Logistics Automation Market - Growth, Trends, and Forecast (2019 - 2024)

The Logistics Automation Market is segmented by Component (Hardware, Software, and Service), Enterprise Size (Small and Medium-size Enterprises, and Large Enterprises), Application (Warehouse Management and Transportation Management), End-user Industry (Retail and E-commerce, Manufacturing, and Oil and Gas), and Geography.

Market Snapshot

Study Period:


Base Year:


Fastest Growing Market:

Asia Pacific

Largest Market:

North America



Key Players:

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Market Overview

The logistics automation market was valued at USD 49.2 billion in 2018, and is expected to be USD 96.2 billion in 2024, registering a CAGR of 12.1% during the forecast period of 2019-2024. The emergence of Industrial Internet of Things (IIoT) and the advent of a network of connected systems are helping industries perform multitude tasks, such as material batching, picking, ordering, packaging, warehouse security, and inspection. This factor is helping improve the operational efficiency by huge margins, which in turn, is driving the market.

  • The growth in e-commerce industry worldwide and the growing need for efficient warehousing and inventory management is driving the market growth. According to a report by Salesforce, more than 500 million consumers across the world shopped using e-commerce in the first quarter of 2018. Of the overall orders through e-commerce, mobile shopping accounted for 43% of orders, accounting for 23% of the revenue from e-commerce.
  • The awareness of industries to increase the efficiency of the warehouse and reduce the capital spent on labor is resulting in the increased adoption of warehouse automation in a global supply chain scenario. According to the US Census Bureau, an average warehouse worker wastes nearly seven weeks per year in unnecessary motion, which accounts for more than USD 4.3 billion in labor alone in the domestic market.
  • The use of IoT and technologies allows the warehouses for real-time data transfer, flexible communication, and Big Data analytics. These services, along with the cloud-based solution, enable automated, sophisticated, and agent-based control.
  • However, the high initial costs and lack of skilled personnel to handle the technology may hinder the growth of the market. 

Scope of the Report

Logistics automation is the application of computer software and/or automated machinery to improve the efficiency of logistics operations. Typically, this refers to the operations within a warehouse or distribution center, with broader tasks undertaken by supply chain management systems and enterprise resource planning systems.

By Component
By Enterprise Size
Small and Medium-size Enterprises
Large Enterprises
By Application
Warehouse Management
Transportation Management
By End-user Industry
Retail and E-Commerce
Manufacturing and Automotive
Food and Beverages
Pharmaceuticals and Health Care
Oil and Gas
Aerospace and Defense
Other End-user Industries
North America
United States
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Latin America
Rest of Latin America
Middle East & Africa
United Arab Emirates
Saudi Arabia
Rest of Middle East & Africa

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Key Market Trends

Warehouse Management to Occupy Major Share

  • Warehouse operations contribute to a majority of resource consumption. As various companies demand new solutions to improve the efficiency of warehouses and to reduce cost, the deployment of warehouse robots is set to increase.
  • For instance, Alibaba, the world’s largest retailer, has upgraded to robotic labor in one of its warehouse. This has resulted in drastically reducing the labor workforce by 70% by creating an opportunity for a highly skilled workforce.
  • Mobile robots are witnessing high growth in small and medium warehouses with smaller pallet sizes, while the industrial applications in large warehouses dedicated to food and beverages demand articulated and palletizing robots.
  • According to a survey from the Association for Packaging and Processing Technologies, 94% of food packaging operations are using robotics already and half of them reported the plan to increase their level of automation in the next three to five years.
  • For instance, in August 2018, the Aberdeen-based inspection technology and service provider for the oil and gas industry, Innospection, signed a partnership agreement with Shell Brazil and Senai Cimatec, the technology institutes in Salvador, Brazil, to develop a robot-based technology for in-service inspection of cargo oil tanks of FPSOs.
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North America Accounted for the Largest Share

  • North America occupied the largest share of the logistics automation market in 2018, owing to the presence of several established e-commerce companies in the region and high investments for the development of logistics.
  • The strong economy, with notable port traffic, helped in increasing the e-commerce activities. The key manufacturing indices resulting in manufacturing growth are poised to drive the demand for warehouses in the United States.
  • A US-based third-party logistics company, DHL, plans to increase its warehouse capacity to 10 million sq. ft. by 2020. The trend was followed by other companies, such as XPO Logistics and CEVA Logistics.
  • According to the Association for Advancing Automation (A3), the North American automation market had set new records very recently. For the first nine months of 2017, 27,294 orders of robots valued at approximately USD 1.473 billion were sold in North America.
  • According to RIA estimates, about 250,000 robots are now in use in the United States, accounting for the third highest in the world, after Japan and China.  Additionally, in the United States, manufacturing accounts for USD 2.17 trillion in annual economic activity. About 98% of the US manufacturers qualify as small businesses. This leaves a huge scope for logistics automation. 
  • DHL plans to invest 300 million USD in North America for deploying new technology and transportation control towers in 350 out of the 430 to improve productivity and reduce costs. These investments are expected to drive the market in the region. 

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Competitive Landscape

The logistics automation market is highly fragmented, owing to the presence of a large number of players. The degree of competition is high, considering the number of companies that are competing. Acquisitions as well as collaboration of large companies with startups are expected, bring innovation. Merging technology domains' boundaries is expected to witness the evolution of partnership between different tech enablers in the automation industry. Some of the major players in the market are Honeywell Intelligrated, Toshiba Infrastructure System and Solutions Corporation, and Knapp AG, among others. Some of the key recent developments in the market are:

  • May 2019 - Haven, a logistic workflow automation company developed a track-and-trace solution that involves explicit collaboration between all the parties within the supply chain. This is essential to maintain real-time visibility.
  • August 2018 - Honeywell Intelligrated and Carnegie Mellon University collaboratively developed advanced supply chain robotics and AI solutions for connected distribution centers. The collaboration focuses on next-generation machine learning and robotic controls to help distribution centers address the rising e-commerce demands and resource challenges.

Major Players

  1. Honeywell Intelligrated
  2. Knapp AG
  3. Beumer Group
  4. Toshiba Infrastructure System and Solutions Corporation
  5. TGW Logistics Group GmbH

* Complete list of players covered available in the table of contents below


Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Exponential Growth of the E-commerce Industry

      2. 4.3.2 Advancements in Robotics

    4. 4.4 Market Restraints

      1. 4.4.1 High Capital Investment and Lack of Skilled Personnel

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry


    1. 5.1 By Component

      1. 5.1.1 Hardware

      2. 5.1.2 Software

      3. 5.1.3 Service

    2. 5.2 By Enterprise Size

      1. 5.2.1 Small and Medium-size Enterprises

      2. 5.2.2 Large Enterprises

    3. 5.3 By Application

      1. 5.3.1 Warehouse Management

      2. 5.3.2 Transportation Management

    4. 5.4 By End-user Industry

      1. 5.4.1 Retail and E-Commerce

      2. 5.4.2 Manufacturing and Automotive

      3. 5.4.3 Food and Beverages

      4. 5.4.4 Pharmaceuticals and Health Care

      5. 5.4.5 Oil and Gas

      6. 5.4.6 Aerospace and Defense

      7. 5.4.7 Other End-user Industries

    5. 5.5 Geography

      1. 5.5.1 North America

        1. United States

        2. Canada

      2. 5.5.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Rest of Europe

      3. 5.5.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.5.4 Latin America

        1. Brazil

        2. Argentina

        3. Mexico

        4. Rest of Latin America

      5. 5.5.5 Middle East & Africa

        1. United Arab Emirates

        2. Saudi Arabia

        3. Rest of Middle East & Africa


    1. 6.1 Company Profiles

      1. 6.1.1 Dematic Corp.

      2. 6.1.2 Daifuku Co. Limited

      3. 6.1.3 Swisslog Holding Limited

      4. 6.1.4 Honeywell Intelligrated

      5. 6.1.5 Murata Machinery Limited

      6. 6.1.6 Knapp AG

      7. 6.1.7 Jungheinrich AG

      8. 6.1.8 SSI Schaefer LLC

      9. 6.1.9 Mecalux SA

      10. 6.1.10 Beumer Group

      11. 6.1.11 TGW Logistics Group GmbH

      12. 6.1.12 Toshiba Infrastructure System and Solutions Corporation

    2. *List Not Exhaustive


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