Robotics in 2026: Software-Led Machine Design, Practical AI & Market Demand

Software innovation, smart perception and closer collaboration between robotics integrators and hardware providers stand out as priority areas that will redefine automation in the year ahead.

With deep expertise in industrial supply chains, Arthur Bellamy, chief revenue officer at Exotec, offers a clear view on how these vectors are taking hold this year.

Exotec is a major player in this space. The warehouse robotics provider boasts of deploying a global fleet of more than 10,000 robots in warehouse operations and annual revenues topping $1 billion in the materials handling sector.

Machine Design: How will advances in robotics software in 2026 reshape the balance between hardware and software intelligence in industrial automation?

Arthur Bellamy: Flexible intelligence solutions that respond dynamically to changing warehouse conditions will be key to success in 2026. This represents a bigger shift in the hardware-software balance, where advanced software is now a dominant factor in determining robot fleet performance and value.

Instead of fixed automation systems that risk obsolescence, modern, software-enabled robot fleets can be reconfigured and optimized in real-time, enabling efficient facility footprints and faster delivery cycles. Forward-thinking warehouses are moving away from traditional technology such as conveyor belts and toward software advances that enable scaling—a vital strategy in the current volatile tariff climate.

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MD: Are manufacturers seeing software as the key differentiator in robotic performance and flexibility, rather than an afterthought to hardware design?

AB: Yes, more manufacturers are recognizing software as a critical differentiator, but 2026 will be a breakthrough year for widespread adoption. The industry is moving away from obsessing over individual robot performance metrics, prioritizing overall system performance through software orchestration. Hardware is commoditized and companies can no longer sell it as a differentiator when you can get quality, cheap hardware from the same suppliers. Ultimately, the secret sauce is how you get things moving in a smart, effective way.

MD: How do you see the shift toward software-defined robotics impacting system modularity, interoperability and lifecycle costs?

AB: Software-defined robotics are already and will continue to enhance modularity and interoperability, and in the long term we’ll see reduced lifecycle costs. Software is designed to scale with warehouse growth and pinpoint inefficiencies in end-to-end operations. Systems speak to each other, meaning warehouse operators can rest assured that activity in one part of the warehouse will be accounted for in the activities of another.

Most importantly, it simplifies overall operations into a streamlined, cohesive unit—as time goes on warehouses will see savings through efficiency gains and accurate hardware repairs and replacements.

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MD: What signals are warehouse robotics currently sending about the 2026 economy? What role will warehouse robotics play in stabilizing economic shifts?

AB: Investment in warehouse automation requires access to capital and confidence in your business’ future, whether that means accommodating growth, adapting to changing market conditions, addressing labor challenges or building the operational agility to respond more flexibly to customer demands. Companies are currently focused on finding cost-effective ways to manage their business and protect their profit margins to brace for sudden uncertainty.

That said, we’ve started to see more confidence in decision making and investment in automation, indicating that companies are investing in the operational agility and efficiency needed to navigate changing market conditions, adapt to labor constraints and position themselves competitively for 2026.

A cautious approach actually makes robotics more important for staying agile during uncertainty. Implementing automation now builds flexibility to handle economic forces down the line. When you can scale as your service levels demand it, you can respond to issues that arise while minimizing carrying excessive labor costs.

MD: There’s been a lot of hype around AI-driven autonomy in warehousing. What constraints or misalignments are likely to emerge in 2026 that could slow adoption?

AB: AI excels at repetitive, pattern-related and predictive tasks with clear data, but warehouse operations are messy. Operators handle thousands of different product types, deal with damaged packaging and face constantly changing factors. AI in warehouse settings has proven to be valuable for logistics intelligence such as demand forecasting, inventory optimization and route planning, but the ROI for AI-driven autonomy in physical warehouse tasks remains unclear.

Warehouses operate on thin margins and need clear payback timelines, but AI vendors are struggling to demonstrate how their technology delivers measurably better throughput, accuracy or cost savings compared to proven non-AI systems. For most warehousing applications, deterministic automation that does the same thing the same way every time is actually preferable to AI systems.

READ MORE: How AI and Software-Defined Design are Making Digital Twins More Accessible

MD: How are AI-driven vision systems and camera-based perception technologies disrupting traditional industrial sensors in 2026? What impact will this shift have on robot calibration, safety compliance and data management?

AB: AI-enabled cameras are becoming increasingly invaluable for warehouse operations and we’ll continue to see [their] adoption in the coming year. From an efficiency standpoint, these cameras are strategically placed throughout the warehouse to get a better sense of where items are and how operations are running. These cameras are also positioned on robots in the warehouse, sometimes even four at a time, to quickly troubleshoot if there is a performance issue.

Though we’re not at a place yet where fully AI-enabled robotics or automation systems are preferable, AI-enabled cameras within the robots can help with better and safer decision making. This improves overall flow on the warehouse floor, simplifies the robotic design, and decreases costs.

MD: As robotic systems grow more software-centric, how do you envision the relationship between hardware providers and system integrators evolving? What new collaboration models—or even business structures—are emerging to handle the tighter interplay between mechanics, controls and software ecosystems?

AB: We’re definitely going to see hardware providers more closely align with their systems integrators as warehouse operators look for the most seamless process possible in standing up their automation solutions. That said, more hardware providers are going to break into self-owned software and become a one-stop-shop for their customers, owning the full end-to-end automation solution.

Customers increasingly ask for consolidated offerings and only want to deal with one provider, meaning vendors will have to adapt and expand their offerings to meet demand. Providers themselves will become the integrators, a definite shift from the legacy siloed business structures the industry has known.