The global pick-to-light market value reached USD 683.3 million in 2023. Over the forecast period, the value is anticipated to rise at 6.7% CAGR. The industry is predicted to surge from USD 725.6 million in 2024 to USD 1,393.8 million in 2034. The industry is further projected to exhibit a Y-o-Y growth of 6.2% in 2024.
As of 2024, the warehousing industry is expected to generate around 32% of the demand for pick-to-light. Pick to light is mainly installed in warehouses due to their ability to significantly enhance picking accuracy and efficiency, reducing errors and labor costs. This is projected to push the segment to the forefront owing to high online sales across the globe.
The market is growing due to the emergence of advanced automated warehouses, booming e-commerce, and globalization of supply chain networks. The fields of retail and e-commerce are set to dominate the industry due to the rising need for efficient distribution networks. Growing online shopping encourages the use of pick-to-light systems across warehouses for quick and accurate delivery.
| Attributes | Description |
|---|---|
| Estimated Global Pick to Light Market Size (2024E) | USD 725.6 million |
| Projected Global Pick to Light Market Value (2034F) | USD 1,393.8 million |
| Value-based CAGR (2024 to 2034) | 6.7% |
PTL (pick to light) systems are important in warehouses and distribution centers to handle the complexity of order picking and fulfillment processes. These systems increase speed and accuracy, meeting the high expectations of modern consumers.
The global number of warehouses has grown from 1,62,500 in 2022 to 1,67,500 in 2023, which showcases a 3.1% surge. This growth is closely tied to the need for operational order-picking systems, as an increasing number of warehouses require these systems.
Demand for pick-to-light (PTL) systems is predicted to rise by 1.9 times through the forecast period, primarily across industries involving order picking and sorting. PTL systems are gaining traction in e-commerce, warehouses, retail, grocery, pharmaceuticals, and manufacturing, particularly in environments with high volumes of small orders and quick turnaround times.
They aid in the quick selection of individual goods, facilitating fast order fulfillment. For instance, automotive manufacturers use PTL systems to kit and assemble parts, while the pharmaceutical industry uses them for the accurate picking and sorting of drugs and medical supplies.
Pick-to-light technology is set to be used in the food and beverage industry to handle ingredients and finished commodities, while in electronics manufacturing, it aids in the precise selection of electronic components. These systems are highly versatile and help improve operational efficiency.
East Asia is set to be the leading consumer of pick to light due to growing e-commerce platforms and a rising focus on logistical efficiency and automation. Japan and South Korea are leading the e-commerce industry, with revenues reaching USD 150 billion and USD 120 billion, respectively. East Asia's technological innovation and investments in automation and smart logistics solutions are set to make advanced technologies such as pick-to-light more accessible.
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The table below presents a comparative assessment of the variation in CAGRs over six months for the base year (2023) and current year (2024) for the global pick to light industry. This analysis reveals vital shifts in performance and indicates revenue realization patterns, thereby providing stakeholders with a better vision of the growth trajectory over the year.
The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December. In the first half (H1) of 2023 to 2033, the industry is predicted to surge at a CAGR of 6.3%, followed by a higher growth rate of 6.8% in the second half (H2) of the same period.
| Particular | Value CAGR |
|---|---|
| H1 | 6.3% (2023 to 2033) |
| H2 | 6.8% (2023 to 2033) |
| H1 | 6.5% (2024 to 2034) |
| H2 | 6.9% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 6.5% in the first half and relatively rise to 6.9% in the second half. In the first half (H1), the market witnessed an increase of 20 BPS while in the second half (H2), there was a slight growth of 10 BPS.
Rise of E-commerce and Omni Channel Retailing Pushes Demand
Rapid growth of e-commerce and stores that sell through multiple channels has greatly boosted the popularity of pick-to-light systems. As online shopping grows, demand for pick to light systems in warehouses increases.
The systems aid in reducing errors and improving operational efficiency, particularly for online stores that require accuracy and speed. Pick to light also reduces picking errors and enhances operational efficiency, making these vital for meeting the demands of online retail.
According to the European e-commerce report, the exponential growth of the region’s e-commerce, exemplified by a total B2C turnover of USD 979.73 billion in 2022, up from USD 925.28 billion in 2021, at a growth rate of 6%, underscores a significant driver for pick to light products.
Despite a decline in growth rate from 12% in 2021, attributed to the saturation post-pandemic, forecasts for 2023 project an 8% growth, indicating sustained growth. Notably, Western Europe stands as the leading region, commanding 67% of the total B2C turnover in 2022.
Surging Emphasis on Improving Labor Efficiency and Safety Creates Growth Avenues
The industry is influenced by labor efficiency and safety, with modern pick-to-light systems offering significant benefits. These systems improve picking procedures by providing clear indications and directing workers to the precise position of goods, saving search times and mistakes. This efficiency not only speeds up order fulfillment but also improves labor productivity, allowing warehouses to manage large order quantities effectively.
Modern pick-to-light systems increase productivity rates by 50% compared to traditional paper systems, double the gain offered by voice and radio frequency systems. These systems help improve order fulfillment, accuracy, stock tracking, and time for new workers, along with overall efficiency in storage and distribution. Implementing a pick-to-light system is likely to lead to increased return on investment (ROI) based on multiple factors.
Need for Real-time Inventory Management and Visibility to Bolster Sales
Real-time inventory management is essential for industries using pick-to-light systems. These systems provide immediate updates on inventory levels, enabling accurate tracking and inventory management. This helps leading companies avoid stock shortages or excesses, ensuring the right amount is always available.
SSI Schaefer, a warehouse and logistics solutions company, leverages this need by offering pick-to-light systems that track inventory using RFID technology and barcode scanning. This allows warehouses to make restocking faster and improve inventory accuracy, leading to a more efficient operation. This approach helps meet customer needs and improve supply chain efficiency in modern warehouses.
Adoption of NFC Technology for Configuring Wireless PTL Modules is a New Trend
The use of near-field communication (NFC) technology in wireless PTL modules is emerging as a significant trend, enhancing the ease of configuration and maintenance. This technology enables swift configuration of wireless light modules using smartphones, thereby eliminating the need for complex manual adjustments.
NFC technology also ensures minimal downtime and enhanced operational efficiency, especially in dynamic warehouse environments. It allows quick, on-the-spot adjustments, making it user-friendly and time-saving.
On June 19, 2024, AIOI, a company specializing in digital transformation solutions, launched a cutting-edge wireless light module for their pick-to-light systems. This innovative product incorporates NFC technology and includes shock-absorbing covers, making it highly functional and durable.
High Chances of Bottlenecks with Conditional Multi-user Capability May Impede Growth
The pick-to-light system's compatibility with free-standing plates or containers is set to limit its use in warehouses, potentially reducing efficiency and operational costs. Furthermore, its conditional multi-user capability is anticipated to result in bottlenecks during peak periods, causing workflow delays.
Principal Consultant
The global market witnessed a CAGR of 3% between 2019 and 2023. Total industry revenue reached USD 683.3 million in 2023. The market experienced rapid growth from 2019 to 2023 due to technological innovations, increased adoption across industries, and a growing emphasis on operational efficiency. These systems have enhanced accuracy, reliability, and performance, making pick to light more attractive to a broad range of industries.
Retailers and manufacturing sectors have embraced pick-to-light technology to optimize assembly line processes and reduce production times. Regional markets, such as North America and Europe, have been key for pick-to-light systems due to robust logistics sectors and the adoption of automation. However, Asia Pacific has emerged as a rapidly growing region due to an expanding manufacturing base and increasing adoption of automation technologies in countries such as China, Japan, and South Korea.
Integration with warehouse management systems (WMS), ERP software, and robotics, has been a key trend. This helps in enhancing operational efficiency by providing real-time data exchange and seamless communication between supply chain components.
Challenges such as initial implementation costs and the need for skilled personnel to manage and maintain these systems present opportunities for further innovation. The market is poised for continued growth as industries prioritize efficiency, accuracy, and automation in their operations. During the forecast period, global sales are projected to fetch a CAGR of 6.7%.
The industry is set to experience robust growth from 2024 and 2034, driven by increased freight volumes and logistics services due to e-commerce sales. The economic value of logistics is projected to reach USD 9.9 trillion by 2024, indicating a 10% increase.
Efficient and accurate order-picking solutions, such as pick-to-light systems, are vital for logistics operations. Ongoing advancements in automation, IoT, and AI are further estimated to empower cost-effective PTL systems across various industries, thereby fueling growth.
Tier 1 companies include firms with annual revenues exceeding USD 30 million. These companies are currently capturing a significant share of 25% to 30% globally.
The frontrunners are characterized by high production capacity and a wide product portfolio. They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base.
Tier 1 firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent Tier 1 companies in the industry are Daifuku, Honeywell Intelligrated, Swisslog Holding AG (Kuka Group), AIOI-Systems, and Banner Engineering.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 10 to 30 million, holding a presence in specific regions and exerting influence in local economies. Tier 2 firms such as SSI SCHAEFER, Knapp AG, Sick AG, Bastian Solutions, SMC, and others are projected to account for 30 to 35% share in the market.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 10 million. These companies are notably focused on meeting local demand and are hence categorized within the Tier 3 segment. They are small-scale participants with limited geographical presence.
Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 3 players such as Craftsman Storage Systems Kardex, Lighting Pick Technologies, and others are projected to account for 40 to 45% of the share in the market.
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The section below covers the analysis of pick-to-light sales for different countries in several regions of the globe, including North America, Latin America, East Asia, South Asia, Western Europe, Eastern Europe, and the Middle East and Africa. China is anticipated to remain at the forefront in East Asia, with a value share of 67% in 2034. In South Asia, India is projected to witness a CAGR of 7.7% through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 7.7% |
| China | 7.4% |
| Japan | 6.7% |
| ASEAN | 6.4% |
| United States | 5.7% |
India is poised to exhibit a CAGR of 7.7% during the assessment period. The country is expected to attain a value of USD 98.6 million by 2034.
Government investments in automation drive producers and logistics companies to adopt advanced technologies, resulting in increased demand for pick-to-light systems for warehouse optimization and minimization of picking errors. The union budget allocated around USD 26.5 billion to the Production Linked Incentive (PLI) scheme. It incorporates incentives for the adoption of advanced manufacturing technologies, including automation.
In addition, this huge capital investment underscores the government’s commitment to promoting industrial automation and modernizing the manufacturing sector of India.
India's GDP growth in 2022 was 8.7%, indicating a robust recovery post-COVID-19. However, due to international economic challenges and local issues, it slightly fell to 6.1% in 2023. Growing industrial automation and economic development are influencing pick-to-light technology in the country.
Sales of pick-to-lights in China are projected to soar at a CAGR of 7.4% during the assessment period. The total value in the country is anticipated to reach USD 310.7 million by 2034. This robust growth is set to be fueled by widespread internet penetration, the proliferation of mobile devices, and a consumer base that is increasingly shifting toward online shopping.
Key e-commerce platforms such as Alibaba, JD.com, and Pinduoduo have seen substantial growth, further driving the popularity of e-commerce in the country. Rapid growth of e-commerce and the modernization of logistics infrastructure are a few other factors driving demand in China.
As e-commerce platforms handle a vast volume of orders daily, the need for efficient, accurate, and scalable order fulfillment solutions becomes paramount. Pick-to-light systems, known for high efficiency in reducing picking errors and speeding up the order-picking process, are increasingly being adopted to meet these demands.
In 2022, China made significant strides in modernizing its logistics infrastructure to support this burgeoning e-commerce industry. Implementation of smart logistics systems and automated warehouses as well as integration of advanced technologies like AI and the Internet of Things (IoT) in logistics operations are set to fuel growth in the country.
The United States is projected to reach USD 188.1 million by 2034. Over the assessment period, demand for pick-to-lights in the country is set to rise at 5.7% CAGR.
The omnichannel retail landscape in the United States has been rapidly evolving as consumers increasingly expect seamless shopping experiences across various platforms, whether online, in-store, or through mobile apps. Retailers are integrating their sales channels to provide a consistent and unified customer experience in the country. This trend has led to a significant demand for efficient order fulfillment solutions that can handle the complexities of managing inventory across multiple channels.
Demand for omnichannel distribution center (DC) fulfillment is driving the adoption of more advanced pick-to-light (PTL) hardware and software in the country. Integration of omnichannel retail strategies and the need for improved labor efficiency are key drivers for the adoption of pick-to-light systems in the United States.
The section below explains the growth trajectories of the leading segments in the industry. In terms of operations, the picking segment is set to dominate and generate a share of around 73.6% in 2024. Based on connection, the wired segment is projected to hold a share of 58.6% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Picking (Operation) |
|---|---|
| Value Share (2024) | 73.6% |
Efficiency and speed of picking operations are greatly improved by pick-to-light systems. Visual indicators help reduce search time by guiding workers to item locations, streamlining the picking process, and enabling quick order fulfillment. In high-demand environments like e-commerce and omnichannel retail, the efficiency of pick to light system is imperative as timely delivery is a competitive advantage.
Pick-to-light systems are vital for high SKU volumes in retail and e-commerce sectors due to their ability to handle inventory management and order fulfillment complexities effectively. Picking operations in pick-to-light enhances efficiency, correctness, and productivity, making it essential for modern warehouse or distribution center operations.
| Segment | Wired (Connection) |
|---|---|
| Value Share (2024) | 58.6% |
Wired connections are extensively favored in the pick-to-light industry due to their high reliability, low latency, and enhanced security features. The connections between pick-to-light devices and the central control system ensure stable communication, minimize signal interference, and optimize workflow efficiency in warehouse environments. They provide fast response times for immediate data updates and synchronization, ensuring real-time operations.
Wired connections further provide robust security measures, protecting sensitive information and maintaining data integrity. Their stable performance in high-electromagnetic-interference environments makes them a practical choice for industrial applications.
While initial installation costs are higher than wireless alternatives, wired connections often prove more cost-effective in the long term due to low maintenance requirements and high reliability. These factors collectively contribute to the widespread adoption of wired connections in the market.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. A few key companies in the market are actively enhancing capabilities and resources to cater to the growing demand across diverse applications. Leading companies are adopting partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Leading companies and manufacturers are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic growth is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the industry through 2034, thereby making it highly competitive.
Key companies are investing in continuous research for manufacturing new products and increasing their production capacity to meet end-user demand. They are also showing an inclination toward adopting strategies, including acquisitions, partnerships, mergers, and facility growth to strengthen their footprint.
Industry Updates
As per operations, the industry has been categorized into picking and placing.
Based on methods, the industry is split into auto-guided and manual.
As per connections, the industry is segmented into wired and wireless.
In terms of end-use, the industry is categorized into manufacturing and assembly, warehousing, healthcare, food and beverages, pharmaceuticals and cosmetics, automotive, apparel and fashion, electronics, and others.
Regions considered in the study include North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and the Middle East and Africa.
The global market was valued at USD 683.3 million in 2023.
The industry is set to reach USD 725.6 million by 2024.
The demand is set to rise at a CAGR of 6.7% through 2034.
The industry is projected to reach USD 1,393.8 million by 2034.
The warehousing segment is set to dominate in terms of share.
It is a novel order-picking technology for distribution centers and warehouses that uses LEDs on racks to locate orders.
Pick to light or PTL systems use light modules to help workers walk to the shelf to pick up orders.
Lightning pick is considered the most significant pick-to-light system.
Pick to light systems help with order picking, whereas put-to-light is used for stocking products.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Operation
6.2. Method
6.3. Connection
6.4. End-use Industry
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Operation
7.1. Picking
7.2. Placing
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Method
8.1. Auto Guided
8.2. Manual
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Connection
9.1. Wired
9.2. Wireless
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End-use Industry
10.1. Manufacturing & Assembly
10.2. Warehousing
10.2.1. E-commerce
10.2.2. Retail
10.3. Healthcare
10.4. Food & Beverages
10.5. Pharmaceuticals & Cosmetics
10.6. Automotive
10.7. Apparel & Fashion
10.8. Electronics
10.9. Others
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
11.1. North America
11.2. Latin America
11.3. Western Europe
11.4. South Asia
11.5. East Asia
11.6. Eastern Europe
11.7. Middle East & Africa
12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
19. Sales Forecast 2024 to 2034 by Operation, Method, Connection, and End-use Industry for 30 Countries
20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
21. Company Profile
21.1. Honeywell Intelligrated
21.2. Bastian Solutions
21.3. Kardex
21.4. AIOI SYSTEMS CO.,LTD
21.5. Daifuku Co., Ltd.
21.6. Swisslog Holding AG (Kuka Group)
21.7. SSI SCHAEFER
21.8. KNAPP AG
21.9. Banner Engineering
21.10. Turck
21.11. KBS Industrieelektronik
21.12. Lightning Pick
21.13. SICK Sensor Intelligence
21.14. Falcon Autotech
21.15. Nysus Solutions
21.16. Craftsman Storage Systems
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Pick to Light Market
