The Logistics Automation Market is estimated to be valued at US$ 64.12 Bn in 2023 and is expected to exhibit a CAGR of 11.41%over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The logistics automation market involves automation of materials or goods handling processes within a warehouse, distribution center or transportation facility using automated equipment and software. This includes automated storage and retrieval systems, autonomous mobile robots, conveyor systems, sortation systems and other automated machinery used for material handling and transportation within the logistics network. Automating these processes helps improve efficiency, reduce costs and errors while also enhancing productivity. With the growth of e-commerce and just-in-time manufacturing, demand for logistics automation solutions is on the rise to efficiently manage increased volumes and meet customer expectations of fast delivery.
Market Dynamics:
Rising labor costs and lack of workforce are a major driver for logistics automation adoption. Automation helps address this challenge by reducing dependency on human labor for materials handling tasks. This significantly brings down operational costs for companies. Furthermore, growing e-commerce is generating massive volumes of packages and goods that need to be efficiently sorted, packaged and shipped within tight timelines. Automation provides the necessary scalability, speed and round-the-clock operability to handle such high volumes seamlessly. Technologies such as autonomous mobile robots and automated guided vehicles are helping automate intra-facility transportation and palletizing/depalletizing processes to improve throughput. Advancements in artificial intelligence, machine learning, 3D vision systems and robotics are further enhancing functionality of logistics automation solutions. This is fueling market growth over the forecast period.
Segment Analysis
The global logistics automation market is dominated by warehouse management systems segment. WMS automates receiving, put-away, inventory and fulfillment of orders, which helps increase productivity of the warehouse operations. It tracks inventory levels in real-time and ensures optimal inventory levels to meet customer demands. This further helps reduce labor costs and errors, while improving supply chain visibility and order accuracy.
PEST Analysis
Political: Stable political environment and supportive government policies promoting automation and use of advanced technologies are boosting market growth.
Economic: Growing e-commerce industry coupled with rising labor costs is compelling warehose and logistics companies to adopt automation solutions to improve operational efficiencies.
Social: Increasing preference of consumers towards fast delivery of goods is propelling demand for logistics automation solutions.
Technological: Advancements in technologies such as robotics, Internet of Things, big data analytics are fostering development of innovative logistics automation solutions. Integrating these technologies helps optimize operations and enhance customer experience.
Key Takeaways
The Global Logistics Automation Market Size is expected to witness high growth, exhibiting CAGR of 11.41%over the forecast period, due to increasing adoption of advanced technologies and digitization of supply chain networks. The market size is projected to reach US$ 128.41 Bn by 2030.
Regional analysis: North America dominates the global market due to strong presence of leading technology vendors and early adoption of logistics automation solutions. Europe is another major market backed by growing e-commerce sales and focus of companies on automating warehouses and distribution centers.
Key players: Key players operating in the logistics automation market are ABB, BEUMER GROUP, Blue Yonder Group, Inc, Daifuku Co., Ltd., E&K AUTOMATION LIMITED, Falcon Autotech Private Limited, GreyOrange, HighJump, Infor, Locus Robotics, Manhattan Associates, One Network Enterprises, Oracle, SwanLeap Inc, and Toshiba Logistics. These players are focusing on developing innovative solutions and establishing partnerships to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
