Logistics Automation Market Forecasts to 2028 - Global Analysis By Components (Hardware-Integrated Systems, Software and Other Components), Function (Warehouse and Storage Management and Transportation Management), Organization Size (Large Enterprises and Small and Medium Enterprises), Type (Production Logistics, Sales Logistics and Other Types), Mode of Freight Transport (Air, Road & Sea), Application, End User and Geography
Estimated Year Value (2022)
US $56.60 BN
Projected Year Value (2028)
US $117.71 BN
CAGR (2022 - 2028)
North America, Europe, Asia Pacific, South America, and Middle East & Africa
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa
Fastest Growing Market
According to Stratistics MRC, the Global Logistics Automation Market is accounted for $56.60 billion in 2022 and is expected to reach $117.71 billion by 2028 growing at a CAGR of 12.98% during the forecast period. Logistics automation is the process of increasing the effectiveness of logistical activities, including procurement, production, inventory management, distribution, customer service, and recovery, via the use of technology such as machinery and software. Consider robotic arms, automated storage & retrieval systems (AS/RS), carousels, and vertical lift modules when considering machinery. Numerous solutions for logistics software also assist with billing, accounting, tracking, business intelligence, sales, WMS, CRM, and other areas. Utilizing technologies to increase warehouse productivity is part of logistics automation. A variety of procedures, including order fulfilment, stock management, and order dispatch, can be automated.
According to the Bank of America, by 2025, 45% of all manufacturing is likely to be performed by robotic technology. Following this trend, large firms, such as Raymond Limited (an Indian textile major) and Foxconn Technology (a China-based supplier for large technology manufacturers like Samsung) have replaced (or plan to replace) 10,000 and 60,000 workers, respectively, by incorporating automated technology into their factories.
Exponential growth in the eCommerce industry
The surge in online purchasing and the rise in internet users have been the primary drivers of the ecommerce industry's exponential expansion over the past ten years. Due to the increase in e-commerce, logistics companies must work more quickly and effectively to process small, individual orders. Online shoppers anticipate accurate orders, same-day or urgent deliveries, and cost-free exchanges. Many e-commerce businesses are looking into novel approaches to cut down on operating expenses and order delivery times. Transparency, price, convenience, quick delivery, and enticing frictionless returns are all driven by the e-Commerce sector.
Lack of uniform governance standards
Globally, the supply chain efficiency is the main emphasis of the transportation and logistics industry in order to increase visibility and profitability. Common governance guidelines are necessary for the logistics sector. Due to a lack of government involvement and the lack of regional organisations that may actively launch and bind global logistics standardisation activities, logistics standardisation in Asian countries is limited in comparison to the US and Europe. The market for logistics automation is constrained from expanding because end users find it challenging to fully automate supply chain and logistics activities due to the absence of standardised governance standards.
Increasing adoption of industry 4.0
By combining industry 4.0 with warehouse robots, conventional warehouses are being transformed into intelligent, networked, and highly efficient automated warehouses. Additionally, it enables robots to receive precise instructions and react to their surroundings. Warehousing facilities can respond to considerable changes in their industries thanks to Industry 4.0 technologies. Industry 4.0 and robotics system integration has made warehouse workers more effective at doing time-sensitive and high-velocity tasks at a cheap cost. Robotics systems are becoming more prevalent in the logistics workforce, facilitating zero-defect procedures, and increasing efficiency due to rapid technical improvements and lower costs. Due to the rapid advancement of grip and sensor technologies, robotics systems will soon continue to become faster, more accurate, adaptable, and more inexpensive.
High cost of raw materials
Security and privacy concerns arise when businesses use cloud-based applications for logistics automation. In order to prevent data breaches and theft, which could damage the reputation of the organisations as a whole, the enterprises must preserve the confidential data they own. A rising concern among businesses is that their data may leak across the internet and be viewed by unauthorised people. Consequently, there is a chance that customers of a business could see information about rivals. The enterprise's data security and competitive business position will likely be threatened by these security issues involving unauthorised persons accessing the data. Because of this, businesses are becoming increasingly concerned about security and privacy.
Due to governmental limitations like lockdowns and social seclusion that are implemented during pandemics, the COVID-19 pandemic had a negative impact on the global logistics automation market. The revenue of several businesses, including infrastructure, retail, manufacturing, automotive, logistics, and others, has been greatly impacted by COVID-19. For instance, the International Finance Corporation claims that COVID-19 had a significant negative impact on the logistics companies involved in the transit, storage, and flow of commodities. Additionally, many nations, including India and the UK, have implemented stringent lockdowns that restrict the flow of people and goods across both domestic and foreign borders. This has a detrimental effect on the revenue of logistics businesses, which in turn hinders the adoption of cutting-edge technologies throughout the logistics industry.
The hardware-integrated systems segment is expected to be the largest during the forecast period
The hardware-integrated systems segment is estimated to have a lucrative growth, due to the increasing demand for robotics and automation technologies among food and beverage firms globally over the forecast period, the hardware-integrated systems category is anticipated to have the largest market share. The automated storage and retrieval system (ASRS), conveyors and sortation systems, robotic handling systems, autonomous mobile robots (AMRs), and automated guided vehicles are all included in the hardware-integrated systems section (AGVs). Although robots are being used more frequently throughout the whole supply chain, their use is anticipated to significantly increase in the near future, driving the market.
The retail and e-Commerce segment is expected to have the highest CAGR during the forecast period
The retail and e-Commerce segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the use of logistics automation technologies has aided online and multichannel retailers track and monitor the operation of light goods vehicles, ensuring the prompt delivery of goods. Due to the rising trend of electronic cash transfers, internet marketing, online transaction processing, and electronic data exchange, the e-commerce sector is also growing with the biggest market share. The demand for automated fulfilment centres has increased as a result of the rapidly shifting client preferences, the rise in online shopping, the increasing desire for faster delivery times, and the severe competition among online retailing organisations. These factors have also increased the need for adaptive and specialised logistics automation solutions in the eCommerce sector.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period owing to large-scale industry in developing nations like China and India. The region is a desirable market for the retail and eCommerce industries due to the rising disposable income of people and the expanding populations of China and India. Global corporations are making large investments in the region's manufacturing, automotive, retail, and healthcare sectors. The market for logistics automation in APAC is expanding due to important factors like the development of the transportation and logistics sector and the rise in trade agreements. One of the main forces driving the use of logistics automation in the APAC region is the growing trend of businesses there toward leaner, more agile supply chains with end-to-end visibility.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period; due to many businesses in North America are implementing solutions for logistics automation to enhance supply chain operations. The logistics automation market in this region is expanding as a result of rising demand from the healthcare and pharmaceutical industries, the food and beverage industry, and manufacturing facilities. The market has grown as a result of the main companies in North America using automation robots more frequently to streamline warehousing and logistics operations.
Key players in the market
Some of the key players profiled in the Logistics automation Market include Dematic, Locus Robotics, Honeywell Intelligrated, Swisslog, SBS Toshiba Logistics, Zebra Technologies, System Logistics, Seegrid, GreyOrange, E&K Automation, TGW Logistics Group, Murata Machinery, Oracle, Daifuku, Falcon Autotech, SAP, SSI Schaefer, Manhattan Associates, Jungheinrich and HighJump.
In February 2021, Honeywell Intelligrated partnered with Fetch Robotics, a company that provides cloud-driven robotic solutions. Fetch Robotics will launch an autonomous mobile robot called pallet transport1500 for contactless pallet transportation across distribution Centers.
In May 2020, Manhattan Association launched the Manhattan Active Warehouse Management Solution. It is the world’s first cloud-native enterprise-class warehouse management system (WMS).
In March 2020, Dematic launched the Dematic Multishuttle (DMS) 2 e, which is the latest version of the company’s warehouse automation solution.
• Hardware-Integrated Systems
• Other Components
• Warehouse and Storage Management
• Transportation Management
Organization Sizes Covered:
• Large Enterprises
• Small and Medium Enterprises
• Production Logistics
• Sales Logistics
• Recovery Logistics
• Procurement Logistics
• Other Types
Mode of Freight Transports Covered:
• Infotainment system
• Safety and alerting system
• Other Applications
End Users Covered:
• Production Healthcare and Pharmaceuticals
• Retail and e-Commerce
• Fast Moving Consumer Goods (FMCG)
• Oil, Gas, and Energy
• Aerospace and Defence
• Other End Users
• North America
o Rest of Europe
• Asia Pacific
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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Table of Contents
1 Executive Summary
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
3 Market Trend Analysis
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Logistics Automation Market, By Components
5.2 Hardware-Integrated Systems
5.3.1 Warehouse Management System (WMS) Software
5.3.2 Transportation Management System (TMS) Software
5.4.3 Support and Maintenance
5.5 Other Components
6 Global Logistics Automation Market, By Function
6.2 Warehouse and Storage Management
6.3 Transportation Management
7 Global Logistics Automation Market, By Organization Size
7.2 Large Enterprises
7.3 Small and Medium Enterprises
8 Global Logistics Automation Market, By Type
8.2 Production Logistics
8.3 Sales Logistics
8.4 Recovery Logistics
8.5 Procurement Logistics
8.6 Other Types
9 Global Logistics Automation Market, By Mode of Freight Transport
10 Global Logistics Automation Market, By Application
10.3 Infotainment system
10.4 Safety and alerting system
10.5 Other Applications
11 Global Logistics Automation Market, By End User
11.2 Healthcare and Pharmaceuticals
11.4 Retail and e-Commerce
11.6 Fast Moving Consumer Goods (FMCG)
11.8 Oil, Gas, and Energy
11.9 Aerospace and Defence
11.10 Other End Users
12 Global Logistics Automation Market, By Geography
12.2 North America
12.3.6 Rest of Europe
12.4 Asia Pacific
12.4.5 New Zealand
12.4.6 South Korea
12.4.7 Rest of Asia Pacific
12.5 South America
12.5.4 Rest of South America
12.6 Middle East & Africa
12.6.1 Saudi Arabia
12.6.4 South Africa
12.6.5 Rest of Middle East & Africa
13 Key Developments
13.1 Agreements, Partnerships, Collaborations and Joint Ventures
13.2 Acquisitions & Mergers
13.3 New Product Launch
13.5 Other Key Strategies
14 Company Profiling
14.2 Locus Robotics
14.3 Honeywell Intelligrated
14.5 SBS Toshiba Logistics
14.6 Zebra Technologies
14.7 System Logistics
14.10 E&K Automation
14.11 TGW Logistics Group
14.12 Murata Machinery
14.15 Falcon Autotech
14.17 SSI Schaefer
14.18 Manhattan Associates
List of Tables
1 Global Logistics Automation Market Outlook, By Region (2020-2028) ($MN)
2 Global Logistics Automation Market Outlook, By Components (2020-2028) ($MN)
3 Global Logistics Automation Market Outlook, By Hardware-Integrated Systems (2020-2028) ($MN)
4 Global Logistics Automation Market Outlook, By Software (2020-2028) ($MN)
5 Global Logistics Automation Market Outlook, By Warehouse Management System (WMS) Software (2020-2028) ($MN)
6 Global Logistics Automation Market Outlook, By Transportation Management System (TMS) Software (2020-2028) ($MN)
7 Global Logistics Automation Market Outlook, By Services (2020-2028) ($MN)
8 Global Logistics Automation Market Outlook, By Consulting (2020-2028) ($MN)
9 Global Logistics Automation Market Outlook, By Implementation (2020-2028) ($MN)
10 Global Logistics Automation Market Outlook, By Support and Maintenance (2020-2028) ($MN)
11 Global Logistics Automation Market Outlook, By Other Components (2020-2028) ($MN)
12 Global Logistics Automation Market Outlook, By Function (2020-2028) ($MN)
13 Global Logistics Automation Market Outlook, By Warehouse and Storage Management (2020-2028) ($MN)
14 Global Logistics Automation Market Outlook, By Transportation Management (2020-2028) ($MN)
15 Global Logistics Automation Market Outlook, By Organization Size (2020-2028) ($MN)
16 Global Logistics Automation Market Outlook, By Large Enterprises (2020-2028) ($MN)
17 Global Logistics Automation Market Outlook, By Small and Medium Enterprises (2020-2028) ($MN)
18 Global Logistics Automation Market Outlook, By Type (2020-2028) ($MN)
19 Global Logistics Automation Market Outlook, By Production Logistics (2020-2028) ($MN)
20 Global Logistics Automation Market Outlook, By Sales Logistics (2020-2028) ($MN)
21 Global Logistics Automation Market Outlook, By Recovery Logistics (2020-2028) ($MN)
22 Global Logistics Automation Market Outlook, By Procurement Logistics (2020-2028) ($MN)
23 Global Logistics Automation Market Outlook, By Other Types (2020-2028) ($MN)
24 Global Logistics Automation Market Outlook, By Mode of Freight Transport (2020-2028) ($MN)
25 Global Logistics Automation Market Outlook, By Air (2020-2028) ($MN)
26 Global Logistics Automation Market Outlook, By Road (2020-2028) ($MN)
27 Global Logistics Automation Market Outlook, By Sea (2020-2028) ($MN)
28 Global Logistics Automation Market Outlook, By Application (2020-2028) ($MN)
29 Global Logistics Automation Market Outlook, By Transportation (2020-2028) ($MN)
30 Global Logistics Automation Market Outlook, By Infotainment system (2020-2028) ($MN)
31 Global Logistics Automation Market Outlook, By Safety and alerting system (2020-2028) ($MN)
32 Global Logistics Automation Market Outlook, By Other Applications (2020-2028) ($MN)
33 Global Logistics Automation Market Outlook, By End User (2020-2028) ($MN)
34 Global Logistics Automation Market Outlook, By Healthcare and Pharmaceuticals (2020-2028) ($MN)
35 Global Logistics Automation Market Outlook, By Manufacturing (2020-2028) ($MN)
36 Global Logistics Automation Market Outlook, By Retail and e-Commerce (2020-2028) ($MN)
37 Global Logistics Automation Market Outlook, By 3PL (2020-2028) ($MN)
38 Global Logistics Automation Market Outlook, By Fast Moving Consumer Goods (FMCG) (2020-2028) ($MN)
39 Global Logistics Automation Market Outlook, By Chemicals (2020-2028) ($MN)
40 Global Logistics Automation Market Outlook, By Oil, Gas, and Energy (2020-2028) ($MN)
41 Global Logistics Automation Market Outlook, By Aerospace and Defence (2020-2028) ($MN)
42 Global Logistics Automation Market Outlook, By Other End Users (2020-2028) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
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