Zebra Technologies winding down Fetch-based mobile robot group news from the Robot Report. Steve Crowe writes in the news item, “Zebra Technologies is winding down its autonomous mobile robot (AMR) division. The group was built around Zebra’s $290 million acquisition of AMR maker Fetch Robotics in 2021. The move marks a strategic retreat from the robotics push Zebra launched to expand its warehouse automation capabilities.”
I can’t find news on Zebra’s site, and they haven’t sent anything to me, but Crowe continues, “It’s unclear exactly how this story will end. According to multiple sources, Zebra is looking to sell its robotics division or ultimately shut it down. According to the sources, most of the robotics staff will be let go by the end of 2025. About 25% of the staff will stay on until March 2026 to manage current deployments. Multiple former employees of Zebra’s AMR group posted yesterday on LinkedIn that they are looking for new roles.”
Rockwell Automation hosted its annual Automation Fair last month. The head of the robotics unit, and former AMR technologist, spoke to us. Between his presentation and that of the upgrades to Rockwell’s own manufacturing, it looks as if they are making strides at integrating these products into their overall solution package. The tech may not fit everyone’s strategic portfolio.
Ash Sharma, VP of research at market intelligence company Interact Analysis sent these comments about the market. They are pretty accurate.
- “Fetch was acquired at the peak of the AMR hype cycle for nearly 30 times its annual revenue, despite likely operating at a loss. Other companies adopted similar strategies, paying exceptionally high valuations to secure a share of this fast-growing sector. For example, ABB Robotics acquired Spanish firm ASTI, and Teradyne purchased Mobile Industrial Robots. All three have faced challenges integrating and scaling these startups, leading to divestments or significant reductions in investment.
- “Although the AMR industry now exceeds $4 billion annually and continues to grow at a double-digit rate, a common misconception is that it represents a single addressable market for any vendor. In reality, the industry comprises multiple segments, each requiring specific AMR form factors tailored to distinct workflows. The segment targeted by Zebra through Fetch’s technology was worth only a few hundred million dollars.
- “Another misconception is that Western markets dominate AMR adoption. In fact, China manufactures and installs more than half of all AMRs worldwide.
- “The greatest challenge lies in scaling AMR operations. Five years ago, most AMRs were sold to small organisations purchasing only a handful of robots. This fragmented customer base made scaling difficult for companies lacking broad distribution and sales networks. Mobile Industrial Robots grew rapidly during this period. However, the market has since evolved. While small customers remain, most AMR volume now comes from major retailers and 3PLs, which deploy hundreds of robots per site and thousands across networks. Their requirements and procurement processes differ significantly from early adopters, demanding a fundamentally different approach to achieve scale.”
