100% of the share capital in Storage Solutions. As the warehouse automation market in South Korea continues to grow, industry players are expected to intensify their efforts to meet the increasing demand for efficient and automated logistics solutions. With advancements in technology and a focus on optimizing supply chain operations, the adoption of warehouse automation is set to revolutionize the logistics landscape in South Korea, driving significant improvements in productivity and customer satisfaction. For further details, please visit www.fairfieldmarketresearch.com. Contact Fairfield Market Research London, UK UK +44 (0)20 30025888

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