Over the past year, the supply chain logistics industry has continued to experience remarkable growth in automation adoption, even with the recent economic challenges. This advancement of automation can be credited to the accessibility of current unit economics for new technologies and the value automation delivers for many companies. Additionally, it is important to note that with the rise of artificial intelligence (AI) and other innovative software solutions, analytics are becoming more insightful–and abundant–than ever before.
 With the increasing need for data management, mounting demand for labor, and the growth of automation adoption across industries, we can expect digitalization to continue to expand into 2024.
 A shift toward digital

According to the Association for Advancing Automation, robotic hardware sales gradually decreased in 2023, indicating a shift towards digital and software solutions to support the continued push for widespread digitalization. With this digital shift comes an influx of data full of valuable information that can be leveraged to improve operations. However, it also requires proper data management and transparency across different systems to properly utilize the flood of information.
Data transparency will be key to supporting the digital transformation of a company–but what exactly is data transparency? It is the use of trustworthy, real data that can be easily traced back to the source, allowing companies to know what data is being collected and how it can be leveraged.
This is where cloud-based technologies and Internet of Things (IoT) solutions come into play, providing the support needed to expand and manage the digital footprint of a company. While IoT systems and sensors can collect data, an AI-enabled model or software-based technology can analyze the data and share insights with system operators for further action.
As a result, industries will see more data transparency efforts within non-tracked operations that will allow companies to tap into creative solutions to automate their warehouses. Along with data transparency, the proliferation of cloud-based, IoT, and sensor technologies that can be implemented and adopted much faster in the marketplace, will continue to grow.
 
Fueled by the decreased production cost and increased capability of these solutions, the market will continue to see demand rise and adoption rates increase over the next few years.
 IT requires a personal touch

Contrary to popular belief, an increase in automation doesn’t necessarily lead to a decrease in jobs. Deploying software solutions requires the support of IT professionals to integrate, manage, and maintain new technologies. As a result, the demand for a specialized labor force will rise along with the rate of digitalization.
 Implementing new software within an established system isn’t easy and adds to the already long list of responsibilities for IT professionals. Addressing cybersecurity concerns and data storage needs is necessary when increasing the digital footprint of a company, especially when extending these new technologies across multiple operation sites.
 Digitalization inevitably becomes a two-sided battle of modernizing existing infrastructure and having a flexible solution that can keep up with the technology itself. As more disparate technologies are brought on to address problems in one or many facilities on a global scale, organizations need to look ahead and consider the upgrade cycle for their expanding technical footprint.
 One of the ways companies can keep up with the upgrade cycle of these new technologies is by investing in their existing workforce through training on maintenance and management of the automation systems.
 Moving into new spaces

With the flexibility and adaptability that software solutions provide, more industries will look for automation innovations to adopt in a continued effort to better serve their customers. For two examples, in the next few years the automation industry will likely see growth in healthcare and transportation.
 Although there are barriers to entry in the healthcare industry, such as data privacy and patient safety concerns, the adoption of IoT solutions and smaller-scale automation systems will likely rise. Big-box robotic solutions typically seen in warehousing will not be as appealing in the healthcare space since they can’t offer the same level of flexibility and mobility. 
The transportation sector will also see an increase in automation, not necessarily with self-driving technology, but with data transparency. Automation solutions can be applied in the exchange of goods to and from facilities, improving transportation logistics. Additionally, the utilization of live-tracking capabilities will grow, especially in cold chain compliance.
 Of course, warehousing and supply chain logistics industries will continue to expand automation within their operations. More facilities will be developed with data capture capabilities in mind at the beginning of the process, paving the way for the establishment of smart buildings. 

What we can expect in 2024

As the new year is ushered in, the lessons learned and successes earned in 2023 will carry the automation market forward into 2024. An emphasis on digitalization will continue to be a key trend, driving the need for data interoperability, the demand for specialized labor in IT, and the expanded adoption of automation across verticals such as healthcare and transportation.

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