Robotic Lifestyle

Report: End-of-line, warehouse packaging automation market projected to grow by $2.4B by 2029
Industrial Robotics·4 min read

Warehouse Robots Meet Capital Markets: Rapid Deployments, Rising RaaS, and the ABB Sale That Changes ROI Calculus

By Maxine Shaw

Warehouses are shifting from pilot projects to full production in months, not years. Right-fit boxers, AMRs and robot-as-a-service deals are pushing packaging automation toward a $7.5 billion market, while investors rewrite valuations — and ABB’s $5.375 billion divestment to SoftBank reframes how OEMs monetize robotics.

Warehouses are shifting from pilot projects to full production in months, not years. Right-fit boxers, AMRs and robot-as-a-service deals are pushing packaging automation toward a $7.5 billion market, while investors rewrite valuations — and ABB’s $5.375 billion divestment to SoftBank reframes how OEMs monetize robotics.

This matters because automation is moving from bespoke factory cells into the distributed, high-velocity world of e-commerce fulfillment. Interact Analysis forecasts the global end-of-line and warehouse packaging automation market will grow from $5.1 billion in 2024 to $7.5 billion by 2029, a 7.9% CAGR, driven by right-fit boxers, bagging machines and robotic palletizers (https://www.robotics247.com/article/report_end_of_line_warehouse_packaging_automation_market_projected_to_grow_by_2.4b_by_2029).

Where the growth is: warehouses, RaaS and the economics of speed

Where the growth is: warehouses, RaaS and the economics of speed

The International Federation of Robotics reports logistics and transportation service robots — largely mobile robots for goods movement — accounted for 102,900 units sold in 2024, up 14% year over year, making logistics the single biggest professional service-robot application (https://www.robotics247.com/article/ifr_service_robots_see_global_growth_led_by_transportation_and_logistics_markets).

That volume is changing procurement models. IFR highlights the rise of robot-as-a-service (RaaS) fleets, which reduce upfront capital and accelerate payback; the RaaS segment grew impressively in 2024 as more companies prefer subscription or rental models rather than purchasing outright.

From an operations lens, RaaS collapses the adoption timeline and shifts risk to vendors. For a mid-sized fulfillment center, replacing manual pack-and-ship stations with right-fit boxers plus vision-guided pick arms can convert a labor-cost line item of 20–30% of operating expenses into a predictable monthly service fee — improving forecastability but adding vendor lock-in and service-level risk.

Deployment timelines: the Balluff–Kardex proof that speed pays

Because warehouse packaging is less mature than manufacturing automation, Interact Analysis predicts faster revenue growth in warehousing even if manufacturing remains the bigger incumbent today. Vanessa Lopez of Interact Analysis notes, “Packaging automation is more mature within manufacturing environments… in the warehousing sector, many packaging processes are still carried out manually, so there is greater opportunity for machine vendors” (https://www.robotics247.com/article/report_end_of_line_warehouse_packaging_automation_market_projected_to_grow_by_2.4b_by_2029).

Deployment timelines: the Balluff–Kardex proof that speed pays

Few commercial benchmarks are as vivid as Balluff’s six-month AutoStore rollout in Florence, Kentucky. Balluff went from signed contract to operational system in half a year, installing a grid with 20,100 bins, seven AutoStore Red Line robots, one conveyor port and three carousel ports — and integrated it with SAP without major facility renovations (https://www.robotics247.com/article/case_study_balluff_kardex_deliver_a_fully_operational_autostore_system_in_six_months).

For procurement teams, the Balluff example reframes the ROI model. Shorter install windows mean lower transitional labor and inventory-carry costs. Balluff’s QA and lean manager Steve Duncan said the project was completed “on time and under budget,” demonstrating that modular high-density storage can be phased into live operations with limited downtime.

Capital moves and consolidation: why ABB’s divestment reshapes vendor economics

Implementation speed also unlocks capacity elasticity. Instead of planning five-year headcount reductions and capital depreciation schedules, operations teams can deploy incremental islands of automation to match seasonal demand. That flexibility compresses payback periods: a 6–12 month deployment can deliver a sub-two-year payback on labor-intensive SKUs where manual packaging costs exceed $0.75–$1.50 per unit.

But speed requires standardized integration stacks: reliable WMS/ERP hooks, PLC/OPC connectivity and proven conveyor/robot handoffs. Cases that reduce customization — standardized bin sizes, common API contracts and prevalidated safety zones — cut engineering hours and change orders, which are the leading drivers of blown timelines.

Capital moves and consolidation: why ABB’s divestment reshapes vendor economics

On October 8, 2025, ABB agreed to divest its Robotics division to SoftBank Group for an enterprise value of $5.375 billion, a deal expected to close in mid-to-late 2026 (https://www.robotics247.com/article/abb_divests_robotics_division_to_softbank_group_for_5.375b). ABB’s robotics arm had 2024 revenues of $2.3 billion, an operational EBITA margin of 12.1%, and roughly 7,000 employees — numbers that make the divestiture material for suppliers and integrators alike.

ABB said the transaction will generate an expected pre-tax book gain of about $2.4 billion and net cash proceeds near $5.3 billion. Peter Voser, ABB’s chairman, framed the sale as “immediate value to ABB shareholders,” while Masayoshi Son of SoftBank called it a step toward “physical AI” integrating robotics with next-gen computing (https://www.robotics247.com/article/abb_divests_robotics_division_to_softbank_group_for_5.375b).

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