Automation is helping businesses reduce reliance on skilled labour
Warehouse automation is accelerating at pace, with industry leaders pointing to a surge in demand for pallet shuttle systems as businesses rethink how they use space and manage risk.
That was the key takeaway from major intralogistics events LogiMAT in Stuttgart and MODEX in Atlanta, according to Beth Marshall, UK sales director at Movu, who said both shows reflected a strong sense of optimism despite wider geopolitical uncertainty.
The events drew large crowds of operators seeking solutions to ongoing warehousing challenges, with a noticeable shift towards smaller, scalable automation projects and retrofitting existing facilities rather than relocating.
Marshall said companies are increasingly focused on making better use of current space. Businesses not ready for major upfront investment are instead looking to expand capacity within existing sites, avoiding the cost and disruption of moving premises.
One of the clearest trends emerging from the exhibitions was the rapid rise of pallet shuttle technology. “2026 was clearly the ‘year of the pallet shuttle’,” she said, noting that suppliers from across the globe were showcasing the systems.
The growing popularity of pallet shuttles is being driven by their flexibility and resilience. Unlike traditional automated storage and retrieval systems, they do not rely on a single point of failure and can be scaled as demand grows.
They also offer energy efficiency benefits, which are becoming increasingly important as businesses look to meet sustainability targets and manage volatile energy costs.
However, Marshall warned that the growing number of suppliers could create confusion for customers, advising operators to consider the full system rather than focusing solely on the shuttle itself.
Interest in the technology is also expanding beyond core storage. Businesses are now using pallet shuttle systems in areas such as shipping buffers and manufacturing processes, helping to improve efficiency across operations.
The UK market is emerging as a key area for growth in warehouse automation, marking a shift from its traditional reliance on manual processes and forklift operations.
While recruitment pressures have eased in some areas, Marshall said a shortage of skilled workers remains a challenge, particularly for roles such as forklift drivers. This is pushing more operators towards automation or alternative equipment.
At the same time, the need to increase storage density is becoming a major driver. With planning constraints limiting the construction of taller buildings and fewer small urban warehouses available, businesses are under pressure to maximise capacity within existing sites.
Sectors such as frozen food, pharmaceuticals and ecommerce are leading adoption, supported by strong demand and the suitability of automated systems for high-density storage environments.
Marshall said modular systems are particularly attractive to growing businesses, allowing them to scale operations over time without large upfront costs. The ability to add capacity or manage peak demand through flexible solutions is also reshaping investment decisions.
The wider trend, she added, points to a significant shift in how warehouses are designed and operated, with automation playing an increasingly central role in improving efficiency, resilience and long-term growth.