Robot demand is building back after a record year in 2022, and subsequent drop in 2023, and industry experts say warehousing and logistics is at the heart of the trend.
North American robot orders reached their highest level since the 2022 boom last year and have continued that trend in 2026, driven by successful implementations and an ever-expanding list of industries that are investing in robotics and automated equipment across their facilities. Strong orders for robots in the semiconductor and electronics, pharmaceutical, and food and beverage industries offset declining orders among longtime robot-buyers in the automotive industry in the first half of 2026, for example, according to data from the Association for Advancing Automation (A3).
“The numbers keep getting stronger,” Aaron Prather, A3’s director of market intelligence, says about the uptick in robot demand. “Automotive is down, but even with that, the industry is doing great—and it’s really because of the diversification. So many different industries are adding automation and robotics.”
And they are applying them to material handling processes. Prather says nearly 70% of robot orders in the second quarter of this year were for material handling applications, reflecting strong demand in warehousing and logistics. (See Exhibit 1 below.)
“When almost 70% of all robots are being sold for material handling purposes—that tells us it’s happening on the logistics side,” Prather says. “[Logistics] is super strong. It’s probably going to be one of the industries that keeps this [momentum] going.”
Prather and others say they expect an upward trend through the end of this year and into 2027—especially as the technology matures and logistics leaders find more ways to automate their facilities.
EXPANDING USE
The demand in North America is part of a global trend that’s seeing the growing use of robotics and automation in logistics applications around the world. A separate report from the International Federation of Robotics (IFR) released earlier this fall shows that nearly half of all professional service robots sold in 2025 were used for transportation and logistics—a total 117,500 units out of the nearly 250,000 total professional service robots shipped worldwide, according to IFR. Those figures represent a 21% and 24% increase in year-over-year shipments, respectively. IFR says the robots are used for transportation as well as to automate material flows and delivery processes—and that the growth is evidence of robots becoming a more prevalent part of everyday life and work.
Carson Menke, sales manager at Rocrich AGV Solutions, describes the momentum behind logistics automation as exciting and says the industry is at a “maturing point” in which customers are gaining trust in the technology—and, thus, a willingness to invest in more equipment and systems. Rocrich AGV is a joint venture between material handling equipment companies Logisnext Americas and Jungheinrich specializing in a wide range of automated guided vehicles (AGVs) for warehouse automation.
“More [companies] are starting to look at [robotics] as an option, and a lot more people are closing in on that and investing in these technologies,” Menke says—an observation that’s in line with the A3 and IFR data showing that demand is spreading across an increasingly diverse range of end-users. He cites pharmaceutical companies, third-party logistics service providers (3PLs), food and beverage businesses, and the automotive industry as key automation adopters that he’s seeing in 2026.
And he says maximizing labor and improving productivity continue to drive those users’ interest in automating.
“Labor is the major issue that a lot of companies are [trying to address],” he says. “They may have an inability to staff a facility or to [run] a third shift—and the cost associated with that labor is something companies are looking to reduce.”
He says many companies are willing to take the next step and invest because of the trust factor, which he and others say stems from a track record of successful projects that robotics developers can leverage for marketing purposes. Giving potential customers a look at Rocrich solutions at work in other facilities is a natural step in the sales process, Menke says, because it helps prospects see that the automation works and is yielding results.
“[That process] helps to grow trust in automation,” he explains. “They can see the success that others have realized. They’re seeing that it’s real.”
Prather agrees and adds that repeat orders for robotic systems underscore the point. He cites a recent announcement from warehouse robotics developer Hai Robotics that it has received a repeat order for 1,500 of its HaiPick rack-climbing autonomous mobile robots (AMRs) from an unnamed fashion retailer in Europe. The retailer will install them in a more than 300,000-square-foot distribution center.
“The client is [already] using the technology, and they’ve come back and bought even more,” Prather says. “That’s a good sign that they like the technology and they want to use it. My team will be watching more of these second orders—because it shows the technology has proven itself and is selling itself.”
ON COMMON GROUND
Another reason robotics and automation technology has really taken off: It solves a common set of problems.
“We’re solving for space, accuracy, labor, and throughput—and that’s common across warehousing,” explains Art Eldred, senior vice president of sales and software at LaFayette Systems, a material handling conglomerate that provides warehouse automation equipment and technology solutions. “It’s the same problem everywhere. And, as a society, we want things tomorrow when we order.”
LaFayette Systems has added the Attabotics cube-based automated storage and retrieval system (AS/RS) to its mix, purchasing the technology out of bankruptcy in 2025. Since then, LaFayette has focused on revamping the product with a heavier focus on software, which Eldred says addresses another common problem across industries: integrating the various automated systems at work in a warehouse into the broader orchestration of the facility’s operations.
“The biggest mistake supply chain folks are making [is not understanding] how to integrate new technologies into the overall operational processes,” he says, pointing to the coordination of labor, workflow, equipment, and software. “How do all these software systems work so that I have manageable processes, flow—and all the technology I bought—that fit into the orchestration of the building and not just a silo.”
It would be like automating your picking operation without figuring out how it connects to replenishment and shipping.
“I look at it like this: Two or three decades ago, we went into Lean,” he says, referring to Lean manufacturing, a management concept focused on maximizing productivity and minimizing waste. “You would choose Lean processes for picking—but you hurt shipping and replenishment because you didn’t apply it there. It’s the same scenario.”
FULL STEAM AHEAD
As of this fall, the experts said they expect companies to continue to integrate robotics and automation technology into their operations well into the new year.
“We’re going to keep seeing an upward trend this year,” Prather predicts. “Unless something dramatic changes in the economy, we still see 2026 coming in as a great year. It probably won’t rival 2022, but it could get close.”
Menke concurs.
“The sales cycle on automation is generally 12 to 14 months, so planning for ’27 starts a year or two ahead,” he says. “Given where things are now, it’s [pointing to] a strong 2027.”
Eldred likewise expects the trend to continue.
“The robotic industry has been the shining star of the industry for a while,” he says. “The activity and work out there is pretty high for next year.”
