Logistics Automation Market Size, Share, Growth Analysis, By Solution(Warehouse management systems (WMS), transportation management systems (TMS)), By Equipment(Automated storage and retrieval systems (ASRS), automated guided vehicles (AGVs)), By End user(Retail and e-commerce, manufacturing) - Industry Forecast 2024-2031

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