Logistics automation refers to automating the logistics processes in warehouses and transportation with the aid of control systems, machinery, and software in order to improve efficiency of logistics operations. Logistics automation is implemented to automate the processes in a warehouse or distribution center in order to minimize human interventions. Logistics automation comprises hardware components such as automated guided vehicles, automated storage & retrieval systems, autonomous mobile robots, and conveyor systems; and software components such as warehouse management software, and transport management software. Logistics automation has advantages such as real-time access to data, organizational control, improved customer service, and scalability & speed.
Advancements in robotic technologies have resulted in development of autonomous robots that can be programmed to perform tasks with no or minimal human intervention. Artificial Intelligence based autonomous robots improve speed and accuracy of routine operations within warehouse as well as reduce the risk of employee injury in dangerous environments. Moreover, autonomous robots are aiding companies in decreasing long-term costs; providing labor and utilization stability; increasing worker productivity; reducing error rate; optimizing picking & sorting time; and increasing access to difficult locations.
The market is driven by improved efficiency & workforce safety, growth in e-commerce, adoption of industry 4.0 technologies, and advancements in robotics technologies. However, the high initial investment is hampering the growth of the global logistics automation market. On the contrary, adoption of autonomous vehicles & drones, and greater demand for warehouse automation from emerging economies are expected to create ample growth opportunities for the global logistics automation market.
The report segments the logistics automation market on the basis of component, application, organization size, end-use industry, and region. By component, the market is fragmented into hardware, software, and services. By application, the market is categorized into warehouse & storage transportation, and transportation management. By organization size, the market is bifurcated into small and medium enterprises, and large enterprises. By end-use industry, the market is segmented into manufacturing, healthcare & pharmaceuticals, fast-moving consumer goods, retail & e-commerce, automotive, and others. Moreover, it summarizes the details about revenue generated across regions such as North America, Europe, Asia-Pacific, and LAMEA.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the logistics automation market analysis from 2020 to 2030 to identify the prevailing logistics automation market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the logistics automation market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global logistics automation market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Organization Size
- Small and Medium Enterprises
- Large Enterprises
By End-Use Industry
- Manufacturing
- Healthcare and Pharmaceuticals
- Fast-Moving Consumer Goods
- Retail and E-commerce
- Automotive
- Others
By Component
- Hardware
- Software
- Services
By Application
- Warehouse and Storage Management
- Transportation Management
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- United Kingdom
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest Of Asia Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Beumer Group GmbH & Co. KG
- Daifuku Co., Ltd.
- Honeywell International Inc.
- Jungheinrich AG
- Kion Group AG
- Knapp AG
- Mecalux, S.A.
- Murata Machinery, Ltd.
- SSI Schaefer Group
- TGW Logistics Group GmbH
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Table of Contents
Executive Summary
According to this report titled, 'Logistics Automation Market,' the logistics automation market was valued at $49.7 billion in 2020, and is estimated to reach $147.4 billion by 2030, growing at a CAGR of 11.9% from 2021 to 2030.
North America is expected to dominate the global logistics automation market owing to growth in e-commerce and adoption of automation solutions as a result of labor shortages in the region. Moreover, the adoption of robots in the region has been observed, which is expected to create demand for automation solutions and in turn is anticipated to contribute in the growth of the market. For instance, in August 2021, Yandex Self-Driving Group partnered with Grubhub to operate delivery robots on college campuses in the U.S. Moreover, in 2020, Hyundai Motor Group acquired controlling interest in Boston Dynamics with the aim of advancing robotics and mobility.
Labor shortages are currently being faced across the globe, which in turn is creating the demand for warehouse automation. Moreover, companies in emerging countries such as China and India, are also adopting automation in warehouse to get ahead of labor shortage. For instance, in 2022, Cainiao Network Technology built the largest unmanned warehouse in Southeast Asia for Thai courier Flash Express. This unmanned warehouse can process 6,000 parcels a day and this can rise to 20,000 a day during peak season. Henceforth, greater demand for warehouse automation from emerging countries is the factor that will be creating new growth opportunities for logistics automation market during the forecast period.
Based on organization size, the global logistics automation market is segregated into SME, and large enterprises. Large enterprises are utilizing automated material handling technology for several processes such as categorization and moving heavy items, or containers within warehouses. In addition, autonomous mobile robots are also being utilized to move materials from the picking area to the order packing area within the warehouse. For instance, in January 2022, DHL supply chain announced $15 million investment in robotics solutions from Boston Dynamics to further automate warehousing in North America. Boston Dynamics will equip DHL facilities with 'Stretch”, which is a robot designed to automate the unloading process in distribution centers.
The significant factors impacting the growth of the logistics automation market comprise improved efficiency & workforce safety, growth in e-commerce, adoption of industry 4.0 technologies, and advancements in robotics technologies. Moreover, factors such as high initial investment, are expected to be hampering the market growth. Furthermore, the adoption of autonomous vehicles & drones, and greater demand for warehouse automation from emerging economies are expected to create new growth opportunities for the logistics automation market during the forecast period.
COVID-19 Impact Analysis
The COVID-19 crisis has created uncertainty in the market, and led to massive slowing of supply chain, falling business confidence, and increasing panic among the customers. Governments of different regions have announced total lockdown and temporary shutdown of industries, thereby adversely affecting the overall production and sales.
The impact of the COVID-19 pandemic has resulted in workforce changes, temporary restriction on movement of goods, and adoption of automation solutions. The pandemic has resulted in supply-chain disruptions causing temporary restriction on movement of goods. In 2019, online shopping rose by 20% and then by 30% during lockdown. Rise in online sales compelled companies to restructure their warehouse to manage e-commerce logistics. At the same time, companies have also had to safeguard the health & safety of their employees working along the entire supply chain. In order to fulfill e-commerce demand, and adapt to a new situation, several logistics companies introduced changes in their workforces, and opted for logistics automation.
However, with the removal of lockdown restrictions, several logistics companies have started to invest in industry 4.0 technologies in order to deal with labor shortages issue and to fulfill rising demand from the e-commerce sector. Companies are adopting autonomous robots for automating the tasks within warehouse, and drones for last-mile delivery.
Key findings of the Study
- By component, the software segment is anticipated to exhibit significant growth in the near future.
- By application, the transportation management segment is anticipated to exhibit significant growth in the near future.
- By organization size, the small and medium enterprises segment is anticipated to exhibit significant growth in the near future.
- By end-use industry, the retail and e-commerce segment is anticipated to exhibit significant growth in the near future.
- By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.
Key players operating in the global logistics automation market include Beumer Group GmbH & Co. KG, Daifuku Co., Ltd., Honeywell International Inc., Jungheinrich AG, KION Group AG, KNAPP AG, Mecalux, S.A., Murata Machinery, Ltd., SSI Schaefer Group, and TGW Logistics Group GmbH.
Companies Mentioned
- Beumer Group GmbH & Co. KG
- Daifuku Co., Ltd.
- Honeywell International Inc.
- Jungheinrich AG
- Kion Group AG
- Knapp AG
- Mecalux, S.A.
- Murata Machinery, Ltd.
- SSI Schaefer Group
- TGW Logistics Group GmbH
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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