A recent study shows that 50 per cent of modern logistics facilities are expected to be automated by 2035.
Düsseldorf, 17 June 2026 - Warehouse automation is increasing demand for modern logistics space in Europe, according to new Prologis research, as occupiers invest in technology to improve performance in a market shaped by labor pressure, limited land availability and rising fulfilment expectations.
Across the wider market, Prologis analysis found that around 30% of modern logistics space included some form of automation in 2025, up from 20% to 25% five years ago. Much of that growth is being driven by flexible technologies such as autonomous mobile robots, automated guided vehicles and other modular systems that are easier to integrate into existing operations and better suited to leased environments than more fixed, capital-intensive solutions.
By contrast, fully automated storage and retrieval systems remain relatively rare, present in roughly 3% to 5% of warehouses. While these systems can deliver significant efficiency gains, high upfront costs, limited flexibility and specialized building requirements continue to restrict broader adoption.
For logistics real estate, the findings point to a growing premium for buildings that can support automation. Prologis data shows facilities used by customers deploying automation are associated with a double-digit-higher likelihood to renew, roughly one-year-longer lease terms and 10% higher rents than non-automated facilities, after controlling for market and size.
The findings are particularly relevant for Europe’s busiest logistics markets, where labor shortages, a scarcity of land and planning restrictions are driving up the value of throughput per square meter. This also applies to key German logistics regions. In Prologis’s German portfolio, the vacancy rate stands at just over 2 per cent, and there is hardly any logistics space available at short notice. This makes efficiency improvements in existing spaces all the more important.
“In Europe, however, automation is no longer just about efficiency,” says Matthias Brandl, Essentials Solutions Manager at Prologis. “It is increasingly about how users are responding to a tight labor market, limited space availability and rising customer expectations.”
Looking ahead, Prologis analysis suggests that up to 50% of modern warehouses could incorporate some form of automation by 2035, with flexible systems expected to continue leading adoption. The Prologis Supply Chain Outlook 2026 also confirms the importance of automation: 42 per cent of German executives list automation and robotics among their top investment priorities for 2026.
“Particularly in markets such as Germany, where there is strong demand for modern logistics space and skilled workers remain in short supply, the ability of buildings to be automated is becoming an important location factor,” Philipp Feige, Vice President, Head of Capital Deployment Germany at Prologis, added. “What this research shows is that automation is reinforcing demand for the right logistics space, not reducing it.”