Warehouse Automation Trends for 2025: 25 Expert Thoughts

Updated December 19, 2024

In 2025, warehouses and material handling operations will face new challenges and opportunities driven by rapidly evolving technology, changing consumer expectations, and unpredictable global events. As companies strive to optimize efficiency and resilience, staying ahead warehouse automation trends is more critical than ever. From integrating cutting-edge robotics and dynamic forecasting tools to tackling macro-level issues like climate change and cybersecurity, today’s supply chains are transforming at an unprecedented pace. 

Prepare to explore the innovations and strategic shifts that will define material handling and warehousing over the coming year. The path forward is marked by challenges, but for companies ready to embrace these trends, the future promises growth, resilience, and efficiency. 

Whether it’s harnessing digital twins for strategic planning, adapting to workforce shifts, or safeguarding assets with resilient cybersecurity, the warehouse automation insights in this blog post will provide a roadmap for success in a world where adaptability is key. 

Below we dive into 25 emerging warehouse automation trends that will shape the warehousing landscape in 2025, highlighting how forward-thinking companies are responding to complex demands and securing their operations for the future. Each warehouse automation trend is is grouped into one of six major trend categories and accompanied by insights from industry leaders, offering perspectives on how to navigate these changes with agility and purpose.  

Six Key Warehouse Automation Trends for 2025

1. Supply Chain Optimization
2. Robotics & Technology
3. Labor & Workforce
4. Space Optimization
5. Inventory Management
6. Sustainability & Risk Management

Let's dive in!

Supply Chain Optimization

While things have largely stabilized after the pandemic, major world events will continue to cause ripples in the global supply chain throughout 2025, driving companies to innovate and future-proof their supply chains. The following trends focus on how companies are developing new strategies to build resilience in supply chains to address disruptions and improve agility.

#1 AI Boom Drives Supply Chain Optimization

As artificial intelligence continues to evolve, it’s driving transformative changes in supply chain management by enhancing efficiency, forecasting, and responsiveness. AI tools can analyze massive data sets to uncover patterns and optimize everything from inventory management to demand forecasting. 

By identifying potential disruptions, AI enables businesses to proactively adjust operations, avoiding costly delays and maintaining high service levels. Machine learning models are also allowing companies to automate complex decisions, improving accuracy across order fulfillment, routing, and restocking. In today’s high-demand environment, AI-driven supply chain optimization gives companies the power they need to maintain high levels of operational efficiency in their supply chains, insulate themselves from disruption, and respond to customer demands more precisely. 

"Our most recent MHI industry report highlighted how AI is transforming supply chain management around the entire material handling industry by optimizing everything from routing to demand forecasting. This technology is enabling companies to build stronger, more resilient supply chains that can quickly adapt to global disruptions and keep up with ever-shifting customer demands."  Christian Dow EVP, Industry Leadership & Workforce Development

 

“Reshoring and nearshoring have really been picking up steam here in the North American market. While it can be more expensive, we’re seeing firsthand the benefit of having that manufacturing capability close to home is helping reduce lead times and making customers happier.”   Mary Brigid Curtis Senior Director of Realization

 

"E-commerce returns are a constant strain on modern supply chains, requiring substantial resources to process if the right systems aren't in place. We are finding automation can provide answers through rapid issue detection, resolution guidance, and seamless data flows. A dedicated reverse logistics strategy, powered by automation, is essential for maintaining operational stability at peak times, allowing you to restock items quickly while optimizing your inventory, for savings across the supply chain."  Stipe Galic VP of Business Development

 

In 2025, dynamic demand forecasting is set to become a critical differentiator for leading companies in warehousing and logistics. By leveraging cutting-edge technologies like AI, IoT sensors, and machine learning, top players are tapping into real-time data streams from consumer behavior trends, sales channels, and external market indicators to anticipate changes in demand with greater precision and agility.

“Dynamic forecasting powered by AI and real-time data is giving top companies an edge. With instant insights, they can align stock levels and resources precisely with demand—keeping inventory lean and responsive. Furthermore, with consumption projected to trend upwards, waste can be reduced and sustainable operational lines created, a key part of the future of intralogistics. This isn’t just about accuracy; it is about strategic decisions.” Karolina Pulido CEO

This "sandbox" approach allows decision-makers to experiment with everything from routing optimizations to inventory adjustments and labor allocations, all without disrupting real operations. As digital twins continue to evolve with AI and IoT integrations they are making it easier for companies to adapt to market changes, reduce risks, and refine strategies with unprecedented accuracy and control. 

 

With a digital twin, companies can map out and model supply chain adjustments before they go live, helping them reduce disruptions and pinpoint the best strategies. This technology is making it possible to tackle complex decisions with confidence and speed. Johan Jonsson VP of Life Cycle Services

 

 

AI is transforming the role of robotics in warehouses by allowing robots to manage a more diverse array of tasks—giving them the flexibility they need to adapt to continually evolving warehouse environments. Unlike traditional robots, which are often confined to a single function, AI-powered systems can handle multiple tasks like picking, packing, and sorting with greater efficiency. These robots use machine learning to optimize operations in real-time, learning from data and adjusting workflows on the fly. 

This adaptability is crucial in warehouses with high SKU counts or unpredictable demand, where traditional methods struggle to keep up. By dynamically adjusting to inventory levels and order volume, AI-powered robots help reduce downtime, increase productivity, and create more agile and efficient warehouses capable of scaling with demand. As AI continues to advance, the integration of these AI-equipped smart(er) robots is redefining material handling.

  

“AI is driving a huge shift towards flexible automation in warehouses. Instead of robots being programmed for one specific task, AI allows them to handle a wider variety of parts and adapt to changing workflows, leading to more efficient and productive facilities. This is especially important in environments with high SKU counts or fluctuating demand, where AI-powered robots can optimize picking, packing, and sorting in real-time.”   Matt Charles Executive Director – Global Accounts

The rise of Robotics as a Service (RaaS) is making automation more accessible to companies by lowering the barrier to entry for integrating robotics into a warehouse.  

"The shift toward Robotics as a Service (RaaS) is transforming how companies approach automation. By offering a subscription-based model, RaaS enables organizations to adopt robotics more quickly, bypassing lengthy CAPEX budgeting cycles and treating automation as a flexible operating resource that can be tailored to the changing needs of their business. Some RaaS models, like ours, are inclusive of all costs –– robots, software, monitoring, support, maintenance –– which provides operators with a clear picture of their automation expenses over a specified term. And as their business grows, RaaS makes it easy to tack on more robots as required with maximum transparency and little red tape.”  Christina Dube Marketing Director - AMER

#8 Cube Storage Gains Momentum in eCommerce 

As e-commerce order volumes continue to skyrocket, more companies are adopting robotic cube storage systems to maximize their warehouse capacity and raise throughput to match demand efficiency. 

 

“E-commerce companies are increasingly turning to robotic cube storage systems to keep up with rising consumer expectations for fast and accurate delivery. Because these systems optimize space and streamline picking operations, they ensure that fulfillment centers can handle growing order volume while maintaining flexibility in managing a wide variety of SKUs. It’s basically a no-brainer for any high volume e-commerce company looking to scale for the future.”  Joe Elie Director Sales N. America

 

#9 AGV & AMR Explosion Sends Shockwave through Warehouses  

The rapid growth of Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) is transforming warehouse operations worldwide. As demand for speed and efficiency in fulfillment grows, AGVs and AMRs provide a flexible, scalable alternative to traditional material handling solutions.  

These autonomous systems excel in performing repetitive tasks like transporting goods and managing inventory, allowing human workers to focus on more complex roles. With their ease of integration and the ability to scale up or down based on demand, AGVs and AMRs are helping warehouses boost throughput and minimize labor-intensive bottlenecks. As robotic technologies continue to advance, the adoption of these mobile solutions is expected to keep accelerating, cementing AGVs and AMRs as mainstays in modern warehouse management. 

 

AMRs are quickly becoming an essential feature of the modern material handling landscape. They tick off all the right boxes: efficient, flexible, and scalable. These three attributes make them ideal for any industry where demand shifts are the norm. Additionally, the Robot as a Service model eliminates heavy capital expenditures and helps drive tremendous ROI. Steve Simmerman VP - Global Alliances

Labor & Workforce 

With labor shortages and rising costs affecting industries worldwide, companies are turning to innovative solutions to enhance workforce productivity. Automation, collaborative robots, and advanced training tools are allowing businesses to do more with less, while prioritizing worker safety and efficiency. These trends focus on how the workforce is evolving to meet modern challenges. 

#10 Welcome, Cobots! Thanks for lending a hand

Collaborative robots—affectionately referred to as cobots—are quickly becoming a staple in modern warehouses by helping take some of the load off an already strained labor force. Unlike traditional robots that operate independently from humans, cobots (aka pick and place robots) work directly alongside employees, lending a helping hand (so to speak) in repetitive, labor-intensive tasks. 

This synergy between human and machine may sound like science fiction, but the boosts to labor efficiency, improved worker safety, and reduced physical strain on employees could not be more real. This labor efficiency is allowing businesses to use their existing labor more efficiently and remove labor related obstacles that inhibit growth. This collaboration is key to meeting the growing demands of modern material handling environments. 

 

“Companies continue to implement collaborative robotics in the warehouse, which is revolutionizing workforce efficiency by allowing machines to handle repetitive, labor-intensive tasks with precision and speed. Implementing robotic automation solutions that work in harmony with human capabilities is enabling businesses to scale operations efficiently while fostering innovation and safety on the shop floor.”  Sriram Sridhar CEO - Americas

 

“Over the past 3 years I have found an insatiable desire to improve worker productivity and safety, across the material handling industry.  This addresses competitiveness as well as worker availability; sometimes it is in the form of automation, sometimes in the form of enhanced tools in the hands of the operators.”   Jonathan Robertson CINO

 

 The rapid expansion of robotics in warehousing is largely a response to ongoing labor shortages and the need to improve existing labor efficiency without increasing headcount. 

 

Collaborative robots (cobots) and mobile robotics, such as AGVs and AMRs, are great examples of how robotics can provide support when companies are struggling to find labor. Unlike human workers, robots offer consistent reliability—they don’t call in sick or require last-minute replacements—ensuring productivity and operational continuity.  

 

Labor shortages and workforce efficiency remains a priority issue for many manufacturers in the Midwest. As the baby boomer generation retires, employers are having a hard time replacing that labor, and we continue to shift to more of a service/tech-oriented workforce. It’s imperative that manufacturers look for ways to automate their order fulfillment and production processes to sustain, and grow, their businesses in spite of those challenges. Ryan Howard President

 

Wearable technologies—sometimes shortened to ‘wearables’ or simply WT—are seeing rapid growth in warehouse and distribution centers, adding a new dimension to how workers interact with both equipment and information. 

The list of wearables is constantly expanding. Devices like smart glasses, wrist scanners, intelligent gloves, and more are all contributing to boosting labor efficiency and worker safety in warehousing and distribution. These technologies allow workers to access real-time data hands-free, which in turn reduces errors and enables faster decision-making on the warehouse floor. As the demand for faster fulfillment and operational efficiency grows, wearable tech is quickly becoming a must-have in modern warehouses. 

 

"Wearable technologies in the warehouse have come a long way in recent years. In a lot of ways they’re totally transforming how workers perform daily tasks. The real-time, hands-free access to data makes it really easy to scale labor efficiency and improve accuracy. As demand for faster and more efficient warehousing operations continues to grow, wearable tech will cement itself as an essential part of warehouse workflows."  Doug Card Director of System & Integrator Sales

As labor scarcity and high turnover rates continue to plague warehouses around North America, some tech-forward companies are turning to virtual reality (VR) to streamline and improve training for new employees. 

 

VR training provides an immersive, hands-on learning experience that helps employees quickly develop the skills needed on the warehouse floor without the traditional setup or safety risks. By accelerating the training process, VR enables warehouses to keep pace with demand while reducing the impact of turnover and minimizing downtime.  

 

"VR is transforming employee training for warehouse and distribution centers by providing immersive, hands-on experience in a risk-free environment. New hires can now be fully productive when stepping onto the warehouse floor. In a high-demand industry facing labor shortages, VR technology is a game-changer, significantly reducing training time and enhancing workforce readiness."   Peter Haywood Integrated Systems Sales Manager

Maximizing warehouse capacity has become more critical than ever as e-commerce surges and real estate costs rise. Companies are turning to space-saving solutions, vertical storage, and automation to get more out of every square foot. The following trends highlight how innovative designs and smart technology are helping warehouses optimize space and increase throughput. 

 

 If you’ve been operating in warehousing for any amount of time, you understand one simple fact: space is expensive. Unfortunately, the rising cost of square footage in warehouses is showing no signs of slowing down, especially in urban and high-demand areas. As such, companies are shifting their strategies to maximize vertical space in their existing facilities or new facilities they’re building.

 

Building up instead of out is a great way for businesses to increase storage capacity without expanding their footprint. This vertical approach is especially critical in sectors like e-commerce, where rapid fulfillment and high SKU counts require efficient use of space. These vertical solutions, like automated storage and retrieval systems, have added benefits like allowing for faster picking and more streamlined operations.  

 

“Warehouse space – new and existing – isn’t getting any cheaper, especially in high demand areas, so the smart move is to build up, not out. We’re seeing a lot of companies maximize their vertical space by implementing automated storage and retrieval systems, allowing them to save space and expand operations in their current building without the need for relocation.  It’s a win-win situation that overcomes space constraints while boosting productivity."  Mark Dunaway President - Americas

 

As companies expand, the number of SKUs increases, leading to warehouses becoming overcrowded and disorganized seemingly overnight. Many warehouses that seem at capacity are simply poorly organized and not using the capacity they do have.  

 

Most can unlock significant storage potential by reorganizing inventory and updating layouts. Techniques such as re-slotting, where high-demand items are placed in more accessible locations, and integrating totes, containers, and dividers allow for better use of vertical and horizontal space. 

 

“As warehouses face increased demand, they will require smarter use of existing space rather than expensive expansion. Many warehouses that appear to be "out of space" are actually suffering from inefficient layouts and poor organization. By re-slotting inventory and incorporating totes, containers, and dividers with high density storage solutions companies can gain capacity within their existing footprint.”  Ken Beckerman President

 

With the growing demands of e-commerce and omni-channel fulfillment, multi-use zones are rising in popularity in the modern warehouse. These flexible zones combine storage and fulfillment functions in a single space, allowing companies to dynamically adjust workflows based on order volume, product types, and peak times. 

 

By designing spaces that can serve multiple purposes, companies can maximize every square foot, respond quickly to changing demand, and reduce the time and costs associated with moving inventory across the warehouse.  

 

“In many facilities we are seeing customers apply multi-use zone strategies.  This may include areas within facilities with equipment on casters that can be easily moved or reconfigured for multiple processes.  Also, customers are implementing systems with flexible storage and/or retrieval systems which allows flexibility for future unknown product specifications within their automation systems.” Marc DeWall VP of Operations

 

 

Not only real time inventory tracking but overall visibility in the process is essential. Once you establish visibility, you can track each step in the process. Once you track you can control better. Rupesh Narkar VP Sales & Systems: Logistics

 

#19 “Just-in-case” is Here to Stay 

Effectively managing inventory demands foresight and flexibility. Companies are still finding a balance between "just-in-time" (JIT) to optimize costs and "just-in-case" (JIC) to mitigating supply chain risks.  

 

By blending JIT's efficiency with JIC's buffer stock approach in 2025, companies maintain lean operations while building strategic safety nets. This hybrid model helps companies respond flexibly to unexpected demand spikes or supply shortages, ensuring stability and efficiency. 

 

“With delivery expectations rising, 'just-in-time' isn’t enough anymore, while ‘just-in-case’ can be too much. We’re seeing shit to blending these two inventory strategies to stay cost effective, yet insulated against supply chain disruptions. Automated storage solutions are a big help with this, letting warehouses hold more inventory on hand as needed without compromising on space or efficiency.”  Cal Bowers Sr. Director of New Business

 

#20 Combatting Inventory Shrinkage with Real-Time Tracking 

Inventory shrinkage can be a plague on any warehouse not equipped to handle it. Whether it’s misplacement, theft, or damage, it’s long been a costly issue in warehouses and distribution centers. In 2025, more companies will leverage real-time tracking technologies to combat these losses and maintain precise control over their inventory. 

 

With tools like RFID, GPS tagging, and IoT-enabled tracking systems, businesses can monitor items continuously, ensuring that every tool, part, or product is accounted for at all times. This approach allows organizations to reduce shrinkage significantly by enabling quick recovery of misplaced items and deterring theft. By investing in these tracking solutions, companies gain greater visibility and accuracy, creating more resilient and cost-effective inventory management systems.

 

"Many of our customers are adopting inventory tracking technology to help reduce inventory shrinkage. These companies are cutting down on inventory-related losses by integrating real-time tracking to ensure they’re always able to keep track of their tools and parts."   Cedric Hasenfratz  National Sales and Partnership Manager

 

 

Sustainability & Risk Management

Sustainability and risk management are quickly becoming no longer optional—they are essential components of future-proofing any supply chain. 2025 will see companies integrating eco-friendly practices, reducing waste, and adopting advanced risk mitigation strategies to ensure long-term resilience. These trends explore how businesses are tackling environmental and operational risks to build more sustainable and secure operations. 

 

#21 Eco-friendly Packaging

The growing influence of environmentally conscious consumers has made excessive packaging a significant brand issue. Consumer expectations and sustainability pressures are on the rise, and forward-looking companies need to have this shifting sentiment on their radars, or risk falling out of favor with their customer base. Right-sizing cartons and minimizing empty space can reduce emissions and also shipping costs, making this one of the rare sustainability measures that also can help the bottom line. 

 

For e-commerce businesses, packaging represents the only physical connection with customers, making the unboxing experience a crucial opportunity to communicate values around sustainability. To achieve these goals, many companies are investing in technology that ensures cartons are right-sized for their contents, making shipping both more efficient and environmentally friendly. 

 

"There's no question shippers are taking a deeper look at packing optimization lately, for several reasons. Firstly, sustainability initiatives that pay for themselves are few and far between - optimizing packing and carton sizes yields lower emissions and costs. Secondly, due in part to Gen Z's growing share of the consumer base, ecom customers are becoming increasingly intolerant of waste. Ecommerce brands only have one opportunity to have a physical interaction with their customers- the unboxing experience. Aside from investing in greener packaging materials, right-sizing cartons with software and hardware are the only options to have a meaningful impact on empty space in the box."  James Malley Co-founder and CEO

 

#22 Equipment Leasing Gains Traction

 The price tag associated with warehouse automation has always been a major obstacle for companies first looking to automate. Now, with the rise of equipment leasing, more companies are choosing this option over traditional capital expenditures to maintain financial flexibility in the face of economic uncertainty and an evolving market. 

 

Leasing allows businesses to access advanced technology without high upfront investments, enabling them to conserve cash flow and reduce financial risk. This shift also allows companies to stay competitive by making it easier to upgrade or exchange equipment as operational demands change.  

 

“Companies are shifting toward leasing instead of making significant capital expenditures to maintain flexibility in their operations. Leasing eliminates high upfront costs and spreads risk over time, allowing businesses to conserve cash flow while still accessing the latest technology to remain competitive. It offers a practical solution for companies worried about liquidity, providing the flexibility to upgrade or return equipment as needs evolve.”  Elise Hardy Regional Vice President, Sales

 

#23 Blockchain and Cybersecurity Become Vital for Supply Chain Resilience 

As digital transformation initiatives accelerate in 2025, so to do the risks of cyber threats, exposing vulnerable points across interconnected supply chains. A recent survey found that 61% of manufacturing experts regard cybersecurity as a critical challenge to supply chain stability, underscoring the urgency for robust, resilient network defenses. 

 

In response, blockchain technology is emerging as a foundational layer of protection, providing a tamper-proof, decentralized ledger for tracking goods, verifying transactions, and ensuring data integrity. This level of transparency is invaluable in industries with strict traceability requirements, such as food and pharmaceuticals, where blockchain can help prevent fraud, counterfeiting, and data manipulation.  

 

"Blockchain and cybersecurity together form the backbone of a resilient supply chain. With these technologies, companies can monitor every transaction, reduce vulnerabilities, and build stronger trust with their partners and customers." Lisa Anderson President

 

#24 Rising Fire Safety Standards in Warehousing 

 Fire protection is quickly becoming a top priority for warehouses as insurance agencies steadily raise fire safety standards. These requirements are expected to continue tightening, with many state and local bills already in the legislative pipeline, making advanced fire suppression systems essential to remain compliant and reduce liability. 

 

Looking to 2025 and beyond, many companies are already prioritizing fire safety in new builds, implementing specialized hazard fire systems to protect inventory, personnel, and infrastructure. Warehouses without these systems risk higher premiums, restricted coverage, or even compliance issues as regulations evolve. For businesses, planning fire protection in advance is not only a way to avoid disruptions but also a crucial investment in risk management and long-term property value. 

 

"Insurance agencies have been steadily increasing fire safety requirements for quite some time and we predict that these requirements will only continue to increase. As such, we're seeing more companies prioritizing fire protection in their new warehouse builds and investing in special hazard fire systems. Warehouses without these systems may struggle to remain compliant in the coming years, so it's critical for businesses to plan ahead and invest in fire safety today to  reduce risk and manage property losses through the use of proper fire protection."  Derek Helton Business Development Manager

 

#25 Global Climate and Migration Pose as Threats to Supply Chain Stability

Global climate change and large-scale migration are set to become increasingly critical challenges for supply chain stability in 2025. As temperatures rise and natural resources become scarcer, companies are facing disruptions across sourcing, production, and logistics, with particularly severe impacts on supply chains reliant on raw materials.

 

In addition, mass migration—often driven by environmental and economic instability—reshapes labor dynamics in key supply chain regions. With millions of people on the move, companies must navigate shifts in workforce availability, evolving labor laws, and heightened human rights concerns.  

 

These factors in the current global environment could be very similar to what we experienced during COVID, when the weaknesses of the supply chain were exposed and we all dealt with the shortages of supplies, food, etc. Supply chain stability with uncertain global conditions like we have right now is about that balance between just-in-time, where you have the absolute minimal amount of product sitting in your network and keeping your costs low, to having a super excess or abundance of inventory that you are paying for. John Clark Director of Marketing