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Logistics Automation Market Size - By Component (Hardware, Software, Services), By Organization Size (Large Enterprises, SMEs), By Application (Warehouse and Storage Management, Transportation Management), Logistics Type, End-use & Forecast, 2023 - 2032

  • Report ID: GMI5584
  • Published Date: May 2023
  • Report Format: PDF

Logistics Automation Market Size

Logistics Automation Market size surpassed USD 50 billion in 2022 and is anticipated to grow at 12% CAGR from 2023 to 2032. E-commerce platforms are becoming increasingly popular around the world with the rise in smartphone sales and wide availability of high-speed internet connections.

Logistics Automation Market

This increase in investments can be attributed to the growing demand for efficient warehousing and inventory management as well as lower labor costs, which are driving business development. Furthermore, market leaders are introducing warehouse robots to eliminate the need for manual involvement in various activities, such as warehousing and material handling, by automating laborious & dangerous tasks and ensuring worker safety.

The high capital investments in technologies such as machines, robots, artificial intelligence, and other similar technologies is expected to restrain logistics automation market growth in coming year. Such large capital investments are making it difficult for small-scale warehouse owners to integrate automation into their logistics operations, limiting industry statistics.

COVID-19 Impacts

Many restrictions have been imposed by governments around the world as a result of the COVID-19 pandemic, resulted in changed workforce patterns. Shortage of labor shifted organization’s focus towards robots and software to streamline work. Rise in sales on online shopping platform increased demand for logistics automation component significantly in retail and e-commerce industry. The deployment of automation in logistics is expected to be continued with healthy growth in post-covid era.

Logistics Automation Market Trends

Logistics automation is in high demand to improve logistics and supply chain functions. The increased use of automation has led to an improvement in the quality of these services. Online sales have increased significantly, leading to high investments in the development of warehouses. In these warehouses, robotics is increasingly being used. The availability of various warehouse management software has also contributed to logistics automation market development. These businesses use collaborative robots on a large scale to automate various tasks.

Logistics Automation Market Analysis

The retail & e-commerce segment held a market revenue of over 10 billion in 2022 and will depict 12% growth during 2023-2032. The adoption of logistics automation solutions has aided online and multichannel retailers in tracking & monitoring the movement of light goods vehicles, ensuring product delivery on time. Due to the increasing trend of electronic fund transfer, internet marketing, online transaction processing, and electronic data interchange, the e-commerce segment is expected to grow with the highest industry share.

Rapidly changing customer demands, an increase in online shopping, an increase in the demand for shorter delivery times, and fierce competition among online retailing companies have increased the demand for automated fulfillment centers, which has increased the demand for adaptable & dedicated logistics automation solutions in the e-commerce industry.

Logistics Automation Market Size, By End-use, 2021 – 2032, (USD Billion)

The hardware segment crossed valuation USD 25 billion of logistics automation market in 2022. The system will be used more frequently in the automation of retrieval and storage systems. The maximum use of hardware in the form of sortation systems and conveyors will also lead to market growth. The hardware segment is expected to grow rapidly due to the increased use of robots in warehouse management, which will also aid market expansion. Robots increases the speed and accuracy along with decreasing need for manpower.

Logistics Automation Market Share, by Component, 2022

The sales logistics sector held 45% of the industry share in 2022 and is expected to grow at a lucrative pace by 2032. The most critical aspect of the supply chain is sales logistics, which involves moving or delivering goods to end consumers. Automation solutions, such as autonomous mobile robots and automated storage & retrieval systems, increase efficiency and reduce the delivery turnaround time; hence, are becoming popular in sales logistics operations.

North America logistics automation market dominated 35% of the global share in 2022. Many North American businesses are implementing logistics automation solutions to improve their supply chain operations. Growing logistics automation demand in the healthcare and pharmaceutical industries, growing food & beverage industry and rising technology adoption in manufacturing facilities is propelling the industry outlook in this region. The increasing adoption of automation robots by leading players in the region to optimize warehouse and logistics operations is driving market expansion.

U.S. Logistics Automation Market Size, 2020 – 2032, (USD Billion)

Logistics Automation Market Share 

Some of the major players operating in the logistics automation industry are

  • Dematic
  • Honeywell International
  • Daifuku
  • IBM
  • SAP
  • Oracle
  • Knapp AG

These players focus on strategic partnerships and new component launches & commercialization for business expansion. Furthermore, these players are heavily investing in research, allowing them to introduce innovative components and garner maximum revenue in the market.

Logistics Automation Industry News:

  • In April 2023, TGW Logistics Group launched innovative visualization dashboards for optimizing intralogistics system performance for new and existing customers. Data from many different software sources can be combined, analyzed, and graphically processed with the help of this dashboard.
  • In March 2023, KNAPP AG demonstrated innovative robotics for automation and digitalization at the LogiMAT 2023 Trade Show. Its robot solutions are expected to lower logistics costs while increasing shipping capacity. This new, future-proof approach is dubbed "zero-touch fulfillment" by the company.

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

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Market, By Component

  • Hardware
  • Software
    • Warehouse Management System (WMS) software
    • Transportation Management System (TMS) software
  • Services

Market, By Organization Size

  • Large Enterprises
  • SMEs

Market, By Application

  • Warehouse and Storage Management
  • Transportation Management

Market, By Logistics Type

  • Sales Logistics
  • Product Logistics
  • Recovery Logistics
  • Procurement Logistics

Market, By End-Use

  • Manufacturing
  • Healthcare and Pharmaceutical
  • Fast-Moving Consumer Goods
  • Retail and E-commerce
  • Automotive
  • Others

The above information is provided for the following regions and countries:

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


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of logistics automation crossed valuation of USD 50 billion in 2022 and will witness 12% CAGR from 2023 to 2032 due to the rising popularity of e-commerce platforms globally.

Logistics automation market share from the retail & e-commerce segment may observe 12% growth rate till 2032 owing to the increasing need for tracking & monitoring the movement of light goods vehicles and ensuring product delivery on time.

North America logistics automation industry held 35% of the global share in 2022 owing to the fast-growing healthcare and pharmaceutical sectors in the region.

Dematic, Honeywell International, Daifuku, IBM, SAP, Oracle, and Knapp AG are some of the prominent logistics automation industry players

Logistics Automation Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 403
  • Countries covered: 17
  • Pages: 250
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