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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.
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.
Report Attribute | Details |
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Base Year: | 2022 |
Logistics Automation Market Size in 2022: | USD 51.6 Billion |
Forecast Period: | 2023 to 2032 |
Forecast Period 2023 to 2032 CAGR: | 12% |
2032 Value Projection: | USD 158 Billion |
Historical Data for: | 2018 – 2022 |
No. of Pages: | 250 |
Tables, Charts & Figures: | 403 |
Segments covered: | Component, Organization Size, Application, Logistics Type, End-use, and Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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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.
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 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.
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.
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.
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.
Some of the major players operating in the logistics automation industry are
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.
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Market, By Component
Market, By Organization Size
Market, By Application
Market, By Logistics Type
Market, By End-Use
The above information is provided for the following regions and countries: