SNS Insider said demand is being driven by e-commerce, omnichannel fulfillment and warehouse automation, with North America leading in 2025 and Asia Pacific projected to post the fastest growth.
The global AI in warehousing market was valued at USD 12.47 billion in 2025 and is projected to reach USD 127.66 billion by 2035, expanding at a CAGR of 26.19% during 2026–2035, SNS Insider said. The report ties the outlook to rising e-commerce volumes, omnichannel retailing, labor shortages and pressure for faster fulfillment, which are pushing warehouse operators toward AI-based systems for inventory management, order picking, sorting, predictive maintenance and warehouse optimization. Large enterprises held the biggest share in 2025, while small and medium-sized enterprises are forecast to post the fastest growth as lower-cost technologies and subscription-based services broaden adoption. Retail and e-commerce accounted for about 34% of 2025 revenue, logistics and transportation is expected to record the fastest CAGR of about 27.75%, machine learning led by technology integration, and natural language processing is forecast to grow the fastest. Regionally, North America held around 40% of 2025 revenue, while Asia Pacific is projected to expand at a CAGR of about 28.10% through 2035.