Multi-billion dollar intralogistics market: These trends and new technologies will determine the future

The 10 billion market: These technologies are now changing intralogistics

Warehouse logistics is undergoing a historic transformation that goes far beyond simply increasing storage capacity. Driven by a massive technological leap between 2023 and 2025, the traditional high-bay warehouse is evolving from a passive storage location into a highly complex, cognitive ecosystem. Particularly in the sensitive food and pharmaceutical industries, where milliseconds and tenths of a degree determine product safety and profitability, this transformation is no longer just an option, but a survival strategy.

With a projected market volume for automated warehouse systems exceeding US$10 billion by 2030, the industry is facing a fundamental realignment. The focus is shifting radically: away from manual processes and rigid structures, towards adaptive systems controlled by artificial intelligence, blockchain technology, and the Internet of Things (IoT). Whether it's the seamless monitoring of the cold chain using state-of-the-art sensors, the deployment of autonomous mobile robots (AMRs) to compensate for the skilled labor shortage, or the use of digital twins for risk-free process optimization – the boundaries between physical logistics and digital data processing are increasingly blurring.

This article explores the technological breakthroughs and strategic implications of this transformation. Using concrete examples from industry giants like Kaufland, JD Logistics, and Alibaba, it illustrates how predictive maintenance minimizes downtime, augmented reality accelerates order picking, and micro-fulfillment centers are revolutionizing urban supply. We delve into a world where robots are not just colleagues, but guarantors of a tamper-proof, efficient, and sustainable supply chain of the future.

From forklifts to swarms of robots: The future of intralogistics has begun.

The transformation of warehouse logistics is currently taking place at a speed that exceeds even the most optimistic forecasts. High-bay warehouses are evolving from passive storage systems into intelligent, self-learning ecosystems that form the critical interface between production safety, regulatory compliance, and economic efficiency in the food and pharmaceutical industries. Recent developments between 2023 and 2025 demonstrate a fundamental realignment: Competitive advantage is no longer determined by storage capacity, but rather by the intelligent integration of artificial intelligence, robotics, and real-time data analysis.

The economic dimension of automation

The global market for automated storage and retrieval systems is exhibiting remarkable dynamics. From $6.52 billion in 2024, it is projected to expand to $10.31 billion by 2030. However, these figures only scratch the surface of a profound structural shift. A more nuanced picture emerges within the specific segment of the food and beverage industry: demand for miniload systems, designed for handling cartons and smaller units, is experiencing disproportionate growth. These systems are particularly well-suited for managing the high SKU diversity found in packaged foods, beverages, dairy products, and ready-to-eat meals, where rapid picking, precise inventory control, and frequent reorder cycles are critical.

The pharmaceutical industry is emerging as the fastest-growing segment within ASRS implementation. The market for pharmaceutical cold-chain packaging alone is projected to expand from $20.05 billion in 2025 to $69.55 billion by 2034. This massive expansion reflects not only the increasing production of biologics and mRNA vaccines, but also stricter regulatory requirements that demand complete documentation and temperature control from the manufacturing site to the end user.

Technological breakthroughs as a guarantee of efficiency

The practical implementation of highly automated warehouse systems can be exemplified by several reference projects. Kaufland's logistics center in Geisenfeld, Bavaria, represents the current state of the art: Since September 2024, a 30-meter-high high-bay warehouse has been operating there largely fully automatically. Shuttle systems move goods in and out of the racks, while robotic arms pick over 200,000 shipping units daily. Autonomous transport vehicles deliver pallets to the shipping area. The system enables higher capacity without requiring additional space and significantly improves delivery reliability. In the food segment alone, approximately 185,000 shipping units are picked automatically every day, and an additional system processes up to 50,000 units of fruit and vegetables. The internal training program is particularly noteworthy: 90 percent of the required skilled workers come from the company's own training programs.

JD Logistics, the logistics arm of JD.com, is pursuing a different implementation model in South Korea. Its two fully automated logistics centers in Icheon and Incheon utilize AI-powered inventory optimization, automated sorting and packing systems, and a specialized batch inventory system for food products. The Icheon center enables delivery times of just twelve hours in the greater Seoul area. This speed is not solely based on geographical proximity, but rather on the intelligent orchestration of all system components through machine learning.

Artificial intelligence is transforming warehouse processes

The integration of artificial intelligence into warehouse management systems marks a paradigm shift from reactive to predictive warehouse management. AI-based systems not only optimize existing processes but also recognize patterns that remain hidden to human operators. For example, an AI-supported WMS can identify which items are frequently ordered together and move their storage locations closer together accordingly. This automated layout optimization continuously reduces picking distances.

The economic effects are quantifiable: Documented implementations show reductions in warehousing costs of 15 to 20 percent and time savings of 30 to 35 percent. At Alibaba, productivity was doubled from 1,500 picked items per shift to 3,000 items, while simultaneously significantly reducing employee walking distances. AI ensures that robots deliver the shelves to employees faster and more efficiently. Internal Amazon studies show that this AI-optimized coordination generates annual savings of around half a billion US dollars.

For temperature-critical applications in pharmaceutical and food logistics, intelligent algorithms are proving particularly valuable. AI systems implement intelligent FEFO (First-Expired-First-Out) picking logic that adapts to inventory conditions in real time, rather than relying on rigid, rule-based approaches. These cognitive inventory systems take into account the temperature sensitivity of products and minimize exposure during transfers between storage zones. Documented implementations show reductions in temperature violations of 50 to 65 percent compared to traditional methods. The combination of improved routing efficiency and reduced temperature exposure extends the average shelf life of highly perishable items by two to four days.

Predictive maintenance ensures continuous operation

Predictive maintenance is becoming the backbone of smart warehouses. Unlike reactive or time-based maintenance, predictive maintenance uses sensors and advanced analytics to detect early signs of wear, deterioration, or failure. IoT sensors continuously collect data on vibration, temperature, and voltage from conveyor systems, automated storage systems, and autonomous vehicles. This data is processed via edge computing devices and transmitted to cloud analytics platforms. Machine learning algorithms analyze patterns and detect anomalies that indicate potential problems.

Companies implementing predictive maintenance report a 25 to 30 percent reduction in maintenance costs and a 70 percent reduction in unplanned downtime. For ASRS systems, conveyor belts, and autonomous vehicles, this translates to maximum uptime and seamless logistics operations. During peak demand periods, when downtime is particularly costly, this proactive approach ensures reliable order fulfillment. Advanced sensors and analytics monitor vibrations, motor load, and navigation accuracy. Early anomaly detection allows maintenance teams to take preventative action, ensuring continuous operation and maximum throughput.

IoT and sensors for seamless cold chain monitoring

The Internet of Things (IoT) technology is revolutionizing the monitoring of temperature-critical supply chains. IoT-based wireless sensors enable remote access and real-time tracking of temperature and humidity. These sensors are installed in refrigerated storage or transport units and continuously transmit data to cloud-based platforms via Wi-Fi, cellular, or LoRaWAN technology. Users can remotely monitor temperature conditions via web dashboards or mobile applications, simplifying the tracking of shipments across multiple locations.

The main advantages of IoT-based sensors lie in real-time monitoring, automation, and integration with cloud platforms. They enable predictive maintenance by analyzing trends in temperature fluctuations, thereby reducing losses. IoT platforms play a central role in enabling predictive analytics for cold chain monitoring. These high-performance platforms collect data from various IoT devices such as temperature sensors, humidity monitors, and GPS trackers. This data is analyzed using machine learning algorithms that observe the operating patterns of the equipment in use to identify potential failure signals.

Predictive analytics can optimize energy consumption by identifying inefficiencies in refrigeration systems, such as excessive use during off-peak hours or the continuous operation of defective equipment. The International Energy Agency states that cold storage systems can reduce their energy consumption by 10 to 30 percent through IoT-based analytics. This not only helps companies cut costs but also achieve their sustainability goals.

Digital Twin enables risk-free optimization

The implementation of digital twins in warehouse logistics opens up new dimensions of process optimization. A digital twin is a digital representation of a physical system that updates in real time, enabling processes to be simulated, analyzed, and optimized before they are actually implemented. Originally developed in the industrial sector, this concept is now revolutionizing pharmaceutical logistics, where supply chain complexity and fragile distribution systems demand a more predictive approach.

The use of a digital twin in pharmaceutical logistics enables proactive management of inventory, flows, lead times, and risks without disrupting actual operations. What was once an exclusive tool for large corporations is now a scalable, intuitive solution powered by artificial intelligence and machine learning, available even to small and medium-sized pharmacies and warehouses.

The concrete benefits are measurable: Reduced stockouts through pharmaceutical logistics simulation, which makes it possible to predict demand peaks and product shortages before they occur. Optimized inventory: The digital twin helps find the right balance between excess stock and critical shortages, significantly reducing waste. Smarter reordering: The system simulates various supply scenarios and recommends actions based on real-world data.

In the food sector, for example, Ocado uses a digital twin to replicate its current fulfillment centers in real time and to simulate the impact of potential layout changes through virtual replicas. This enables Ocado to make precise and cost-effective decisions without disrupting operations in the real world.

Blockchain ensures tamper-proof traceability.

The implementation of blockchain technology in pharmaceutical and food supply chains addresses fundamental challenges regarding transparency, anti-counterfeiting measures, and regulatory compliance. Through its inherent immutability, security, and scalable network architecture, blockchain has demonstrated its ability to effectively foster a culture of trust and collaboration, thereby reducing data silos along the supply chain.

For pharmaceutical manufacturers, the process begins with the serialization of products at the pack level. Each product's encrypted digital ID is uploaded as a new block to the blockchain and linked to new data transaction points, creating a chain of traceable and immutable historical data. By integrating warehouse operating systems with blockchain, pharmaceutical manufacturers can upload existing master product data via a simple extract-transform-load system and map selected information to each digital ID. This API integration allows data from various databases to be shared and visualized on the blockchain.

When shipped products arrive at a clinic, hospital, or pharmacy, healthcare professionals can validate the authenticity of the received products. Through blockchain connectors, designed to link healthcare management systems to the blockchain, healthcare professionals can now assign products in their inventory to specific activities, from storage to administration. Each unique package can also be linked to individual patients, which is particularly important for patient safety and quality assurance, such as in the case of product recalls, where manufacturers and authorities can quickly and directly contact patients.

In the food sector, blockchain-based traceability enables every step of the journey from farm to consumer to be recorded and easily accessible. This transparency is crucial for meeting food safety standards and building consumer trust.

Augmented Reality accelerates order picking

Implementing augmented reality in order picking processes reduces errors and increases speed through visual cues. AR-enabled devices, such as smart glasses, overlay critical information like item details, quantities, and optimal routes directly into the user's field of vision. This integration significantly reduces errors and speeds up order picking processes, enabling employees to quickly and accurately locate and retrieve items.

DHL Supply Chain, for example, has rolled out productive AR systems in its warehouses, demonstrating that vision has great potential as a complement to current voice and scan technologies to further improve employee efficiency and accuracy in order picking and other warehouse logistics tasks.

The technology works as follows: An employee opens a picking list using smart glasses or a smartphone. The WMS, integrated directly into the software, allows the list to be uploaded and made ready for use in under a minute. The software then analyzes the list and reads the most up-to-date information about the warehouse layout to calculate the simplest and fastest route to procure all items.

Automatic order picking verification saves time and significantly reduces picking errors. After the AR app scans an item's barcode, it communicates with integrated systems and retrieves all the item's information. This ensures that all information—product details, customer profiles, and delivery instructions—is error-free. This feature could be useful for verifying item picks, conducting warehouse audits, and preparing orders for shipping.

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LTW offers its customers not individual components, but integrated complete solutions. Consulting, planning, mechanical and electrotechnical components, control and automation technology, as well as software and service – everything is networked and precisely coordinated.

In-house production of key components is particularly advantageous. This allows for optimal control of quality, supply chains, and interfaces.

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Micro-fulfillment is revolutionizing urban logistics

Micro-fulfillment centers represent a fundamental strategic shift from centralized to decentralized warehousing models. These small, often automated warehouse systems are located near densely populated urban areas or within existing retail locations. Their proximity to customers allows these centers to accelerate the delivery process and enables companies to fulfill orders efficiently without massive fleet expansion.

The e-grocery industry pioneered the adoption of MFCs, and it's only a matter of time before other sectors follow suit. While these automated storage systems require an upfront investment, the potential savings in last-mile delivery costs and the improved ability to meet service-level agreements make this investment worthwhile. Logistics companies like Attabotics have developed MFC systems that can be seamlessly integrated into existing retail locations, further reducing costs.

With their smaller footprint and lower maintenance requirements compared to traditional warehouses, MFCs inherently contribute to sustainability. Innovative warehouse automation solutions like those from Attabotics can reduce the space needed to store goods by 85 percent. Additionally, MFCs help minimize fleet sizes and transport distances, leading to more sustainable delivery practices.

Robotics-driven vertical ASRS systems represent a significant departure from traditional aisle and row storage layouts. By utilizing vertical space and providing three-dimensional access to stored goods, these innovative systems maximize storage capacity and efficiency in a compact footprint. Unlike legacy storage configurations, which often require manual labor and significant time to navigate and retrieve items, 3D storage solutions leverage automation and advanced technology to accelerate the retrieval process. This not only increases productivity but also helps businesses meet growing customer demands for faster and more reliable order fulfillment.

Autonomous mobile robots optimize material flow

The market for autonomous mobile robots is experiencing exponential growth. From $2.25 billion in 2025, it is projected to expand to $4.56 billion by 2025. Unlike their predecessors, automated guided vehicles (AGVs), AMRs can make decisions and do not require pre-installed infrastructure for navigation. Recent technological advancements in hardware and software have made them more practical, especially in warehouse environments.

Geek+, based in Beijing, has established itself as a leader in warehouse robotics, particularly for e-commerce and logistics. Its AMRs specialize in goods-to-person fulfillment, autonomous sorting, and intelligent inventory transport. What sets Geek+ apart in 2025 is its investment in AI and cloud-based fleet coordination. The company's robots utilize high-resolution LiDAR and onboard processors for adaptive routing decisions in real time. Meanwhile, its centralized software platform provides customers with remote monitoring, predictive maintenance alerts, and performance analytics.

The advantages are particularly pronounced for food warehouses: Geek+ Robotic Solutions enable food retailers to handle all necessary SKUs in an organized and efficient system. The robots support picking from totes, shelves, and pallets. Items of all shapes and sizes work with the Geek+ system. With the RoboShuttle Tote-to-Person system, a large robot retrieves totes from shelves up to 12 feet high. A smaller robot then delivers the tote directly to the picking station.

Nearly 30 percent of food in American grocery stores ends up in the trash, much of it due to spoilage. Perishable goods have long been a challenge for grocery stores, as they require special handling and precise temperatures to stay fresh. Slow fulfillment processes exacerbate the problem. Geek+ robots are fast and efficient, delivering up to 350 totes per hour to each picking station. Employees remain stationary, eliminating walking or forklift traffic to slow down the process.

Vertical farming integrates logistics and production

One of the most surprising developments of recent years is the integration of vertical farming technology into warehousing and logistics systems. Whole Foods is testing the delivery of fresh herbs and leafy greens from a fully automated vertical farm to select stores in Phoenix, Arizona. The facility, called the Opollo Farm, is located in a warehouse in the Arizona desert. It requires up to 95 percent less water than conventional farming methods and operates entirely without pesticides. Instead of traditional fields, the plants are grown on a grid of cubic, movable storage units from AutoStore.

Autonomous vehicles move the plants through a dense grid of storage boxes, continuously adjusting their positions to create ideal growing conditions. The system produces harvest-ready vegetables in just 15 days, roughly twice as fast as traditional agriculture.

Thanks to its compact, modular design, the farm can be set up directly near cities or in existing logistics centers. This significantly shortens transport routes and enables grocery stores to supply their customers with fresh produce faster and in a more climate-friendly way.

The Modula Biotech Tower represents another innovation: a fully automated vertical storage system that offers constant, centralized control of temperature, humidity, and lighting. Each phase of the production cycle takes place in a closed, isolated environment that can be accessed without direct contact. This significantly reduces the risk of contamination. In addition, the system ensures complete traceability of every tray, container, pot, or jar.

The advantages are quantifiable: The Biotech Tower reduces waste and improves the quality of in-vitro cultures, increases yields by up to 25 percent, and ensures uniform plant development. Each production cycle can be shortened by up to one week, saving time and energy and further improving productivity and sustainability. Overall production efficiency is estimated to be 25 percent higher than conventional standards.

Collaborative robots as a bridge between humans and machines

Collaborative robots are revolutionizing food and pharmaceutical logistics with their ability to work safely alongside human employees. Unlike industrial robots that replace humans, cobots are deployed in warehouses and distribution centers to complement human tasks and optimize throughput efficiency. Collaborative robots perform tedious and repetitive actions such as picking, packing, and moving heavy objects. This allows humans to focus on tasks that add value to warehouse and supply chain operations.

The technology incorporates various safety mechanisms: Power- and force-limiting cobots are equipped with IoT sensors that detect when the cobot touches a person. These cobots utilize force-limiting technology to reduce the risk of injury by immediately stopping operation. Hand-guided cobots are equipped with handheld devices that allow warehouse workers to directly control the robot's movement. These handheld devices help reduce repetitive strain injuries.

A Salesforce survey of 773 automation users in the US found that 89 percent are more satisfied with their jobs and 84 percent are more satisfied with their companies due to the use of automation in the workplace. In many cases, it was even found that robots increase warehouse safety for human employees. By removing employees from potentially dangerous operations such as forklift driving, robots take over the bulk of physical labor, providing safer work for people.

Fifth-generation connectivity as a catalyst

The introduction of 5G technology in warehouse environments is creating fundamental new opportunities for automation and real-time control. A 2021 global Deloitte study showed that 76 percent of executives believe 5G will become the most critical network technology by 2024. 5G can improve supply chain visibility in ways that can potentially stop current and future disruptions. 5G can empower IoT devices to digitally track every part of supply chain operations. Because of 5G's ability to deliver connectivity to a massive number of IoT devices, third-party providers (3PLs) and shippers could increase their use of individual item tracking.

5G is advancing smart warehousing by transforming how businesses view inventory and warehouse management. Leveraging 5G networks enables companies to collect and share data in real time. This data can be used with artificial intelligence and machine learning in autonomous mobile robots (AMRs). Due to its low latency, 5G allows warehouse facilities to increase the number and speed of smart devices they utilize. This can improve the fulfillment process by streamlining picking, packing, and shipping operations.

Cameras utilizing 5G and artificial intelligence can perform three-dimensional visual assessments of goods within the warehouse. This is useful for checking whether products have damage or defects before shipment. 5G-powered automation includes autonomous mobile robots (AMRs), whose ultra-fast, low-latency wireless connectivity means they can be used almost anywhere in the warehouse. This would allow warehouses to automate product inspections or picking and packing processes.

Energy efficiency in cold storage applications

Energy efficiency is a key consideration in cold storage facilities, and automation helps reduce consumption through more compact facility designs, reduced waste due to damage or spoilage, and optimized inventory movement that prevents overcooling. Cold storage automation also reduces food waste through improved inventory rotation and process-oriented picking strategies. By intelligently prioritizing soon-to-expire goods for earlier delivery, automated systems minimize product loss and help food retailers achieve sustainability goals.

Stacker cranes are essential in ASRS warehouses, especially for handling frozen goods. These cranes are designed for operation in extreme conditions, with some models functioning efficiently at temperatures as low as -30°C. Their ability to operate continuously without significant heat generation is vital for maintaining a stable warehouse environment. Energy efficiency is another significant advantage of Stacker cranes. By incorporating renewable energy practices, such as energy recovery during descent, these cranes contribute to a more stable temperature environment while reducing overall energy consumption.

In cold storage facilities, energy-efficient technology can improve working conditions, increase system performance, and reduce energy costs by up to 40 percent. Implementing energy-efficient technology and systems can reduce energy consumption by up to 29 percent.

Cloud-based warehouse management systems

The migration to cloud-based warehouse management systems marks a paradigm shift in IT infrastructure. Cloud WMS solutions leverage the power of cloud computing, offering flexibility, scalability, and accessibility. Ideal for businesses of all sizes, cloud-based WMS solutions eliminate the need for on-premises infrastructure and provide real-time access to warehouse data from anywhere. This type of WMS is particularly beneficial for companies with multiple warehouse locations or those looking to rapidly scale operations.

The advantages include real-time visibility into inventory, orders, and goods receipt across multiple locations; lower upfront costs as there is no hardware to install or maintain; faster deployment and updates, often with minimal IT involvement; greater scalability, making it easier to add new warehouses, customers, or integrations; and built-in integrations with e-commerce platforms, ERPs, shipping providers, and automation tools.

Oracle Fusion Cloud WMS offers a unified platform with a strong focus on scalability, flexibility, and real-time insights. Key features include cloud-native infrastructure, real-time inventory and order tracking across multiple fulfillment centers, support for automation, and integration with Oracle's cloud services.

Cybersecurity as a critical success factor

The increasing digitalization and integration of IT and OT (Operational Technology) opens new avenues for cyberattacks on industrial automation and control systems. To counteract this, plant operators must be able to trust that available countermeasures are effective and security barriers are robust. Cyber ​​risks must be acceptable for all systems, including future, existing, and potentially obsolete systems. Securing complex installations of distributed control systems requires a holistic approach, and robust barriers must be in place from the ground up, including secure supply chains.

The most common threat to manufacturing and processing facilities is malware, especially ransomware. Unauthorized access is gained through unsecured facility networks. Hackers can connect IoT devices to networks without authentication and create unencrypted, fraudulent communications. Malware can disrupt operations by causing equipment failures, manipulating systems, affecting product quality, and compromising the safety of employees and the surrounding community.

Best practices for robust OT security include continuous asset inventory, network segmentation to limit spread, remote access governance with multi-factor authentication, hardening of engineering workstations and HMIs, and vulnerability management through lab validation and planned windows. The IEC 62443 standard provides a comprehensive framework for cybersecurity in industrial automation and control systems, addressing the entire supply chain from product development to system integration and operation.

Labor shortage as a driver of automation

The labor shortage in the logistics industry is developing into a structural problem that is pushing conventional staffing strategies to their limits. Automated warehouse retrieval systems (ASRS) are designed to reduce reliance on manual labor while simultaneously increasing efficiency, accuracy, and throughput. In a conventional warehouse system, manual fulfillment can account for up to 60 to 65 percent of an employee's working time. With automation, however, goods are brought directly to the employee, following the goods-to-person principle. This eliminates the need to walk around and search for a part in the warehouse, saving time and increasing productivity.

All these features can optimize an existing workforce and increase productivity by 200 to 600 percent. Because an automated solution allows one employee to handle the picking tasks of multiple operators, up to two-thirds of a facility's workforce can be reassigned to other, non-picking tasks without any loss of throughput. Alternatively, implementing these automated warehouse solutions can compensate for a scarce and shrinking labor pool. This trend will only intensify as baby boomers continue to retire, taking their valuable skills with them.

One specific case illustrates the transformative effect: A company added a large number of robots—100 systems in total—and subsequently experienced a significant reduction in employee turnover. It began with staff shortages: The warehouse was struggling with 10 to 20 percent fewer employees than needed for daily operations. Additionally, the company was grappling with an average turnover of 100 percent of its team every six months. With new skills, the company found that retention improved dramatically. Employees took pride in the robotic systems they operated—some even created names for their robotic partners.

Strategic implications and future prospects

The convergence of artificial intelligence, robotics, IoT sensors, blockchain technology, and cloud computing is creating a fundamentally new paradigm for high-bay warehouses in the food and pharmaceutical industries. The technological developments of 2023 to 2025 demonstrate that successful automation is no longer primarily a question of capital resources, but rather of intelligent system integration and data-driven optimization.

For decision-makers in the logistics industry, several key insights emerge: First, automation is evolving from an efficiency tool to a survival strategy in an environment of structural labor shortages and increasing regulatory requirements. Second, modular, scalable solutions enable even medium-sized companies to access advanced automation without prohibitive initial investments. Third, the integration of predictive analytics, digital twins, and blockchain technology creates new opportunities for predictive rather than reactive warehouse management.

The coming years will be crucial for the standardization of interfaces, the interoperability of different systems, and the development of robust cybersecurity frameworks. Companies that invest in these technologies early and build the necessary digital skills will realize significant competitive advantages. The transformation of passive warehouse facilities into intelligent, self-optimizing logistics ecosystems is no longer a vision of the future, but a current reality that is fundamentally redefining the competitive landscape.

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