South Korea Warehouse Automation Market

South Korea Warehouse Automation Market Size Report – In a Glance

As per the survey report on South Korea warehouse automation market, the market is expected to foresee a CAGR value of 14.6% during 2025-2035, and further generate a market size of USD 15.3 billion by the end of 2035. In 2025, the market size was value at USD 4.3 billion revenue.

• The South Korea warehouse automation market’s growth is driven by rising demand of industries to efficiently manage inventories and other warehousing services.
• KDMI analyst’s growth analysis foresees rapid expansion of e-commerce and retail sectors as the growth drivers for South Korea warehouse automation market.

South Korea Warehouse Automation Market Analysis

Warehouse automation is the technological process of managing goods storing and delivery system. The automation of warehousing system improves and streamlines operations which involves automating equipment and software to perform tasks productively. Automation process includes robotics, conveyer systems, automated storage and warehouse management software. The South Korea warehouse automation market growth is driven by rising demand from industries and retailers to efficiently manage warehousing service and the expansion of e-commerce industry is leading to the increased demand for productive warehousing. The International Trade Administration report shows, South Korean domestic e-commerce sales has increased over the past years reaching USD 180.4 billion in 2022, and the most frequent goods sold online include food and beverage (13.1%), food services (11.6%), and others. This indicates the growing demand for automated warehousing to cater consumer services and improve business efficiency. CJ Logistics, Hanjin Transportation, and STX Logistics are some of the significant participants in the South Korea warehouse automation market.

South Korea Warehouse Automation Market Growth Drivers and Restraints

Growth Drivers

• Rapid expansion of e-commerce and retail sectors – The South Korea warehouse automation market is influenced by expansion of e-commerce industry and retail sectors that are resulting in the growing online shopping volumes. With the growing adoption of innovation in warehouse, companies can now make fast deliveries and improve inventory management. Automation of processes and systems within warehouse includes automated conveyer belts, robotic system, and automated storage and retrieval management, all of which contributes in the improvement of operational efficiency. Also, the growing volume of online shopping is gaining popularity among youth and adults with the various options available in online platforms for single product of industries like food and beverages, electronics, pharmaceutical, and others.
• Technological advancements – The South Korea is increasingly focusing on developing its technology infrastructure to overcome inefficiencies and improve economic GDP of the country. The government initiatives and policies help organizations to integrate advanced systems like robotics and IoT enabled smart systems to manage inventory flow in warehouse. Additionally, the growing aging population in the country leads to shortage of labor workforce in industries, which drives the need for automation of various significant systems to effectively manage business and its operational efficiency. Integrated automation helps warehouse sectors to reduce operational costs, improve safety, and eliminate human errors, this contributes in overall market growth.

Restraints

• High initial costs and integration challenges – The market restraints due to high initial investment costs in research and development, integration, management, and upgradation. In which, integration is a complex process requiring highly knowledgeable workers and operators to work with automated warehousing system, which require organizations to invest on specialized workers. Adaptation to upgraded system can pose as a challenge, leading to slowdown of South Korea warehouse automation market.

South Korea Warehouse Automation Market Segmentation

Our experts at KD Market Insights have segmented the South Korea warehouse automation market research report as:

Analyst’s Observation on South Korea Warehouse Automation Market Recent Developments

Over the years, the experts at KD Market Insights have been observing the recent developments associated with South Korea warehouse automation market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

Dematic has announced the successful deployment of an advanced integrated logistics solution at Lotte Chilsung Beverage’s Bupyeong Logistics Centre, and this is the first logistic center to be fully automated. Lotte is Korea’s largest beverage producer, consisting of four existing distribution facilities in a single logistic hub. 

Geekplus has launched the advanced automated warehouse with Toll Group, and the automated warehouse can store up to 300,000 inventory items. This improvement is aimed to improve substantial cost savings and provide faster e-commerce order delivery by enabling real-time tracking and traceability for enhanced consumer satisfaction.

South Korea Warehouse Automation Market Competitive Landscape

Some of the significant participants who top the South Korea warehouse automation market share:

• CJ Logistics
• Hanjin Transportation
• LG CNS
• Korea Express
• Hanjin Shipping
• STX Logistics
• Hyundai Glovis
• DB Schenker Korea
• Samsung SDS
• GS Global
• Kwangmyung Logistics
• DSV Panalpina