USD 59.54 billion
Report ID:
SQMIG45B2063 |
Region:
Global |
Published Date: June, 2024
Pages:
197
|Tables:
92
|Figures:
76
Logistics Automation Market size was valued at USD 67.40 Billion in 2023 and is poised to grow from USD 76.29 Billion in 2024 to USD 181.73 Billion by 2031, at a CAGR of 13.2% during the forecast period (2024-2031).
The global market for logistics automation is growing at a steady pace due to the increased use of technology to deal with evolving supply chains. Automation in logistics increases capacity, decreases cost of operations, and increases the flow and velocity the goods for satisfying customer demand for fast and accurate delivery services. While e-commerce is on the rise with the number of orders received increasing, companies face higher demands for developing the ways to manage the flows of orders and complex transportation systems. Some of the most important technologies which will further propel this market are robotics, artificial intelligence, machine learning, and the internet of things. AMRs as well as AGVs are the most innovative technologies that are modifying the nature of warehousing work by achieving efficient handling of storage, retrieval, and transportation tasks. Big aspects like, route planning, stock management, demand forecasts, and lead-time can be improved through predictive analytics which is efficiently executed through AI and machine learning. This element gives an indication of the operations in the supply chain and in particular goods tracking and checking through real time data acquired from the IoT devices.
It has been observed that various industries have adopted logistics automation in one way or the other and the industries that are majorly inclined towards it are retail industry, manufacturing industries, and the healthcare industries. In retail, the number of goods that needs to be stored and the need to deliver goods faster has made the retail business to adopt automated materials handling and warehousing systems. The manufacturing industries apply the pull systems of production where the products are made only when they are needed in a process known as just in a time inventory while the medical industries apply the automation of the management of the medical products including the pharma business.
Despite the promising growth trajectory, the market faces challenges such as high initial investment costs and concerns over data security and privacy. Additionally, the integration of new technologies into existing infrastructure requires significant expertise and adaptation. Nevertheless, continuous innovations and the proven benefits of automation are expected to drive sustained growth in the global logistics automation market, making it an indispensable component of modern supply chain management.
US Logistics Automation Market is poised to grow at sustainable CAGR for the next forecast year
Global Market Size
USD 59.54 billion
Largest Segment
Warehouse management systems (WMS)
Fastest Growth
logistics control systems (LCS)
Growth Rate
13.2% CAGR
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Global Logistics Automation Market is segmented on the basis of Component, function, vertical, and region. By Component, the market is segmented into hardware, software and services . By Function, the market is segmented into Inventory and Storage Management and Transportation logistics By vertical, the market is segmented into Retail eCommerce, Manufacturing, Healthcare & Pharmaceuticals, Food & Beverages, Automotive, Aerospace and Defense, Chemicals and Other Verticals (paper and printing, and textiles and clothing). By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Logistics Automation Market Analysis by Component
Among these segments, the largest and most significant is the hardware segment. Automated storage, and retrieval systems segment to hold the highest market share during the forecast period. ASRS is a system used to automatically store and retrieve materials from a defined storage location. These systems comprise four major parts: storage racks, input/output systems, storage, and retrieval (S/R) equipment, and computer management systems. Some major automated functions performed by ASRS include unloading, sorting, storing, order picking, staging, and loading. These systems, based on their material handling capacity, can be categorized into unit load, mini load, carousel, shuttle, mid load, auto store, and goods-to-person. ASRS are used to reduce the monotonous work of picking and placing high volumes of inventory moving in and out of warehouses
The fastest-growing segment in the logistics automation market is Software segment. . Even though hardware automates the physical grunt work in logistics, software is the brain behind the operation. It handles the strategic aspects by managing inventory levels, controlling robots, and planning efficient delivery routes. This leads to significant gains in efficiency. Software also plays a crucial role in data-driven decision making. By collecting and analyzing data from sensors and various systems, it provides valuable insights that can be used to optimize resource allocation and improve overall performance. As logistics operations become increasingly complex, software becomes even more critical. It acts as the glue that integrates all the hardware components and facilitates communication across different systems within the logistics network. This growing focus on data-driven logistics and the need for sophisticated automation solutions is a major driver behind the software segment's surge in the Global Logistics Automation Market.
Logistics Automation Market Analysis by Vertical
Among these segments, the largest contributor to the market's growth is the manufacturing industry , driven by the surging demand for efficient supply chain management in the era of online shopping. The retail and e-commerce segment holds a dominant position due to the significant expansion of e-commerce platforms and the increasing adoption of automation technologies by retail giants. With the relentless growth of online shopping, businesses are facing the challenge of fulfilling orders promptly and accurately. This has fueled the need for streamlined logistics operations, inventory management, and order fulfillment processes. The retail and e-commerce sector's prominence in the logistics automation market can be attributed to several factors. Firstly, the segment benefits from the high volume of shipments and the need for efficient warehousing and distribution solutions. Automated systems enable these companies to optimize inventory control, enhance order accuracy, and expedite delivery times, thereby meeting customer expectations. Moreover, the intense competition in the retail and e-commerce space necessitates advanced logistics automation solutions to gain a competitive edge. Companies are increasingly investing in technologies such as robotics, artificial intelligence, and machine learning to automate various aspects of their supply chain, including order picking, sorting, packaging, and last-mile delivery.
As for the fastest-growing segment, the retail and e-commerce sector stands out. Manufacturing operations rely heavily on logistics automation to enhance productivity, reduce operational costs, and improve overall efficiency. The sector is experiencing a significant shift towards smart factories and Industry 4.0, where automation plays a pivotal role in optimizing production processes and ensuring seamless material handling and inventory management. Manufacturers are leveraging robotics, autonomous vehicles, and advanced analytics to streamline their supply chains, minimize production downtime, and achieve higher levels of precision and quality control. The increasing focus on lean manufacturing, just-in-time delivery, and customization further drives the demand for logistics automation solutions in the manufacturing segment.
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The leading region in the overall market was North America because it accounted for 74 % in 2023. This is due to the presence of numerous companies that offer logistics automation solutions as well as more than one logistics solution giants such as UPS, DHL, FedEx Corporation and so on located in North America. Further, the current and increased adoption of current technologies and development of current infrastructure is also supporting the expansion of the target market. The U. S is predicted to continue dominating through the forecast period due to significant development of the e-commerce market in the country.
This market is expected to grow fast within the Asia-Pacific region at a Compound Annual Growth Rate (CAGR) of 12.35%. Energy consumption would also increase at an average annual rate of just 2% between now and 2030. Specifically, it is anticipated that the Asia Pacific region as a whole, alongside particular emphasis to such countries as China and India, would see significant increases in economic growth, particularly in e-commerce. also, several countries included in Asia Pacific region which are the attractive center for logistical activities like Singapore, Indonesia, China, India etc. At the same time technology integration and growing adoption of Industry 4. 0 They are China, India, Japan, and Southeast Asia countries, so it is expected to drive the logistics automation market over the forecast period.
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Logistics Automation Market Drivers
Technological Advancements
E-commerce Boom
Logistics Automation Market Restraints
High Initial Investment
Integration Complexities
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The market for logistics automation is highly saturated due to the presence of numerous companies on the global level, which take turn trying to enhance their position on the market. Some of the recognized market players engage in significant expenditure on research and innovation in the hunt for better practices like automatic storage and retrieval, robotic technology and moving to smarter warehouse plans. Startups and regional players also play their part in the competition by creating solutions catering for niche markets of the developed customer base. Leveraging also implies cooperation and consolidation due to the acquisition of strategic partnerships, mergers, and acquisitions for improving the capabilities of the business as well as the coverage of the international market. The market faces constant advances in technologies and the increasing use of AI an IoT in the technology market, making the market efficient and cost-saving. There is nothing as crucial as having the ability to set economic prices for services that they offer, offer-customized services, and an ability to offer all round services amidst stiff competition.
Logistics Automation Market Top Player’s Company Profile
Logistics Automation Market Recent Developments
In 2024, Sustainability in logistics is no longer just about the environment; in 2024, it's becoming a critical factor for business success. Leading companies are integrating environmental, social, and governance (ESG) considerations into their core strategies, even using partners' sustainability practices as a decision-making factor.
In 2024, Rippey AI tackles paperwork bottlenecks in logistics with their conversational AI and machine learning solution. It streamlines tasks like security filings and shipment building, significantly reducing the time needed to complete them.
In 2023, The rise of autonomous guided vehicles (AGVs) and drones is revolutionizing delivery and transportation, promising faster and more cost-effective services.
In April 2023, TGW Logistics Group made an exciting announcement regarding their offering of innovative visualization dashboards to optimize the performance of intralogistics systems for both new and existing customers. This dashboard enables the combination, analysis, and graphical processing of data from various software sources. From goods-in monitoring to warehouse areas, and even sorters and scanners, the dashboard provides a comprehensive view of the entire system. This advanced solution aims to enhance operational efficiency and streamline processes within the intralogistics environment.
In March 2023, KNAPP AG unveiled its cutting-edge robotics solutions for automation and digitalization at the LogiMAT 2023 trade fair. These robotics solutions are anticipated to drive cost reduction in logistics processes while simultaneously increasing shipping capacity. KNAPP AG has labeled this approach "zero-touch fulfillment," representing a forward-looking and future-proof strategy. By leveraging robotics technology, the company aims to minimize human intervention in logistics operations and achieve greater efficiency and productivity.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global Logistics Automation Market analysis, market is expanding, as more businesses seek effective solutions for a rapid and cost-effective supply chain. Some of the most significant drivers that contribute to this growth include E-commerce, increasing pressure on faster order cycles or quicker TAT, and the incorporation of smart technologies like Artificial intelligence, Robotics, and IoT gadgets. Asia-Pacific region has claimed the biggest market share due to technological development and increasing dominance of e-commerce outlets in the China and India. North America and Europe are also important markets is also experiencing high demand, particularly from the retail, automotive, and manufacturing industries. The raised awareness of ecological issues and resistance to emissions within the field of logistics also stimulates the market’s advancement, as corporations integrate automated solutions to minimize their impact on the environment. Some of them include the implication of serious capital outlay in the initial installation of the systems and the requirement of specialized human resource to maintain the complex systems.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 29.95 billion |
Market size value in 2031 | USD 66.95 billion |
Growth Rate | 9.35% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Logistics Automation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Logistics Automation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Logistics Automation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Logistics Automation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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REQUEST FREE CUSTOMIZATIONLogistics Automation Market size was valued at USD 29.95 billion in 2022 and is poised to grow from USD 32.75 billion in 2023 to USD 66.95 billion by 2031, growing at a CAGR of 9.35% during the forecast period (2024-2031).
The market for logistics automation is highly saturated due to the presence of numerous companies on the global level, which take turn trying to enhance their position on the market. Some of the recognized market players engage in significant expenditure on research and innovation in the hunt for better practices like automatic storage and retrieval, robotic technology and moving to smarter warehouse plans. Startups and regional players also play their part in the competition by creating solutions catering for niche markets of the developed customer base. Leveraging also implies cooperation and consolidation due to the acquisition of strategic partnerships, mergers, and acquisitions for improving the capabilities of the business as well as the coverage of the international market. The market faces constant advances in technologies and the increasing use of AI an IoT in the technology market, making the market efficient and cost-saving. There is nothing as crucial as having the ability to set economic prices for services that they offer, offer-customized services, and an ability to offer all round services amidst stiff competition. 'Dematic Corporation (US) ', 'Honeywell Intelligrated (US)', 'Daifuku (Japan) ', 'Oracle (US) ', 'SAP (Germany) ', 'IBM(US) ', 'SSI Schaefer (Germany) ', 'Knapp (Austria) ', 'Manhattan Associates (US)', 'Swisslog Holding AG (Switzerland) ', 'Blue Yonder (US) ', 'Mantis (US) ', 'Murata Machinery (Japan) ', 'TGW Logistics Group (Austria) ', 'Jungheinrich (Germany) ', 'System Logistics (Italy) ', 'Zebra Technologies (US) ', 'ABB (Switzerland) ', 'BEUMER Group (Germany) ', 'Korber(Germany)'
Global demand for logistics automation is fueled greatly by the increasing trends in technological innovation. Technologies like Artificial Intelligence (AI) with associated applications like the Internet of Things (IoT) and robotics systems are giving new system to the traditional supply chain/logistics operations through minimizing human interference. Machine learning helps in planning efficient transportation routes and a smart delivery plan on one hand, and the internet of things aids in tracking the physical location of the shipment on another. Robotics employed in warehouses deals with sorting operations, packaging, and even transportation of goods, all functions that are bound to fasten. These developments are very effective in the improvement of efficiency of operations as well as effectiveness in the reduction of operation costs making logistics to be efficient as well as cheap. These technologies are coupling up as a necessity for firms that cares to face the rising competition from the global market.
Growth in the usage of self-driving cars: An emerging trend in the global logistics automation market is the willingness to incorporate autonomous vehicles. Automated and connected vehicles like self-driven lorries and delivery drones are being designed and implemented to change the transport and delivery systems. Such vehicles are capable of being operated twenty-four hours a day, seven days a week, thus cutting on costs of employing human labor, and additionally decrease human intervention which lead to decreased operational costs and increased efficiency in the flow of stocks. The availability of L3’s implies that the use of autonomous technology will increase as regulatory measures ease and technology advances. This trend holds apparent potential for development in the logistics industry since it helps to enhance the speed of shipments, increase efficiency, and minimize further expenses.
The leading region in the overall market was North America because it accounted for 74 % in 2023. This is due to the presence of numerous companies that offer logistics automation solutions as well as more than one logistics solution giants such as UPS, DHL, FedEx Corporation and so on located in North America. Further, the current and increased adoption of current technologies and development of current infrastructure is also supporting the expansion of the target market. The U. S is predicted to continue dominating through the forecast period due to significant development of the e-commerce market in the country.
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Report ID: SQMIG45B2063