The latest report by IMARC Group, titled" Logistics Automation Market Report by Component (Hardware, Software, Services), Function (Warehouse and Storage Management, Transportation Management), Enterprise Size (Small and Medium-sized Enterprises, Large Enterprises), Industry Vertical (Manufacturing, Healthcare and Pharmaceuticals, Fast-Moving Consumer Goods (FMCG), Retail and E-Commerce, 3PL, Aerospace and Defense, Oil, Gas and Energy, Chemicals, and Others), and Region 2024-2032", offers a comprehensive analysis of the industry, which comprises insights on the market. The global logistics automation market size reached US$ 73.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 204.5 Billion by 2032, exhibiting a growth rate (CAGR) of 11.7% during 2024-2032.
Factors Affecting the Growth of the Logistics Automation Industry:
● Technological Advancements and Integration:
The logistics automation industry is experiencing rapid growth driven by technological advancements and the integration of cutting-edge solutions. Innovations such as artificial intelligence, machine learning, the Internet of Things (IoT), and robotics have revolutionized the efficiency and accuracy of logistics operations. Automated guided vehicles (AGVs), drones, and smart warehouses are transforming traditional logistics by optimizing inventory management, reducing human error, and enhancing real-time data analytics. These technologies enable seamless communication across the supply chain, ensuring faster and more reliable delivery processes. As businesses increasingly adopt these advanced technologies to stay competitive, the logistics automation industry continues to expand, providing scalable and efficient solutions for complex logistical challenges.
● E-commerce Boom and Consumer Expectations:
The exponential growth of e-commerce has significantly impacted the logistics automation industry. The surge in online shopping has created a demand for faster, more reliable, and cost-effective delivery solutions. Consumers now expect quick and accurate delivery of goods, driving companies to invest in automated logistics systems to meet these high expectations. Automated sorting, packing, and shipping systems have become essential to handle the increased volume of orders efficiently. Moreover, the need for last-mile delivery solutions has prompted the development of advanced technologies such as delivery robots and drones. As e-commerce continues to thrive, the logistics automation industry is poised for sustained growth to support the evolving needs of the digital marketplace.
● Labor Shortages and Cost Efficiency:
Labor shortages and the need for cost efficiency are critical factors influencing the growth of the logistics automation industry. The logistics sector faces challenges in recruiting and retaining skilled labor, prompting companies to seek automated solutions to fill the gap. Automation addresses labor shortages enhances productivity and reduces operational costs. Automated systems can work around the clock without fatigue, increasing throughput and efficiency. Additionally, automation minimizes errors and reduces the need for manual labor in repetitive and physically demanding tasks. As companies strive to optimize their supply chain operations and reduce costs, there has been a rise in the adoption of logistics automation technologies, driving industry growth and innovation.
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Leading Companies Operating in the Global Logistics Automation Market
● ABB Ltd.
● Beumer Group GmbH & Co. KG, Daifuku Co. Ltd.
● Dematic (Kion Group AG)
● Honeywell International Inc.
● Jungheinrich AG
● Kardex Group
● Knapp AG
● Mecalux S.A.
● Murata Machinery Ltd.
● Oracle Corporation
● SAP SE
● Swisslog Holding AG (KUKA AG)
Logistics Automation Market Report Segmentation:
By Component:
● Hardware
○ Mobile Robots (AGV, AMR)
○ Automated Storage and Retrieval Systems (AS/RS)
○ Automated Sorting Systems
○ De-palletizing/Palletizing Systems
○ Conveyor Systems
○ Automatic Identification and Data Collection (AIDC)
○ Order Picking
● Software
○ Warehouse Management Systems (WMS)
○ Warehouse Execution Systems (WES)
● Services
○ Value Added Services
○ Maintenance
Hardware dominates the market due to the high demand for physical automation equipment such as robots, automated storage and retrieval systems (ASRS), and conveyor systems essential for operational efficiency.
By Function:
● Warehouse and Storage Management
● Transportation Management
Transportation management accounts for the largest market share as it involves critical processes like route optimization, fleet management, and shipment tracking, which are essential for ensuring timely and cost-effective deliveries.
By Enterprise Size:
● Small and Medium-sized Enterprises
● Large Enterprises
Large enterprises hold the largest share as it helps to augment precipitation, addressing water scarcity and supporting agriculture and water resource management.
By Industry Vertical:
● Manufacturing
● Healthcare and Pharmaceuticals
● Fast-Moving Consumer Goods (FMCG)
● Retail and E-Commerce
● 3PL
● Aerospace and Defense
● Oil, Gas and Energy
● Chemicals
● Others
Manufacturing represents the largest segment due to the sector's extensive use of automated systems for inventory management, production processes, and distribution, driving the need for sophisticated logistics automation.
Regional Insights:
● North America (United States, Canada)
● Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
● Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
● Latin America (Brazil, Mexico, Others)
● Middle East and Africa
North America's dominance in the logistics automation market is attributed to its advanced technological infrastructure, significant investments in automation technologies, and the presence of major e-commerce and logistics companies driving the demand for automated solutions.
Global Logistics Automation Market Trends:
The global logistics automation market is primarily driven by rapid technological advancements, increased adoption of IoT, AI, and robotics, and a rise in e-commerce activities. Additionally, companies are investing in smart warehouses, automated guided vehicles (AGVs), and robotic sorting systems to enhance efficiency and accuracy in their supply chains. The rise of e-commerce has heightened the demand for faster, more reliable delivery solutions, pushing the development of innovative last-mile delivery technologies such as drones and autonomous delivery robots. Along with this, labor shortages and the need for cost reduction are driving the shift toward automated systems. These trends collectively contribute to the growth and evolution of the logistics automation market, enhancing its future landscape.
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