Global Logistics Automation Market – Industry Trends and Forecast to 2031

Logistics Automation Market Analysis and Size

Warehouse management involves the systematic control and optimization of warehouse operations to efficiently handle goods and materials in logistics automation market. It encompasses processes such as receiving, storing, picking, packing, and shipping. The application of warehouse automation solutions utilizes technologies such as robotics, artificial intelligence, and data analytics to streamline these processes, enhance inventory accuracy, minimize errors, and improve overall efficiency. Automation enables tasks such as inventory tracking, order fulfillment, and replenishment to be performed with greater speed, precision, and cost-effectiveness, thereby driving productivity and enhancing customer satisfaction in the logistics industry.

For instance,

In 2023, Jungheinrich's expansion into the U.S. warehousing and automation market through the acquisition of Storage Solutions group underscores the significance of logistics automation in warehouse management. Integrating Storage Solutions' expertise in racking and automation solutions with Jungheinrich's capabilities, the company aims to enhance warehouse operations' efficiency and productivity. This strategic move aligns with the trend of leveraging technology to optimize processes such as inventory management and order fulfillment, thus exemplifying the growing application of logistics automation in warehouse management.

Global logistics automation market size was valued at USD 32.70 billion in 2023 and is projected to reach USD 77.61 billion by 2031, with a CAGR of 11.41% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Logistics Automation Market Scope and Segmentation      

Market Definition

Logistics automation is the application of technology-driven solutions to streamline and optimize various processes within the supply chain. It encompasses the automation of tasks such as inventory management, order processing, transportation scheduling, and warehouse operations using technologies such as robotics, artificial intelligence, and data analytics.  

Logistics Automation Market Dynamics

Drivers

• Increase in Supply Chain Complexity Leads to Rise in Automation Solutions

Automation in the supply chain helps streamline operations, improve visibility, and enhance efficiency. Automation technologies such as robotics, AI, and data analytics enable businesses to better manage the complexities of their supply chains by automating repetitive tasks, optimizing inventory management, and facilitating real-time decision-making. Through embracing automation within the supply chain, organizations can effectively mitigate the risks linked with supply chain complexity, diminish errors, and enhance agility, consequently fostering the expansion of the logistics automation market.

For Instance,

In 2022, Oracle enhanced its Fusion Cloud Supply Chain and Manufacturing (SCM) with new logistics management capabilities, including updates to transportation and global trade management modules. These updates empower organizations to lower costs, mitigate risks, enhance customer satisfaction, and adapt more effectively to market disruptions.

• Growing E-Commerce Promotes the Use of Logistics Automation to Meet Customers’ Expectations

With consumers demanding faster deliveries and seamless order fulfillment, logistics operations are under immense pressure to keep pace. Automating processes such as order processing, inventory management, and last-mile delivery, businesses can enhance operational efficiency, reduce costs, and improve customer satisfaction. This demand for automation is driven by the need to stay competitive in the e-commerce landscape and meet the evolving expectations of online shoppers for speed, accuracy, and convenience.

For Instance,

As highlighted by Logistics Management in March 2021, the surge in e-commerce during the pandemic has accelerated the adoption of logistics automation solutions. The sustained growth of online shopping has prompted carriers, vehicle manufacturers, and tech companies to explore and invest in innovative approaches to handle the increased volume efficiently. This trend reflects a fundamental shift in consumer behavior towards online shopping, driving continuous investment in automation technologies for tasks such as pick up, transport, sortation, and delivery.

Opportunities

• Rise in Labour Shortages Results in the Increased Adoption of Automated Solutions

As businesses struggle to find and retain skilled workers, they turn to automation to augment their workforce and improve operational efficiency. Automation offers the potential to reduce reliance on human labour for repetitive and physically demanding tasks, thereby mitigating the impact of labour shortages on productivity. Automating processes such as picking, packing, and sorting, companies can optimize warehouse operations and fulfill orders more quickly and accurately.

• Increasing Technological Advancements Enhances Warehouse Efficiency

Innovations in robotics, artificial intelligence, machine learning, and IoT enable the development of sophisticated automation solutions that can revolutionize logistics operations. Robotics and automation systems offer the potential to enhance warehouse efficiency through autonomous material handling and picking processes. AI and machine learning algorithms optimize route planning, inventory management, and demand forecasting, leading to cost savings and improved customer satisfaction. IoT enables real-time tracking and monitoring of goods and vehicles, increasing supply chain visibility and responsiveness.

Restraints/Challenges

• High Initial Investment Costs for Businesses with Limited Capital Resources

Implementing automation technologies requires substantial upfront expenditures on equipment, software, infrastructure, and deployment. Customization and integration with existing systems can further amplify the financial burden. Despite recognizing the potential benefits of automation, many companies may hesitate to invest, impacting the pace of adoption and innovation. The financial considerations extend to the automated logistics specialists salaries, adding another layer of expense for organizations contemplating automation implementation. This financial aspect underscores the challenges faced by businesses in embracing logistics automation fully.

• Rise in Regulatory Compliance Increases Complexity in Operation of Logistics Automation Solutions

Compliance requirements vary across regions and industries, necessitating adherence to standards and regulations related to data privacy, safety, environmental sustainability, and labor laws. Implementing automation systems often involves significant capital investment and operational changes, which must align with these regulatory frameworks. Regulatory changes or updates may require costly modifications to existing automation infrastructure. Ensuring compliance adds complexity to the implementation and operation of logistics automation solutions, impacting adoption rates and the pace of innovation within the market.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In 2023, Dematic launched cutting-edge automation technologies for the new KION logistics facility, aiming to enhance the efficiency of customer deliveries across Europe. With a highly dynamic Dematic Multishuttle boasting 110,000 storage locations and 150 shuttles, automatic storage and retrieval processes are streamlined
• In 2023, Swisslog launched the robotic CarryPickmobile system, featuring a significantly improved working speed and innovative lifting turntable. This advancement enables faster and more flexible storage and retrieval processes for goods-to-person solutions, enhancing overall operational efficiency
• In 2022, Supply Sensing, a revolutionary solution by 09 Solutions, helps businesses anticipate and mitigate supply disruptions by localizing the impact of macro-level shocks on their specific supply chains. This proactive approach enables organizations to minimize negative effects on operations and ensure resilience in volatile market conditions
• In 2021, SAP Yard Logistics offers comprehensive options for sustainable yard management, enabling customers to efficiently manage all yard processes. With seamless planning and execution within the yard, SAP Yard Logistics supports sustainable and future-proof yard management for both simple and complex scenarios
• In 2021, Manhattan Associates introduced Manhattan Active Warehouse Management, the first cloud-native enterprise-class warehouse management system (WMS) that unifies all distribution facets. This innovative solution revolutionizes warehouse operations by offering enhanced visibility, agility, and scalability to meet evolving business needs

Logistics Automation Market Scope

The market is segmented on the basis of component, function, logistic type, organizational size, software application, mode of freight transport, application and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Hardware
• Autonomous Mobile Robots (AMRs)
• Automated Guided Vehicles (AGVs)
• Automated Storage and Retrieval Systems (AS/RS)
• Automated Sorting and Conveyor Systems
• De-Palletizing/Palletizing Systems
• Automatic Identification and Data Collection (AIDC)
• Order Picking
• Software
• Warehouse Management System (WMS) Software
• Transportation Management System (TMS) Software
• Services
• Value Added Services
• Maintenance
• Consulting
• Deployment and Integration
• Support and Maintenance

Function

• Inventory and Storage Management
• Transportation Logistics

Logistics Type

• Sales Logistics
• Production Logistics
• Recovery Logistics
• Procurement Logistics

Organization Size

• Large Enterprise
• Small and Medium-Sized Enterprises (SMEs)

Software Application

• Inventory Management
• Order Management
• Yard Management
• Shipping Management
• Labor Management
• Vendor Management
• Customer Support
• Other Applications

Mode of Freight Transport

• Air
• Road
• Sea

Application

• Transportation
• Infotainment System
• Safety and Alerting System
• Others

End User

• Retail and E-Commerce
• Manufacturing
• Oil, Gas, and Energy
• Food and Beverage
• Post and Parcel
• Groceries
• General Merchandise
• Apparel
• Fast Moving Consumer Goods
• Pharmaceuticals and Healthcare
• Logistics and Transportation
• Automotive
• Aerospace and Defense
• Food and Beverage
• Chemicals
• Others
• Paper and Printing
• Textile and Clothing

Logistics Automation Market Region Analysis/Insights

The market is analysed and market size insights and trends are provided by country component, function, logistic type, organizational size, software application, mode of freight transport, application and end user as referenced above.

The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America dominates in the logistics automation is driven by widespread adoption across industries and the expansion of oil and gas exploration activities. This trend is expected to continue during the forecast period due to increased efficiency and cost savings associated with automation. The region's well-established infrastructure and technological advancements further contribute to its leadership position in this market segment. As industries seek to streamline operations and improve productivity, North America remains at the forefront of innovation in logistics automation.

The Asia-Pacific is experiencing significant growth in the logistics automation market due to burgeoning economies driving increased demand. This growth is fueled by manufacturers and suppliers allocating substantial investments towards implementing automation solutions in warehouses and distribution centers. As these economies develop, there's a heightened focus on efficiency and scalability, prompting a surge in the adoption of automated vehicles and technologies to streamline logistics operations. This trend positions Asia-Pacific as a key hub for innovation and advancement in the logistics sector during the forecast period.

The country section of the global sales force automation software market report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as consumption volumes, production sites and volumes, import export analysis, price trend analysis, cost of raw materials, down-stream and upstream value chain analysis are some of the major pointers used to forecast the market scenario for individual countries. Also, presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Logistics Automation Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

• SAP SE (Germany)
• Oracle (U.S.)
• Honeywell International Inc. (U.S.)
• Daifuku Co., Ltd. (Japan)
• Dematic (U.S.)
• ek robotics GmbH (Germany)
• Hardis Group (France)
• Falcon Autotech (India)
• Grey Orange Pte. Ltd. (U.S.)
• Toshiba Corporation (Japan)
• Murata Machinery, Ltd (Japan)
• Zebra Technologies Corp. (U.S.)
• HighJump (U.S.)
• Jungheinrich AG (Germany)
• KNAPP AG (Austria)
• Locus Robotics (U.S.)
• Manhattan Associates (U.S.)
• System Logistics S.p.A (Italy)
• TGW LOGISTICS GROUP GMBH (Austria)
• Seegrid Corporation (U.S.)

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