Publication Month: Aug 2020 | Report Code: TIPRE00005708 | No. of Pages: 226 | Category: Electronics and Semiconductor | Status: Published
The manufacturing sector is increasing globally; as per the China Federation of Logistics and Purchasing (CFLP), the global manufacturing purchasing managers' index (PMI) accounted approximately 50% in August 2019, which was down from 51.3 in August 2018.This signifies a robust recovery of the manufacturing sector across the developed countries, growing industrial advancement in the developing economies as well as the escalation of commodities prices on the global market. Thus, the expansion of the manufacturing industry due to the adoption of technologically advanced solution, results in the enhancement of the plant productivity, gain competitive advantage and maintain the edge with the customers. The manufacturers of various products face huge competition with other market players on account of quality, costs, service, and time taken for the overall process. The manufacturers are constantly focusing on enormous challenges related to maintaining a balance between the demand and supply of the product globally. Therefore, the manufacturing industries inclined to focus on their core competencies of manufacturing and outsource the rest to other stakeholders in the value chain. The increasing demand of efficient supply chain system across the manufacturing sector appeared to be imminent as logistics automation providers focus on all aspects of supply chain management, warehouse management, and transportation management by providing an advanced solution for the efficient management of goods from the production line until the consumer.
Increasing implementation of Industry 4.0 has led to an extensive digital overhaul across the manufacturing sector. This in turn has uplifted the integration of logistics automation components across the industries for harnessing the power of sophisticated digital technologies. The logistics automation companies’ offers a competitive edge to their clients by restructuring various supply chain processes. The increasing development digital technologies such as cloud computing, advanced software, and Big Data could be used, which are delivered by the logistics automation providers for maintaining visibility across the overall supply chain with improved visibility, operations, transparency, and productivity. Additionally, technologies such as automation, the Internet of Things (IoT), and robotics are also gaining more prominence. Also, the requirements for deployments of logistics automation by the organizations are anticipated to grow during the forecast period.
According to the latest situation report from World Health Organization (WHO), the US, Spain, Italy, France, Germany, UK, Russia, Turkey, Brazil, Iran, and China are some of the worst affected countries due to COVID-19 outbreak. The outbreak first began in Wuhan (China) during December 2019, and since then, it has spread at a fast pace across the globe. As per WHO, as of July 2020, there are around 16,523,815 confirmed COVID-19 cases globally, including 655,112 deaths, and the number is growing at varying rates in different countries. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in the year 2020 and likely in 2021 also. The outbreak has created significant disruptions in primary industries such as logistics, retail, and e-commerce, among others. The sharp decline in the international logistics business industry is negatively impacting the growth of the global logistics automation market . The factory shutdowns travel bans, trade bans, and border lock downs to combat and contain the outbreak have adversely affected the logistics industry.
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With the increasing consumer expectations, the market players are focusing on the investment in IT and operational functions in warehouses. The growing development in the connectivity technology globally, as tech companies make everything from sortation to arranging pallets in the warehouse internet-ready. They are leveraging the latest supply chain technology as well as the Internet of Things (IoT), a “smart warehouse,” which serves as a hub to enhance the efficiency and speed of the supply chain process. From wearables on workers to sensors and smart equipment, internet-enabled devices and technology can profoundly change logistics management. The warehouse management and transport management are proactively adopting logistics automation robots, which automates the process of moving goods and storing across the supply chain operations. The logistics automation robots are integrated across warehouses as well as storage facilities for organizing and transporting the products. These robots also offer enhanced levels of uptime compared to manual labor, which leads to the growth in productivity and profitability of the industry. The prime application of logistics robots is mobile automated guided vehicles (AGVs), are deployed in storage facilities and warehouses for transporting goods. They operate in predefined pathways, for shipping and storing the products in different pallets in the warehouses. AGVs helps in reducing the overall cost of logistics and streamline the supply chain efficiently.
Based on component, the logistics automation market is segmented into hardware, software, and services. The integration of logistics automation components helps in streamlining the overall logistics process, involving warehousing or transportation tasks across the various end-user industries.
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Note: The inner circle represents market shares for 2019, and the outer circle represents market shares for 2027.
Source: The Insight Partners Analysis, Primary Interviews, Magazines and Journals, and Secondary Sources
Based on mode of freight transport, the logistics automation market is segmented into air, road, and sea. Transportation is one of the essential services included in the logistics operations. The efficient transportation involves physically moving deliveries in relatively right condition, at right time, and in a cost-effective manner. The mode of freight transport is the movement of goods from the site of manufacturing or storage to the distribution site.
Based on application, the logistics automation market is segmented into warehouse management and transportation management. This software mainly focuses on the transportation of goods by different modes as well as warehousing management. The companies serve an extensive range of industries by providing innovative software and services to their customers. The highly used outsourced services include warehousing, transportation, freight forwarding, and supply chain, along with several value-added services such as cross-docking, packaging, and shipment consolidation.
Based on end-user industry, the logistics automation market is segmented into retail and e-commerce, manufacturing, oil and gas, food and beverage, automotive, healthcare and pharmaceutical, and others. Logistics automation software and service providers play a vital role in retail industries that are trying to gain online and omnichannel strategies. Currently, free shipping is significantly essential for customers; thus, retailers are selecting logistics automation solution providers to manage their supply chain processes to meet customer demands.
|Market Size Value in||US$ 41,513.9 Million in 2019|
|Market Size Value by||US$ 91,701.5 Million by 2027|
|Growth rate||CAGR of 11.5% from 2020 - 2027|
|No. of Pages||226|
|No. of Tables||111|
|No. of Charts & Figures||93|
|Historical data available||Yes|
|Segments covered||Component, Application, Mode of Freight Transport, End-User Industry, and Geography|
|Regional scope||North America, Europe, Asia Pacific, Middle East & Africa, South & Central America|
|Country scope||US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Free Sample Copy Available|
The market players focus on new product innovations and developments by integrating advanced technologies and features in their products to compete with the competitors.
The List of Companies - Logistics Automation Market