Logistics Automation Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Logistic Automation Market Overview

The size of the logistic automation market was USD 33.0 billion in 2023, and it is projected to grow at a CAGR of 9.2% from 2024 to 2030, reaching USD 61.0 billion by 2030. Automation technology has improved productivity, enhanced management, and helped in purchasing many goods with several benefits.

It is extremely helpful in managing inventory and the manufacturing process. Logistics automation involves the integration of equipment, control systems, and software so that their success rate can be increased. They consist variety of transportation and automated storage systems, such as robotic arms, independent mobile robots, and automated storage and retrieval systems.

The benefits associated with these systems include flexibility, speed, managerial control, data analysis, and improved consumer service. A key field where these systems are making an enormous difference is transportation management. Organizations can maximize their transportation networks and reduce fuel expenses with the help of advanced route optimization techniques as well as continuous monitoring systems.

For instance, in May 2021, Amazon disclosed its plans to construct five new buildings in British Colombia and Metro Vancouver for expanding its business. This included an organizational center, three delivery stations, and a fulfillment center. These new facilities helped them boost customer satisfaction with high-quality products and fast deliveries.

The industrial sector has adopted the internet of things (IoT) and interconnected systems to support various operations, including ordering, packing, picking, batching, and security. The production landscape is also reshaping as an outcome of the increasing pace of development in robotics. It is expected that 45% of the production tasks will be managed by robots in the coming few years, which will lead to faster production and augmented outputs.

Logistic Automation Market Trends & Drivers

Elevating Adoption of E-Commerce Platform

• One of the major key factors that are boosting the growth of the market is the increasing use of e-commerce platforms.
• This trend, in turn, is reshaping customer expectations and the competitive landscape in the market.
• E-commerce platforms provide convenience and versatility, transforming how people shop. Consumers can explore a broad range of products, buy them, and even compare prices with just a few clicks from anywhere. This is increasing the demand for reliable and efficient delivery solutions, which is why organizations are investing in automation to satisfy consumers’ expectations for fast deliveries and effortless order fulfillment.
• These platforms make it easier for organizations to reach the global market. Now, small enterprises need not have physical branches in different locations to reach customers around the world.
• This reach has made efficient supply chain management necessary for handling obstacles in global product shipment and customer satisfaction.
• The logistics automation technology enables organizations to grow their business effortlessly, by helping them manage inventory in warehouses and enhancing transportation routes for delivering goods in different regions.

Advancements in Technology

• The technological developments in the logistics market have completely reshaped the way supply chain operations are managed, leading to precision, cost-effectiveness, and improved productivity.
• These developments are easily visible in the areas of transportation, warehouse management, and stock tracking.
• One of the most-significant technological advancements in the logistics market is robots.
• These machines can perform everything precisely and quickly. They are primarily deployed to perform repetitive jobs, such as sorting, picking, and packing, which results in low labor expenses and improved productivity.
• Further, the improvements in artificial intelligence and machine learning are making it possible to build intelligent logistics systems that are capable of optimizing complex supply chain processes and making decisions in real time.
• Large amounts of data can be evaluated with the help of AI algorithms, while machine learning algorithms can improve their performance based on historical data and by analyzing logistics operations properly.

Inability to Manage Advanced Automated Systems

• The management of advanced automated systems is quite challenging for users.
• Although logistics tasks can be improved with the help of automation, it is difficult for various organizations to take full advantage of these technologies for many reasons.
• Since these advanced automated systems are complex, they some skilled and trained employees to operate them.
• An unqualified individual might not understand how to manage these digital systems, which could lead to errors and faults in the entire operation.
• Moreover, automated systems are constantly being upgraded with new functions and features. It can be difficult for organizations to maintain a top position if they lack proper training or have outdated facilities or old systems.
• Cybersecurity also poses a potential risk in these advanced technologies, if not implemented or executed properly.
• Automation technologies are more vulnerable to cyber threats, such as ransomware and hacking, as they are extensively utilized for data exchange and interconnection.
• Maintaining continuous operation, avoiding possible disruptions and breaches, and ensuring the safety of confidential information rely extensively on the integrity and security of automated systems.

In-Depth Segmentation Analysis

Component Insights

• The hardware category held the largest revenue share, of around 50%, in the market in 2023.
• Hardware is the foundation of this market, as a number of physical components are crucial for performing several logistical operations. A growing number of industries need automation technologies, which is leading to substantial expenditures on hardware.
• In the modern business environment, organizations are experiencing several advantages of automating manual processes, such as enhanced productivity, competitive edge, and reduced expenses.
• This is leading to the rising popularity of logistics automation hardware, especially in production plants, warehouses, and transportation networks.
• Moreover, the enhancement in hardware components has enabled the development of sophisticated and powerful automation systems.

Below are the components that we have studied during the research

• Hardware (Largest Category)
• Autonomous mobile robots (AMRs)
• Automated guided vehicles (AGVs)
• Automated storage and retrieval systems (ASRS)
• Automated sorting and conveyor systems
• De-palletizing/palletizing systems
• Automatic identification and data collection (AIDC) systems
• Conveyors
• Software (Fastest-Growing Category)
• Warehouse management systems
• Transportation management systems
• Services
• Consulting
• Deployment and integration
• Support and maintenance

Function Insights

• The transportation logistics category is dominating the market.
• The logistics sector essentially involves shifting products from one place to another; so, transportation is its basic need.
• The automation technology is playing a crucial role in increasing the advantages for the transportation sector.
• It can help reduce operational costs and enable fast deliveries by optimizing routes, which ultimately helps in distributing products more efficiently and reliably.
• In today's world of competition, reliability in goods delivery is imperative for logistics companies as customers now highly prize this aspect when choosing a shipper.
• Moreover, via automation, transportation organizations can track shipments in real-time and provide precise ETAs.

Below are the major functions studied in the logistics automation market

• Inventory and Storage Management (Faster-Growing Category)
• Transportation Logistics (Larger Category)

Logistics Type Insights

• The sales category held the largest market share, of around 45%, in 2023, and it is predicted to grow at a CAGR of over 9.3% in the forecast period.
• Sales activities are the most important for any organization or business for generating revenue.
• Sales departments manage many things in a business, such as inventories, orders, shipping, and vendors.
• Automation solutions are gaining more popularity in the sales area as they make things easy with the help of autonomous robots and automated storage systems.
• With the rise of e-commerce, the competition in the sales field is also increasing, which is compelling companies to adopt advanced logistics capabilities.
• Automation helps sales-focused companies satisfy customer demands and surpass their competitors.

The logistics types included in this report are

• Sales (Largest Category)
• Production (Fastest-Growing Category)
• Recovery
• Procurement

Organizational Size Insights

• The large enterprises category is dominating the market, due to established companies’ competitive advantage, as they have substantial financial resources.
• This advantage is allowing them to make huge investments in advanced automation technologies.
• These enterprises can automate almost everything, such as transportation, inventory, and warehouse systems.
• They usually utilize complicated and vast networks, thereby having a strong need for automated solutions.
• With the use of these technologies, they can minimize errors and simplify processes.

During the study, we analyzed two types of organizations based on size:

• Small and Medium Enterprises (Faster-Growing Category)
• Large Enterprises (Larger Category)

Software Application Insights

• The order management category held the largest market share, of around 30%, in 2023.
• This dominance is because of the vital role of such software in enhancing operations, optimizing efficiency, and maximizing profit for the business.
• It provides enhanced overview and management throughout the order lifecycle.
• Organizations can track the status of the orders, anticipate obstacles, and actively handle issues with the help of real-time tracking and continuous monitoring functions.
• Moreover, everyone participating in the order fulfillment procedure can collaborate and interact more effectively and easily with the help of automated tools.

The major software applications included in this report are:

• Inventory Management (Fastest-Growing Category)
• Order Management (Largest Category)
• Yard Management
• Shipping Management
• Labor Management
• Vendor Management
• Customer Support
• Others

Mode of Transport Insights

• The road category is dominating the market, and it is expected to do the same in the coming few years.
• This is because of the extensive road networks, which allow traveling across different regions efficiently.
• Roads provide organizations with the freedom of movement, so that they can travel in both rural areas and bustling cities.
• Unlike other transportation modes, such as railways, airways, and the sea, which have scheduled timings, roadways are more efficient for traveling and conducting deliveries as it does not involve any prescheduled timings.
• They are scalable too, as organizations can respond rapidly to any alteration in the demands. They can add or subtract as many automobiles from their fleet as per their needs.

The modes of transport analyzed are:

• Air
• Sea
• Road (Largest Category)
• Railway (Fastest-Growing Category)

End User Insights

• Based on end user, the retail and e-commerce category holds the largest share, of around 35%, the market, and it is expected to grow at a CAGR of 9.5% from 2024 to 2030.
• The retail industry is experiencing an enormous shift with the growth of e-commerce platforms, as a large number of customers are opting for online shopping over physically going to stores.
• Speed and efficiency are essential for the logistics industry in this scenario. Hence, with the help of automated systems, companies can achieve these objectives and fulfill the rising order demand.
• Automation is the main reason retail and e-commerce companies’ reliability and consumers’ interest in them have improved. Now, more consumers are opting for online shopping, which will continue to drive the market advance in this category.

The end users included in this report are:

• Retail and E-commerce (Largest Category)
• Manufacturing
• Healthcare and Pharmaceuticals (Fastest-Growing Category)
• Food and Beverages
• Aerospace and Defense
• Chemicals
• Post and Parcels
• Automotive
• Oil and Gas
• Others

North America Leads the Market

• The North American region is holding the largest share in the logistics market, and it is expected to do the same in the coming years.
• Technological development is one of the key factors behind this lead, as the region has always had a conducive R&D environment for all industries.
• Due to its solid infrastructure and thriving logistics sector, this region is the center of automation technology.
• With the growing adoption of technologies such as automated robots, warehouse management systems, and AI, this region continues to make strides in the market.
• Top companies, such as Amazon, are implementing these technologies in their operations to improve their productivity with the growing order volumes.

The regions and countries analyzed are:

• North America (Largest Regional Market)
  • U.S (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • U.K. (Largest Country Market)
  • Germany (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Fastest-Growing Country Market)
  • Mexico (Largest Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Market is Consolidated

Organizations are competing to gain the top position in the market by concentrating on finance, market potential, and investments. Companies are aiming to strengthen their global reach by creating new manufacturing facilities and market strategies. Presenting new goods and facilities is playing a crucial role in this competitive landscape, which is compelling companies to keep their systems and workplaces updated.

Logistics Automation Companies News

• Accenture and Mujin established a joint venture in January 2024 to bring AI and robotics to the manufacturing and logistics industries.
• In January 2023, Daifuku Intralogistics India showcased its new automated logistics and warehousing solutions at the India Warehouse and Logistics Show at the Bombay Exhibition Centre.