New research from Zebra Technologies reveals that while automation is firmly on the agenda for Europe’s warehouse operators, many are struggling to take the first step. With rising customer demands and competitive pressure, the urgency to modernize is high, but confidence in where to begin remains strikingly low.
Adoption Plans Outpace Implementation Clarity
Warehouse modernization is no longer a future consideration, it’s a competitive necessity. Zebra Technologies’ 2025 Warehouse Vision Study found that 84% of warehouse decision-makers now view automation as essential to staying competitive. Yet 62% admit they still don’t know where to start. That disconnect is stalling progress, even as AI and automation tools become more accessible and targeted.
The report, titled The Great Warehouse Convergence: Where Technology, Efficiency and Innovation Align, paints a mixed picture. Leaders overwhelmingly recognize the benefits of warehouse automation, 82% say it boosts frontline productivity and 79% believe it improves job appeal. But concerns over integration complexity, downtime, and unclear pathways to ROI are keeping many from acting.
The implementation of AI, generative AI, augmented reality, and predictive analytics is widely anticipated over the next five years, with 65% of respondents planning to deploy predictive capabilities and 68% intending to roll out GenAI. These tools promise better task management, faster issue resolution, and improved accuracy in forecasting and planning. Still, as Zebra’s Phil Sambrook points out, even tech-forward leaders can be paralyzed without the right starting point or partner support.
From Theory to Execution: AI, AR, and Real-Time Visibility
Despite uncertainty around where to begin, automation is already yielding tangible operational benefits in warehouses worldwide. Technologies like real-time data capture, machine vision, and location-aware asset tracking are cutting error rates, accelerating cycle times, and improving labor utilization. In Europe, nearly three-quarters of warehouse leaders now recognize machine vision and scanning as key to eliminating manual inefficiencies.
The gains are clearest in functions where precision and speed directly affect service levels, such as inventory accuracy, order picking, and proof of delivery. But technology adoption is no longer just about upgrading individual tools. The focus is shifting toward integrated, interoperable systems that can adapt as workflows evolve. Modular platforms that support AI, predictive analytics, and real-time visibility across physical and digital environments are helping companies future-proof their investments while driving immediate returns.
Missing the Moment: The Cost of Hesitation in a Tight Market
While automation offers clear efficiency and workforce benefits, slow execution could prove costly. As recent McKinsey research shows, warehouses that adopt end-to-end automation early can realize up to 30% improvements in throughput and 40% reductions in labor costs. Those gains compound over time, creating a gap that’s difficult to close once competitors pull ahead. For warehouse operators unsure where to begin, the greater risk may be in waiting too long.