United Kingdom Artificial Intelligence (AI) in Warehousing Market Size, Share, and COVID-19 Impact Analysis, By Component (Solutions, Services), By Application (Inventory Management, Order Picking & Sorting, Warehouse Optimization, Predictive Maintenance, Other Applications), and United Kingdom Artificial Intelligence (AI) in Warehousing Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Artificial Intelligence (AI) in Warehousing Market Insights Forecasts to 2035

• The United Kingdom Artificial Intelligence (AI) in Warehousing Market Size was estimated at USD 625.34 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 22.14% from 2025 to 2035
• The United Kingdom Artificial Intelligence (AI) in Warehousing Market Size is Expected to Reach USD 5642.56 Million by 2035

According to a research report published by Spherical Insights and Consulting, the United Kingdom Artificial Intelligence (AI) in Warehousing Market is anticipated to reach USD 5642.56 million by 2035, growing at a CAGR of 22.14% from 2025 to 2035. The UK is known for its prominent place in the IT sector, with the government encouraging steps and substantial investment by all market players.

Market Overview

The United Kingdom Artificial Intelligence (AI) in warehousing market is described as a subsegment of the IT sector, which focuses on the integration of AI access in the warehouse business for seamless operations. Artificial Intelligence (AI) in warehousing reduces human error, improves efficiency, and simplifies operations. Various warehouse functions are optimized by the integration of advanced technology such as robotics, computer vision, and machine learning algorithms. Supply chain management, logistics, and inventory control are some of these duties. Moreover, autonomous robots for material handling, smart systems for real-time decision-making, and predictive analytics for inventory levels are all handled by AI-powered solutions. Modern warehouse solutions are increasingly dependent on AI technologies as organizations aim for increased productivity and quicker reaction times. These technologies not only lessen the need for manual labor but also improve warehouse management systems' functionality, opening the door for more complex, data-driven processes. Besides, a local or regional report that showcased the growing opportunities for AI in the warehouse industry. For instance, according to Impact Express research, AI and robotics are set to automate over 85% of UK fulfilment warehouses by 2030. The study highlights a rapid transformation in logistics, driven by labour shortages, rising e-commerce demands, and cost-saving incentives for businesses investing in AI technologies.

Report Coverage

This research report categorizes the market for the United Kingdom Artificial Intelligence (AI) in warehousing market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom Artificial Intelligence (AI) in warehousing market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom Artificial Intelligence (AI) in warehousing market.

Driving Factors

The market for United Kingdom Artificial Intelligence (AI) in warehousing is driven by the country's IT industries with explosive growth and the substantial investments made by top market players with local in next-generation technologies. The rise in e-commerce, which necessitates quicker and more precise order fulfillment, is driving the market expansion. Their rising need for warehouses to manage increasingly complex inventories and higher volumes is driving the usage of robotics, AI-driven automation, and advanced analytics. AI in warehousing is becoming more and more popular because of its substantial effects on cost reduction and operational efficiency. Further, to stay competitive in a market that requires speed, precision, and scalability, many businesses are implementing AI technologies by warehouse owners or their collaborative firms.

Restraining Factors

The market expansion is impeded by major factors such as high initial investment and intricate technical complexity with their accessories. Further, substantial investment creates distance with small and medium-sized enterprises that might affect their warehousing abilities and profit margin.

Market Segmentation

The United Kingdom Artificial Intelligence (AI) in warehousing market share is classified into component, and application.

• The solutions segment accounted for the largest market share in 2024 and is anticipated to grow at a substantial CAGR over the forecast period.

The United Kingdom Artificial Intelligence (AI) in warehousing market is segmented by component into solutions, and services. Among these, the solutions segment accounted for the largest market share in 2024 and is anticipated to grow at a substantial CAGR over the forecast period. This is due to the growing usage of AI-driven solutions to save expenses and improve operational efficiency. Automated inventory management systems, robotics, and predictive analytics tools are examples of AI solutions that have proven essential to upgrading warehouse operations. These technologies greatly increase speed and accuracy, two essential components of warehouse management, in addition to streamlining procedures.

• The order picking & sorting segment held the largest share in 2024 and is projected to grow at a substantial CAGR over the forecast period.

The United Kingdom Artificial Intelligence (AI) in warehousing market is divided by application into inventory management, order picking & sorting, warehouse optimization, predictive maintenance, and other applications. Among these, the order picking & sorting segment held the largest share in 2024 and is projected to grow at a significant CAGR over the forecast period. The key role that order picking and sorting play in warehousing's operational effectiveness and customer happiness is largely responsible for this segment's dominance. AI-driven solutions are being used by warehouses and distribution centers as a direct result of the growing need for faster and more accurate order fulfillment brought on by the growth of e-commerce.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom Artificial Intelligence (AI) in warehousing market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Dexory
• PHINXT
• Zencargo
• Iron Mountain
• NewCold
• Stowga   
• Others

Recent Developments:

• In November 2024, Dexory introduced a new AI-powered logistics engine designed to optimize warehouse operations. The technology, integrated into its DexoryView digital twin platform, enables warehouses to process millions of precise data sets daily using autonomous robots. By leveraging computer vision, machine learning, and NLP, Dexory aims to bridge the Visibility Gap in supply chains, helping businesses make faster, data-driven decisions.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom Artificial Intelligence (AI) in warehousing market based on the below-mentioned segments:

United Kingdom Artificial Intelligence (AI) in Warehousing Market, By Component

• Solutions
• Services

United Kingdom Artificial Intelligence (AI) in Warehousing Market, By Application

• Inventory Management
• Order Picking & Sorting
• Warehouse Optimization
• Predictive Maintenance
• Other Applications