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Logistics Automation Market

Logistics Automation Market Size, Share & Industry Analysis, By Component (Hardware, Software, Services), By Function (Warehouse & Storage Management, Transportation Management), By Enterprise Size (Large Enterprises, SMEs), By End-use Industry (E-commerce, Automotive, Food & Beverage, Healthcare, Others), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) - Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Code: AUT00901
Report Format: PDF + PPT + Excel
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Report Description

Market Overview:

The global Logistics Automation Market is projected to grow at a CAGR of 11.5% during the forecast period of 2024-2031. The market value is expected to increase from YY USD in 2024 to YY USD by 2031. Asia-Pacific currently dominates the market, accounting for the largest share of global revenue. Key metrics include increasing adoption of robotics and AI in logistics operations, growing e-commerce sector, and rising demand for efficient supply chain management solutions.

The logistics automation sector is developing fast, driven by the quest for better efficiency, precision, and speed in supply chain activities. The use of current technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) in logistics processes is revolutionizing the sector, allowing enterprises to streamline operations and meet consumers' growing need for faster and more dependable delivery.

 

Logistics Automation Market Dynamics:

Market Trend: Integration of AI and machine learning in logistics operations

The logistics automation industry is seeing a tremendous surge in the integration of artificial intelligence (AI) and machine learning technology into numerous logistical tasks. These modern technologies are being employed to optimize route planning, estimate demand, automate inventory management, and boost overall operational efficiency.

AI-powered systems can evaluate vast amounts of data in real time, allowing logistics companies to make better decisions and respond more quickly to changing market conditions. For example, AI systems can predict supply chain problems and offer alternate routes or providers, reducing delays and costs.

Machine learning models are being used to improve demand forecasting accuracy, allowing firms to optimize inventory levels and reduce waste. Furthermore, AI-powered robotics and autonomous vehicles are fast being deployed in warehouses and distribution centers to boost order fulfillment speed and accuracy.

The integration of these technologies increases operational efficiency while also enabling logistics companies to provide more customized and value-added services to their customers. As AI and machine learning improve, their impact on the logistics automation market is expected to grow significantly in the coming years.

Market Driver: Rapid growth of e-commerce and omnichannel retail

The logistics automation industry is primarily being pushed by the rapid growth of e-commerce and the rise of omnichannel shopping. The global e-commerce industry has experienced unprecedented development, spurred by the COVID-19 epidemic, which has resulted in a rise in online purchase and contactless deliveries.

The rapid growth of e-commerce has put a huge burden on logistics operations to handle an increasing number of orders, manage complex fulfillment processes, and meet customer requests for faster deliveries. Automation technologies have proven crucial in addressing these difficulties, enabling logistics organizations to process orders more efficiently, reduce errors, and improve last-mile delivery.

According to our data study, global e-commerce sales will reach $YY trillion by 2024, growing at a 13.5% CAGR between 2024 and 2031 This rapid expansion is driving investments in logistics automation systems all along the supply chain, from warehouse to transportation management.

Furthermore, the emergence of omnichannel retail strategies, in which businesses combine their online and offline channels, is growing demand for modern logistics automation systems. These solutions allow firms manage inventory across numerous channels, handle sophisticated order fulfillment systems, and give a uniform customer experience.

Market Restraint: High initial investment and implementation costs

Despite increasing demand, the logistics automation business is hampered by the high initial and implementation costs associated with automation technologies. The procurement and installation of advanced robotics, automated storage and retrieval systems (AS/RS), and other automation solutions need a large capital investment, which can be prohibitively expensive for small and medium-sized enterprises.

Furthermore, the adoption of logistics automation typically demands sophisticated interface with existing systems, process reengineering, and staff training, all of which enhance overall costs. According to industry experts, the cost of adopting a fully automated warehouse system ranges from $25 million to $100 million, depending on the operation's size and complexity.

This high barrier to entry may hinder many organizations, particularly those in underdeveloped nations or with low margins, from deploying major automation solutions. Instead, businesses may opt for partial or progressive automation, which limits the full benefits of logistics automation.

 

Segment Overview:

Warehouse & Storage Management dominates the logistics automation market, driven by increasing demand for efficient inventory control and order fulfillment:

Warehouse and Storage Management makes up the largest segment of the logistics automation market, accounting for more than YY% of global sales. This dominance derives from warehouses' crucial role in the supply chain, as well as the significant influence automation may have on warehouse efficiency and productivity.

The increased complexity of inventory management, fuelled by the emergence of e-commerce and omnichannel purchasing, has forced many organizations to automate their warehouses. Automated storage and retrieval systems (AS/RS), robotic picking systems, and automated guided vehicles (AGVs) are frequently utilized to enhance order accuracy, decrease personnel costs, and boost throughput.

Recent industrial developments have strengthened warehouse automation's market position. For example, a prominent e-commerce company recently deployed a new robotic system in its fulfillment facilities that can choose, classify, and handle specific commodities on hand. This approach purportedly enhanced efficiency by 50% over preceding methods.

Furthermore, integrating IoT and AI technology into warehouse management systems enables for predictive maintenance, real-time inventory tracking, and storage space optimisation. These advances are particularly relevant for organizations with a large number of SKUs and high volume operations, such as e-commerce, retail, and fast-moving consumer goods (FMCG).

Warehouse automation is also extensively applied in the pharmaceutical and healthcare industries, which require precise inventory control, temperature-sensitive storage, and regulatory compliance. The COVID-19 pandemic has worsened this trend, highlighting the necessity of efficient and trustworthy storage and distribution of medical supplies and vaccines.

 

Regional Outlook:

Asia-Pacific leads the logistics automation market, driven by rapid e-commerce growth and increasing manufacturing activities.

Asia-Pacific presently maintains the greatest share of the worldwide logistics automation market, accounting for more than 35% of total revenue. The region's supremacy is due in part to rapid expansion in e-commerce, increased manufacturing activity, and major expenditures in logistical infrastructure by nations like as China, Japan, India, and South Korea.

China has been in the forefront in implementing logistics automation technology. The country's large e-commerce business, dominated by behemoths like Alibaba and JD.com, has been a big driver of warehouse automation and last-mile deliveries. According to our current industry forecasts, China's logistics robot market will increase at a CAGR of more than 18.5% between 2024 and 2031, demonstrating a substantial trend towards automation in the logistics business.

Japan, renowned for its technological achievements, has been a pioneer in robotics and automation technology. The country's aging population and labor difficulties have prompted the usage of automation in logistics. FANUC and Kawasaki Heavy Industries are among Japan's top manufacturers of industrial robots for logistics automation.

The government's "Make in India" push, together with the thriving e-commerce sector, is driving India's logistics automation market forward. The country's logistics industry is expanding quickly, with greater investment in automated warehouses and transportation management systems.

Recent technological developments in the region have greatly boosted the usage of logistics automation. For example, a well-known Chinese logistics company recently established a completely automated warehouse that can handle up to one million orders every day. This facility achieves extraordinary productivity by utilizing AI-powered robots and automated sorting technology.

The growing emphasis on Industry 4.0 and smart manufacturing in nations such as South Korea and Singapore is driving up demand for integrated logistics automation systems. These countries are investing heavily in smart ports and warehouses, leveraging technologies like IoT, AI, and 5G to create highly efficient and interconnected logistics ecosystems.

 

Competitive Intelligence:

The logistics automation market is differentiated by the presence of numerous major players fighting for technological innovation, product range, and global reach. Market leaders include Dematic (KION Group), Honeywell Intelligrated, Daifuku, Swisslog (KUKA), and Knapp AG, among others.

Dematic, a KION Group company, commands a sizable market share in the logistics automation sector. The company's strong position originates from its diverse portfolio of automated solutions for warehouses, distribution centers, and industrial facilities. Dematic has focused on expanding its product portfolio through innovation and strategic acquisitions to meet the changing needs of the logistics industry.

Honeywell Intelligrated, a division of Honeywell's Safety and Productivity Solutions, has emerged as a major participant in the logistics automation market. The company offers a wide range of automation solutions, including robots, automated storage and retrieval systems, and sorting systems. Honeywell Intelligrated is at the forefront of developing artificial intelligence and machine learning technology for warehouse automation.

Daifuku, a Japanese material handling system company, has a strong global presence in the logistics automation market. The company's diverse product line includes airport baggage handling systems, conveyor systems, and automated storage and retrieval systems. Daifuku is focused on expanding into new markets and offering unique solutions for e-commerce fulfillment hubs.

Key corporations are bolstering their market positions through product innovation, strategic collaborations, and regional expansion. For example, many businesses are investing in cloud-based logistics automation technology to improve flexibility and scalability. Furthermore, collaborations between automation solution providers and software companies are growing, resulting in more integrated and intelligent logistics systems.

The increasing presence of tech behemoths and startups in the logistics automation business has changed the competitive landscape. Companies like Amazon (Amazon Robotics) and Alibaba (New Retail) are driving innovation and setting new norms in logistics automation.

 

Analyst Opinion:

The logistics automation market is expected to grow substantially in the next few years due to the rising demand for efficiency, precision, and speed in supply chain activities. The expansion of e-commerce, the adoption of Industry 4.0 technologies, and the further digital transformation of the logistics industry all have a substantial impact on the market's growth trajectory.

One of the most appealing industry trends is the convergence of several technologies, including artificial intelligence, the Internet of Things, robotics, and cloud computing, to create more intelligent and adaptable logistics systems. This connection allows for predictive analytics, real-time optimisation, and automated decision-making in logistics operations, resulting in exceptional efficiency and responsiveness.

The market is also trending towards more adaptable and scalable automation solutions. As organizations face greater uncertainty in demand and supply, there is a growing desire for automation systems that can respond quickly to changing requirements. This trend accelerates the development of modular automation solutions and the acceptance of software-defined automation platforms.

However, the sector faces hurdles such as high initial investment prices and the difficulty of integrating automation technology into existing infrastructures. To address this, market players are expected to focus on developing more cost-effective solutions and providing "automation-as-a-service" models, making these technologies more accessible to a broader range of organizations, including SMEs.

Moving forward, sustainability is projected to be a major focus in logistics automation. As organizations face more pressure to decrease their environmental effect, automated solutions that improve routes, conserve energy, and reduce waste are projected to become more popular.

The ongoing development of autonomous vehicles and drones for last-mile delivery is another area that could have a large impact on the logistics automation market in the future years. While these technologies are still in the early phases of development, they have the potential to change logistical operations, particularly in urban areas.

 

Major Players:

  • Dematic (KION Group)

  • Honeywell Intelligrated

  • Daifuku

  • Swisslog (KUKA)

  • Knapp AG

  • Murata Machinery

  • TGW Logistics Group

  • Material Handling Systems (MHS)

  • Toyota Industries Corporation

  • SSI Schaefer

Key Developments:

  • July 2023: Honeywell Intelligrated launches a new AI-powered robotic picking system aimed at improving order fulfilment speed and accuracy in e-commerce facilities.

  • In May 2023, Dematic announced a strategic collaboration with a leading cloud computing provider to create a new generation of cloud-based warehouse management systems with advanced analytics capabilities.

Table of Content

1. INTRODUCTION

   1.1. Market Definitions & Study Assumptions

   1.2. Market Research Scope & Segment

   1.3. Research Methodology

 

2. EXECUTIVE SUMMARY

   2.1. Market Overview & Insights

   2.2. Segment Outlook

   2.3. Region Outlook

 

3. COMPETITIVE INTELLIGENCE

   3.1. Companies Financial Position

   3.2. Company Benchmarking -- Key Players

   3.3. Market Share Analysis -- Key Companies

   3.4. Recent Companies Key Activities

   3.5. Pricing Analysis

   3.6. SWOT Analysis

 

4. COMPANY PROFILES (Key Companies list by Country) (Premium)

 

5. COMPANY PROFILES

   5.1. Dematic (KION Group)

   5.2. Honeywell Intelligrated

   5.3. Daifuku

   5.4. Swisslog (KUKA)

   5.5. Knapp AG

   5.6. Murata Machinery

   5.7. TGW Logistics Group

   5.8. Material Handling Systems (MHS)

   5.9. Toyota Industries Corporation

   5.10. SSI Schaefer (*LIST NOT EXHAUSTIVE)

 

6. MARKET DYNAMICS

   6.1. Market Trends

      6.1.1. Integration of AI and machine learning in logistics operations

      6.1.2. Adoption of cloud-based logistics automation platforms

      6.1.3. Increasing use of robotics in warehouse operations

   6.2. Market Drivers

      6.2.1. Rapid growth of e-commerce and omnichannel retail

      6.2.2. Need for improving operational efficiency and reducing labor costs

      6.2.3. Advancements in IoT and Industry 4.0 technologies

   6.3. Market Restraints

      6.3.1. High initial investment and implementation costs

      6.3.2. Complexity of integrating automation with existing systems

   6.4. Market Opportunities

   6.5. Porter's Five Forces Analysis

      6.5.1. Threat of New Entrants

      6.5.2. Bargaining Power of Buyers/Consumers

      6.5.3. Bargaining Power of Suppliers

      6.5.4. Threat of Substitute Products

      6.5.5. Intensity of Competitive Rivalry

   6.6. Supply Chain Analysis

   6.7. Value Chain Analysis

   6.8. Trade Analysis

   6.9. Pricing Analysis

   6.10. Regulatory Analysis

   6.11. Patent Analysis

   6.12. SWOT Analysis

   6.13. PESTLE Analysis

 

7. BY COMPONENT (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)

   7.1. Hardware

      7.1.1. Automated Storage & Retrieval Systems (AS/RS)

      7.1.2. Automated Guided Vehicles (AGVs)

      7.1.3. Robots

      7.1.4. Conveyor Systems

      7.1.5. Automated Sorting Systems

   7.2. Software

      7.2.1. Warehouse Management Systems (WMS)

      7.2.2. Transportation Management Systems (TMS)

      7.2.3. Inventory Management Systems

   7.3. Services

      7.3.1. Consulting

      7.3.2. Implementation & Integration

      7.3.3. Maintenance & Support

 

8. BY FUNCTION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)

   8.1. Warehouse & Storage Management

   8.2. Transportation Management

 

9. BY ENTERPRISE SIZE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)

   9.1. Large Enterprises

   9.2. SMEs

 

10. BY END-USE INDUSTRY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)

    10.1. E-commerce

    10.2. Automotive

    10.3. Food & Beverage

    10.4. Healthcare

    10.5. Others

 

11. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)

    11.1. North America

        11.1.1. United States

        11.1.2. Canada

        11.1.3. Mexico

    11.2. South America

        11.2.1. Brazil

        11.2.2. Argentina

        11.2.3. Rest of South America

    11.3. Europe

        11.3.1. Germany

        11.3.2. United Kingdom

        11.3.3. France

        11.3.4. Italy

        11.3.5. Spain

        11.3.6. Russia

        11.3.7. Rest of Europe

    11.4. Asia-Pacific

        11.4.1. China

        11.4.2. Japan

        11.4.3. India

        11.4.4. Australia

        11.4.5. South Korea

        11.4.6. Rest of Asia-Pacific

    11.5. Middle-East

        11.5.1. UAE

        11.5.2. Saudi Arabia

        11.5.3. Turkey

        11.5.4. Rest of Middle East

    11.6. Africa

        11.6.1. South Africa

        11.6.2. Egypt

        11.6.3. Rest of Africa

 

*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)

Scope of the Report

Logistics Automation Market Segmentation:

By Component:

  • Hardware

    • Automated Storage & Retrieval Systems (AS/RS)

    • Automated Guided Vehicles (AGVs)

    • Robots

    • Conveyor Systems

    • Automated Sorting Systems

  • Software

    • Warehouse Management Systems (WMS)

    • Transportation Management Systems (TMS)

    • Inventory Management Systems

  • Services

    • Consulting

    • Implementation & Integration

    • Maintenance & Support

By Function:

  • Warehouse & Storage Management

  • Transportation Management

By Enterprise Size:

  • Large Enterprises

  • SMEs

By End-use Industry:

  • E-commerce

  • Automotive

  • Food & Beverage

  • Healthcare

  • Others

By Region:

  • North America

  • Europe

  • Asia-Pacific

  • Latin America

  • Middle East & Africa

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