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The logistics automation market size is forecast to increase by USD 20.27 billion, at a CAGR of 9.41% between 2023 and 2028. The accelerated growth of the market is due to various factors, including the rising adoption of big data in automated logistics technologies, the increased adoption of E-commerce platforms, and the supply chain resilience and visibility as a challenge in logistics automation.
The report includes a comprehensive outlook on the Logistics Automation Market, offering forecasts for the industry segmented by Component, which comprises hardware, software, and services. Additionally, it categorizes End-user into retail and ecommerce, automotive, healthcare, aerospace, and others, and covers Regions, including APAC, North America, Europe, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising adoption of big data in automated logistics technologies is the key factor driving market growth. Big data refers to the large volumes of structured and unstructured data generated in real time. This data can provide valuable insights and enable businesses to make informed decisions and streamline their operations. Automated logistics technologies leverage big data to improve different aspects of the supply chain, from inventory management to transportation and delivery. These technologies use advanced analytics and machine learning algorithms to process the vast amount of data generated and extract meaningful information from it.
Moreover, big data analytics is facilitating the implementation of predictive maintenance strategies in logistics. In addition, real-time tracking and monitoring systems enable companies to have better visibility into their inventory, shipments, and overall operations. This enables them to quickly respond to any disruptions or delays, improving customer service and satisfaction. Hence, the rising adoption of big data in automated logistics technologies will drive market growth during the forecast period.
High penetration of robotics in warehouse management is the primary trend shaping market growth. One of the key reasons behind the high penetration of robotics in warehouse management is the growing need for increased productivity and efficiency. Moreover, robotics in warehouse management enables organizations to optimize space utilization, which is a critical factor in modern logistics operations. Robots can navigate and operate in narrow aisles, utilize vertical space, and perform tasks that require heavy lifting or maneuvering in constrained areas. This results in better utilization of available space, higher storage density, and increased operational efficiency.
In addition, robots can operate for extended hours without breaks, reducing downtime and maximizing throughput, resulting in cost efficiencies and improved return on investment (ROI). Consequently, the benefits of increased efficiency, accuracy, space utilization, visibility, and cost savings are driving organizations to adopt robotic solutions, which, in turn, will drive the growth of the global logistics automation market during the forecast period.
The requirement of high initial capital investment is a challenge that affects market growth. Implementing automation technologies in logistics involves various costs, including the purchase of hardware and software systems, integration with existing infrastructure, training of personnel, and maintenance and support. The initial investment required for implementing automation can be substantial, especially for large-scale operations or for companies looking to automate their entire supply chain. Moreover, the cost of automation technologies is influenced by factors such as the scale of operations, the complexity of the supply chain, and the level of customization required.
Besides, the challenge of high initial capital investment in logistics automation can be addressed through various strategies. One approach is to explore leasing or renting options, allowing companies to access automation technologies without huge upfront costs. Collaborative partnerships and consortiums can also help distribute the burden of investment among multiple stakeholders. Therefore, the requirement of high initial capital investment may impede the growth of the global logistics automation market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Logistics Automation Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The hardware segment is estimated to witness significant growth during the forecast period. The hardware segment plays a crucial role in the global logistics automation market. Logistics automation refers to the use of technology and machinery to streamline and optimize various processes in the supply chain, including inventory management, warehouse operations, transportation, and order fulfillment. The hardware components in logistics automation are essential for the successful implementation and operation of automation systems.
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The hardware segment was the largest segment and was valued at USD 17.76 billion in 2018. One of the key hardware components in logistics automation is automated guided vehicles (AGVs). AGVs are unmanned robotic vehicles that are programmed to transport and move goods within a warehouse or distribution center. In addition, warehouse management systems (WMS) also fall under the hardware segment of logistics automation. WMS incorporates various technologies, such as barcode scanners, RFID readers, and data terminals, to track and manage inventory, optimize storage space, and facilitate efficient order fulfillment. Thus, the hardware segment in the global logistics automation market is expected to grow significantly during the forecast period.
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APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. With advancements in technology and the increasing need for efficient supply chain operations, companies in APAC are increasingly adopting logistics automation solutions to improve productivity, reduce costs, and enhance customer experience. Countries such as China, Japan, South Korea, and India have emerged as major players in this regional market due to their robust manufacturing sectors and large consumer populations.
In addition, the APAC government's emphasis on industrial automation and smart logistics initiatives has further fueled the regional logistics automation market growth. Countries such as China have introduced policies to promote the adoption of automated technologies, including robotics and artificial intelligence, to enhance their manufacturing competitiveness and reduce labor costs. Thus, such factors are expected to drive the logistics automation market in APAC during the forecast period.
The logistics automation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Logistics Automation Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.41% |
Market Growth 2024-2028 |
USD 20.27 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.88 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Applied Materials Inc., Auto Control Systems Pty Ltd., DENSO Corp., Emerson Electric Co., FANUC Corp., Festo SE and Co. KG, Honeywell International Inc., Kawasaki Heavy Industries Ltd., MIDEA Group Co. Ltd., Mitsubishi Electric Corp., OMRON Corp., Rockwell Automation Inc., Schneider Electric SE, Aurotek Corp., Yaskawa Electric Corp., Yokogawa Electric Corp., and Siemens AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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