Founded in 2016 by Scott Gravelle, Attabotics developed an automated storage and retrieval system, or ASRS. It combined the density of ultra-high-density storage with the accessibility of shuttle systems.
However, the company last month closed its doors after filing for bankruptcy. One of the defining events in the Attabotics‘ downfall was a fire at a warehouse of Canadian Tire—one of its largest clients.
While Attabotics claimed the fire was caused by misconduct on the part of Canadian Tire and subsequently made a claim against the retailer, the event marked the beginning of the end for the ASRS provider.
The incident also brought widespread attention to the topic of fire safety in warehouse automation. In recent years, several vendors have launched new products specifically aimed at reducing fire risk.
Interact Analysis explored the data around these fire incidents and how automation vendors are aiming to reduce the risk.
Big events shake the industry
Before diving into the data, it’s important to acknowledge that high-profile warehouse fires attract significant scrutiny. Attabotics wasn’t the first automation company in recent years to be associated with a warehouse fire.
Regardless of the actual safety record of warehouse automation systems, such events cast a spotlight on the industry, leading to intense public and regulatory attention. It’s similar to the way in which incidents involving autonomous vehicles – though statistically safer than human-driven cars – generate public outcry and scepticism.
Therefore, whether warehouse automation truly presents a disproportionate fire risk compared with traditional manual systems or not, it is essential for automation vendors to prioritize fire safety.
In response, several warehouse automation providerss have released new technologies and features aimed at minimizing fire hazards. This not only helps reduce actual fire risk but also signals to the market that the industry is taking safety seriously.
Save the date for the 2026 Robotics SummitStorage systems come under scrutiny
Vendors of ultra-high-density storage systems often face the most scrutiny, and understandably so. Even before Attabotics’ issues, Ocado – a well-known automation provider – was in the spotlight following a series of warehouse fires.
Between 2019 and 2021, three separate fires occurred at Ocado facilities, according to The Grocer. One was caused by an electrical fault, another by a robot collision, and the third by the ignition of waste packaging.
In response, the U.K. company launched metal totes to supplement its plastic containers, helping to prevent the spread of fires.
Other companies have followed suit. In 2022, AutoStore stated fire safety was a top priority. The following year, the ASRS maker launched new robots using lithium-titanium oxide (LTO) batteries.
Although the primary motivation was faster charging, LTO is among the most fire-resistant battery chemistries, and so this was likely also a factor in Ocado’s decision.
What does the fire data suggest?
In the U.S., warehouse fires have decreased significantly compared with 1980. However, there has been a gradual uptick since 2011. Between 2011 and 2022, the five-year trailing average of warehouse fires increased by approximately 2% per year.
If this trend continues, we could see around 1,700 fires annually by 2030 – the same level observed in 1993. The most likely answer for this uptick is the general increase in the number of warehouses, driving up the number of incidents.
However, it’s also possible that increased warehouse density is playing a role. As facilities aim for greater efficiency—especially in e-commerce—more goods are stored in increasingly compact spaces, often across multiple mezzanine levels.
Another theory is that the growing presence of electric automation may be contributing to the increase in incidents. However, this is merely a correlation and does not imply causation.
In Europe, the trend is not as clear-cut. In the U.K., for example, warehouse fires have generally decreased over the past decade. The German Insurance Association (GDV) only began reporting warehouse fire data in 2020, but the trend has also been downward.
The absence of a similar increase in fire incidents across Europe, despite comparable trends in automation adoption, suggests that automation alone is unlikely to be the sole cause of the uptick in the U.S. Nevertheless, the possibility cannot be ruled out.
Fire safety should be a priority
Fire safety in warehouses is a valid and growing concern. In the U.S., the number of fires is rising. Whether automation is partly to blame isn’t clear, but this is beside the point. The reputational damage of being associated with a warehouse fire—even when not at fault—can be severe, as demonstrated by the fall of Attabotics.
For this reason, automation vendors must make fire safety a top priority. Doing so not only reduces real risk but also provides assurance to clients, regulators, and the wider market that the technology is being deployed responsibly.
About the author
Rueben Scriven is a research manager at Interact Analysis. He is a leading warehouse automation industry analyst and has spoken at top industry events. Scriven has been featured in The Financial Times, The Wall Street Journal, The Economist, Reuters, and CNBC, along with numerous trade publications.
Scriven leads the Warehouse Automation research practice at Interact Analysis, a market intelligence firm focused on supply chain automation technologies. In recent years, his group’s research and analysis has expanded into warehouse software, covering the whole tech stack, from subsystem control software to execution and management software.
Editor’s note: This article was syndicated with permission from Interact Analysis.
