Emerging Trends in Logistics Automation: Market Dynamics and Forecast

The global logistics automation market was valued at USD 34.56 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 15.0% from 2024 to 2030. Logistics automation encompasses a broad range of hardware and software solutions designed to streamline and enhance key logistics operations, including transportation, storage, retrieval, and data management. By automating these functions, businesses can significantly improve operational efficiency, reduce manual errors, and decrease turnaround times. The adoption of automation enables companies to scale operations effectively, as larger volumes of goods can be managed more efficiently with the aid of autonomous mobile robots (AMRs), conveyor systems, automated guided vehicles (AGVs), and automated storage and retrieval systems (AS/RS).

One of the primary drivers behind the rapid expansion of this market is the growing consumer preference for online shopping, which is accompanied by increasing expectations for faster and more efficient delivery services. This shift in consumer behavior has led to a significant rise in the number of fulfillment centers, particularly those catering to last-mile delivery and on-demand or quick-delivery services. These centers are increasingly turning to advanced automation technologies, evolving from basic mechanized solutions to fully autonomous, operator-free systems. As robotics and automated vehicle technologies continue to advance and mature, their applications in logistics and warehousing are expected to expand further, opening up substantial growth opportunities for the market throughout the forecast period.

However, the logistics automation industry also faces a number of challenges and barriers to adoption. Key among these is the intensifying competition among market players, which exerts pressure on pricing and innovation cycles. Another significant hurdle is the lack of standardization within the industry. The absence of universal standards across platforms and processes complicates integration and interoperability, making it difficult to implement uniform, scalable supply chain solutions. As a result, companies often incur high development and customization costs to create tailored systems for specific operational needs.

Moreover, the sector is affected by a shortage of skilled labor, particularly in developing economies such as India and China. The sophisticated nature of automation equipment and related software systems requires specialized training and expertise, which is not always readily available. This gap in technical workforce availability can slow down the implementation of automation projects and limit their effectiveness.

Despite these challenges, the overall outlook for the logistics automation market remains highly positive. With technological advancements, increasing investments in smart warehouses, and growing pressure on businesses to improve speed, accuracy, and efficiency, automation is set to play a central role in the transformation of logistics and supply chain operations worldwide.

Detailed Segmentation:

Component Insights

Based on components, the hardware segment dominated the market with the largest revenue share of 66.6% in 2023. Based on the hardware, the market is further segmented into automated sorting systems, autonomous robots, conveyor systems, de-palletizing/palletizing systems, automated storage and retrieval systems, automatic identification and data collection.

Vertical Insights

Based on vertical, the retail and e-commerce segment dominated the market with the largest revenue share in 2023. The sector uses logistics automation solutions in order to meet the increasing volumes of orders and shipments. Logistics automation solutions improve reliability and ensure timely delivery, which aligns with the retail and e-commerce industry's interest.

Function Insights

Based on functions, the market is segmented into inventory & storage management and transportation management. The transportation management segment dominated the market with the largest revenue share in 2023. Autonomous robots, conveyor systems, and de-palletizing/palletizing systems are used for transportation management.

Logistics Type Insights

Based on logistics type, sales logistics dominated the market with the largest revenue share in 2023. Sales logistics is the most critical aspect of the supply chain as it involves moving or delivering the goods to the end consumer. Sales logistics include order management, inventory management, shipping management, and vendor management. Automation solutions such as autonomous robots and automated storage and retrieval systems improve efficient

Organization Size Insights

Based on organization size, large enterprises dominated the market with the largest revenue share in 2023. Large enterprises handle huge volumes of products through the entire supply chain processes, which include raw materials, inventory, and final products.

Software Application Insights

Based on software applications, the market is segmented into inventory management, yard management, order management, labor management, vendor management, shipping management, customer support, and others. Among these, the order management segment dominated the market with the largest revenue share in 2023.

Regional Insights

North America led the logistics automation market in 2023, with a revenue share of 35.5%. The region's growth can be attributed to the presence of several logistics automation solution providers and several logistics companies, such as DHL, UPS, and FedEx Corporation, among others, in North America.

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Key Logistics Automation Company Insights

Some of the key companies operating in the logistics automation market include SAP., Jungheinrich AG, and Daifuku Co., Ltd., among others.

• Jungheinrich AG is a supplier of warehousing technology and material handling equipment, offering extensive products and services. Its diverse product portfolio encompasses a wide range of equipment, including reach trucks, tow tractors, counterbalanced forklift trucks, shuttle and pallet carriers, order pickers, driverless transport systems, high rack stackers, rack servicing cranes, automatic high-rack silo conveyors, and materials handling systems. In addition, Jungheinrich AG provides various electric pedestrian trucks, explosion-proof forklifts, electric pedestrian stackers, batteries, and associated accessories. The company specializes in internal logistics services and delivers innovative solutions in warehousing technology.

• Daifuku Co., Ltd. is an engineering, designing, manufacturing, installation, consultation, and after-sales service company for logistics systems and material handling equipment. The company caters to various industries, including automobile, transportation & warehousing, and commerce & retail. It has operations in 26 countries across Asia Pacific, Europe, and North America.

Key Logistics Automation Companies:

The following are the leading companies in the logistics automation market. These companies collectively hold the largest market share and dictate industry trends.

• Dematic (Kion Group AG)

• Daifuku Co., Ltd.

• Swisslog Holding AG (KUKA AG)

• Honeywell International Inc.

• Murata Machinery, Ltd.

• Jungheinrich AG

• KNAPP AG

• TGW Logistics Group

• Kardex

• Mecalux, S.A.

• BEUMER GROUP

• SSI SCHÄFER AG

• Vanderlande Industries B.V.

• WITRON Logistik

• Oracle

• One Network Enterprises

• SAP

Recent Developments

• In February 2024, Dematic announced a partnership with Canadian logistics company Groupe Robert and opened Quebec's first fully automated cold storage facility for third-party logistics. The facility features a high-capacity Automated Storage and Retrieval System (AS/RS) with 130-foot-tall cranes for managing fresh and frozen products. It also prioritizes sustainability and advanced fire safety measures and aims to enhance supply chain efficiency and serve as a central hub for manufacturers distributing products across North America.

• In May 2023, Swisslog Holding AG announced a partnership with Northern Tool + Equipment to implement a Swisslog Automation Solution within the latter’s facility in Fort Mill in the U.S. state of South Carolina. The collaboration was aimed at addressing the omnichannel distribution requirements of Northern Tool + Equipment. The solution designed by Swisslog Holding AG’s experts features the AutoStore system optimized using Swisslog Holding AG’s SynQ software. Anticipated to be fully operational by October 2023, the solution would significantly enhance the efficiency and effectiveness of Northern Tool + Equipment's operations.

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