Logistics Automation Market by Offering (Hardware, Software, Services), Type (Inbound, Outbound), Automation Mode, Application (Inventory Management, Others), End User (Retail & E-commerce, Automotive, Others) & Geography - Global Forecast to 2031

Logistics Automation Market Size & Forecast

The Logistics Automation Market is projected to reach $65.14 billion by 2031, at a CAGR of 10% from 2024 to 2031. The growth of the logistics automation market is driven by the rapid growth in e-commerce and the increasing incorporation of robots in logistics. However, high capital investment requirements and the lack of standardization in the logistics sector restrain the growth of this market.

Rapid Growth in E-commerce is Expected to Drive Logistics Automation Market

In recent years, there has been a rapid growth in e-commerce due to increased internet and smartphone penetration. According to the latest U.S. Census Bureau Report, in the U.S., retail e-commerce sales for the 4^th quarter of 2023 totaled USD 324.8 billion, an increase of 19.5% compared to the previous quarter. In addition, e-commerce sales in the U.S. accounted for 15.4% and 14.7% of total retail sales in 2023 and 2022, respectively. E-commerce giants are heavily investing in boosting business performance and sales. For instance, in June 2023, Amazon’s CEO announced the company’s commitment to investing USD 26 billion in India by 2030, of which USD 11 billion has already been invested to date to boost its e-commerce business. In India, Amazon primarily competes with Walmart, Flipkart, and Reliance Retail.

Increasing e-commerce is driving the demand for advanced logistics automation solutions that can handle high order volumes, ensure speedy order fulfillment, optimize warehouse operations, streamline last-mile delivery, and enhance the overall customer experience. With consumers’ increasing preference for online shopping due to the convenience and accessibility offered, logistics companies are facing challenges in efficiently handling and delivering the growing number of orders. Hence, various e-commerce service providers are adopting automated solutions to streamline e-commerce order fulfillment operations. For instance, in February 2024, Darwynn (Canada), an e-commerce fulfillment specialist, implemented Shuttle ASRS technology, comprising a multi-level shuttle system of 24 carts, 10,368 storage locations, and six goods lifts, provided by HWArobotics (Singapore).

The increasing deployment of automated ASRS and order-picking systems in e-commerce facilities for enabling quick deliveries to meet customer expectations is also driving the growth of the logistics automation market.

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Key Findings in the Logistics Automation Market Study:

In 2024, the Hardware Segment is Expected to Dominate the Logistics Automation Market

Based on offering, the global logistics automation market is broadly segmented into hardware, software, and services. In 2024, the hardware segment is expected to account for the largest share of the global logistics automation market. The large market share of this segment is attributed to strong growth in e-commerce, changes in consumer behavior, increasing investments in logistics facilities for optimized process efficiency, and the increasing use of robots across supply chains.

The growing complexity of warehousing and the demand for agile and efficient operations are encouraging companies to invest in automating warehouse facilities, which is also contributing to the large market share of this segment. For instance, in February 2022, Prozo Distribution Private Limited (Prozo) (India), one of India’s fastest-growing ‘full-stack’ supply chain companies, deployed a mini-load Automated Storage & Retrieval System (mini-load ASRS). The ASRS was deployed at a warehouse in Hoskote, Karnataka, in partnership with Craftsman Automation Limited (India).

The Outbound Logistics Segment is Expected to Register Highest CAGR

The growth of this segment is attributed to the increasing focus of key players on developing automated solutions for optimizing packaging and the growing need to optimize order fulfillment, delivery, and shipment processes to increase the effectiveness of outbound logistics operations.

The Inventory Management Segment is Expected to Register Highest CAGR

The growth of this segment is attributed to the growing use of automated storage & retrieval systems for inventory storage and the increasing adoption of RFID and barcodes for tracking inventory levels across fulfillment centers and warehouses.

The Automotive Segment is Expected to Register Highest CAGR

The growth of this segment is attributed to the adoption of intralogistics equipment and automation technologies by automotive players, the growing focus on the efficient tracking of automotive parts across the automotive industry supply chain, and increased activity in the automotive sector due to the rising adoption of electric vehicles.

Asia-Pacific: Largest Regional Market

Based on geography, the logistics automation market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of the global logistics automation market. Asia-Pacific’s significant market share can be attributed to rapid urbanization and industrialization, increasing fast delivery expectations of customers, and the increasing adoption of logistic automation systems to enhance the efficiency of fulfillment and distribution centers.

Several companies in this region are installing automated storage systems to optimize the use of space and reduce unnecessary rental costs. For instance, in August 2021, Neoperl Group AG (Switzerland), an international company with global production and sales locations, implemented Swisslog Holding AG (Switzerland) AutoStore automated solution at their site in China. The modular design, high-density storage, and flexible robotic systems are the main factors that have attracted Neoperl operations in China.

Logistics Automation Market: Key Companies

Some of the key players operating in the logistics automation market are Dematic (U.S.), Daifuku Co., Ltd. (Japan), Honeywell International Inc. (U.S.), and Vanderlande Industries B.V. (Netherlands), KNAPP AG (Austria), SSI SCHAEFER Group (Germany), BEUMER Group GmbH & Co. KG (Germany), Konecranes Plc (Finland), FORTNA Inc. (U.S.), Oracle Corporation (U.S.), SAP SE (Germany), TGW Logistics Group GmbH (Austria), Swisslog Holding AG (Switzerland), Slip Robotics (U.S.), and Locus Robotics (U.S.).

Logistics Automation Market Report Summary:

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