The warehouse industry is undergoing a major transformation, with 63% of warehouse leaders planning to implement AI and augmented reality (AR) technologies within the next five years. According to a study by Zebra Technologies, 64% intend to increase their investments in warehouse modernisation, and 63% aim to speed up their digital transformation efforts by 2029.
“Automating material movement, data collection, and information management helps make busy warehouses safer. It also makes it easier for teams to meet SLAs and maintain a steady, reliable flow of quality goods to the market, which increases both customer satisfaction and worker engagement,” said Andres Boullosa, global warehouse vertical strategy leader, Zebra Technologies.
Global warehouse space is projected to expand, increasing from 33 billion square feet in 2023 to 42 billion square feet by 2030—a 27% growth. Meanwhile, warehouse labour costs are expected to rise at a compound annual growth rate of 7% through the decade. As warehouse operations scale up, frontline workers feel the pressure and call for greater automation to boost efficiency and safety.
Frontline workers demand technology to keep up
Warehouse employees see technology as a critical factor in meeting business objectives, with 85% stating that without investments in automation, their companies will struggle to succeed. Many workers (74%) believe they spend too much time on tasks that automation can handle, reducing overall efficiency.
Safety is another growing concern, with 72% of workers worried about hazards on increasingly crowded warehouse floors and 70% fearing injuries. In addition, 69% of employees point to labour shortages as a major issue, citing exhaustion and burnout as ongoing challenges.
Warehouse managers acknowledge these concerns, with 51% admitting difficulty maintaining order fulfilment rates and 47% struggling to meet service level agreements (SLAs).
The role of AI in warehouse optimisation
Furthermore, warehouse leaders see AI-powered mobile devices as essential for enhancing worker safety, inventory management, and quality control. Nearly 79% believe AI can help identify workplace hazards and prevent accidents, while 78% think AI will improve their ability to detect operational anomalies. Additionally, 77% say AI applications will help optimise stock levels, improve forecasting, and maximise space utilisation.
The primary goals of automation include reducing errors (71%), improving SLA compliance (70%), and increasing overall productivity (54%). Automation can also decrease order mistakes and manual picking errors (53%). Leaders overwhelmingly agree that equipping workers with advanced technology increases productivity (82%) while minimising physical strain and injuries.
Warehouse operators cite two major challenges: implementing intelligent automation and meeting evolving customer expectations. However, achieving the latter is impossible without first overcoming technological hurdles. The need for automation is no longer just an option but a necessity to remain competitive in a fast-moving, on-demand market.