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AI, automation likely to drive growth in India’s warehouse sector: Report

By IANS | Updated: March 11, 2025 13:06 IST

New Delhi, March 11 As India’s warehousing sector is expanding rapidly, companies are increasingly adopting artificial intelligence (AI) ...

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New Delhi, March 11 As India’s warehousing sector is expanding rapidly, companies are increasingly adopting artificial intelligence (AI) and automation to improve efficiency and safety, a new report said on Tuesday.

The report by Zebra Technologies showed that 63 per cent of warehouse leaders globally, including in the Asia-Pacific (APAC) region and India, plan to implement AI-driven software in the next five years.

About 65 per cent of APAC warehouse operators, including those in India, are set to adopt augmented reality (AR) within the same period, it said.

With warehouses handling larger order volumes, businesses are focusing on technology to streamline operations.

The report highlighted that 64 per cent of warehouse operators globally and 63 per cent in APAC, including India, plan to increase investments in warehouse modernisation over the next five years.

According to research firm Interact Analysis, global warehouse spaces will grow by 27 per cent, reaching 42 billion square feet by 2030 from 33 billion square feet in 2023.

Meanwhile, warehouse labour costs are expected to grow at a compound annual rate (CAGR) of 7 per cent throughout the decade.

Companies are also pushing for faster adoption of automation. The study found that 85 per cent of warehouse associates, including 88 per cent in APAC and India, believe companies that fail to invest in technology will struggle to meet business goals.

Additionally, 74 per cent of global workers and 77 per cent in APAC, including India, feel they spend too much time on tasks that could be automated.

Safety is another major concern, with 72 per cent of global workers and 79 per cent in APAC, including India, expressing worry about working in increasingly busy warehouses.

Around 70 per cent of global respondents are also concerned about workplace injuries.

Warehouse leaders acknowledge these challenges, as 51 per cent globally and 45 per cent in APAC, including India, admit that maintaining fill rates is becoming increasingly difficult.

As India’s warehousing industry continues to expand, AI and automation are expected to play a critical role in enhancing productivity, improving safety, and ensuring businesses remain competitive.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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