Logistics Automation Market Size, Share, Opportunities, 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 2025 To 2030

Description

 Logistics Automation Market Size:

The Logistics Automation Market is expected to grow from US$65.585 billion in 2025 to US$121.696 billion in 2030, at a CAGR of 13.16%.

Key Market Highlights:

• The demand for automated logistics solutions is being driven by the growth of retail and e-commerce.
• Automated guided vehicles (AGVs) and robotics adoption are increasing warehouse efficiency.
• Supply chain visibility and decision-making are being improved through the integration of AI, IoT, and data analytics.
• Investments in automation are being stimulated by labor shortages and increased operating expenses.
• Adoption of automated solutions is increasing as last-mile delivery efficiency gains more attention.

In logistics, automation refers to the use of machinery, software, and control systems to enhance operational efficiency. It usually refers to operations that must be carried out at a warehouse or distribution center and call for little human involvement. Improved customer service, scalability, speed, organizational control, and reduced errors are a few advantages of automated logistics. Industries can conduct a variety of operations, including material batching, picking, ordering, packaging, warehouse security, and inspection, thanks to the Industrial Internet of Things (IIoT) and the development of a network of connected systems.

The growth of the industry is being driven by the increasing emphasis that firms are placing on reducing logistical costs to increase revenues. The market for logistics automation solutions is further expanding as a result of numerous endeavors by businesses to streamline their logistics division. Nevertheless, the market is anticipated to experience considerable growth over the course of the projection period as end-users continue to invest in these products and awareness of them rises.

Key players working in the market include Honeywell Intelligrated, Murata Machinery, Knapp AG, Jungheinrich AG, SSI Schaefer, and Mecalux, S.A..

Logistics Automation Market Trends

• Rapid E-commerce Growth Driving Automation

The swift growth of global e-commerce is a key driver of logistics automation, affecting supply chain practices. With consumers desiring shorter delivery times, flexible return options, and real-time visibility into their orders, logistics companies experience immense pressures to accurately and efficiently ship multiple orders. When a company's warehousing and fulfillment efforts are accomplished via manual processes, there is an inability to keep up with volumes, leading to increased operational costs, greater error rates, and delays. As a result of the inefficiencies of manual processes, firms are turning to automation technologies, including automated storage and retrieval systems (ASRS), robotic picking and packing, conveyor systems, and smart sorting technologies. These automation technologies will produce order processing times that are a fraction of what is possible in manual processes, provide greater optimization and use of warehouse space, decrease human errors, and allow a greater capacity to accommodate sales demand spikes, such as around holidays and flash sales. Furthermore, automation provides the ability for companies to scale volume operations quickly to meet demand without increasing their labor costs, even when they are meeting spikes in sales demand.

Logistics Automation Market Drivers

• The Logistics Automation Market is Driven by the Increasing Adoption of Industry 4.0 and the Rise in E-commerce

Industry 4.0 refers to a developing tendency in manufacturing industries toward automation, data interchange, and technology and procedures. Big data and artificial intelligence, data analytics, cloud computing, augmented reality, the industrial internet of things, additive manufacturing, autonomous robots, and digital twins are all part of Industry 4.0 technology. These technologies are being adopted by manufacturers and logistics firms to increase production and efficiency, improve flexibility and agility, and enhance customer experience. The increasing use of Industry 4.0 is one of the key factors fueling the growth of the global logistics automation market. Automation has improved productivity, given more control, and facilitated the purchase of a variety of goods. Additionally, it is quite helpful for managing inventories and the production process. Further, it helps with the distribution of a variety of goods and the enhancement of customer service.  

The global expansion of e-commerce has increased the demand for effective inventory and storage management. According to data released by the Census Bureau of the Department of Commerce, third-quarter 2022 retail e-commerce sales in the United States were estimated to have totaled $265.9 billion, a 3.0% rise from the second quarter of 2022. Online clients anticipate order accuracy, same-day or same-hour delivery, and free returns, so the surge in e-Commerce activities necessitates logistics providers to operate faster and more efficiently to quickly process tiny individual orders. Many e-commerce businesses are looking into novel approaches to shorten order delivery times and cut expenses. Transparency, affordability, ease, promptness of delivery, and attractive, frictionless returns are all driven by the e-Commerce sector.

Market Restraints

• High Initial Investment and Implementation Costs

One of the most considerable limitations in the logistics automation market is the huge initial investment that is needed to put in place advanced automated systems. The substantial capital expenditure that comes with deploying such solutions as robotic picking and packing machines, automated guided vehicles (AGVs), conveyor systems, and automated storage and retrieval systems (ASRS) is what usually acts as a barrier to the development of SMEs, the small and medium-sized enterprises.

Moreover, in addition to the hardware costs, companies are also expected to pay for the software, which is used in sophisticated warehouse management, the integration with the existing IT infrastructure, and the customization of systems to fit the operational requirements of the companies. The implementation process sometimes requires rearranging the warehouse layouts, retraining the staff, and a temporary disruption of the ongoing operations, all of which can further increase the expenses.

On top of that, organizations need to take into consideration the long-term operational and maintenance fees, which include software updates, system calibration, and technical support. These high upfront and ongoing costs lead to financial barriers that slow down the acceptance of logistics automation. As a result, companies become very cautious about making large-scale investments even though automation is associated with potential efficiency gains and long-term cost savings.

Market Opportunities

• Integration of Robotics and Automated Guided Vehicles (AGVs)

The merging of the use of robots and automated guided vehicles (AGVs) in logistics activities is a substantial trend that has become nearly essential in times like these. On the contrary, this kind of advancement and technology also creates an issue for many firms. Although the adoption of these technologies would greatly speed up, make more accurate, and increase the output of the warehouses and distribution centers, it will still require a thorough plan, system compatibility, and workflow redesign for the success of their implementation. In carrying out these tasks, robots are used to pick, pack, sort, and palletize, whereas AGVs and autonomous mobile robots (AMRs) are responsible for transporting within the logistics system. As a result, the dependence on manual labor is reduced, and at the same time, the technology minimizes the number of mistakes made.

Integration of the systems into existing operations can be a challenge, especially in facilities with older equipment and outdated IT infrastructure. The deployment process involves a lot of money for the purchase of hardware, software, and training, and installation activities can cause interruptions in the normal functions of the business. On top of that, to ensure that there is no friction between different robotic units, AGVs, and human workers, advanced control systems and regular surveillance must be put in place. These, in turn, would be able to prevent bottlenecks and accidents from occurring. Nevertheless, the companies who have managed to combine robotics with the use of AGVs to automate have, as a result, benefited largely from sped-up operating efficiency, optimization of space use, and the possibility of quick expansion to meet variable demand, especially at peak periods, thus, having the possibility of increasing the level of service and of being competitive in the logistics sector over time.

Logistics Automation Market Segmentation Analysis

• By Application  

Based on application, the market is classified into warehouse and storage management and transportation management.

Transportation management is the application segment with the biggest growth rate, which is 4 times higher than the next one, in the logistics automation market. This trend reflects the critical need to optimize the movement of goods across increasingly complex global supply chains. The demand for quicker and more dependable deliveries has been at the forefront of the evolution of the e-commerce and last-mile delivery sectors. This has driven the companies to implement the AI-enabled transportation management systems (TMS) together with the software for route planning, the telematics for the fleet, and autonomous delivery vehicles. These are the benefits of the solutions: they can provide a live tracking of shipments, they can predict when vehicles will need maintenance and thus avoid breakdowns, and finally, they can dispatch vehicles in a way that is the most efficient one, thus saving time, money, and nature. Besides, the transition to the utilization of the latest technological breakthroughs in transportation also opens the door for improved decision-making as they have the ability to deliver actual and detailed insights through the use of advanced analytics, which in turn also makes it possible for companies to react instantly in case of any kind of interruptions, e.g., traffic congestion or unexpected demand surges.

The combination of automation in the warehouse and transportation allows users to enjoy the benefits of the supply chain that runs end-to-end without any disruptions or delays, that is, when goods are stored, picked, packed, and transported in their most efficient way without the need for human intervention. Altogether, not only do these applications open up the possibility for companies to operate in the most efficient manner and thus reduce costs, but also increase the level of their customer satisfaction, which in turn places warehouse and storage management together with transportation management as two of the most important areas for sustainable growth and a source of fresh ideas in the logistics automation market.

Logistics Automation Market Regional Analysis

• By region, the market is segmented into North America, South America, the Middle East and Africa, and Asia-Pacific.

North America

The North American logistics automation market has the status of being very mature and is technologically largely advanced. This is very much the result of the region’s strong e-commerce sector, well-established infrastructure, and the presence of the leading automation solution providers. In the United States and Canada, a rapid adoption of robotics, automated storage and retrieval systems (ASRS), conveyor systems, as well as AI-powered warehouse management software (WMS) for the purpose of raising operational efficiency, is the trend that can be observed.

The rising consumer expectations for quicker delivery, labor shortages, and increasing operational costs are the main reasons behind which companies are deploying automated guided vehicles (AGVs), autonomous mobile robots (AMRs), and smart sorting systems at an ever-faster pace. Besides that, companies are also making use of IoT-enabled devices and advanced analytics for real-time inventory tracking, route optimization, and predictive maintenance, which leads to smarter, data-driven decision-making that extends over the entire supply chain.

Smart logistics is one of the government-supported initiatives, along with a strong regulatory framework, which is an additional stimulus for the region to innovate and adopt new solutions. The strategic collaborations between the technology providers and the logistics companies are playing the role of a catalyst for the research and development in AI, robotics, and automation software that puts North America at the forefront of the efficient, scalable, and high-performance logistics automation solutions.

Europe

Europe plays an essential role in the market for logistics automation, where the deployment of smart warehouses, robotics, and AI-driven transport management solutions is proceeding at a breakneck pace. The likes of Germany, France, and the Netherlands are probably at the forefront of this market, mainly due to their solid industrial base, mature infrastructure, and significant demand from industries like automotive, retail, and pharmaceutical.

Moreover, companies in Europe are embracing automation increasingly to augment operational effectiveness, lower expenses, and achieve their environmental targets, which also includes energy efficient warehouse operations, and clean transportation solutions, like last mile delivery automation have become a popular means of achieving this objective with the use of self-driving vehicles, drones, and smart locker systems whereby deliveries can be made at a rapid rate as a result of the surge in demand for such services.

Asia-Pacific

The Asia-Pacific region is experiencing the most rapid growth in the logistics automation market. The growth in the region is primarily driven by the massive expansion of the e-commerce, retail, and manufacturing sectors in China, India, Japan, and South Korea. This trend is expected to continue as the increasing population, urbanization, and rising demand for fast delivery are driving the adoption of automated warehouses, robotics, AGVs, and AI-powered transportation management systems. China, a global manufacturing hub, is implementing smart warehouses, automated sorting centers, and intelligent freight solutions to manage large quantities of goods in a more efficient way. India is witnessing a quick rise in automation, which is largely due to infrastructural improvements, government initiatives like “Make in India,” and the growth of e-commerce platforms.

South America

The logistics automation market of South America is going through a moderate positive trend. The main factors that contribute to this trend are the penetration of e-commerce, the expansion of the industrial sector, and the development of the infrastructure in countries like Brazil, Argentina, and Chile. The need for the effective management of warehouses, the implementation of automated sorting systems, and the use of AI in transportation is growing in tandem with the demand for the optimization of supply chain operations and cost reduction by companies. Providers of logistics are investing in the use of technology in the selection and packing of goods, the employment of robots, and the software for the management of warehouses to improve efficiency and accuracy.

The Middle East and Africa

Logistics automation in the Middle East and Africa is a slow but steady market that is gaining new ground with the support of the government's initiatives to renovate the infrastructure, stimulate trade, and grow e-commerce operations. To advance supply chain efficiency and decrease the utilization of manual labor, the United Arab Emirates, Saudi Arabia, and South Africa are procuring the following technologies: automated warehouses, robotics, and AI-driven transportation management systems.

Some of the factors that have led to the adoption of automated storage, sorting, and fleet management solutions are the rise of e-commerce activities, the development of industrial areas, and the expansion of the infrastructure. To cater to the fast delivery needs of customers, companies are adopting IoT-enabled monitoring, AI-based predictive analytics, and automated last-mile delivery systems, which will make the delivery process quicker and more dependable. 

Logistics Automation Market Competitive Landscape

• Key Industry Players

The market of logistics automation is highly competitive and is characterized by multiple worldwide leaders such as Dematic, Daifuku, Swisslog, Honeywell Intelligrated, Murata Machinery, Knapp AG, Jungheinrich AG, SSI Schaefer, Mecalux S.A., Vitronic, Beumer Group, and Toshiba Logistics.

These companies lead the way in delivering highly sophisticated solutions, including automated storage and retrieval systems (ASRS), warehouse robotics, conveyor and sorting systems, and AI-powered warehouse management software. Their deep commitment to innovation, concerted cooperation, and wide international spread enable them to serve not only the various industries like e-commerce, retail, automotive, and manufacturing but also tap into the growing demand for the supply chain’s efficiency, scalability, and cost optimization.  

List of Key Company Profiled

• Dematic
• Daifuku
• Swisslog
• Honeywell Intelligrated
• Murata Machinery
• Knapp AG
• Jungheinrich AG
• SSI Schaefer
• Mecalux, S.A.
• Vitronic
• Beumer Group
• Toshiba Logistics  

Logistics Automation Market Key Developments

• Product Launch: In June 2025, Amazon deploys its one millionth robot and introduces a new AI foundation model to power its robotic fleet. The largest fleet of industrial mobile robots in the world will become smarter and more effective thanks to new AI technology.
• Collaboration: In May 2025, Boston Dynamics, a world leader in advanced robotics, and DHL Group, the top logistics company in the world, inked a strategic Memorandum of Understanding (MOU). The deal opens the door for the worldwide deployment of over 1,000 more Boston Dynamics Stretch robots, which were first used by DHL to automate container unloading and are designed for case handling.       
• Product Launch: In March 2025, ABB added two new AI-powered functional modules to its Item Picking family, broadening its range of robotic solutions for logistics and e-commerce supply chains. The Fashion Inductor and Parcel Inductor, which use ABB's proprietary AI-based vision technology and have been tested by the top fashion retail and logistics companies worldwide, provide solutions for item picking and sorter induction, two of the most important logistics processes.

Key Market Segments

• 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
    • Germnay
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Thailand
    • Taiwan
    • Others

Table Of Contents

1. INTRODUCTION

1.3. Market Overview

1.4. Market Definition

1.5. Scope of the Study

1.6. Market Segmentation

1.7. Currency

1.8. Assumptions

1.9. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.3. Research Design

2.4. Assumptions

3. EXECUTIVE SUMMARY

3.3. Research Highlights

4. MARKET DYNAMICS

4.3. Market Drivers

4.4. Market Restraints

4.5. Porter’s Five Force Analysis

4.5.1. Bargaining Power of Suppliers

4.5.2. Bargaining Power of Buyers

4.5.3. Threat of New Entrants

4.5.4. Threat of Substitutes

4.5.5. Competitive Rivalry in the Industry

4.6. Industry Value Chain Analysis

5. LOGISTICS AUTOMATION MARKET, BY COMPONENT

5.3. Introduction

5.4. Hardware

5.5. Software

5.6. Services

6. LOGISTICS AUTOMATION MARKET, BY ENTERPRISE SIZE

6.3. Introduction

6.4. Small

6.5. Medium 

6.6. Large

7. LOGISTICS AUTOMATION MARKET, BY APPLICATION

7.3. Introduction

7.4. Warehouse and Storage Management

7.5. Transportation Management

8. LOGISTICS AUTOMATION MARKET, BY END-USER INDUSTRY

8.3. Introduction

8.4. Retail

8.5. Manufacturing

8.6. Oil and Gas

8.7. Chemical

8.8. Agriculture

8.9. Pharmaceutical 

8.10. Others

9. LOGISTICS AUTOMATION MARKET, BY GEOGRAPHY

9.3. Introduction

9.4. North America

9.4.1. United States

9.4.2. Canada

9.4.3. Mexico

9.5. South America

9.5.1. Brazil

9.5.2. Argentina

9.5.3. Others

9.6. Europe

9.6.1. UK

9.6.2. Germnay

9.6.3. France

9.6.4. Italy

9.6.5. Others

9.7. Middle East and Africa

9.7.1. Saudi Arabia

9.7.2. UAE

9.7.3. Others

9.8. Asia Pacific

9.8.1. Japan

9.8.2. China

9.8.3. India

9.8.4. South Korea

9.8.5. Thailand

9.8.6. Taiwan

9.8.7. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.3. Major Players and Strategy Analysis

10.4. Emerging Players and Market Lucrativeness

10.5. Mergers, Acquisitions, Agreements, and Collaborations

10.6. Vendor Competitiveness Matrix

11. COMPANY PROFILES

11.3. Dematic

11.4. Daifuku

11.5. Swisslog

11.6. Honeywell Intelligrated

11.7. Murata Machinery

11.8. Knapp AG

11.9. Jungheinrich AG

11.10. SSI Schaefer

11.11. Mecalux, S.A.

11.12. Vitronic

11.13. Beumer Group

11.14. Toshiba Logistics

Companies Profiled

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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