Warehouse automation surging ahead despite projected slowdown

DHL Group partners with Boston Dynamics to scale robotics efforts

Over the past three years, DHL Group has invested over $1.17 billion in automation for its contract logistics division. (Photo: DHL Group)

Warehouse automation appears to be gaining traction despite prior forecasts cutting short-term market growth projections for autonomous mobile robots.

Global market researcher Interact Analysis released a report in January cutting its short-term market growth projections for the mobile robotics market by 18% over the next two years.

However, advances in technology paired with significant supply chain partnerships and increasing affordability for robotics may be reasons to reevaluate.

According to a 2025 digital supply chain industry report by logistics trade association MHI, top barriers to automation adoption are a lack of a budget, lack of a clear business case and lack of understanding of technology. 

The MHI report predicts robotics and automation will jump from 41% of supply chain leaders using it today to 83% adopting it over the next five years. Inventory and network optimization technologies are also predicted to see an increase in adoption from 58% to 92% over the next five years.

DHL scales automation

Logistics giant DHL Group announced a purchase order with Boston Dynamics in May for 1,000 more units of its package-handling “Stretch” robot. Stretch boasts case unloading rates of up to 700 cases per hour from both hot and cold trailers – with no human input necessary.

According to DHL’s news release, the purchase builds upon a warehouse technology partnership between both companies that started in 2018. In 2023, DHL’s logistics division introduced Stretch commercially in North America – and has more recently expanded deployments to Europe.

Over the past three years, DHL Group has invested over $1.17 billion in automation for its contract logistics division. DHL currently uses over 7,500 robots around the world, and more than 90% of its warehouses use at least one automation or digitalization technology.

Sally Miller, global chief information officer of DHL Supply Chain, said the company was committed to bringing robotics and automation to all of its operations and business units.

“It’s a fundamental shift that’s reshaping how we operate and elevate service for our customers,” Miller said in a statement. “Through this expanded partnership with Boston Dynamics, DHL will take a more active role in shaping and directing robotics development alongside key partners, focusing on building more resilient, responsive and smarter solutions that address the unique challenges of our company. Together, we’re setting new standards for the logistics industry.”

Making warehouse automation affordable

Better technology is also becoming more affordable. On Tuesday, Kentucky-based automation company Brightpick launched “Autopicker 2.0,” its first multi-purpose warehouse robot capable of matching human-level performance.

According to a news release, Autopicker 2.0 features physical AI and picking-in-motion software. The robot delivers on average 70 to 80 picks per hour, and can operate 24/7 at a cost of $1,900 per month.

Calculating for a 40 hour work week, that would be equivalent to paying a human worker just under $12 per hour – with the added perk of constant operability. The release stated that hundreds of Brightpick’s robots are operating using the company’s “Intuition” intelligent fleet orchestration software in warehouses worldwide.

“Autopicker 2.0 is the first robot to deliver both human-level speed and versatility in real production environments,” Jan Zizka, co-founder and CEO of Brightpick, said in a statement. “Its unique form factor gives it additional advantages, including higher vertical reach, faster navigation, and longer battery life. Through our RaaS [robotics-as-a-service] model, customers can deploy it for as little as $1,900 per month – making advanced automation more accessible than ever.”

Read more on robotics-as-a-service here.

Editor’s note: A previous version of this story incorrectly stated Interact Analysis’ report forecasted a “market dip” for the autonomous mobile robots market. This is not the case, rather the firm has lowered its own projections for market growth by 18% through 2027 due to global economic and political turbulence.

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Caleb Revill

Caleb Revill is a journalist, writer and lifelong learner working as a Junior Writer for Firecrown. When he isn't tackling breaking news, Caleb is on the lookout for fascinating feature stories. Every person has a story to tell, and Caleb wants to help share them! He can be contacted by email anytime at Caleb.Revill@firecrown.com.