USD 59.54 billion
Report ID: SQMIG45B2063 | Region: Global | Published Date: February, 2024 | Pages: 157 | Tables: 92 | Figures: 76
Global Logistics Automation Market size was valued at USD 59.54 billion in 2022 and is poised to grow from USD 67.40 billion in 2023 to USD 181.73 billion by 2031, growing at a CAGR of 13.2% during the forecast period (2024-2031).
The Global Logistics Automation Market is a rapidly growing sector that utilizes machinery, control systems, and software to enhance operational efficiency in warehouses and distribution centers. With minimal human intervention, automation in logistics brings numerous benefits such as improved customer service, scalability, organizational control, and reduced errors. Driven by the booming e-commerce industry and the need for efficient warehousing and inventory management worldwide, the market is experiencing significant growth. For instance, U.S. retail e-commerce sales in the second quarter of 2022 reached USD 257.3 billion, indicating a 2.7% increase from the previous quarter. Additionally, the Indian e-commerce market is projected to surge from USD 38.5 billion in 2017 to USD 200 billion by 2026, offering substantial opportunities for automation solutions. Although the potential advantages of warehouse automation are well known, the current adoption rate remains relatively low. Approximately 80% of warehouses still operate without supporting automation, presenting a vast untapped market. However, warehouses employing equipment like sorters, conveyors, and pick and place solutions make up 15% of the total, and fully automated warehouses represent just 5%.
The rise of robotics is also reshaping the manufacturing landscape. By 2025, it is estimated that 45% of all manufacturing will be performed by robotic technology. Large firms like Raymond Limited and Foxconn Technology have already begun incorporating automation into their factories, replacing thousands of workers. This trend has directly contributed to the increased adoption of warehouse robotics. While upfront costs and return on investment have historically hindered widespread adoption, the COVID-19 pandemic has acted as a catalyst for change. Warehouse operators are now more inclined to expedite their automation plans to create safer workplaces, reduce worker interactions, and meet the growing demands of e-commerce. This shift in mindset is poised to drive further market growth.
US Logistics Automation Market is poised to grow at sustainable CAGR for the next forecast year
Global Market Size
USD 59.54 billion
Warehouse management systems (WMS)
Warehouse management systems (WMS)
To get more reports on the above market click here to Buy The Report
Global Logistics Automation Market is segmented on the basis of solution, equipment, end user, and region. By solution, the market is segmented into warehouse management systems (WMS), transportation management systems (TMS), and logistics control systems (LCS). By equipment, the market is segmented into automated storage and retrieval systems (ASRS), automated guided vehicles (AGVs), robotic systems, and conveyor systems. By end user, the market is segmented into retail and e-commerce, manufacturing, healthcare, and automotive. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Logistics Automation Market Analysis By Solution
Warehouse management systems (WMS) dominated the global market. Warehouse management systems (WMS) play a pivotal role in optimizing and streamlining warehouse operations, making them the backbone of efficient supply chain management. With the rise of e-commerce and the increasing need for seamless inventory management and order fulfillment, the demand for WMS solutions has witnessed substantial growth. The WMS segment is the largest in the logistics automation market due to its ability to enhance inventory visibility, improve order accuracy, and maximize operational efficiency. By leveraging advanced technologies such as barcode scanning, real-time tracking, and automated inventory control, WMS solutions enable businesses to optimize their warehouse operations, reduce costs, and meet customer demands more effectively. Furthermore, the implementation of WMS systems leads to increased productivity and reduced manual errors, allowing organizations to achieve higher throughput and better inventory accuracy. This translates into improved customer satisfaction, faster order processing, and streamlined supply chain operations.
The fastest-growing segment in the logistics automation market is transportation management systems (TMS). TMS solutions are gaining momentum as companies strive to optimize their transportation networks and enhance overall logistics efficiency. TMS platforms provide functionalities such as route planning, load optimization, carrier selection, freight audit, and real-time shipment tracking. The increasing complexity of global supply chains, along with the need for cost-effective and sustainable transportation solutions, has fueled the demand for TMS systems. These solutions enable businesses to optimize transportation routes, reduce fuel consumption, minimize empty miles, and ensure on-time deliveries. Moreover, TMS solutions integrate with other systems such as WMS and LCS, creating a comprehensive logistics automation ecosystem. This integration facilitates seamless data exchange and enables organizations to make informed decisions based on real-time insights, leading to improved operational agility and cost savings.
Logistics Automation Market Analysis By End User
Among these segments, the largest contributor to the market growth is the retail and e-commerce sector, 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.
The manufacturing industry is the fastest-growing segment. 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.
To get detailed analysis on other segments, Request For Sample Report
North America dominated the global market, primarily driven by the United States. The region boasts a strong infrastructure and a mature logistics industry, making it a hub for advanced automation solutions. With the increasing adoption of technologies such as robotics, artificial intelligence, and warehouse management systems, North America holds a substantial market share. For example, leading companies like Amazon and FedEx have been at the forefront of implementing automation technologies in their warehouses and distribution centers, resulting in improved productivity and faster order fulfillment.
In terms of the fastest-growing region, Asia Pacific takes the spotlight. This region is witnessing exponential growth due to the surge in e-commerce activities, rapid industrialization, and the need for efficient supply chain management. Countries like China, Japan, and India are leading the charge by investing heavily in logistics automation to meet the growing demand and optimize their operations. Market players such as JD.com and Alibaba Group have successfully deployed automated systems, including robotic fulfillment centers and smart logistics networks, to handle massive order volumes and ensure timely deliveries. With a rising market share and continuous technological advancements, Asia Pacific presents lucrative opportunities for both local and global players in the logistics automation market.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Logistics Automation Market Drivers
Increasing Demand for E-commerce
Logistics Automation Market Restraints
High Initial Investment
Speak to one of our ABIRAW analyst for your custom requirements before the purchase of this report
Global Logistics Automation Market is highly competitive, with several key players striving for market dominance. These companies invest in research and development to enhance their product offerings and stay ahead of the competition. Some prominent players in the market offer a wide range of solutions and services, including warehouse automation, material handling systems, robotics, software solutions, and conveyor systems. To gain a competitive edge, these players often engage in strategic partnerships, mergers and acquisitions, and technological advancements to expand their market presence and cater to the increasing demand for automated logistics solutions. Additionally, companies focus on providing customized solutions and excellent customer service to meet the specific requirements of their clients. The competitive landscape of the global logistics automation market fosters innovation and drives continuous improvement in order to deliver efficient, cost-effective, and streamlined logistics operations for businesses across various industries.
Logistics Automation Market Top Player’s Company Profile
Logistics Automation Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Solutions team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our Global Logistics Automation Market analysis, the market is experiencing robust growth and is poised for significant expansion in the coming years. The market analysis reveals a strong demand for automation solutions in the logistics industry, driven by the need for efficient and streamlined operations, cost reduction, and enhanced supply chain management. Factors such as increasing trade volumes, globalization of supply chains, and the adoption of advanced technologies like artificial intelligence, robotics, and IoT are fueling the market growth. Additionally, the rising focus on warehouse optimization, inventory management, and last-mile delivery efficiency is propelling the adoption of automation solutions across various sectors including e-commerce, retail, manufacturing, and healthcare. The market research indicates that North America is currently leading in terms of market share, but significant opportunities are emerging in developing regions such as Asia-Pacific and Latin America. Overall, the logistics automation market presents immense potential for companies to improve operational efficiency, meet customer expectations, and gain a competitive edge in the rapidly evolving global logistics landscape.
|Market size value in 2022
|USD 59.54 billion
|Market size value in 2031
|USD 181.73 billion
|Forecast Unit (Value)
|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)
Free report customization with purchase. Customization includes:-
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Parent Market Analysis
KEY MARKET INSIGHTS
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Global 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 Global 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.
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Logistics Automation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global 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.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Want to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
"We have purchased recently a report from SkyQuest Technology, and we are happy to inform you that this report was so useful and practical for our team. Skyquest Team was very active and our queries were followed up completely.It was amazing. "
- Mr. Ali Zali, Commercial Director, ICIIC Iran.