Logistics Automation Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Component (Hardware, Software, Services), By Enterprise Size (Small, Medium, Large), By Application (Warehouse And Storage Management, Transportation Management), By End-User Industry (Retail, Manufacturing, Oil And Gas, Chemical, Agriculture, Pharmaceutical, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Nov 2022 Report Code: KSI061612182 Pages: 122

The logistics automation market was valued at US$37.155 billion in 2020 and is expected to grow at a CAGR of 10.20% over the forecast period to reach a total market size of US$73.348 billion by 2027. 

The rising focus of businesses on decreasing logistical costs in order to boost profits is driving the expansion of this industry. Different attempts by firms to streamline their logistics segment are pushing their adoption of various logistics automation solutions, fueling the growth of this market. However, many end-users ignorances of shifting trends in this industry have limited their adoption of logistics automation to some extent. Nonetheless, strong development in this market is expected over the forecast period as awareness grows and end-users keep investing in these solutions.

One of the important reasons driving the growth of the global logistics automation market is the increasing use of Industry 4.0.

The digitalization of several processes, as well as the mass adoption of technologies such as blockchain, the Internet of Things (IoT), technologies such as virtual reality, and artificial intelligence (AI), are expected to cause paradigm shifts in the logistics and international transportation sectors in the years ahead, resulting in fresh opportunities for those who can influence these technologies while widening gaps with industries that fail to adapt to the new coexistence.

Automation has increased efficiency, provided greater control, and aided in the acquisition of diverse items. It is also incredibly useful in the manufacturing process and inventory management. It aids in the improvement of customer service and the distribution of diverse items over time. Because of the rising usage of automated vehicles, autonomous mobile robots, the growing use of robotic arms, and the automation of retrieval and storage systems, automation in this industry has given benefits for transportation and storage. Because of the rising usage of software and services, has also aided in improving warehouse management. It gives real-time information on product loading and unloading.

Asia-Pacific to hold a substantial share

Manufacturing is a significant industry in Asia-Pacific, and China's economy, being an important contributor, has been undergoing a rapid transformation as labour costs have risen. Such trends have pushed the region to adopt automation as a part of manufacturing processes. For instance, in March 2021, Vietnam Post Corporation launched an automated packages sorting system at its logistics centre in the central region, located at the Hoa Khanh Industrial Park in Da Nang city. With this, the company witnessed increasing demand for its automation systems that could replace repetitive warehouse work, intending to respond to the uptick in e-commerce sales in the region.

Further, the adoption of robots in corporate Japan has largely been restricted to the manufacturing sector, with retail lagging behind. However, the current efforts by retailers are likely to drive the use of robots in the sector. For instance, in September 2021, SB logistics in Ichikawa, Japan, implemented robotics systems for piece picking and packaging. The company also deployed conveyance, automated storage, sortation, and retrieval to make its warehouse completely autonomous to meet the quality standards expected by Japanese consumers primarily.

Additionally, there has also been rapid growth in the e-commerce industry in Asia.

With more consumers switching to online platforms of delivery, click-and-collect models, and curb-side collections, supply chains are being challenged to adapt quickly. There are many major industry players that are rapidly investing in technology solutions to ease these growing pains, especially automation. Adding to that, several warehousing and logistics companies in the region have been increasingly turning to robotic material handling solutions, such as autonomous mobile robots, for moving materials between pickers and transporting completed orders to the packing area. According to Zebra's Warehousing Asia Pacific Vision Study, several decision-makers have plans to use robotics for inbound inventory management (27%), packing (24%), and the receiving of goods (21%) by 2024. Factors and developments like these in the region are thus expected to drive growth in the market.

Key Market Developments

  • In August 2021, Shyplite is a 4PL AI-powered logistics solution that offers a single-window platform integrated with numerous carriers, allowing companies to manage their logistics and boost shipping efficiency. Today, they announced the opening of nine additional fulfilment centres in Delhi-NCR, Bombay, and Bengaluru. The centres will hold items from various categories such as fashion, clothes, accessories, home furniture, décor, packaged non-perishables, cosmetics, and so on, and will cover an area of 2 lac square feet.
  • In January 2022, Delhivery, an IPO-ready logistics business, invested in Falcon Autotech, a Noida-based manufacturer of warehousing automation equipment. According to people close to the agreement, the investment will likely range between $20 million and $30 million. Falcon Autotech provides intralogistics automation solutions, sortation systems, and other logistics and warehousing services.
  • In March 2022, Beckhoff USA is updating its distribution operations with the new OPEX Corporation Infinity Automated Storage and Retrieval System (AS/RS) to provide cutting-edge automation items to clients in the quickest feasible timeframes. Infinity is a next-generation Goods-to-Person (G2P) system that incorporates many Beckhoff technologies. The warehouse automation operation at Beckhoff's U.S. head office in Savage, Minnesota, will increase shipping and deliveries in the United States by streamlining operations and supply management.

Segmentation

  • By Component
    • Hardware
    • Software
    • Services
  • By Enterprise Size
    • Small
    • Medium
    • Large
  • By Application
    • Warehouse and Storage Management
    • Transportation Management
  • By End-User Industry
    • Retail
    • Manufacturing
    • Oil and Gas
    • Chemical
    • Agriculture
    • Pharmaceutical
    • Others
  • By Geography
    • North America
      • United States
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • France
      • Italy
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Others
    • Asia Pacific
      • Japan
      • China
      • India
      • South Korea
      • Thailand
      • Taiwan
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the logistics automation market size by 2027?
A1. The logistics automation market is expected to reach a total market size of US$73.348 billion by 2027.


Q2. What are the growth prospects for the logistics automation market?
A2. The global logistics automation market is expected to grow at a CAGR of 10.20% during the forecast period.


Q3. What is the size of the global logistics automation market?
A3. Logistics Automation Market was valued at US$37.155 billion in 2020.


Q4. What factors are anticipated to drive the logistics automation market growth?
A4. One of the major factors driving the logistics automation market growth is the increasing use of Industry 4.0.


Q5. Which region holds the largest share of the logistics automation market?
A5. Asia-Pacific is expected to hold a substantial share of the logistics automation market.


1. INTRODUCTION

1.1. Market Overview

1.2. COVID-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

 

3. EXECUTIVE SUMMARY

3.1. Research Highlights

 

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. LOGISTICS AUTOMATION MARKET, BY COMPONENT

5.1. Introduction

5.2. Hardware

5.3. Software

5.4. Services

 

6. LOGISTICS AUTOMATION MARKET, BY ENTERPRISE SIZE

6.1. Introduction

6.2. Small

6.3. Medium

6.4. Large

 

7. LOGISTICS AUTOMATION MARKET, BY APPLICATION

7.1. Introduction

7.2. Warehouse and Storage Management

7.3. Transportation Management

 

8. LOGISTICS AUTOMATION MARKET, BY END-USER INDUSTRY

8.1. Introduction

8.2. Retail

8.3. Manufacturing

8.4. Oil and Gas

8.5. Chemical

8.6. Agriculture

8.7. Pharmaceutical

8.8. Others

 

9. LOGISTICS AUTOMATION MARKET, BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. United States

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. UK

9.4.2. Germany

9.4.3. France

9.4.4. Italy

9.4.5. Others

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Others

9.6. Asia Pacific

9.6.1. Japan

9.6.2. China

9.6.3. India

9.6.4. South Korea

9.6.5. Thailand

9.6.6. Taiwan

9.6.7. Others

 

10.  COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Emerging Players and Market Lucrativeness

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Vendor Competitiveness Matrix

 

11. COMPANY PROFILES

11.1. Dematic

11.2. Daifuku

11.3. Swisslog

11.4. Honeywell Intelligrated

11.5. Murata Machinery

11.6. Knapp AG

11.7. Jungheinrich AG

11.8. SSI Schaefer

11.9. Mecalux, S.A.

11.10. Vitronic

11.11. Beumer Group

11.12. Toshiba Logistics

Dematic

Daifuku

Swisslog

Honeywell Intelligrated

Murata Machinery

Knapp AG

Jungheinrich AG

SSI Schaefer

Mecalux, S.A.

Vitronic

Beumer Group

Toshiba Logistics

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