Spending on AR in Warehousing Alone to Top $23 Billion by 2025
April 23, 2019 | ABI ResearchEstimated reading time: 2 minutes
Demand for warehousing facilities has been steadily increasing thanks to the strength of international trade and the continual growth of e-commerce. With customer expectations for rapid delivery rising, warehouses are struggling to process the increased volumes of goods passing through facilities in time. The problem is compounded by labor shortages and staffing challenges. The need to adopt technology to alleviate these issues is driving significant investment in augmented reality (AR), voice-directed solutions, and real-time location systems (RTLS) for workforce analytics. By 2025, global spending on AR in warehousing will reach over $23 billion, US$3.3 billion will be spent on voice solutions, and RTLS will grow to 500,000 implementations for people tracking across all verticals, according to ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies.
“Fulfilling higher order volumes is difficult when warehouses are struggling to hire and maintain staff, and automation is cost-prohibitive for many distributors,” said Nick Finill, Senior Analyst at ABI Research. “Warehouses are therefore increasingly using digital tools that can empower the human worker, deliver efficiency gains, and also reduce the time it takes to onboard new or temporary staff.”
Augmented Reality is finally starting to gain mass appeal in industrial sectors, thanks to maturing technologies and demonstrable ROI from early adopters. Voice-directed solutions represent a considerably older technology but are also undergoing a technological revolution thanks to deep learning-based voice recognition that vastly improves ease-of-use and reliability. These solutions are both being leveraged to assist the warehouse workforce by providing operational instructions in a clear and hands-free way.
The drive for digitally-enabled workforce productivity in the warehouse is incorporating the human worker into the Internet of Things at a rapid pace. The increased use of RTLS technologies, such as Bluetooth Low Energy, Wi-Fi tracking, and RFID, are allowing warehouse operators to analyze productivity of the workforce, as well as the movement of physical assets. Workers can be monitored in a way that respects privacy while generating valuable operational data that can drive workforce efficiency over time.
Companies such as RealWare, Kontakt.io, Panasonic, Lucas Systems, and TopSystem are providing warehouses with a wide range of technology solutions that can provide incremental advantages. Driving productivity in this way can be an attractive alternative to more expensive automation projects, which is a concurrent trend in warehousing with the potential to transform operations in the longer term.
“The combination of multiple devices and technology solutions can have a positive compound effect on workforce productivity,” concluded Finill. “However, companies must be smart about how they integrate multiple technical solutions within the same stack to ensure they remain complementary and ROI is maximized.”
These findings are from ABI Research’s ‘Devices and Solutions for Workforce Productivity in Warehouse Logistics’ technology analysis report. This report is part of the company’s Intelligent Supply Chain service, which includes research, data, and analyst insights. Based on extensive primary interviews, Technology Analysis reports present in-depth analysis on key market trends and factors for a specific technology.
About ABI Research
ABI Research provides strategic guidance for visionaries needing market foresight on the most compelling transformative technologies, which reshape workforces, identify holes in a market, create new business models and drive new revenue streams. ABI’s own research visionaries take stances early on those technologies, publishing groundbreaking studies often years ahead of other technology advisory firms. ABI analysts deliver their conclusions and recommendations in easily and quickly absorbed formats to ensure proper context. Our analysts strategically guide visionaries to take action now and inspire their business to realize a bigger picture.
Suggested Items
Koh Young Showcases Award-winning Inspection Solutions at SMTconnect with SmartRep in Hall 4A.225
04/25/2024 | Koh Young TechnologyKoh Young Technology, the industry leader in True 3D measurement-based inspection solutions, will showcase an array of award-winning inspection and measurement solutions at SMTconnect alongside its sales partner, SmartRep, in booth 4A.225 at NürnbergMesse from June 11-13, 2023. The following offers a glimpse into what Koh Young will present at the tradeshow:
Real Time with… IPC APEX EXPO 2024: Plasmatreat: Innovative Surface Preparation Solutions
04/25/2024 | Real Time with...IPC APEX EXPOIn this interview, Editor Nolan Johnson speaks with Hardev Grewal, CEO and president of Plasmatreat, a developer of atmospheric plasma solutions. Plasmatreat uses clean compressed air and electricity to create plasma, offering environmentally friendly methods for surface preparation. Their technology measures plasma density for process optimization and can remove organic micro-contamination. Nolan and Hardev also discuss REDOX-Tool, a new technology for removing metal oxides.
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).
Cadence, TSMC Collaborate on Wide-Ranging Innovations to Transform System and Semiconductor Design
04/25/2024 | Cadence Design SystemsCadence Design Systems, Inc. and TSMC have extended their longstanding collaboration by announcing a broad range of innovative technology advancements to accelerate design, including developments ranging from 3D-IC and advanced process nodes to design IP and photonics.
SMC Korea 2024 to Highlight Semiconductor Materials Trends and Innovations on Industry’s Path to $1 Trillion
04/24/2024 | SEMIWith Korea a major consumer of semiconductor materials and advanced materials a key driver of innovation on the industry’s path to $1 trillion, industry leaders and experts will gather at SMC (Strategic Materials Conference) Korea 2024 on May 29 at the Suwon Convention Center in Gyeonggi-do, South Korea to provide insights into the latest materials developments and trends. Registration is open.