Logistics Automation Market Size By Component (Hardware, Solution, Service), By Organization Size (Large Enterprises, SMEs), By Application (Manufacturing, Healthcare, Retail & E-commerce, Automotive) & Global Forecast, 2023 – 2032

Logistics Automation Market size valued at USD 30 billion in 2022 and is expected to grow at a CAGR of 10% from 2023 to 2032, driven by the growing e-commerce segment. E-commerce has transformed the way consumers shop, leading to an increase in online purchases and surge in the demand for fast & reliable delivery of goods. This demand has put pressure on logistics companies to improve their operations, increasing the adoption of automation technologies.
 

E-commerce companies face several challenges including the need to handle high volumes of orders and inventory effectively. This requires advanced inventory management, which can be achieved through the use of Warehouse Management Systems (WMS). WMS can optimize inventory storage & retrieval, reducing the time and costs associated with managing inventory manually.
 

The adoption of automation technologies also enables logistics companies to reduce costs by reducing labor expenses and increasing operational efficiency. This cost reduction is critical for e-commerce companies operating on thin margins. Moreover, the e-commerce growth is supporting the logistics automation market by increasing the demand for fast & reliable deliveries, optimizing order fulfillment processes, and reducing costs through automation.
 

The growing adoption of robots in logistics operations is one of the key drivers of the logistics automation market growth. Robots, including Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs), are being increasingly used in warehouses and distribution centers to handle repetitive & labor-intensive tasks such as order picking, packing, and product transportation. The use of robots in logistics operations offers several benefits including increased efficiency, accuracy, and safety. Robots can work continuously without breaks or fatigue, reducing the time and costs associated with human labor. They can also operate in environments, such as cold storage facilities or hazardous material handling areas, that may be unsafe or difficult for humans. The integration of robots with other technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), is further enhancing the capabilities of logistics automation systems. AI and ML enable robots to analyze data and make decisions in real-time, enhancing inventory management, improving route optimization, and enabling faster & more accurate order processing.
 

The high initial investment is hampering the logistics automation market demand. The cost of acquiring & implementing automation technologies can be a significant barrier to many logistics companies, especially smaller ones with limited financial resources. The initial investment required to implement automation technologies can be substantial as it includes the cost of hardware & software systems as well as the cost of installation, training, and maintenance. For example, implementing an automated warehouse system that includes conveyor systems, robotic arms, and warehouse management software can cost several million dollars. This can lead to a situation where companies are unable to invest in automation technologies and are therefore at a competitive disadvantage compared to other companies that have adopted these technologies.
 

Improved efficiency and workforce safety are two primary advantages that are creating opportunities for the logistics automation market. By improving workforce safety, automation technologies can help logistics companies to comply with health & safety regulations, reduce absenteeism due to injuries, and improve employee morale & job satisfaction. By enhancing efficiency, automation technologies can help logistics companies to handle higher volumes of orders with the same or fewer resources, increasing productivity and reducing costs.
 

This enables companies to remain competitive and meet customer demand for fast & reliable delivery. As logistics companies continue to face pressure to improve their operations and maintain their competitive edge, the adoption of automation technologies is expected to increase, creating new opportunities for companies that offer these technologies.
 

Another main factor spurring market growth in the hardware segment is the need for faster, more efficient, and more accurate handling of goods in logistics operations. Automation technologies, such as conveyor systems, AS/RS, and AGVs, can improve the speed & accuracy of material handling, reducing the time and costs associated with manual labor. This can help logistics companies to handle higher volumes of orders with the same or fewer resources, thereby increasing productivity and reducing costs.
 

The logistics automation market from hardware segment to show tremendous growth till 2032, led by the rising adoption of cloud-based Warehouse Management Systems (WMS) and other software solutions that require hardware components such as sensors and scanners. These technologies can be used to track & manage inventory in real-time, providing logistics companies with better visibility and control over their operations. Overall, the hardware segment is anticipated to grow due to the surging demand for automation technologies that can improve the speed, accuracy, and efficiency of logistics operations.
 

The automotive segment will witness outstanding growth through 2032, due to the increasing adoption of automation technologies in the automotive industry. The automotive industry involves complex and highly repetitive logistics operations including material handling, inventory management, and order processing. Automation technologies can optimize these operations, increasing efficiency, reducing costs, and improving overall performance. The increasing use of robotics technologies in automotive manufacturing is propelling the industry growth. Robotics technologies, such as robotic arms and AGVs can be used to automate tasks including welding, painting, and assembly, thereby reducing the need for manual labor and improving the overall efficiency.
 

The North America logistics automation market will gain remarkable momentum during the forecast timeline, attributed to the increasing demand for e-commerce. The e-commerce market in North America is growing rapidly, and logistics companies are under pressure to deliver goods faster and more reliably. Automation technologies, such as robotic arms and drones, can be used to automate tasks such as picking, packing, and shipping, reducing the time and costs associated with manual labor and improving the overall efficiency.
 

The increasing adoption of cloud-based Warehouse Management Systems (WMS) and other software solutions with hardware components, such as sensors and scanners, is supporting the logistics automation market revenue in North America. These technologies can track & manage inventory in real-time, improving the visibility & control of operations for logistics companies.
 

Major players involved in the logistics automation market are ABB Ltd., Beumer, Daifuku Co. Ltd., Dematic (Kion Group AG), Honeywell International Inc., Jungheinrich AG, Kardex Group, Mecalux S.A., Oracle Corporation, IBM Corporation, SAP SE, SSI Schaefer Group, TGW Logistics Group GmbH, Kion Group AG, Symbotic, Locus Robotics, GreyOrange, Eyesee, Falcon Autotech, Logistically, Manhattan Association, Blue Yonder, Vanderlande, and Logiwa.
 

These companies are focused on enhancing logistics automation services around the globe. In October 2022, Vanderlande unveiled Auto Induct, a new robot picking solution developed in partnership with AWL, a machine builder and robotics specialist, at the Parcel+Post Expo 2022 in Frankfurt, Germany. The solution facilitates the automated selection of small items from a high volume of parcels.
 

This logistics automation market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD from 2018 to 2032 for the following segments:

Market, By Component

• Hardware:
  • Automated Storage & Retrieval Systems (AS/RS)
  • Mobile robots
  • Conveyor systems
  • Others
• Solution
• Services

Market, By Organization Size

• SMEs
• Larger Enterprise

Market, By End Use

• Manufacturing
• Healthcare
• Retail & E-commerce
• Automotive
• Others

The above information has been provided for the following regions and countries:

• North America:
  • U.S.
  • Canada
• Europe:
  • UK
  • Germany
  • France
  • Spain
• Asia Pacific:
  • China
  • India
  • Japan
  • South Korea
• Latin America:
  • Brazil
  • Mexico
• MEA:
  • Saudi Arabia
  • UAE
  • South Africa

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