--- title: Warehouse Automation Trends and Market Forecasts description: Learn how e-commerce, robotics, and labour challenges are fueling rapid growth in UK warehouse logistics automation and market investment. image: https://www.lpcinternational.co.uk/hubfs/A-Financial-Snapshot-Of-Warehouse-Logistics-Automation.png --- - [01285 704470](tel:01285704470) - [jtindley@lpcinternational.com](mailto:jtindley@lpcinternational.com) [![LPC logo](https://www.lpcinternational.co.uk/hs-fs/hubfs/LPC%20logo.webp?width=473&height=64&name=LPC%20logo.webp "LPC logo")](https://www.lpcinternational.co.uk/) [![LPC logo](https://www.lpcinternational.co.uk/hs-fs/hubfs/LPC%20logo.webp?width=473&height=64&name=LPC%20logo.webp "LPC logo")](https://www.lpcinternational.co.uk/) - [Home](https://www.lpcinternational.co.uk) - About - [Why LPC](https://www.lpcinternational.co.uk/why-lpc) - [Clients & Business Sectors](https://www.lpcinternational.co.uk/clients-and-business-sectors) - [The Team](https://www.lpcinternational.co.uk/the-team) - 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[Home](https://www.lpcinternational.co.uk) - About - [Why LPC](https://www.lpcinternational.co.uk/why-lpc) - [Clients & Business Sectors](https://www.lpcinternational.co.uk/clients-and-business-sectors) - [The Team](https://www.lpcinternational.co.uk/the-team) - [Expert Witness & Logistics Dispute Resolution](https://www.lpcinternational.co.uk/expert-witness) - [SME Business Support](https://www.lpcinternational.co.uk/sme-business-support) - Supply Chain - [Strategy](https://www.lpcinternational.co.uk/supply-chain-strategy-consulting/) - [Network Design](https://www.lpcinternational.co.uk/network-design) - [Inventory Management](https://www.lpcinternational.co.uk/inventory-management) - [Outsourcing](https://www.lpcinternational.co.uk/outsourcing) - Warehousing - [Warehouse Design](https://www.lpcinternational.co.uk/warehouse-design-and-planning) - [Warehouse Consulting](https://www.lpcinternational.co.uk/warehouse-improvements-and-engineering) - [Systems & Processes](https://www.lpcinternational.co.uk/systems-and-processes) - [Warehouse Productivity Consultants](https://www.lpcinternational.co.uk/warehouse-productivity) - [Warehouse Modelling & Simulation](https://www.lpcinternational.co.uk/modelling-and-simulation) - Project Implementation - [Equipment Procurement](https://www.lpcinternational.co.uk/equipment) - [Equipment Procurement](https://www.lpcinternational.co.uk/procurement) - [Project Management Support](https://www.lpcinternational.co.uk/project-management) - Automation & Robotics - [Warehouse Automation & Robotics](https://www.lpcinternational.co.uk/automation-and-robotics) - [Is Warehouse Automation For You?](https://www.lpcinternational.co.uk/warehouse-automation-for-you) - Resources - [Case Studies](https://www.lpcinternational.co.uk/case-studies) - [Downloads](https://www.lpcinternational.co.uk/downloads) - [Blogs](https://www.lpcinternational.co.uk/blog) - [Storage Systems](https://www.lpcinternational.co.uk/equipment) [![Contact Us](https://no-cache.hubspot.com/cta/default/2191642/interactive-199423175003.png)](https://www.lpcinternational.co.uk/hs/cta/wi/redirect?encryptedPayload=AVxigLIppgXo%2BrF5tZof9%2BCl1ohwiJ3CrA9%2BChJ6dS7BoOACToGN7EtHeE4u5ay4EIH1h4CjWnzdZAgitjdAE%2B3UXksDT26ajDnSYrOMaNXdAGINbOq4lYpWyELCLi%2Bth40ttb4x3kDGXk%2BM1zX0iAtlgctLJ%2BWUugk2qpg78djVGHJIzbNV04MMFObV5S435pG5irsmcPLsXDzDt0iVq4Df6CH9&webInteractiveContentId=199423175003&portalId=2191642) [01285 704470](tel:01285704470) [jtindley@lpcinternational.com](mailto:jtindley@lpcinternational.com) # A Financial Snapshot Of Warehouse Logistics Automation By [**Jason Tindley**](https://www.lpcinternational.co.uk/blog/author/jason-tindley) on 10 Sept 2025, 09:30:00 ![Robots operating in an automated warehouse, illustrating the growing investment and financial expansion of logistics automation.](https://www.lpcinternational.co.uk/hubfs/A-Financial-Snapshot-Of-Warehouse-Logistics-Automation.png) ![Robots operating in an automated warehouse, illustrating the growing investment and financial expansion of logistics automation.](https://www.lpcinternational.co.uk/hs-fs/hubfs/A-Financial-Snapshot-Of-Warehouse-Logistics-Automation.png?width=1100&height=750&name=A-Financial-Snapshot-Of-Warehouse-Logistics-Automation.png) Over the past five years, UK[logistics automation](https://www.lpcinternational.co.uk/warehouse-automation-for-you) spend has seen strong and accelerating growth, driven by e‑commerce expansion, labour shortages, and technology maturation: ### **Market Growth (2018–2023)** - In 2023, the [UK logistics automation market](https://www.lpcinternational.co.uk/the-uk-growth-in-warehouse-automations) reached £480–560 million in 2018–2019 - That implies a roughly 15–16% compound annual growth rate over these years, equating to an increase from about £500 m to nearly £1 bn in five years. ### **Robotics Segment (2018–2024)** - In 2024, the UK logistics robotics sector generated £240–320 m in 2018–2019. - Projected to grow to 1.55 bn by 2030 at a 17% compound annual growth rate, reinforcing [robust ongoing investment](https://www.lpcinternational.co.uk/when-should-consider-investing-warehouse-automation). ### **Warehouse Automation (2018–2024)** - UK warehouse automation revenue rose to £960 m in 2024, from around 320–400 m in 2018–2019. - That segment is growing fastest at 21% compound annual growth rate through to 2030. [![BOOK YOUR 1/2 DAY LOGISTICS CONSULTATION](https://no-cache.hubspot.com/cta/default/2191642/interactive-179805884531.png)](https://www.lpcinternational.co.uk/hs/cta/wi/redirect?encryptedPayload=AVxigLJfQ%2B3SmkwLXTV2KB0OUlWQg9KXyhxPufzG%2FF8q8XOMVIiy0pQaGEIM4ec%2B8Be9F3GYyoCF6dVFDXOpvVtCS7Kf4u5Xd8YybwNgQUgacrY2DK9Xu5fErZM1JsFLwjYzgsBGcJoPrcCp7xMxxLuKVnkNTlhDfx4VEKDuwc9nqvYRC%2F5LdniTqxNV9f8hrSTGMK%2FsW1NCQEVeorduZt5VQjkXkUzQWgpOSszKU55%2Bd2SGwl9gOST7rNsC3BV9qGo8Gg%3D%3D&webInteractiveContentId=179805884531&portalId=2191642) ### **Broader Automation Outlook** - Broader “logistics automation” (including hardware, software, services across the supply chain) reached 1.05 billion in 2023. - With 15.8% compound annual growth rate forecast through 2033, the market is expected to total £4.6 bn by then. ## **Why the Surge?** - **E‑commerce boom** spiked during COVID–19 (2020–21) and continues to fuel automation across picking, sorting, packaging, and micro‑fulfilment. - **Labour shortages and rising wages**—compounded by Brexit—have made automation economically essential. - SMEs increasingly adopt **modular and scalable solutions**, accelerating cumulative spend as automation platforms mature and costs fall. ### **In GBP Terms: A Snapshot** | **Year** | **Approx. Market Size (GBP)** | **Segment Focus** | | --- | --- | --- | | 2018 | £400–600 million | Early-stage robotics & warehouse systems | | 2020 | £600–700 million | COVID‑driven acceleration | | 2023 | ~£1 billion | System-wide logistics automation | | 2024 | ~£960 million | Warehouse & robotics | | 2025+ (forecast) | £1.5–2 billion by ~2027 | Continued hardware/software uptake | This represents a more-than-doubling in spend over five years, with compounded annual growth rates between 15–21% depending on the segment. ## **What It Means For The Industry** - Major integrators (e.g., Ocado, Tesco, GXO, DHL) are spearheading large-scale hardware deployments. - SMEs increasingly adopt scalable, tiered automation—from basic AS/RS and AGVs to AI‑powered systems. - There's strong momentum into services (integration, software, maintenance)—which are now growing faster than hardware. In summary, the UK logistics equipment automation has seen rapid growth in GBP terms, doubling from approximately £500 m to £1 bn+ between 2018 and 2023. With investment continuing at 16–21% compound annual growth rate, expect the market to cross £1.5 bn by 2027, driven by e‑commerce, cost pressures, and technology maturation. If you are considering[incorporating automation into your operation](https://www.lpcinternational.co.uk/warehouse-automation-for-you), LPC can guide you to the most appropriate systems, conceptualise the requirements and provide budget costs against the schemes. [Get in touch](https://www.lpcinternational.co.uk/contact/) with us today. 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24 Aug 2018, 17:30:07 2 min read [Industry 4.0 And The Implications For Logistics](https://www.lpcinternational.co.uk/blog/industry-4.0-logistics) ![Industry 4.0 And The Implications For Logistics](https://www.lpcinternational.co.uk/hubfs/Industry%204.0%20And%20The%20Implications%20For%20Logistics.jpg) [Warehouse Design](https://www.lpcinternational.co.uk/blog/topic/warehouse-design) ### Industry 4.0 And The Implications For Logistics 20 Nov 2018, 14:09:00 2 min read [Your 4 Step Plan To Improving Your Warehouse Logistics](https://www.lpcinternational.co.uk/blog/improving-warehouse-logistics) ![Your 4 Step Plan To Improving Your Warehouse Logistics](https://www.lpcinternational.co.uk/hubfs/Your%204%20Step%20Plan%20To%20Improving%20Your%20Warehouse%20Logistics.png) [Warehouse Management System](https://www.lpcinternational.co.uk/blog/topic/warehouse-management-system) ### Your 4 Step Plan To Improving Your Warehouse Logistics 2 Nov 2018, 17:11:13 2 min read ### Get Email Notifications ### **Logistics Planning Consultants** VAT Number: 667-0474-17 Company Number: 03184658 [Join us on Slack](https://www.facebook.com/LPC-International-1598261453798554) [Browse our GitHub projects](https://www.linkedin.com/company/logistics-planning-consultants-international) [Browse our GitHub projects](https://www.youtube.com/channel/UCuWye1wWnhhl3hxTqXYxyQw) About - [Why LPC](https://www.lpcinternational.co.uk/why-lpc) - [Clients & Sectors](https://www.lpcinternational.co.uk/clients-and-business-sectors) - [The Team](https://www.lpcinternational.co.uk/the-team) - [SME Business Support](https://www.lpcinternational.co.uk/sme-business-support) Resources - [Blog](https://www.lpcinternational.co.uk/blog) - [Downloads](https://www.lpcinternational.co.uk/downloads) - [Case Studies](https://www.lpcinternational.co.uk/case-studies) - [Storage Systems](https://www.lpcinternational.co.uk/equipment) Quick Links - [Contact Us](https://www.lpcinternational.co.uk/contact) - [Book A Health Check](https://www.lpcinternational.co.uk/book-a-health-check) - [Book A Meeting](https://www.lpcinternational.co.uk/talk-to-an-expert) Copyright © 2026 Logistics Planning Consultants - [Terms](https://www.lpcinternational.co.uk/terms-conditions) - [Privacy](https://www.lpcinternational.co.uk/privacy) - [Cookies](https://www.lpcinternational.co.uk/cookie-policy) ```json { "@context" : "https://schema.org", "@type" : "LocalBusiness", "address" : { "@type" : "PostalAddress", "addressCountry" : "UK", "addressLocality" : "Cirencester", "addressRegion" : "Gloucestershire", "postalCode" : "GL7 2PP", "streetAddress" : "57 Dyer St" }, "alternateName" : "LPC International", "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "GB", "availableLanguage" : "en", "contactType" : "customer service", "telephone" : "+44 0128 564 0038" }, "geo" : { "@type" : "GeoCoordinates", "latitude" : 51.7157, "longitude" : -1.9676 }, "image" : "https://www.lpcinternational.co.uk/hubfs/LPC%20Banner.webp", "logo" : "https://www.lpcinternational.co.uk/hs-fs/hubfs/LPC%20logo.webp", "name" : "LPC International Ltd", "openingHours" : [ "Mo-Fr 09:00-17:30", "Sa Closed", "Su Closed" ], "priceRange" : "£", "sameAs" : [ "https://www.facebook.com/people/LPC-International/100063715956023/#", "https://x.com/lpcint", "https://www.linkedin.com/company/logistics-planning-consultants-international", "https://www.youtube.com/channel/UCuWye1wWnhhl3hxTqXYxyQw" ], "telephone" : "0128 570 8211", "url" : "https://www.lpcinternational.co.uk/" } ``` ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jason Tindley", "url" : "https://www.lpcinternational.co.uk/blog/author/jason-tindley" }, "dateModified" : "2025-09-10", "datePublished" : "2025-09-10", "description" : "Learn how e-commerce, robotics, and labour challenges are fueling rapid growth in UK warehouse logistics automation and market investment.", "headline" : "Warehouse Automation Trends and Market Forecasts", "image" : "https://2191642.fs1.hubspotusercontent-na1.net/hubfs/2191642/A-Financial-Snapshot-Of-Warehouse-Logistics-Automation.png", "mainEntityOfPage" : { "@id" : "https://www.lpcinternational.co.uk/blog/warehouse-logistics-automation", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.lpcinternational.co.uk/hs-fs/hubfs/LPC%20logo.webp" }, "name" : "LPC International Ltd" } } ```