Most Warehouses Will be Fulfillment Centers by 2027

A total of 50,000 extra warehouses of over 50,000 square feet are projected to be added to the global warehouse stock between 2022-2027.

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Updated research from Interact Analysis shows that there will be 214,000 warehouses of over 50,000 square feet globally by 2027, up from 163,000 in 2021. And, a total of 50,000 extra warehouses of over 50,000 square feet are projected to be added to the global warehouse stock between 2022-2027.

“Whilst distribution centers currently make up the greatest share of the warehousing sector, over the next five years direct-to-consumer fulfillment centers are an area of the market which will enjoy significant growth. Currently they account for only 11% of warehousing facilities but by 2027 this will rise to 18% as e-commerce continues to flourish,” says Rueben Scriven, senior analyst at Interact Analysis.

 

From Interact Analysis:

  •  By 2027, 20% of all warehouses will be fulfillment centers, largely as a result of the rise in e-commerce.
  • The research also shows a very tight positive correlation between labor costs and rates of automation – the more expensive the labor cost, the greater the automation spend.
  • The other standout finding was the strength of the positive correlation between labor costs and automation spending. 
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