Logistics Automation Market Size, Share & Trends Analysis| 2030

Logistics Automation Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Hardware, Software, Services), Mode Of Freight Transport (Land, Water, Air), Application (Warehouse Management, Transportation Management), End-user Industry (Manufacturing, Retail and E-Commerce, Oil and Gas, Food and Beverages, Automotive, Healthcare and Pharmaceutical, Others), and Geography (North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America)

Publication Month : Feb 2024

  • Report Code : TIPRE00005708
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 213
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[Research Report] The logistics automation market size was valued at US$ 35.21 billion in 2022 and is expected to reach US$ 85.19 billion by 2030; it is estimated to record a CAGR of 11.7% from 2022 to 2030.

 

Analyst Perspective:

With the increasing consumer expectations, the market players are focusing on investing in IT and operational functions in warehouses. There is growing development in connectivity technology globally, as tech companies make everything from sortation to arranging. They are leveraging the latest supply chain technology and the Internet of Things (IoT). Smart warehouses serve 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. Warehouse and transport management are proactively adopting logistics automation robots, which automate the storing and moving of goods across the supply chain. The logistics automation market trends include the integration of autonomous trucks and truck platooning.

The logistics automation robots are integrated across warehouses and storage facilities to organize and transport 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) 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 help reduce the overall logistics cost and streamline the supply chain efficiently. Therefore, the increasing utilization of robotics in warehouses is likely to have a significant impact on the logistics automation market forecast in the next few years.  

Logistics Automation Market Overview:

In the logistics automation market, the importance of autonomous cars in the logistics business has grown in recent years as they have increasingly been deployed in precisely controlled environments such as warehouses and yards. However, deploying autonomous vehicles in shared and public locations, such as highways and city streets, might be the industry's next great step in optimizing logistics operations and increasing safety. The expanding technological developments in AI, as well as the increasing substantial investments in the development of sensors and visual technologies, can assist in self-driving vehicles. Autonomous vehicles and drones are important components of automated logistics systems. Google and Tesla, for example, have made substantial advances in driverless vehicle technologies.

Autonomous driving has progressed from science fiction to a very feasible possibility in the last two decades, owing to significant advances in radar technology and computer power. Because portable technology has improved sufficiently to allow ultra-light hardware to make decisions based on self-improving algorithms, engineers have a better chance of mimicking human decision-making in autonomous vehicles.

Many developing countries are implementing autonomous vehicles and drones. For instance, Minus Zero, a Bengaluru-based artificial intelligence (AI) start-up, has presented India's first driverless vehicle. According to the company, the fully electric prototype named zPod, which is based on a camera-sensor suite, can drive all environmental limits and can expand up to Level 5 autonomy capabilities. The greatest level of autonomous driving is Level 5, in which a vehicle is entirely capable of running without human intervention in all driving circumstances and environments.

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Logistics Automation Market: Strategic Insights

logistics-automation-market
Market Size Value inUS$ 35.21 billion in 2022
Market Size Value byUS$ 85.19 billion by 2030
Growth rateCAGR of 11.7% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
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Logistics Automation Market Driver:

 

Continuous Growth in the Retail & E-commerce Sector

 

Logistics automation is one of the substantial components of e-commerce for managing the issues of inventory, tracking, packing, warehousing, and shipping. In retail and e-commerce, the business is liable for safeguarding timely delivery and return policy. If the goods or products need to be replaced, the company must handle all the operations in reverse logistics. In the retail and e-commerce business, a logistics automation provider delivers upgraded technology, scalability flexibility, and efficiency. Additionally, the e-commerce sector is growing. For instance, India has gained 125 million online shoppers since 2020, with another 80 million expected by 2025.

The logistics requirements and services provided by the logistic automation software firms to retail and e-commerce businesses include warehouse management, supply chain management, consolidated services, and order fulfillment. There are several benefits related to e-commerce that can be fulfilled if the company outsources its logistics requirements through a logistic automation service provider. This allows the retail and e-commerce participants to perform their specific roles. Logistics automation firms specialize in supply chain management, allowing online stores to accentuate marketing and other business operations. The logistics automation software allows warehouse managers to deal efficiently with various processes such as multiline item sorting, split case picking, and palletizing. Therefore, logistics automation software has an enormous opportunity in the retail & e-commerce sector globally. This can propel the logistics automation market growth.

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Logistics Automation Market Segment Analysis:

The logistics automation market analysis has been carried out by considering the following segments: component, mode of freight transport, application, and end-user industry. Based on components, the market is segmented into hardware, software, and services. Based on the mode of freight transport, the market is segmented into land, water, and air. Based on application, the market is segmented into warehouse management and transportation management. Based on end-user industry, the market is segmented into manufacturing, retail and e-commerce, oil and gas, food and beverages, automotive, healthcare and pharmaceutical, and others.

The hardware component of the logistics automation system comprises conveyors, fixed machinery, industrial robots, sortation, and automated storage and retrieval systems. The hardware automatically tracks and identifies containers with the help of barcodes and RFID tags.

In addition, the logistics automation software is integrated with the warehouse management system and can track stock details for future reference. This software also provides real-time stock updates, allowing warehouses to analyze the inventory turnover ratio efficiently.

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Logistics Automation Market Regional Analysis:

The scope of the logistics automation market report covers North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. In terms of revenue, North America dominated the logistics automation market share.

However, in the Logistics Automation Market Regional Analysis, the market in Asia Pacific is segmented into Australia, India, China, Japan, South Korea, and the Rest of Asia Pacific. Asia Pacific is the fastest-growing region in the logistics automation market. Asia Pacific has a growing economy, which is leading to growth in a wide variety of sectors, including retail & e-commerce, manufacturing, oil & gas, food & beverages, automotive, and healthcare. The adoption of advanced and innovative technologies across the region is high. The deployment of logistics automation solutions has increased in Asian countries over time, owing to the investments and various initiatives taken by governments for the development of the retail & e-commerce industry.

The region has a strong e-commerce industry. The warehouses present in the region are implementing cutting-edge technology. Also, the growing number of products from suppliers is encouraging warehouse management to adopt robotics and logistics automation software for systematic and feasible operations. Emerging markets in Asian countries face challenges such as growing market competitiveness, cost pressures, inflation triggers, and market volatility. Thus, the planning and execution of the supply chain becomes complex. To address these issues, manufacturers and suppliers eagerly look ahead to logistics automation services to maximize the control of outbound and inbound supply chains by improving visibility and enhancing the inventory management process.

Many market players are expanding their businesses in the region to gain an advantage in the region's increasing logistics automation market share.

  • In December 2022, OMRON announced the opening of its first automation center for logistics in Singapore to cater to the customer base of Singapore, Southeast Asia, and Oceania.
  • In May 2022, FM Logistic opened its fifth multi-customer facility (and first owned) in India.

These facilities are part of its new "Powering 2030" strategy launched in 2021 and focused on developing a sustainable omnichannel supply chain. Through this strategy, FM Logistic is committed to responding to significant changes in the retail and FMCG sectors, supply chain management, and e-commerce. More than 60% of FM Logistic's new contracts worldwide are for omnichannel logistics services. The company invests heavily in automation across its markets to support its e-commerce operations.

In addition, governments of various countries in Asia Pacific are coming up with plans and initiatives to further boost the adoption of robotics and automated solutions. For instance, in December 2021, China unveiled a sharpened version of the Made in China 2025 industrial policy blueprint. Under this, the government released a five-year smart manufacturing development plan to digitize 70% of the country's large enterprises. In addition, the Japanese government introduced the New Robot Strategy by investing in the manufacturing, healthcare, infrastructure, and agriculture sectors to integrate automated solutions. Thus, countries in the region are focusing on building and owning robots and upgrading equipment and processes used in various industries. Such initiatives by governments will boost the Asia Pacific logistics automation market growth. Key logistics automation market players include Murata Machinery, Ltd.; Daifuku Co., Ltd.; and TGW Logistics Group.

Key Player Analysis:    

The market analysis is based on the annual performances of major players such as Beumer Group, Daifuku Co., Ltd.; KNAPP AG; Mecalux, S.A.; Dematic (KION Group); Murata Machinery, Ltd.; TGW Logistics Group; Swisslog Holding AG; and Toshiba Infrastructure Systems and Solutions Corp. Several other key market players were analyzed to get a holistic view of the market and its ecosystem.

Recent Developments:

Companies in the logistics automation market focus on both inorganic and organic strategies for their business growth. The logistics automation market report emphasizes the key factors driving the market and prominent players' developments. A few recent key market developments by the market players are listed below:

  • In 2023, Swisslog announced the next generation of its CarryPick mobile robotic goods-to-person storage and retrieval system. It features faster, more agile automated guided vehicles (AGVs) to increase performance levels and shorten the return on investment for customers.
  • In 2023, TGW Logistics Group GmbH announced its Quba range of mobile robots for transporting totes, cartons, and pallets. The Marchtrenk, Austria-based company said that these robots can handle a wide range of tasks, including supplying packing or returns workstations and automatic palletizing and depalletizing stations.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Component, Mode Of Freight Transport, Application, End-user Industry, and Geography

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions


Which are the key players holding the major market share of the global logistics automation market?

The key players holding majority shares in the global logistics automation market are DAIFUKU CO., LTD.; SSI SCHAEFER; KNAPP AG; Mecalux, S.A; and TGW Logistics Group.

What will be the market size of the global logistics automation market by 2030?

The global logistics automation market is expected to reach US$ 85.1 billion by 2030.

What is the incremental growth of the global logistics automation market during the forecast period?

The incremental growth expected to be recorded for the global logistics automation market during the forecast period is US$ 49.9 billion.

What are the future trends of the global logistics automation market?

Autonomous truck and truck platooning is impacting positive impact, which is anticipated to play a significant role in the global logistics automation market in the coming years.

What are the driving factors impacting the global logistics automation market?

Adoption of Industrial 4.0 across the manufacturing industry, utilization of robotics in warehouses, and continuous growth in retail & e-commerce sector are some of the drivers for the market.

What is the estimated market size for the global logistics automation market in 2022?

The global logistics automation market was estimated to be US$ 35.21 billion in 2022 and is expected to grow at a CAGR of 11.7% % during the forecast period 2022 - 2030.

The List of Companies - Logistics Automation Market 

  1. Honeywell International Inc.
  2. Beumer Group
  3. Daifuku Co., Ltd.
  4. KNAPP AG
  5. Mecalux, S.A.
  6. Dematic (KION Group)
  7. Murata Machinery, Ltd.
  8. TGW Logistics Group
  9. Swisslog Holding AG
  10. VITRONIC

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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