Alvarez & Marsal: 80% of Indian Warehouses to Adopt Digitalization or Automation by 2030
Alvarez & Marsal's report forecasts that 80 percent of India's warehouses will embrace digitalization or automation by 2030, highlighting the growing importance of automation in the logistics sector.
Up to 80 percent of India's warehouses are projected to adopt digital enablement or automation technologies by 2030, according to a new report by Alvarez & Marsal (A&M). The report, titled "Building Warehousing Competitiveness: Automation And Beyond," was released in India in October 2023.
The Indian logistics sector accounts for 14 percent of the country's GDP, with a compound annual growth rate of 9-10 percent, underscoring the significance of warehouse automation. The report identifies increasing demand, operational complexities, and the need for modernization as key drivers for automation adoption. Currently, most Indian warehouses operate at automation levels 0-2, with significant potential for growth towards higher levels.
Manish Saigal, Managing Director at A&M, stated that implementing automation requires a thorough assessment of costs and benefits. Automation enhances efficiency and reduces errors, but companies must align technology choices with strategic goals. The report projects that Grade A warehouses in India will grow at a CAGR of 12.5 percent, further stimulating automation.
The report emphasizes that India's automation journey will be unique, requiring a balance between human labor and machinery. While automation offers substantial advantages, human expertise will remain crucial. The synergy between technology and human insight is key to meeting the evolving demands of the warehousing sector.