Despite a weak overall macroeconomic backdrop, warehouse automation order intake rose by 7% in 2025, noted Interact Analysis. The market research firm attributed the growth to multiple factors rather than strong demand.
For instance, Interact Analysis found that project values were inflated by rising steel and labor costs, causing order intakes to rise even without an increase in underlying demand. It also noted that slow momentum in the market was offset by large-scale facility investments from retail giants such as Amazon, Walmart, and Tesco, helping to boost last year’s total orders.
“Growth in warehouse automation over the coming years will be driven by shifting investment priorities and changing production strategies,” stated Interact Analysis. “Strong industry sectors for growth are expected to be general merchandise, durable manufacturing, and food and beverage.”
In addition, the Wellingborough, U.K.-based firm predicted renewed growth for the parcel sector, with an average annual growth rate of approximately 6% forecast between 2025 and 2030. It credited investments in last-mile delivery systems.
EMEA led warehouse automation growth
Of the three main regions that Interact Analysis covered, Europe, the Middle East, and Africa (EMEA) had the strongest forecast for warehouse automation. It projected annual growth of about 7% between 2025 and 2030.
This was slightly ahead of the Americas (6%) and Asia-Pacific or APAC (5%), in part because the EMEA region has been less heavily affected by inflated steel and labor costs, said the firm.
However, while EMEA forecasts as a whole look positive, Interact Analysis noted individual countries vary considerably.
“Although Netherlands, Northern Europe, and the U.K. are experiencing growth, many other countries such as Germany are experiencing lower demand as major customers shift operations towards lower-cost regions,” it said.
Interact Analysis projects Americas and APAC to slow
Interact Analysis said it expects grocery automation to slow in the Americas as 2030 approaches and major distribution center programs reach completion.
“Looking further ahead, growth is expected to slow slightly, particularly in North America as steel prices normalize and major CapEx cycles reach maturity,” wrote Rowan Stott, a senior analyst at Interact Analysis. “Factors such as easing input costs and political uncertainty in the U.S. ahead of the 2028 election are likely to weigh on longer-term growth in the warehouse automation market.”
In the APAC region, the overall slowdown in domestic Chinese demand is continuing to slow revenue growth and depress warehouse automation forecasts, said Interact Analysis. The region experienced an estimated year-on-year decline in revenue of -8% in 2025, although some territories continued to perform strongly.
“Overall, the sector is defined by contrast: short-term order intake growth built on rising project prices and a handful of large-scale investments, set against persistent structural headwinds and cautious investment sentiment, resulting in an average annual growth rate of 6% between 2025 and 2030 globally,” said Stott.
To produce the report, Interact Analysis said it spent months conducting more than 100 research interviews and analyzed more than 120 companies, looking at their past, present, and future investments in warehouse automation.