Warehouse automation trends in 2025 - From robotics to AI and machine learning - Extenda Retail

Warehouse automation is set to be a defining force in 2025, transitioning from a competitive advantage to a critical necessity for modern warehouse operations. By automating repetitive tasks and streamlining inventory movement, businesses can significantly enhance operational efficiency, reduce human error, and accelerate workflows.

Adopting warehouse automation solutions has already shown remarkable results. For instance, Extenda's nyce.logic warehouse management system (WMS) enabled e-commerce leader Bonver Logistics to process over 70% more orders in 2021 than the previous year while maintaining the same delivery timelines.

To stay competitive in this evolving landscape, businesses must act as innovators, leveraging advanced automation technologies to optimize operations and maintain a lead in their respective markets.

Following our warehouse management system (WMS) trends 2024 report, this is our review of the biggest warehouse automation trends 2025 that will shape the future landscape. We strongly recommend downloading the report to improve your warehouse strategy in 2024 and beyond.

What is warehouse automation?

Warehouse automation is the process of automating warehouse operations with automated systems designed to improve efficiency and reduce reliance on manual labor. It encompasses a combination of digital and physical automation solutions to streamline operations and enhance productivity within warehouses.

Types of warehouse automation:

1. Digital automation:
   Digital automation leverages software and electronics to minimize manual processes while improving warehouse operations. A warehouse management system (WMS) is a prime example of digital automation. Advanced WMS platforms go beyond basic inventory tracking, integrating features from warehouse control systems (WCS) to coordinate real-time activities of automated equipment for enhanced productivity. These systems improve accuracy, enable efficient inventory management, and provide better order visibility for enhanced customer service.

2. Physical automation:
   Physical automation focuses on automating hands-on tasks such as moving, sorting, and packaging goods. Technologies like automated guided vehicles (AGVs), conveyor belts, and robotics can speed up processes while improving precision and reducing errors.

By implementing warehouse automation, businesses can free up employees to focus on other value-added tasks, like quality control and customer service, while improving overall operational efficiency and keeping pace with modern logistics demands.

8 biggest warehouse automation trends of 2025

1. Robotics

The use of robotics such as autonomous mobile robots is a dominating warehouse trend. Robots have been able to replace or effectivize manual work for some time. Integrating robots with the warehouse management system and overall digital infrastructure is a significant improvement of the warehouse operations in several ways, including:

• Improve workplace safety: Limit physically straining and repetitive tasks to create a safer work environment. 

• Increase productivity: Robots can have longer operation hours while also speeding up the movement of goods and optimizing the workflow.

• Increase accuracy: Consistent precision in picking and packing, minimizing human error.

• Optimize storage: Robotic systems can maximize vertical and horizontal space usage and adjust storage based on demand patterns.

• Automate product replenishment: Warehouse robotics can monitor and streamline inventory, triggering replenishment orders and predicting future demand.

• Create a more attractive workplace for candidates: Improved working conditions, enhanced safety, and proving to be a forward-thinking company will help you attract and keep qualified talent.

There are several types of warehouse robots, ranging from automated storage and retrieval systems (AS/RS) to the newer generation of automated guided vehicles (AGV) and autonomous mobile robots (AMRs). There are also aerial vehicles such as drones (UAVs) available. Finding the right setup for your warehouse can boost operations in a major way for all the reasons we previously mentioned. 

2. Modular plug & play solutions

The days when integrations and scaling posed big challenges are over. Today's modular plug-and-play solutions consist of systems and components designed to be easily integrated into the existing warehouse setup with minimal disruption. Being modular means that the system comprises individual components that can be combined to tailor automation solutions in detail. 

Plug-and-play functionality allows for quick integration with existing warehouse systems. It makes them easy to deploy, with no need for expensive or drawn-out projects. Many businesses appreciate the smoothness, scalability, and flexibility of modular plug-and-play solutions.

3. IoT (Internet of Things)

IoT (Internet of Things) technology refers to objects connected to the Internet, communicating and exchanging data with other systems and applications. Some examples are sensors and actuators (components that perform actions based on collected data). IoT devices are often connected to several other systems in the infrastructure, gathering and processing large amounts of data, which can be analyzed and used to optimize the business.

For warehouses, IoT technology means several improvements:

• Real-time synchronization: Interconnected tags and sensors ensure that the inventory information is always up-to-date.

• Holistic performance and visibility: Integrating and analyzing data from various sources offers a comprehensive overview of operations.

• Enhanced efficiency: Track your performance and identify actionable improvement areas.

• Reduced operating costs: Optimizing processes, improving efficiency, and minimizing waste can significantly cut operating costs.

• Improved maintenance prediction: IoT technology can monitor equipment and systems, analyze data, and identify patterns, predicting maintenance needs before failures, downtime, or other costly issues arise.

In the day-to-day operations, you can get a better overview, e.g., always knowing where your goods are in real-time. Decreasing costs and growing battery life make IoT solutions an increasingly attractive option for many warehouses. The technology has undeniably impacted the warehouse industry, and it's predicted to grow even more popular in the future.

4. Wireless fleet management

IoT technology can also be used to connect warehouse management and fleet management systems. It's a cost-saving reporting and analytics upgrade, but it can also help you improve driver safety and customer satisfaction. Having a tight-knit solution in place is a big win for the business. It will give you an even better overview so that you can optimize your processes and further integrate different parts of your operation. 

5. Artificial Intelligence (AI) and Machine Learning (ML)

Artificial intelligence (AI) and machine learning (ML) technology are improving daily, effectivizing systems worldwide, including warehouse management. AI and machine learning solutions can be used for predictive analytics, optimizing warehouse operations by looking at order patterns and inventory levels. It can also help you allocate tasks, perform quality control, and predict maintenance.

AI and ML solutions are evolving rapidly. Warehouses that want to use the latest innovations to streamline their operations have much to gain from keeping up with the development. 

6. Manual labor or warehouse automation?

Many warehouses struggle to find an optimal balance between manual labor and automation technology. Labor shortages have increased costs, making it harder to retain a qualified workforce. The rise of flexible work has also further shifted these dynamics.

Making the right decisions regarding automation and human labor will be a key success factor in 2024. Labor shortages push warehouses to automate further, but finding the optimal balance is important for the efficiency of the operation.

7. RFID (Radio frequency identification)

RFID (radio frequency identification) technology uses wireless radio waves to identify and track objects. RFID tags consist of a microchip and an antenna, storing information about the tagged object. The technology is connected to readers and a back-end system and can also be integrated with IoT and other automation solutions.

Using RFID technology allows you to track your inventory and merchandise in real-time, easily locating products at all times. It will effectivize your business and help you keep track of products, but it also provides valuable data that can help you identify potential improvement areas.

8. Interconnected digital ecosystems

As you probably already picked up while reading this article, many digital innovations complement each other. If you, for instance, get the best out of robotics, AI, and RFID simultaneously, you have a lot to gain. An interconnected digital ecosystem is the way to go when it comes to warehouse automation. In the future, we will see more fully automated warehouses; maybe you want yours to be one of them?

3 more important 2024 warehouse trends

These eight trends are not all - there are more things you need to keep up with. We purposely left out some warehouse trends that we included in our Warehouse Management System (WMS) Trends 2024 report. Check out the report to learn more about the importance of:

• Sustainable supply chains: sustainability is becoming an increasingly important part of supply chain operations, and the technology to monitor, influence and attain sustainability goals is already available.

• Data-driven decision-making: by placing data and innovation at the heart of the warehouse, business leaders can say goodbye to guesswork and make confident, data-led, and profitable decisions.

• Convenience and quick commerce: modern consumers have very high convenience expectations - cutting-edge automation technology can help you meet them.

Want to know more about these automation trends and how you can use them to improve your business? Download the 2024 WMS Trend Report for Retailers and 3PLs today and dive into the specifics! 

Benefits of warehouse automation systems

Incorporating warehouse automation systems can greatly transform traditional warehouse operations by integrating advanced technologies and processes to boost your warehouse operations and turn your warehouse into a competitive advantage. Here are the key benefits:

Increased Productivity

Automated systems handle repetitive tasks like sorting, moving, and inventory tracking faster than manual labor. This allows warehouses to process more orders in less time, optimizing throughput and meeting growing demands.

Improved Accuracy

Automation reduces human error, ensuring precise inventory tracking, order fulfillment, and shipping. Barcode scanners, RFID technology, and automated picking systems contribute to improved accuracy and customer satisfaction.

Cost Efficiency

While initial investments may be high, automated systems reduce long-term operational costs by minimizing labor needs, optimizing space utilization, and improving energy efficiency.

Enhanced Inventory Management

Real-time data provided by automated warehouse systems ensures accurate stock levels, reducing overstocking or stockouts. This visibility streamlines inventory management and improves decision-making.

Better Space Utilization

Automated solutions, such as vertical automated storage systems, storage and retrieval systems, and compact picking technologies, maximize warehouse space, enabling businesses to store more items without expanding their facilities.

Scalability and Flexibility

Automated systems are adaptable to changes in business needs, whether expanding inventory, handling seasonal spikes, or managing multiple warehouses.

Improved Safety

Automation reduces the need for human intervention in dangerous tasks like heavy lifting or operating machinery, creating a safer working environment and reducing workplace injuries.

Enhanced Customer Satisfaction

Faster order processing, accurate deliveries, and real-time tracking improve the overall customer experience and strengthen brand loyalty.

Sustainability and Environmental Benefits

Automated warehouse systems are often more energy-efficient and help reduce waste by optimizing resource use and minimizing errors in inventory management.

Implementing automated warehouse systems equips businesses to handle modern supply chain complexities, improve warehouse operations, and stay competitive in an evolving market.

Nyce.logic warehouse automation module

We hope this article has shed some light on the hottest warehouse automation trends of 2024 and what your business has to gain from these innovations. Are you ready to supercharge your warehouse with a scalable, simple, and fast warehouse management systems that take full advantage of cutting-edge technology like this?

Nyce.logic is a full-control warehouse management system with automation functions for:

• Robotics

• Vertical storage lifts

• Pick by/put to light

• Automatic guided vehicles (AGV)

It's a user-friendly, intuitive solution for maximizing efficiency, improving accuracy, and reducing error rates. It comes with a web- and touch-based interface, creating a simple and smooth user experience for staff, whether they work with vertical storage lifts, on a tablet or at a workstation in your warehouse.

By partnering with nyce. logic, the logistics and distribution company Bonver Logistics achieved a 15% cost reduction and a 55% increase in efficiency. Read the full Bonver Logistics user case here.