Warehousing and Storage Market Regional Analysis

What Factors are Fueling the Warehousing Market in Asia-Pacific?

As per the 2024 warehousing and storage market regional forecast, Asia-Pacific accounted for the largest market share of over 54.5%. Asia-Pacific is witnessing a dynamic shift in warehousing and storage due to the fast-paced growth of the manufacturing industry. India's manufacturing industry is expected to grow to USD 1 Trillion by 2025-26, as per the India Brand Equity Foundation. The explosion in mass-scale industrial manufacturing, driven by consumer electronics, cars, electronics, and heavy machinery, is growing demand for big storage facilities with efficient supply chain management. The trend in the production sector towards just-in-time manufacturing and lean stock holding has spurred demand for warehouses strategically located close to industrial belts and major transportation hubs.

South Korea Warehousing and Storage Market

South Korean warehousing and storage sector expansion is predicted to be spurred by e-commerce and logistics technology advancements between 2024 and 2025. AI-based systems and other effective storage technologies are in great demand. The two major drivers are the government's investment in such facilities as the Incheon Logistics Complex and expansion in cold storages due to the high demand for fresh produce. For example, Coupang is constantly equipping its warehouses with AI-powered automation to enhance operational efficiency and speed, which is crucial for managing the surge in orders in 2024 and 2025.

Japan Warehousing and Storage Market

Growing demand for fresh produce and pharmaceuticals is driving warehousing growth in Japan, specifically for refrigeration storage. Temperature-controlled storage is crucial because of the population getting older and food safety regulation emphasis. Artificial intelligence and automation are also being introduced in Japan to improve logistics. To reflect the trend of automation in warehouses, Japan Post, for example, intends to increase the utilization of robots in sorting centers until 2025. This would improve the speed and efficiency of package handling, particularly in the handling of perishable items and e-commerce packages.

How are Changing Consumer Demands Shaping North America's Warehousing Sector?

The North American demand for warehousing and storage is driven by increased need for efficient supply chain management, rapid e-commerce growth, and the innovation of warehouse automation technologies. Expansion of online purchasing, same-day delivery, and omnichannel retailing has hugely boosted demand for fulfillment centers and last-mile distribution centers. Further, increasing demand for frozen food, pharma, and biotech products is propelling expansion of cold storage facilities. Supply chain efficiency, where businesses site their warehouses strategically near urban areas and transportation intersections, also propels the growth.

U.S. Warehousing and Storage Market

The increasing e-commerce industry and industrial demand are set to support the U.S. warehousing and storage market's growth. Of the major drivers is the growing need for refrigerated warehousing, especially for fresh produce and pharmaceuticals. Firms are expected to streamline supply chains as automation, robots, and AI reshape business practices. For example, while e-commerce continues to boom in 2024 and 2025, Amazon has been installing robots like Kiva Systems into its fulfillment centers to automate warehouse operations and accommodate increased processing speeds.

Canada Warehousing and Storage Market

As consumers' appetite and the food business drive demand for fresh produce, driving demand for refrigerated storage, Canada's warehousing and storage industry is expected to increase. Expansion is made possible by cross-border logistics made possible by the strategic position of the country and its proximity to the United States. To strengthen its food storage and distribution network, Loblaw Companies, for example, has been investing in automated warehouses. Artificial intelligence and automation are used for ensuring supply chain efficiency and freshness.

How are European Countries Driving the Growth of Warehousing and Storage Solutions?

Rising demand for supply chain and logistics solution for perishable items is most expected to be the prime factor driving the European warehousing and storage market further to grow during the projection period. Demand for refrigerated as well as bonded warehouses is being driven by intense emphasis on sustainability and stringent food safety standards in the region. To enhance productivity and minimize the time taken in handling fresh food products, Carrefour in France, for example, is implementing robots and artificial intelligence (AI) technology to automate its warehouses. The trend is anticipated to continue until 2025.

UK Warehousing and Storage Market

The UK warehousing and storage market is expanding increasingly, especially in the refrigerated and bonded storage sectors driven by e-commerce and the food and beverage sector. The need for temperature-controlled storage is anticipated to grow as customer demand for fresh products rises. Tesco, for example, is investing in automated warehouses to drive food storage and distribution, including AI to drive operating efficiency and get products to customers timely and securely.

France Warehousing and Storage Market

The rise in demand for refrigerated storage, which is mainly in the food sector, is expected to drive France's warehousing market's continuous growth. Improvements in logistics and e-commerce are also driving industry expansion. In a move to propel higher productivity of operations and address the retail industry's rising demand for fresh and perishable goods, a trend projected to accelerate through 2025, Carrefour, for example, has been building its automated warehouses, warehousing and sorting merchandise.

Germany Warehousing and Storage Market

Germany's reputation as a manufacturing superpower and demand for bonded warehouses and refrigerated warehouses are both expected to boost Germany's warehousing and storage market's growth. Automation and AI are also going to fuel additional growth by simplifying supply chains and improving operations. For example, DHL is upgrading its smart warehouse features with the help of robotics and artificial intelligence (AI) for optimal storage and handling, particularly in high-demand industries like e-commerce and the automobile industry, a trend that will continue to grow in 2025.