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Logistics Automation Market Size (2024 - 2029)

The logistics automation market is experiencing significant growth, driven by the expanding e-commerce sector and the increasing need for efficient warehousing and inventory management. Automation in logistics, which involves the use of machinery, control systems, and software to streamline operations with minimal human intervention, offers benefits such as improved customer service, scalability, and error reduction. Despite the high upfront costs and the lengthy return on investment, the adoption of automation solutions is being accelerated by the COVID-19 pandemic, as companies seek to enhance productivity and ensure safer work environments. The integration of technologies like the Industrial Internet of Things is further enhancing operational efficiency, although the transition in labor-intensive economies remains a challenge.

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Market Size of Logistics Automation Industry

Logistics Automation Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 75.24 Billion
Market Size (2029) USD 120.63 Billion
CAGR (2024 - 2029) 9.90 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration High

Major Players

Logistics Automation Market Major Players

*Disclaimer: Major Players sorted in no particular order

Logistics Automation Market Analysis

The Logistics Automation Market size is estimated at USD 75.24 billion in 2024, and is expected to reach USD 120.63 billion by 2029, growing at a CAGR of 9.90% during the forecast period (2024-2029).

  • Manufacturing Complexity Fueling Automation Adoption: The growing complexity in manufacturing processes is accelerating the adoption of logistics automation systems. Warehouse sizes have expanded dramatically, with average warehouse space tripling from 65,000 sq. ft. in 2000 to over 200,000 sq. ft. This scale-up has led to a significant demand for warehouse automation technology, as it becomes increasingly challenging to manage higher volumes and an ever-growing variety of SKUs. To address these issues, companies are turning to advanced solutions like automated material handling systems and autonomous mobile robots (AMRs). A prime example is the 266% productivity increase achieved by Integrated Supply Network after deploying 49 AMRs from Körber and Locus Robotics, with picking efficiency skyrocketing from 30 to 110 picks per hour.
  • Workforce Safety and Efficiency Improvements: The introduction of automation technologies is substantially enhancing workforce safety and operational efficiency in logistics environments. According to the U.S. Bureau of Labor Statistics, over 15,000 work-related incidents are reported annually in storage and warehousing, highlighting the industry's safety risks. Logistics automation systems, including light-guided docking solutions and automated storage and retrieval systems (ASRS), help mitigate these hazards. Additionally, automated systems eliminate human error and operate 24/7, ensuring higher productivity without the need for breaks or shift changes.
  • Technological Advancements Reshaping Logistics: The integration of cutting-edge technologies such as IoT, artificial intelligence (AI), and machine learning into logistics automation is revolutionizing the industry. These advancements facilitate real-time data processing, smart warehousing, and enhanced decision-making. For instance, Amazon’s deployment of over 200,000 mobile robots underscores the transformative power of robotics in logistics, optimizing everything from supply chain automation to fleet management. The growing use of warehouse execution systems, powered by AI, is improving service levels, reducing operational bottlenecks, and elevating overall efficiency.
  • Competitive Landscape and Investment Trends: The logistics automation market is relatively fragmented, with industry leaders like Kion Group, Daifuku, and Honeywell driving market growth through consistent innovation and strategic investments. These companies focus on enhancing their portfolios with advanced robotics in logistics and automated guided vehicles (AGVs). A notable development is the March 2023 launch of Digit, a versatile logistics robot by Agility Robotics, which is set to revolutionize bulk material handling. Furthermore, the market is witnessing robust investments in AI-powered logistics automation trends, as seen with UK-based BotsAndUs raising EUR 12.3 million (USD 13.75 million) in 2022 to enhance warehouse automation.
  • Future Outlook and Opportunities: The logistics automation industry outlook suggests significant future growth driven by the proliferation of autonomous systems embedded with sensors, AI, and data analytics. Robotics-as-a-Service (RaaS) is emerging as a game-changer, enabling broader adoption of automated logistics systems by reducing upfront costs and offering scalability. Automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) are expected to dominate the logistics automation landscape, with increasing use in both consumer and industrial sectors. Companies that successfully integrate advanced automation technologies and adapt to evolving market demands will secure leadership in this expanding market.

Logistics Automation Industry Segmentation

Logistics automation is the use of technology like machinery and logistics software to enhance the efficiency of logistical processes from procurement to production, inventory management, distribution, customer service, and recovery.

The Logistics Automation Software Market is segmented by warehouse automation market (by component [hardware [mobile robots (AGV, AMR), automated storage and retrieval systems (AS/RS), automated sorting systems, de-palletizing/palletizing systems, conveyor systems, automatic identification and data collection (AIDC), order picking], software, and services]), by end-user industry (food and beverage, post and parcel, groceries, general merchandise, apparel, manufacturing, other end-user industries), by beography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa), and transportation automation market, other transportation automation market). The market sizes and forecasts are provided in terms of value in USD for all the segments.

Warehouse Automation Market
By Component
Hardware
Mobile Robots (AGV, AMR)
Automated Storage and Retrieval Systems (AS/RS)
Automated Sorting Systems
De-palletizing/Palletizing Systems
Conveyor Systems
Automatic Identification and Data Collection (AIDC)
Order Picking
Software
Services
By End-user Industry
Food and Beverage
Post and Parcel
Groceries
General Merchandise
Apparel
Manufacturing
Other End-user Industries
By Geography***
North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Logistics Automation Market Size Summary

The logistics automation market is experiencing significant growth, driven by the increasing demand for efficient warehousing and inventory management, particularly in the e-commerce sector. Automation in logistics involves the use of machinery, control systems, and software to enhance operational efficiency, often with minimal human intervention. This technology is primarily applied in warehouses and distribution centers, offering benefits such as improved customer service, scalability, speed, and reduced errors. Despite the high upfront costs and the lengthy return on investment period, the market is expanding as businesses recognize the cost-cutting and error-minimizing advantages of automation. The COVID-19 pandemic has further accelerated the adoption of automation and robotics, as companies seek to create safer workplaces and meet the rising demands of e-commerce.

The Asia-Pacific region is a key player in the logistics automation market, with countries like China and India leading the charge due to their robust e-commerce sectors and increasing industrial automation. China, in particular, is a major supplier of warehouse robots, while Japan is investing heavily in robotic innovation through government initiatives. In India, the growth of the e-commerce market, supported by government policies and increased internet connectivity, is driving the demand for automated warehouses. Major companies, including Amazon, are investing in automation technologies to enhance their operations. The market is fragmented, with established players like Honeywell, Swisslog, and Daifuku making significant investments in automation solutions. These companies are continuously innovating to maintain their competitive edge, as evidenced by recent advancements in robotic systems and intralogistics technologies.

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Logistics Automation Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products and Services

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Analysis of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Warehouse Automation Market

      1. 2.1.1 By Component

        1. 2.1.1.1 Hardware

          1. 2.1.1.1.1 Mobile Robots (AGV, AMR)

          2. 2.1.1.1.2 Automated Storage and Retrieval Systems (AS/RS)

          3. 2.1.1.1.3 Automated Sorting Systems

          4. 2.1.1.1.4 De-palletizing/Palletizing Systems

          5. 2.1.1.1.5 Conveyor Systems

          6. 2.1.1.1.6 Automatic Identification and Data Collection (AIDC)

          7. 2.1.1.1.7 Order Picking

        2. 2.1.1.2 Software

        3. 2.1.1.3 Services

      2. 2.1.2 By End-user Industry

        1. 2.1.2.1 Food and Beverage

        2. 2.1.2.2 Post and Parcel

        3. 2.1.2.3 Groceries

        4. 2.1.2.4 General Merchandise

        5. 2.1.2.5 Apparel

        6. 2.1.2.6 Manufacturing

        7. 2.1.2.7 Other End-user Industries

      3. 2.1.3 By Geography***

        1. 2.1.3.1 North America

        2. 2.1.3.2 Europe

        3. 2.1.3.3 Asia

        4. 2.1.3.4 Australia and New Zealand

        5. 2.1.3.5 Latin America

        6. 2.1.3.6 Middle East and Africa

    2. 2.2 Global Transportation Automation Market Scenario

    3. 2.3 Other Global Transportation Automation Market Scenarios

Logistics Automation Market Size FAQs

The Logistics Automation Market size is expected to reach USD 75.24 billion in 2024 and grow at a CAGR of 9.90% to reach USD 120.63 billion by 2029.

In 2024, the Logistics Automation Market size is expected to reach USD 75.24 billion.

Logistics Automation Market Report Snapshots

Logistics Automation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)