Four million robots will be installed in over 50,000 warehouses by 2025 – a significant rise in uptake from the estimated 4,000 robotic warehouses in 2018 – according to ABI Research.

The rapid rate of robot adoption will reportedly be driven by the need for flexible, efficient and automated e-commerce fulfillment as same-day delivery becomes the norm.

ABI Research’s report reveals that global adoption of warehouse robotics will also be spurred by the increasing affordability and Return on Investment (ROI) of a growing variety of infrastructure-light robots as they are an attractive and versatile alternative to traditional fixed mechanical automation or manual operations.

“Flexibility and efficiency have become primary differentiators in the e-commerce fulfillment market as retailers and 3PLs struggle to cope with volatile product demand, seasonal peaks, and rising consumer delivery expectations,” said ABI Research Senior Analyst, Nick Finill. “Robots enable warehouses to scale operations up or down as required while offering major efficiency gains and mitigating inherent challenges associated with labor and staffing.”

Automated Guided Vehicles (AGV) and Autonomous Mobile Robots (AMR) Goods-to-Person systems can directly replace heavier mechanised automation that typically requires massive upfront investment and rigid physical infrastructure, according to ABI Research. Robots enable the optimisation of space in expensive warehouse facilities and can reduce the need for new and costly greenfield fulfillment centres.

ABI Research attributes innovation in computer vision, Artificial Intelligent (AI), deep learning and robotic mechanics to robots being able to perform traditionally harder-to-automate tasks.

Earlier this year, transport business, GTS Freight Group, selected software company, Dematic, to provide AGVs in its new warehouse in Mildura, Victoria.