Logistics Automation Market: Global Industry Analysis and Forecast (2023-2029)

Logistics Automation Market was valued at US$ 55.60 Bn in 2022 and is expected to reach at US$ 115.29 Bn in 2029. Global Logistics Automation Market size is expected to grow at a CAGR of 10.98% through the forecast period.
Logistics Automation Market Overview:
Logistics automation refers to the use of technology like machinery and logistics software to improve the efficiency of logistical processes from procurement to production, inventory management, distribution, customer service, and recovery. On the machinery side, think of automatic guided vehicles, robotic arms, and automated storage & retrieval systems (AS/RS) like carousels and vertical lift modules. And on the logistics software side, many solutions help with sales, WMS, CRM, billing, accounting, tracking, business intelligence, and more. Logistics automation involves the use of technologies that boost warehouse efficiency. Processes that can be automated range from goods receipt and order fulfillment to stock control and order dispatch.

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Logistics automation is the use of digital processes and automation technology to make your business’ logistical functions faster and more efficient which means it gives the logistical processes automatic control via control systems, software, and automated machinery, thus improving time, quality, and efficiency. Logistics automation is usually applied to the back-end logistical functions of your e-commerce company. This majorly includes application to logistics processes undertaken in the warehouse or distribution centers of your e-commerce business. It could save a lot of bucks by minimizing human intervention in these components of your e-commerce value chain.

The report explores the Global Logistics Automation Market segments (By Function, By Organization Size, By Vertical, By Component and Region). Data has been provided by market participants, and regions (North America, Asia Pacific, Europe, Middle East & Africa, and South America). The MMR market report provides a thorough analysis of the rapid advances that are currently taking place across all industry sectors. Facts and figures, illustrations, and presentations are used to provide key data analysis for the historical period from 2017 to 2020. The report investigates the Global Logistics Automation Market drivers, limitations, prospects, and barriers. This MMR report includes investor recommendations based on a thorough examination of the Global Logistics Automation Market contemporary competitive scenario.

2022 is considered as a base year to forecast the market from 2023 to 2029. 2022’s market size is estimated on real numbers and outputs of the key players and major players across the globe. Past five years' trends are considered while forecasting the market through 2027. 2020 is a year of exception and analysis especially with the impact of lockdown by region.

COVID-19 Impact on Global Logistics Automation Market:

The COVID-19 pandemic had adverse effect on the Global Logistics Automation Market due to the government restrictions such as lockdown and social distancing which are imposed during the pandemic. COVID-19 has significantly disrupted the revenue of several industries including infrastructure, retail, manufacturing, automotive, logistics, and others. For instance, according to the International Finance Corporation, the logistics firms involved in the movement, storage, and flow of goods were severely get impacted due to COVID–19. Moreover, many countries such as India, UK have put strict lockdown across the country, which restrains the movement of people as well as goods, across the national and international borders. This negatively impacts the revenue of logistics companies, and in turn hampers the adoption of advanced technologies across the logistics sector.
Logistics Automation Market Dynamics:
One of the significant drivers of the logistics automation market growth is rising adoption of big data in automated logistics technologies. Increasing use of IoT platform in logistics and supply chain management is further boosting the growth of logistics automation market across the globe. Moreover, the growing popularity of Logistics 4.0 in transportation and warehousing drives the growth of the global logistics automation market. The high penetration of robotics in warehouse management fuelling the growth of the global logistics automation market. The robots follow a set of defined pathways, utilizing route marks from labels on the ground which leads to the growth of the Global Logistics Automation Market.

The rising trend towards adopting industry 4.0 and advanced technologies such as IIoT platforms, IoT, AI, etc. for minimizing the labour cost and enhancing productivity and monitoring the supply chain effectively have propelled the logistics automation market growth. Due to the rise in the exponential of the e-commerce sales through online portals worldwide and rise in demand in different industries such as hospitality, pharmaceutical, and food processing industries with increasing urban population, the Global Logistics Automation Market is rising with the highest market share.

Different systems utilize ultrasonic sensors such as those in automotive parking. However, high capital can restrain the growth of the global logistics automation market. The high capital cost requires implementing the automation in the logistics operations which may leads to hamper the global logistics automation market. For instance, also, the robotic automation technology line requires in the logistics high capital cost for several manufacturing industry such as pharmaceutical, food and beverages, packaging, and logistic warehouse. Thus, such a high cost of automation is the entry barrier for the small and medium-sized enterprises. The major restrains which obstructs the growth of the market is the lack of uniform governance standards which makes it difficult for end users to fully automate the supply chain and logistics operations.

The adoption of autonomous vehicles and drones and increasing adoption of industry 4.0 are expected to ravel new growth opportunities in the global logistics automation market during the forecast period. The other new opportunities which lead to the growth of the market is exponential growth in the eCommerce industry and advancements in robotics. The integration of Industry 4.0 with robotics systems has led to efficient warehouse operations and increased coordination among warehouse systems. This, it has helped warehouse operators perform time-critical and high-velocity operations at a low cost. The integration has further allowed companies to handle a wide range of tasks, such as processing customer orders and delivering products on time. Driven by rapid technological advancements and greater affordability, robotics systems are entering the logistics workforce, supporting zero-defect processes, and boosting productivity. Soon, robotics solutions will continue to become faster, more accurate, flexible, and affordable due to swift progress in grip and sensor technologies.

Now-a-days the enterprises are adopting cloud-based logistics automation tools for face security and privacy issues. To avoid data breaches and theft, the enterprises possess confidential data which will also affect the reputation of enterprises on the whole. The enterprises’ data may leak over the internet and can be accessed by unauthorized users, which is a growing concern among enterprises. For instance, the cloud-based transportation management system needs multitenant architecture, wherein a single version of the software runs on a server that is shared by multiple customers. Hence, there is a possibility that subscribers of an enterprise can view the data of competitors. These security issues relating to the data access by unauthorized users will likely threaten the enterprise data security and competitive business position, as well. Hence, these issues relating to security and privacy increase the growing concerns among enterprises. This is the main challenge which is faced by the global logistics automation market.
Logistics Automation Market Segment Analysis:
Based on Function, The transportation management segment is growing with the highest CAGR of xx% during the forecast period. The need to ensure timely delivery of goods and reduce transportation costs is one of the most significant factors estimated to drive the growth of the transportation management segment. The increase in adoption of advanced technologies in the logistics sector leads to the growth of the Global Logistics Automation Market. This provides advantages associated with transportation management system such as TMS, which can help businesses to plan, execute, and optimize the physical movement of goods. In day-to-day operations of transportation operations, trade compliance documentation, and in ensuring timely delivery of products, transportation management system can provide better visibility which can drive the market growth.

Based on component, The hardware-integrated systems segment is expected to hold the highest market share during the forecast period because of the rising demand for robotics and automation technology worldwide for food and beverage companies. The hardware-integrated systems segment include Automated Storage and Retrieval System (ASRS), conveyors and sortation systems, robotic handling systems, Autonomous Mobile Robots (AMRs), and Automated Guided Vehicles (AGVs). As, robots are increasingly being deployed across all segments of the supply chain, and their usage is expected to witness a significant surge in the near future and is expected to drive the market. In 2022, RMGroup’s soft drinks producer Radnor Hills has installed three ABB end-of-line robotic palletizers robotics integrator for operating logistics operations of the company.



Based on Vertical, The automotive segment is estimated to lead the logistics automation market during the forecast period. Rising competition in the automotive industry increased the demand for automated production systems and flexible logistics systems which enhances the manufacturing and supply of vehicles. The automotive sector uses logistics & fleet management solutions to manage, track, and monitor the movement of goods and vehicle fleet.

The retail & e-commerce segment is considered to be the second largest growing market during the forecast period. The adoption of logistics automation solutions has helped online and multichannel retailers track and monitor the movement of light goods vehicles, thereby ensuring the timely delivery of products. The e-commerce segment is also growing with the highest market share due to the increasing trend of electronic fund transfer, internet marketing, online transaction processing, and electronic data interchange. Rapidly changing customer demands, rise in online shopping, increasing demand for shorter delivery times, and fierce competition among online retailing companies have boosted the demand for automated fulfilment centers, which, in turn, has increased the demand for adaptable and dedicated logistics automation solutions in the eCommerce industry.
Regional Insights:
The North America region is expected to witness significant growth at a CAGR of xx% through the forecast period. Numerous companies in North America are adopting logistics automation solutions to improve supply chain operations. The growing demand in the healthcare and pharmaceutical industry, growing food and beverages industry, and rising technology adoption at manufacturing facilities leads to the growth of the logistics automation market in this region. The rising adoption of automation robots by the leading players in the North American region to optimize warehouse and logistics operations has driven the market growth.

The Asia Pacific is anticipated to have the highest growth rate in the global logistics automation market during the forecast period. The reason behind the growth is large-scale industrialization in emerging economies such as India and China. The increasing population in countries, in India and China, and the rising disposable income of individuals make the region an attractive market for retail and eCommerce industries. Global companies are significantly investing in manufacturing, automobile, retail, and healthcare industries in the region. Further, the key factors such as the expansion of the transportation and logistics industry and the increase in trade agreements are driving the growth of the logistics automation market in APAC. Also, the increased shift of APAC enterprises toward leaner and agile supply chains with end-to-end visibility by the adoption of the latest technologies is also one of the biggest drivers of logistics automation adoption in the region.

The objective of the report is to present a comprehensive analysis of the Global Logistics Automation Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Global Logistics Automation Market dynamic, structure by analyzing the market segments and projecting the Global Logistics Automation Market size. Clear representation of competitive analysis of key players by Vehicle type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Logistics Automation Market make the report investor’s guide.
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Logistics Automation Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US$ 55.60 Bn.


Forecast Period 2023 to 2029 CAGR:
10.98%
Market Size in 2029:
US$ 115.29 Bn.


 Segments Covered:
by Function
Warehouse & Storage Management
Transportation Management


by Organization Size
Small & Medium-sized Enterprises (SMEs)
Large Enterprises


by Vertical
Retail & E-commerce
Manufacturing
Oil, Gas & Energy
Pharmaceuticals & Healthcare
Logistics & Transportation
Automotive
Aerospace & Defense
Food & Beverage
Chemicals
Others


by Components
Hardware-integrated Systems
Software
Warehouse Management System (WMS) software
Transportation Management System (TMS) software
Services
Consulting
Implementation
Support and Maintenance



Logistics Automation Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (razil, Argentina Rest of South America)
Key Players:
1. Toshiba Logistics
2. TGW Logistics Group GmbH
3. Wisetech Global
4. System Logistics SPA
5. Falcon Autotech
6. Dematic
7. Daifuku
8. Swisslog
9. Honeywell Intelligrated
10. Murata Machinery
11. Knapp GG
12. Jungheinrich AG
13. SSI Schaefer
14. Mecalux, S.A.
15. Vitronic
16. Beumer Group
17. Hinditron
18. JBT Corporation
19. UlMA Handling System
20. SI system LLC
21. The Apache Software Foundation
22. KNAPP AG
23. Blue Yonder
24. E&K Automation
25. HighJump

Frequently Asked Questions:

1] What segments are covered in the Global Logistics Automation Market report?
Ans. The segments covered in the Global Logistics Automation Market report are based on function, organization size, verticals and components.

2] Which region is expected to hold the highest share in the Global Logistics Automation Market?
Ans. North America region and Asia-Pacific is expected to hold the highest share in the Global Logistics Automation Market.

3] What is the market size of the Global Logistics Automation Market by 2029?
Ans. The market size of the Global Logistics Automation Market by 2029 is expected to reach US$ 115.29 Bn.

4] What is the forecast period for the Global Logistics Automation Market?
Ans. The forecast period for the Global Logistics Automation Market is 2023-2029.

5] What was the market size of the Global Logistics Automation Market in 2022?
Ans. The market size of the Global Logistics Automation Market in 2022 was valued at US$ 55.60 Bn.