• Pick-to-light systems market is experiencing significant growth, driven by the increasing demand for efficient and accurate order fulfillment in various industries.

• Innovations such as wireless connectivity, integration with warehouse management systems (WMS), and compatibility with autonomous mobile robots (AMRs) are enhancing the capabilities of pick-to-light systems.

• Key sectors adopting pick-to-light systems include e-commerce, retail, pharmaceuticals, automotive, and food & beverage industries, aiming to improve picking accuracy and operational efficiency.

• North America and Europe are leading markets for pick-to-light systems, owing to advanced warehouse automation and high labor costs, prompting investments in efficient order-picking solutions.

• While pick-to-light systems offer improved accuracy and productivity, the initial investment and integration costs may be a consideration for smaller enterprises.

• The market is expected to continue its growth trajectory, with ongoing advancements in technology and increasing adoption across various industries driving demand for pick-to-light systems.

• In April 2024, the Pick-to-Light Systems Market accelerated as warehouse operators adopted light-directed picking solutions to meet rising demands from e-commerce and retail logistics, prioritizing order accuracy and fulfilment speed.

• In January 2023, major automation providers launched new wireless pick-to-light modules featuring NFC configuration and AMR integration, supporting the transition to smart warehouses and enabling more flexible, scalable operations.

In this report, Pick-to-Light Systems Market has been segmented by Component, Installation Type, Mounting, Communication and Power, End-Use, and Geography. This segmentation highlights differences in system architecture, installation complexity, operational efficiency, and industrial adoption trends, collectively shaping market growth, technology integration strategies, and the overall future outlook for pick-to-light systems.

Pick-to-Light Systems Market, Segmentation by Component

Component segmentation differentiates systems based on hardware, software, and service offerings. Hardware dominates %, while software and services contribute growing shares due to automation integration and process optimization.

Hardware

Hardware holds 50%, including displays, sensors, and control modules. It is critical for accurate item picking, signal visibility, and operational reliability in fulfillment and manufacturing facilities.

Software

Software accounts for 30%, enabling inventory management, real-time monitoring, and system analytics to optimize picking efficiency and reduce operational errors.

Services

Services contribute 20%, encompassing installation, maintenance, and training programs to ensure system uptime and workflow optimization.

Pick-to-Light Systems Market, Segmentation by Installation Type

Installation type segmentation includes green-field and retrofit/brown-field implementations, reflecting differences in capital expenditure, facility readiness, and integration complexity.

Green-Field

Green-field installations hold 60%, common in new fulfillment centers and automated warehouses, allowing optimized layout design and full system integration from inception.

Retrofit & Brown-Field

Retrofit and brown-field implementations account for 40%, focusing on upgrading existing facilities, incremental automation, and cost-effective performance improvement in operational warehouses.

Pick-to-Light Systems Market, Segmentation by Mounting

Mounting segmentation captures flexibility and operational ergonomics. Shelf-mounted systems dominate %, while rack-mounted, overhead, and mobile/cart-based solutions address space optimization and workflow-specific requirements.

Shelf-Mounted

Shelf-mounted systems hold 45%, widely used for compact storage units, easy visibility, and operator-friendly item picking in e-commerce and retail fulfillment centers.

Rack-Mounted

Rack-mounted systems account for 25%, suitable for high-density storage and industrial warehouse setups, maximizing vertical space utilization.

Overhead & Hanging

Overhead and hanging systems contribute 15%, optimizing floor space and supporting high-speed picking operations in large distribution facilities.

Mobile & Cart-Based

Mobile and cart-based systems hold 15%, providing flexibility, cross-aisle picking, and dynamic workflow integration for multi-zone operations.

Pick-to-Light Systems Market, Segmentation by Communication and Power

Communication and power segmentation defines how systems are networked and energized. Wired BUS dominates %, while wireless and PoE solutions grow due to flexibility and simplified installation.

Wired BUS [RS-485, CAN]

Wired BUS holds 50%, offering reliable communication, low latency, and robust integration for large-scale industrial deployments.

Wireless RF & Wi-Fi

Wireless RF and Wi-Fi account for 35%, enabling flexible system layouts, reduced wiring, and scalable installation in dynamic warehouses.

Power-Over-Ethernet (PoE)

PoE contributes 15%, providing combined power and data transmission, simplified infrastructure, and efficient deployment for modern automation systems.

Pick-to-Light Systems Market, Segmentation by End-Use

End-use segmentation illustrates adoption across industries. E-commerce, retail, and manufacturing dominate %, while automotive, electronics, F&B, pharmaceuticals, apparel, and others contribute based on process complexity and operational scale.

E-Commerce & Retail Fulfillment Centers

Holding 35%, these sectors drive high-volume picking accuracy, order fulfillment speed, and integration with warehouse management systems.

Third-Party Logistics (3PL) & Parcel

3PL and parcel services account for 20%, requiring efficient multi-client operations, real-time tracking, and error reduction in high-throughput facilities.

Manufacturing

Manufacturing contributes 15%, leveraging component picking, production line optimization, and lean warehouse processes to enhance efficiency.

Automotive

Automotive accounts for 10%, using pick-to-light for assembly parts retrieval, inventory accuracy, and production line synchronization.

Electronics

Electronics holds 5%, facilitating small-part picking, precision handling, and integration with smart inventory systems.

Food & Beverage

F&B contributes 5%, emphasizing batch picking, hygienic material handling, and order customization.

Pharmaceuticals & Healthcare

Pharmaceuticals hold 5%, ensuring accuracy in medication selection, compliance with regulatory standards, and traceability in distribution centers.

Apparel & Footwear

Apparel and footwear contribute 3%, enabling style and size-specific picking in high-volume retail and fulfillment operations.

Others

Other sectors hold 2%, including consumer electronics, hardware, and specialty industries, where customized pick-to-light solutions enhance operational efficiency.

Pick-to-Light Systems Market, Segmentation by Geography

Geographic segmentation highlights regional adoption, industrial automation maturity, and e-commerce penetration. North America and Europe dominate %, while Asia Pacific, Middle East & Africa, and Latin America are emerging markets supported by rapid logistics sector growth and warehouse modernization.

North America

North America holds 35%, driven by high e-commerce and retail fulfillment adoption, advanced warehouse automation, and integration with smart logistics systems.

Europe

Europe represents 30%, supported by mature industrial automation, logistics modernization, and integration of pick-to-light systems in automotive and manufacturing sectors.

Asia Pacific

Asia Pacific accounts for 25%, fueled by rapid industrial growth, emerging e-commerce markets, and warehouse modernization initiatives.

Middle East & Africa

This region contributes 5%, with growth driven by logistics and warehouse infrastructure expansion and adoption in oil, gas, and manufacturing sectors.

Latin America

Latin America holds 5%, supported by increasing warehouse automation, retail fulfillment centers, and growing industrial applications.

This report provides an in depth analysis of various factors that impact the dynamics of Pick-to-Light Systems Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Increased Demand for Automation in Warehousing
• Rising E-commerce Industry

• Labor Cost and Availability - With rising labor costs and challenges in finding skilled workers, companies are increasingly seeking solutions that can reduce their dependency on manual labor. Pick-To-Light systems offer a significant advantage in this regard by automating the order-picking process and minimizing the need for extensive manual intervention. By using light indicators to direct workers to the correct items and quantities, these systems streamline the picking process, reducing the time and effort required to complete orders. This not only lowers labor costs by decreasing the number of workers needed but also allows existing employees to focus on more complex tasks that require human judgment and expertise. As a result, companies can achieve greater operational efficiency and productivity without being overly reliant on a large, skilled workforce.

  Moreover, Pick-To-Light systems contribute to improved accuracy and reduced errors in order fulfillment, which are critical for maintaining customer satisfaction and reducing costs associated with returns and rework. The system's precise guidance minimizes the likelihood of picking errors, which can be common in manual processes due to human fatigue or distraction. By ensuring that the right items are picked and packed correctly, companies can enhance their service quality and reliability. Additionally, the data collected by these systems provides valuable insights into workforce performance and inventory management, enabling better decision-making and further optimization of operations. As labor markets continue to evolve and companies face ongoing challenges in staffing, the adoption of Pick-To-Light systems represents a strategic move towards more automated, efficient, and cost-effective warehouse and distribution center management.

Restraints:

• High Initial Investment
• Integration Challenges

• Dependence on Power and Connectivity - Pick-To-Light systems rely heavily on a consistent power supply and robust network connectivity to function effectively. These systems use light indicators and displays to guide operators to the correct picking locations, and any interruption in power can halt their operations entirely. In warehouses and distribution centers, where speed and accuracy are critical, even a brief power outage can lead to significant delays, disrupting the entire order fulfillment process. To mitigate these risks, it is essential for facilities to invest in reliable power backup solutions, such as uninterruptible power supplies (UPS) and generators, to ensure continuous operation. Additionally, maintaining regular maintenance schedules for electrical systems can help prevent unexpected power failures, thereby minimizing the risk of downtime.

  Network connectivity is equally crucial for the seamless operation of Pick-To-Light systems. These systems often rely on wireless communication to integrate with warehouse management systems (WMS) and enterprise resource planning (ERP) systems, enabling real-time data exchange and synchronization. A disruption in network connectivity can result in delays in updating inventory records, processing orders, and communicating with other automated systems, leading to inefficiencies and potential errors. To address this, warehouses should implement robust network infrastructure with redundancy and failover mechanisms to ensure uninterrupted connectivity. This might include investing in high-quality routers, switches, and access points, as well as employing network monitoring tools to quickly identify and resolve connectivity issues. By ensuring both power and network reliability, warehouses can maintain the efficiency and accuracy of their Pick-To-Light systems, thereby supporting smooth and uninterrupted operations.

Opportunities:

• Technological Advancements
• Expansion in Emerging Markets

• Customization and Flexibility - Offering customizable and flexible Pick-To-Light solutions tailored to specific industry needs can open new market opportunities, particularly in sectors with unique warehousing requirements. In the healthcare industry, for instance, Pick-To-Light systems can be adapted to handle the specific needs of pharmaceutical distribution and medical supply chains, where accuracy and traceability are paramount. These systems can be configured to manage high-value and sensitive items, ensuring compliance with strict regulatory standards. Similarly, in the automotive sector, customized Pick-To-Light solutions can streamline the assembly line process by efficiently managing diverse and complex components. The ability to handle a wide range of parts with varying sizes and specifications makes these systems invaluable for automotive manufacturers aiming to optimize production efficiency and reduce assembly errors.

  In the electronics industry, the demand for flexible Pick-To-Light systems is driven by the rapid pace of technological advancements and the need for precise handling of delicate components. Customized systems can be designed to manage the intricate processes involved in electronics manufacturing, such as picking small parts for circuit boards or handling fragile items like semiconductors. By offering tailored solutions that address the specific challenges and operational requirements of different industries, Pick-To-Light system providers can not only enhance their market presence but also foster long-term partnerships with industry leaders. This approach not only broadens the application scope of Pick-To-Light technology but also ensures that it remains a critical tool in optimizing supply chain operations across diverse sectors.

Pick-to-Light Systems Market is witnessing intensified competition, with nearly 55% of the share dominated by leading automation providers. Companies are adopting strategies that emphasize collaboration with logistics firms, technology partnerships, and selective merger activity. Continuous innovation in light-guided picking systems is accelerating growth across warehouse management, e-commerce, and industrial distribution.

Market Structure and Concentration
Over 57% of the market is consolidated among key manufacturers, highlighting a high concentration level. Smaller vendors focus on niche customizations to differentiate. Established players adopt strategies of vertical integration and large-scale collaboration. Mergers continue to shape competitive concentration, creating strong platforms for expansion and sustainable growth within automated order fulfillment solutions.

Brand and Channel Strategies
Close to 53% of revenues are generated through direct sales and distributor-led partnerships. Companies strengthen brand presence through integrated service offerings and channel-focused strategies. Strategic collaboration with e-commerce platforms and manufacturing hubs enhances adoption, while localized branding supports consistent growth across diverse industrial and commercial warehousing applications.

Innovation Drivers and Technological Advancements
Nearly 60% of investments target enhanced LED systems, IoT integration, and AI-driven order tracking. Strong emphasis on technological advancements drives precision and efficiency. Companies rely on innovation through joint R&D partnerships and cross-industry collaboration, ensuring scalable solutions that foster long-term growth and market competitiveness across automated supply chain networks.

Regional Momentum and Expansion
North America and Europe collectively account for 59% of market activity, with Asia-Pacific recording 28% due to rapid expansion. Regional strategies emphasize logistics modernization and industrial growth. Local collaboration with suppliers and technology integrators enhances regional dominance, while partnerships with government-backed initiatives further strengthen adoption in emerging economies.

Future Outlook
The future outlook indicates adoption may surpass 65% as automated order-picking becomes standard in modern supply chains. Companies are expected to prioritize innovation through digital platforms, advanced strategies in channel integration, and stronger partnerships. With rapid technological advancements and ongoing collaboration, the sector is positioned for sustained growth across industries.

Key players in Pick-To-Light System Market include:

• Daifuku Co., Ltd.
• SSI Schäfer
• Murata Machinery, Ltd.
• Dematic
• Honeywell Intelligrated
• Vanderlande Industries B.V.
• Swisslog Holding AG
• KNAPP AG
• AIOI-System
• Lightning Pick Technologies
• Kardex Group
• Bastian Solutions
• Turck GmbH & Co. KG
• KBS Industrieelektronik GmbH
• Omron Corporation

In this report, the profile of each market player provides following information:

• Market Share Analysis
• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis