Market Research On Demand Of Warehouse Market Post COVID


There are certain portions of COVID’s impact that are temporary, such as wearing masks, keeping six feet behind others, and learning remotely. The effects of COVID on the warehouse will last for a long time. The virus sent ripples throughout the world. Globally, an outbreak or transport delay in one part of the world would cause warehouse closures or supply shortages, causing shutdowns. As the virus spread, the global supply chain struggled to keep up.


As a best practice, lean manufacturing had been adopted by most manufacturers before the pandemic. When receiving goods just-in-time (JIT) before manufacturing, inventories were reduced, and space was utilized more efficiently. According to the market database, many manufacturers encountered inventory shortages as a result of this lean strategy when COVID struck. In some instances, production stopped altogether. A buffer stock of inventory will be kept on hand by manufacturers to avoid future inventory shortages. While the amount of inventory on hand will increase, the exact amount depends on various factors.

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The problem of warehouse space and capacity will only worsen. The new inventory will require additional space in warehouses that struggled to create space for social distancing.

Automating warehouses has been gaining momentum for years, but COVID has accelerated its adoption. As a way to reclaim floor space and improve the efficiency of warehouse workers, warehouses will implement automated storage and retrieval systems to help adjust inventory counts, handle work in progress, speed delivery, implement social distancing, and decentralize.


When compared to standard shelving, automated storage and retrieval systems can recover up to 85% of existing floor space. This will enable warehouses to meet the challenges arising from COVID. In addition to picking to light systems and inventory management software, the warehouses can resolve labor challenges and manage unpredictable surges in demand. In addition to preventing future crises, reshoring manufacturing will lead to significant savings on air and ocean freight transportation costs. In order to prevent a global supply chain crisis, reshoring initiatives are taking root, requiring more warehouse space.

As some warehouses were overwhelmed with orders and faced labor and inventory shortages, other warehouses saw orders dry up and inventory levels rose. Most warehouses have difficulty handling wild fluctuations in order demand.


According to the market database, a variety of factors will make warehouse capacity necessary post-COVID. The warehouses will implement scalable processes to be able to manage unpredictable demand. The combination of material handling technologies and software solutions will allow warehouses to deploy flexible order picking strategies, allowing them to better manage demands. In the future, warehouses will seek to develop picking processes and systems that allow them to adjust automation or labor requirements.

Globally, the warehousing market was expected to reach USD 245 billion in 2020. The market is expected to grow at a compound annual growth rate of 7 percent between 2020 and 2024. It is assumed to reach $326 billion by the end of 2024. As a result of advanced technology adoption and a steady supply climate, warehouse markets in Asia, Europe, and North America are mature. Additionally, regions like India and China are expected to be the future growth-oriented markets in the warehousing industry. It is due to the expansion of manufacturing facilities, container ports, and e-commerce.

In terms of the warehouse market and industry trends, Europe and North America are positioned as superior warehousing providers. It is due to their well-equipped technology frameworks and umpteen arrays of services they offer to their clients.  Market database states that developing countries like Brazil and India perceive medium maturity because of warehouses and poor enactment of technology. The warehouse market and its 10-year business outlook can be further understood using the global market database.