Logistics Automation Market Overview

According to a new report published by Introspective Market Research, titled, “Logistics Automation Market by Components, Function,Logistics Type, Organization Size, Software Application, Vertical, and Region Global Market Analysis and Forecast, 2024-2032.

The Global Logistics Automation Market was valued at $ 68.46 Billion in 2023 and is expected to reach $ 160.11 Billion by the year 2032, at a CAGR of 9.90%.

The logistics automation market is growing rapidly due to the need for efficient and cost-effective supply chain operations. Advancements in robotics, AI, and IoT are automating processes like warehouse management, inventory tracking, transportation, and last-mile delivery. This enhances operational efficiency, and accuracy, reduces labor costs, and accelerates order fulfillment. The COVID-19 pandemic has further accelerated the adoption of logistics automation solutions, making the market poised for continued expansion.

Logistics automation is an emerging market that has experienced consistent growth due to technological advancements such as robotics, artificial intelligence, machine learning, and IoT. These technologies simplify business operations, optimize costs, and enhance overall performance. Key trends in the market include the increasing demand for efficient order processing due to online purchasing, automation in warehouses and distribution centers, and the benefits of live inventory tracking through IoT sensors and RFID.

Automation technologies enable e-commerce companies to execute functions such as order processing, restocking, and shipping, minimizing errors and increasing product delivery rates. This is crucial for short delivery periods and efficient purchasing paths. Automation also provides advantages like real-time tracking and inventory management across the entire supply chain, enhancing supply chain control and sales forecasting. The demand for logistics automation is projected to continue rising due to the growing global market competitiveness and the increasing role of digital technologies. Implementing automation technologies in supply chains can lead to better performance, reduced costs, and increased customer satisfaction.

According to Logistics Automation, Market is segmented into Inventory Management, Order Management, Yard Management, Shipping Management, Labor Management, Vendor Management, Customer Support and Other Applications. By Vertical, the market is categorized into Retail & e-commerce, Manufacturing, Healthcare & Pharmaceuticals, Food & Beverages, Automotive, Aerospace and Defense, Chemicals, and Other Verticals (paper and printing, and textiles and clothing). By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

Robotics and automation solutions are revolutionizing the logistics industry by improving productivity. Automated mobile robots (AMRs) are widely used in warehouses and distribution centers for tasks like transportation, picking, and sorting. These self-driven robots perform most planning themselves, boosting efficiency, order accuracy, and fulfilling warehouse plans. This self-driven approach is a significant step towards enhancing overall logistics operations.

The integration of artificial intelligence and machine learning algorithms in logistics automation systems is a significant advancement. These tools analyze past and present data to make smart predictions, enabling businesses to anticipate demand changes and constraints and adjust operations accordingly. AI algorithms process operational and sensory data, providing better insights for supply chain decisions.

Global Logistics Automation Market, Segmentation

Logistics Automation Market is segmented based on Components, Function, Logistics Type, Organization Size, Software Application, Vertical and Region.

Components:

De-palletizing/Palletizing Systems segment is expected to dominate the market during the forecast period. De-palletizing/Palletizing Systems are crucial tools in manufacturing and production industries, revolutionizing the handling of pallets in distribution centers and warehouses. These systems reduce the time and complexity of pallet-related processes, such as loading, unloading, sorting, and arrangement, by automating tasks and minimizing manual labor. They increase production output and streamline operations. The increasing use of Depal/Palletizing Systems is driven by workflow optimization, as they help avoid time-consuming stoppages and slotting limitations, enabling manufacturers to meet production deadlines. They also cater to various pallet sizes and configurations, making them ideal for warehouses with variable handling requirements. As trends continue to evolve, the importance of De-palletizing/Palletizing Systems is expected to grow, becoming an essential tool for operational improvement.

Function:

Inventory and Storage Management segment held the largest share in 2023. Logistics, inventory, and storage management are crucial for maintaining order and supply in various industries. With globalization and e-commerce, these components have become even more crucial, as they ensure the proper flow of goods and meet customer expectations. Sales logistics, a prevalent type of logistics, takes the largest market share in the retail and e-commerce industry. It involves ordering and rearranging product flows from manufacturers to end consumers efficiently, involving complex coordination between stock storage, service ordering, and transportation. In today's competitive business world, the effectiveness of sales logistics is often the deciding factor for a business's success. Companies must develop or implement a strong sales logistics plan to meet customer expectations and improve delivery speed. Advanced technologies, data analysis, and collaboration with other companies can help companies improve their sales logistics processes, increasing opportunities and meeting customer needs. Thus, sales logistics remains the key to supply chain management, fostering innovation, growth, and commitment to customer satisfaction in various industries.

Region:

Asia-Pacific is Expected to Dominate the Market Over the Forecast Period. The logistics automation market in the Asia-Pacific region, particularly in China, Japan, and South Korea, is dominated by the growth of the e-commerce sector. The demand for efficient and timely delivery has led to the adoption of automation technologies to streamline logistics processes. The manufacturing sector, particularly in China, relies on efficient logistics operations to support its vast production networks. Integrating automation technologies like robotics, conveyor systems, and warehouse management software can optimize inventory management, reduce lead times, and enhance operational efficiency. The retail sector has also undergone significant transformation, with traditional brick-and-mortar stores adopting online platforms to reach a wider customer base. This shift has placed immense pressure on retailers to ensure swift order fulfillment, leading to the need for advanced logistics automation solutions. Government initiatives aimed at modernizing logistics infrastructure have also contributed to the growth and resilience of the Asia-Pacific logistics industry.

Some of The Leading/Active Market Players Are-

• Dematic
• Honeywell Intelligrated
• Daifuku
• Oracle 
• SAP
• IBM
• SSI Schaefer
• Knapp
• Manhattan Associates
• Swisslog
• Blue Yonder
• Mantis
• Murata Machinery
• TGW Logistics Group 
• Jungheinrich
• System Logistics 
• Zebra Technologies
• ABB 
• BEUMER Group
• Korber
• O9 Solutions
• JR Automation (US),
• Automated Logistics Systems (US),
• SBS Toshiba Logistics (Japan),
• and Other Active Players

Key Industry Developments

• In June 2024, Honeywell announced that it had completed the acquisition of Global Access Solutions from Carrier Global Corporation for $4.95 billion. The transaction positions Honeywell as a leading provider of information security solutions for the digital age, with opportunities for accelerated innovation in the rapidly growing cloud-based services and solutions space. This transaction also strengthens the orientation of Honeywell's portfolio around three attractive megatrends, including automation, and complements Honeywell's building automation segment.
• In September 2023, Dimerco, a global carrier, is adapting to the changing supply chain strategies of large high-tech companies by opening its second bonded warehouse in Taiwan's Taoyuan International Airport Free Trade Zone on September 12, 2023. In response to the growing number of distributions centers, the new facility of Dimerco was established in the APAC region to be closer to suppliers and is part of a single logistics solution to meet air and sea freight, customs warehousing, and trade requirements. The solution is aimed primarily at high-tech companies operating in Taiwan, the epicenter of global semiconductor manufacturing.

Key Findings of the Study 

• De-palletizing/Palletizing Systems segment is expected to dominate the market, driven by the need to streamline pallet handling processes and optimize workflow in warehouses and distribution centers.
• The Asia-Pacific region, particularly China, Japan, and South Korea, is expected to dominate the market due to the booming e-commerce sector and the need for efficient logistics operations in manufacturing and retail.
• The increasing demand for efficient order processing due to the rise of online purchasing is a major market driver. Automation technologies help e-commerce companies execute functions like order processing, restocking, and shipping with higher accuracy and speed.