Logistics Automation Market 2020: Strategizing the Future Trends and Developments by 2027

Logistics automation is replacing traditional logistics processes as it helps in enhancing the overall efficiency of the industry by streamlining and automating the whole process, involving various tasks such as processing freight operations, tracking, and documentation. Most common advantages of implementing logistic automation are reduced human errors as it shows clear visibility of freight rates, enhanced customer services, and improved scalability. Logistic automation became a significant part of the supply chain process for small and large businesses. These businesses provide services such as warehousing, transportation, inventory management, order fulfillment, distribution, and freight consolidation. With the help of logistic software and services, manufacturing companies are able to focus on product development, sales, and other core operations. The escalating demand for shipping cost reduction and timely delivery management, focus on core business, recordkeeping of stock are among the factors projected to drive the market for logistics automation during the forecast period. Moreover, the factors such as growth in the adoption and development of e-commerce in the retail sector are expected to generate remarkable growth opportunities for the industry players.


The regional demographics have also played a crucial role in the growth of the logistics automation services market. For instance, the growing adoption of logistics automation in the retail sector has propelled due to the advent of e-commerce. APAC claims more than one-third of the global population, and the market attractiveness for retail and e-commerce industry is very high in the region. Further, rising disposable incomes of individuals and developing economies have accentuated the growth in retail and e-commerce activities. Increasing demand for diversities on account of different demographics observed in the region contributes to the supply chain complexities, thus compelling the companies to adopt logistics automation software and services. The leading market players are continuously focusing on broadening their addressable market by diversifying client bases, expanding current product portfolios, and developing new applications and markets.

Geographically, APAC and Europe are currently dominating the market, however, the market is expected to be in favor of the North America as it is projected to witness remarkable growth rate due to the increasing demand for data management, service integration, and preference of manufacturers towards the development of more flexible solutions. The overall logistics automation market is fragmented with the presence of several large and small-scale enterprises. A few major players with significant market share are Beumer Group, Daifuku Co., Ltd., Dematic (KION Group), Honeywell Intelligrated, KNAPP AG, Mecalux, S.A., Murata Machinery, Ltd., Swisslog Holding AG, TGW Logistics Group, and Vitronic.

Most of the market initiatives were observed in North America region, which have a high potential of logistics automation providers. Few of the important market initiatives and product developments from the industry are mentioned below:

Year News Country
2019 Honeywell announced a new service management program for its distribution center customers tailored to specific, measurable goals to optimize performance and reduce total lifecycle costs for material handling equipment and automation systems. North America
2019 FPUH Kamil, manufacturer and distributor of the Polish natural cosmetics brand Nacomi would open a new warehouse in Wilkowice (in south of Poland) with the collaboration of Mecalux. North America

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