80% of Indian warehouses to incorporate automation by 2030, report
WAREHOUSING & LOGISTICS

80% of Indian warehouses to incorporate automation by 2030, report

As the demand for warehouse facilities in the country continues to rise, there is a growing trend towards automation in the infrastructure sector, driven by the need to enhance efficiency and reduce logistics costs. A report from business advisory firm Alvarez & Marsal reveals that over 80% of Indian warehouses are expected to incorporate some level of automation by 2030. This shift is particularly evident in Grade A warehouses, which are anticipated to expand at a compound annual growth rate of 12.5%, reaching approximately 324 million square feet by 2027-28.

Grade A warehouses represent cutting-edge infrastructure equipped with high-quality storage, assembly, and distribution facilities. The surge in e-commerce, marked by increased consumer demand for swift deliveries and rising land prices, underscores the necessity for warehouse automation. The report categorises automation maturity on a scale from Level 0 (manual operations) to Level 4 (end-to-end automation). Currently, most warehouses in India fall within Levels 0 to 2, indicating varying degrees of automation implementation.

According to Manish Saigal, Managing Director at Alvarez & Marsal, adopting automation technologies requires a careful assessment of associated costs and benefits to ensure economic viability. While automation enhances efficiency and minimises errors and theft, organisations must align their chosen technologies with strategic goals and operational needs.

However, the adoption of automation in the Indian warehousing sector presents challenges. India's labour-intensive market necessitates time and investment in developing a robust automation ecosystem, including local service providers, cost-effective technology tools, competitive differentiation, and on-going maintenance and technical support. The financial feasibility of certain automation technologies is also limited by the existing size of warehouses in India. Additionally, long payback periods for automation solutions clash with the shorter lease terms typically offered by third-party logistics providers, creating financial obstacles for potential adopters.

The move towards automation aligns with the National Logistics Policy's objectives, which aim to reduce the country's logistics costs from 13-14% of the GDP to single digits. Ultimately, the integration of automation in the warehousing sector is a crucial step toward enhancing efficiency and meeting the evolving demands of the modern market.

As the demand for warehouse facilities in the country continues to rise, there is a growing trend towards automation in the infrastructure sector, driven by the need to enhance efficiency and reduce logistics costs. A report from business advisory firm Alvarez & Marsal reveals that over 80% of Indian warehouses are expected to incorporate some level of automation by 2030. This shift is particularly evident in Grade A warehouses, which are anticipated to expand at a compound annual growth rate of 12.5%, reaching approximately 324 million square feet by 2027-28. Grade A warehouses represent cutting-edge infrastructure equipped with high-quality storage, assembly, and distribution facilities. The surge in e-commerce, marked by increased consumer demand for swift deliveries and rising land prices, underscores the necessity for warehouse automation. The report categorises automation maturity on a scale from Level 0 (manual operations) to Level 4 (end-to-end automation). Currently, most warehouses in India fall within Levels 0 to 2, indicating varying degrees of automation implementation. According to Manish Saigal, Managing Director at Alvarez & Marsal, adopting automation technologies requires a careful assessment of associated costs and benefits to ensure economic viability. While automation enhances efficiency and minimises errors and theft, organisations must align their chosen technologies with strategic goals and operational needs. However, the adoption of automation in the Indian warehousing sector presents challenges. India's labour-intensive market necessitates time and investment in developing a robust automation ecosystem, including local service providers, cost-effective technology tools, competitive differentiation, and on-going maintenance and technical support. The financial feasibility of certain automation technologies is also limited by the existing size of warehouses in India. Additionally, long payback periods for automation solutions clash with the shorter lease terms typically offered by third-party logistics providers, creating financial obstacles for potential adopters. The move towards automation aligns with the National Logistics Policy's objectives, which aim to reduce the country's logistics costs from 13-14% of the GDP to single digits. Ultimately, the integration of automation in the warehousing sector is a crucial step toward enhancing efficiency and meeting the evolving demands of the modern market.

Next Story
Real Estate

Danube Launches Greenz Master Community in Dubai

Danube Properties has recently launched Greenz by Danube, its first large-scale integrated community featuring premium villas and townhouses, marking its expansion into master-planned developments. Located in Dubai International Academic City near Dubai Silicon Oasis, the project sits within a high-growth corridor housing over 100,000 residents. The area is set to benefit from the upcoming District IO technology hub aligned with the vision of Sheikh Mohammed bin Rashid Al Maktoum. The development will offer three- and four-bedroom townhouses, along with five-bedroom semi-detached ..

Next Story
Infrastructure Urban

Jal Jeevan Mission Reports Tap Water For 158.2 mn Rural Households

Since August 2019 the Government of India, in partnership with states, has been implementing the Jal Jeevan Mission (JJM) to enable every rural household to have assured potable water through tap connections. The mission is overseen by the Ministry of Jal Shakti and seeks regular long term supply of prescribed quality water. At the launch only 3.23 Crore, equivalent to 32.3 million (mn), or 16.7 per cent, of rural households had tap connections. As reported by states and union territories on three March 2026 an additional 12.58 Crore, or 125.8 mn households, have been provided connections brin..

Next Story
Infrastructure Urban

MSME Ministry Holds Awareness Camp And Vendor Programme In Dimapur

The Ministry of Micro, Small and Medium Enterprises (MSME Ministry) organised an Entrepreneur Awareness Camp and a Special Vendor Development Programme in Seden Riju, Purana Bazar, Dimapur, Nagaland on 30 March 2026. The programme aimed to create awareness of central initiatives including the National SC-ST Hub (NSSH) scheme and to bridge the gap between demand from central public sector enterprises (CPSEs) and the supply capabilities of SC/ST enterprises. It focused on quality standards, supply chain integration and offered Udyam registration to participants. The programme sought to improve m..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement