In Japan, robots are replacing people in warehouses due to an aging population

Amid a rapidly aging population, Japan is testing robotic logistics to offset labor shortages and maintain delivery speeds, the Financial Times reports.

Amazon's warehouse in Chiba City already employs more than 2,000 people and has a storage capacity 40% larger than conventional facilities. The company also showed off a new automatic packaging machine and sorting system that can combine multiple items into a single package.

But experts say getting robots out on the streets to make deliveries is still a challenge. Demand for truck drivers in Japan is falling sharply due to an aging population: Nomura Research Institute predicts the number of drivers will drop by a third to 480,000 by 2030. Amazon is considering localizing automation, moving from large hubs to smaller delivery locations closer to customers, where robots can take a more active role in packaging.

As part of its global strategy, Amazon is launching DeepFleet, an artificial intelligence that manages all warehouse operations and increases their speed by 10%. At the same time, Japanese logistics companies, such as Nippon Express, are implementing new technologies more cautiously due to the variety of products, customer needs, and the high cost of integration. Most solutions are still demonstrational, and companies are evaluating their economic benefits and prospects.

The warehouse automation market in Japan is estimated to have reached $1.28 billion in 2024 and is expected to grow at an average of more than 21% annually through 2030. Hardware is the main revenue driver, while the software segment is the fastest growing segment.

The main obstacles to the rapid introduction of robots are the high cost of integration into existing warehouses, the complex architecture of buildings (small areas, multi-level, uneven layout), as well as the slow development of e-commerce, which in Japan occupies less than 10% of the retail market - significantly less than in Europe.

In Japan, logistics companies are bracing for a labor shortage and are even considering hiring foreign truck drivers as the country's youth population dwindles. The service industry is also facing similar challenges due to an aging population. Japanese cafes already employ robot waiters in the form of seals.