Logistics Automation Market Size & Share 2026-2035

Logistics Automation Market Size

The global logistics automation market was valued at USD 35.9 billion in 2025. The market is expected to grow from USD 39.5 billion in 2026 to USD 104.9 billion in 2035 at a CAGR of 11.5%, according to latest report published by Global Market Insights Inc.

The logistics sector in many countries presents a key role in gross domestic product (GDP). Seeing the industry’s major potential in the GDP, countries invest heavily in modernizing the logistics sector. For instance, the Union Budget of India, 2026-27, allocated ₹ 5,164.8 crore to the Ministry of Ports, Shipping and Waterways, which is a significant surge with a year-on-year increase of nearly 78% compared to the previous year’s revised estimates.

Logistics and transportation in particular plays an essential structural role in the economy and GDP of the United States, a fact affirmed by various official statistical agencies of the US Government such as Bureau of Economic Analysis (BEA) and Bureau of Transportation Statistics (BTS). The BEA, which is the official statistical agency of the US Government that monitors and maintains the GDP statistics, recognizes the importance of logistics within the framework of its National Income and Product Accounts. According to recent figures released by BTS, the contribution of transportation services in GDP in 2024 was 6.3% or $1.9 trillion dollars.

Asia Pacific reached USD 9.8 billion in 2025, accounting for a 27.4% share, and is set to outpace other regions at a projected 12.5% CAGR through 2035. Policy programs are material to this outlook. China’s 14th Five‑Year Plan for Modern Logistics Development emphasizes tech-enabled efficiency improvements, while Made in China 2025 continues to prioritize intelligent manufacturing and smart logistics, both reinforce demand for automation in export-scale distribution nodes and factory-adjacent facilities. India’s National Logistics Policy targets logistics cost reduction from about 14% of GDP to below 10%, accelerating investments in TMS/WMS and in-warehouse robotics to reduce waste and empty miles.

From key players’ sides, many players are advancing logistics solutions, forming tech partnerships, and expanding into regions where there is a need for logistics automation. Recently, DHL Supply Chain, for instance, adopted SVT Robotics' SOFTBOT system throughout its global warehouse network, allowing DHL to integrate various types of robots more efficiently. DHL, which was already utilizing over 8,000 robots at the time, could now introduce and integrate a new robot into their operation twelve times faster.

In summary, the government intervention in terms of budgets allocated for expansion of logistics, actions from key players, and demands from the industry will cater to these requirements. Firms that implement AI and ML into their logistics service offering and participate in the market have an opportunity of succeeding or competing with existing market leaders.

Logistics Automation Market Trends

AI and machine learning move from optimization pilots to orchestration at scale AI-enhanced logistics platforms are transitioning from discrete optimizations (pick-pathing, slotting, ETA prediction) to end-to-end orchestration across inventory, labor, and transport. In practice, WMS/WES now allocate work dynamically across AMRs, goods‑to‑person stations, and human pickers based on real‑time queue depth, while TMS engines rebalance loads using live traffic and carrier capacity signals.

IEEE research further documents profitability uplifts as robot density and software sophistication rise, provided change management and integration are addressed concurrently. Near term (≤ 2 years) for analytics and control‑tower use cases, medium term (2–4 years) for autonomous coordination across heterogeneous fleets. Vendors with API‑first architectures and low‑code extensibility gain share as buyers standardize on modular stacks.

Autonomous robotics accelerate throughput in high‑mix, high‑velocity fulfillment Autonomous mobile robots, AGVs, cobots, and robotic item‑picking systems are now mainline capacity tools rather than experimental add‑ons. Leading fulfilment centers operate fleets exceeding 1,000 AMRs per site with collaborative workflows that lift pick productivity to 300-400 units per hour compared to 60-80 for manual operations. The underlying driver is labour scarcity and turnover in warehousing; the ROI window has narrowed as wage floors and absenteeism reduce manual throughput reliability.

IoT-enabled real-time visibility becomes table stakes for resilience and compliance IoT devices embedded across fleets, docks, storage zones, and shipments feed continuous telemetry into TMS/WMS, enabling ETA accuracy, exception handling, and cold‑chain compliance that manual processes cannot match. ITU research documents the role of connected sensors and “social IoT” constructs in logistics visibility, including case‑level monitoring for high‑value or temperature‑sensitive goods.

Policy-backed efficiency programs shift regional capex priorities Policy is not uniform across regions, and investment patterns reflect it. In Europe, emissions targets under the Green Deal are catalyzing energy‑efficient automation and electrified material handling to hit 2030 milestones. In India, the National Logistics Policy explicitly targets a reduction of logistics costs as a share of GDP, which prioritizes TMS, route optimization, and in‑warehouse robotics to cut dwell time and waste.

Logistics Automation Market Analysis

• Hardware dominated the market, reflecting multi‑year investment cycles in conveyors, AS/RS, palletizers, AMRs/AGVs, and autonomous lift trucks. The segment’s dominance is because of the price of these hardware is higher than software making it the largest one in the market. These equipment serve as the basis of automation in the warehouse and DC, thus making the first and biggest investment made in logistics services.
• The modern logistics hardware is connected to the warehouse control system (WCS) and the warehouse execution system (WES). These software layers are often enhanced with AI technologies that allow optimizing routes and demand-based load balancing as well as performing the predictive maintenance for robotics. Yet, despite the software layer being quite smart in nature, the efficiency of automated processes depends on the hardware reliability. This means that the software becomes an enabler of the business process rather than its core profit driver.
• Software contributed USD 9.4 billion in 2025 and carries the fastest growth outlook at roughly 12.2% CAGR through 2035 as WMS, WES, and TMS add AI inference, digital‑twin simulation, and low‑code extensibility that elevate asset productivity without incremental steel. The result is a shift from device‑centric value to orchestration value. API‑first stacks coordinate mixed fleets, blend human and robotic labor, and use event‑driven control to improve lines‑per‑hour and trailer fill.
• Product differentiation increasingly hinges on how well software abstracts hardware variation, not on raw device specs alone. Examples include Honeywell’s Momentum WES and Körber’s K.Motion WMS, which emphasize configurable workflows, open connectors, and embedded analytics to reduce integration effort and time‑to‑value for mid‑market buyers.
• Robotics‑as‑a‑service and usage‑based software tiers lower entry barriers while preserving upgrade paths as volumes scale, and digital‑twin add‑ons shorten design‑to‑deploy cycles by 20–30% in complex sites when paired with standardized data models. Vendors that prove faster ramps and smoother upgrades at multi‑site scale are gaining share against point‑solution rivals.

• The reason for the dominance of the large corporations lies within the huge capital required for setting up automation systems for logistics management that automatically goes in favor of those companies having substantial financial resources. Typically, the cost of small automation for warehouse facilities varies between USD 50,000 to USD 500,000, whereas an entire automation system costing millions of dollars can be afforded by only large corporations.
• The organizations include multinational retail firms, e-commerce organizations, and third-party logistics companies who have the capacity to put more money into automation efforts that span several facilities. They do not share the limitations of SMEs since they can endure longer paybacks for robots, warehouse management systems, and automation technologies for materials handling.
• In contrast, SMEs operate smaller warehouse facilities, process fewer order volumes, and maintain closer and shorter distribution chains. Therefore, they do not require immediate access to automation technologies. Some SMEs even use semi-manual procedures or simple warehouse management systems and only incorporate automation into those aspects that significantly affect performance and efficiency, like inventory management, order picking, and last-mile logistics.
• In addition to this, the growing availability of cloud-based warehouse and transportation management systems is another reason why SMEs can start adopting digital technologies without investing in expensive hardware. The rapid expansion of e-commerce and the growing demand for fast deliveries from consumers have also led SMEs to become more efficient. Therefore, it is expected that SMEs will grow at the fastest CAGR of around 12.5% between 2026 and 2035.

Based on end use, the logistics automation market is divided into manufacturing, retail & e-commerce, food & beverage, healthcare & pharmaceuticals, automotive, post & parcel, oil & gas and others. The retail & e-commerce segment is expected to grow at the fastest CAGR of 12.9% between 2026 and 2035.

• The retail and e-commerce segment in the market exhibits a dual structural characteristic whereby it has emerged as the most prominent end-use category, contributing 36% to the overall market share in 2025 while being projected to grow with the highest CAGR of 12.9% over the period from 2026 to 2035. The primary drivers behind its dual role include high order density and fast-paced fulfillment needs along with the growth of omnichannel retail formats.
• The operations of retail and ecommerce entities involve handling millions of micro shipments each day, making automation of their warehouses imperative, using systems like AS/RS, good to person, and automated picking technology. This is because of the sheer volume of work that needs to be handled by these organizations, thus ensuring their continued importance in the coming years.
• Due to the consistent expansion of both last-mile and distribution infrastructure, there is increased adoption of automation within fulfillment operations. For example, in April 2026, Amazon India added 52 last-mile delivery stations to expand its distribution capabilities. These developments underscore the need for more robust logistics solutions that incorporate robotics and sorting technology to handle efficient delivery operations.

The US logistics automation market reached USD 10.9 billion in 2025 and growing at a CAGR of 12.3% between 2026-2035.

• As the mature logistics ecosystem in the country encourages logistics automation players to invest in the country, this will continue to support the US dominance in the overall logistics sector. At present, the country continues to be among the most advanced markets in the world due to extensive growth in e-commerce, scarcity of workers in warehouses, and rapid application of robotics and artificial intelligence systems in warehouses.
• As per the insights from DHL Supply Chain’s North America, American supply chains are becoming more dependent on automation, with 73% of managers foreseeing a growing dependency on AI and 70% foreseeing cybersecurity challenges in logistics operations.
• In addition, the swift growth in the number of fulfillment facilities built by prominent logistics companies is also contributing to the penetration of logistics automation. For instance, DHL has grown its logistics presence in North America by building new warehouses totaling over 7 million square feet of space for fast fulfillment services and specialized logistics activities. This reflects the increased need for automated material handling systems and real-time tracking capabilities among e-commerce businesses, hyperscale organizations, and high-value industries like technology and healthcare.

The North America logistics automation market is valued at USD 13.7 billion in 2025. The market for logistics automation is expected to grow at the CAGR of 11.9% from 2026 to 2035.

• Wage pressure in warehousing and storage roles remained elevated through 2025 in the United States, reinforcing automation ROI in high‑volume retail and 3PL operations. DHL Supply Chain’s rollout of the SVT Robotics SOFTBOT platform in March 2026, spanning more than 8,000 cobots and reporting up to 12x faster integration at select sites, illustrates the strategic pivot toward vendor‑neutral orchestration and rapid multi‑robot deployments across the region.
• Named retailers have also standardized on AMR‑led micro‑fulfillment to stabilize peak throughput and reduce overtime volatility across U.S. and Canadian networks. Trade data and customs‑process digitalization continue to support TMS adoption for cross‑border flows, particularly along the US-Canada corridor.
• Additionally, the government and policy assistance for this sector is indirect yet robust, with an emphasis on infrastructure modernization initiatives and e-commerce trading systems. The presence of robust cycles of private investments in the region, especially in relation to e-commerce order fulfillment and logistics operations, is another positive factor.

The Europe region holds 25.1% of the logistics automation market in 2025 and is expected to grow at a CAGR of 9.97% between 2026 and 2035.

• Regulation is the central shaping force in the Europe market. The European Commission’s Green Deal framework and associated climate targets for 2030 are directing capex toward energy‑efficient equipment, electrified material handling, and emissions‑aware routing embedded in WMS/TMS.
• Germany led the region’s market, while the United Kingdom and Poland continued to attract large‑format fulfilment and parcel hubs that prioritize high‑density storage and automated sortation. The Otto Group’s January 2026 deployment of an NVIDIA‑based robotic coordination layer across 120 logistics locations underscores the premium on fleet‑level coordination and AI‑assisted tasking at a continental scale. Policy‑driven reporting requirements are also pushing software vendors to localize for audit trails and sustainability metrics.

Germany logistics automation market is growing quickly in Europe, with a CAGR of 10.2% between 2026 and 2035.

• Logistics automation in the country is at the forefront of technological developments within Europe. This is attributed to the strength of its manufacturing industry and its pioneering efforts in Industry 4.0 projects. In Germany, the automobile, machinery, and industrial sectors are among those that widely implement Automated Storage and Retrieval Systems (AS/RS), Automated Guided Vehicles (AGVs), and warehouse control systems.
• Combination of digital twins and physical AI has been seen in the application of logistics with the examples of collaboration between Siemens and KION, where simulated models of AI technology are utilized in optimizing warehouse systems before their actual implementation. It enables businesses to minimize operational risk and increase efficiency in the process. Siemens further progressed with the use of physical AI technology in robotics industry.

The Asia Pacific region is expected to grow at the fastest CAGR of 12.5% between 2026 and 2035 in the logistics automation market.

• The market has generated US 9.8 billion from the Asia Pacific region in 2025. Primary supporting countries such as China, India and Japan have the highest penetration rates. In China, the National Development and Reform Commission’s 14th Five‑Year Plan for Modern Logistics Development prioritizes technology‑enabled efficiency gains and integration with intelligent manufacturing, which supports adoption of AS/RS, AMRs, and real‑time visibility tools in export hubs such as the Yangtze River Delta.
• India’s National Logistics Policy focuses on compressing logistics costs as a share of GDP toward single‑digit levels and has catalyzed investment in TMS, route optimization, and in‑warehouse robotics among large 3PLs and enterprise shippers. The regional mix therefore tilts toward high‑volume e‑commerce and factory‑adjacent distribution in China and toward network‑level optimization and multimodal connectivity in India, with multinational vendors localizing offerings to meet reporting and language requirements in each market.

China is estimated to grow with a CAGR of 13.3% in the projected period between 2026 and 2035, in the Asia Pacific logistics automation market.

• Automation and robotization have been extensively used in China's logistics system due to the large amounts of e-commerce deliveries and parcels that the country has to deal with both within the country and outside it. The big logistics companies and e-commerce websites in China are consistently building more and more automated centers that would allow them to process bigger orders and decrease the time for their delivery.
• The ongoing process of upgrading industries and expansion of online trade networks is still influencing logistics automation adoption in China. The national strategy of developing modern logistics under the 14th Five-Year Plan and the Made in China 2025 program is prioritizing the development of intelligent logistics, digital supply chains, and robotics adoption in production and delivery processes.

Brazil is estimated to grow with a CAGR of 10.8% between 2026 and 2035, in the Latin America logistics automation market.

• The development of logistics automation in Brazil is heavily dependent on government efforts to develop logistics infrastructure, and the growth of logistics networks for e-commerce in the country. In March 2025, the Brazil Ministry of Transport reaffirmed that developing logistics infrastructure, port efficiency, and multimodal transport will remain a priority for the country, which indirectly promotes the use of logistics automation in warehouses.
• Moreover, logistics players' expansion strategies continue to support local automation players. For instance, Mercado Libre expanded its logistics capabilities further into Brazil during the month of June 2025, involving increases in both fulfillment capabilities and the deployment of automation within the distribution system in line with increased e-commerce demands. The use of state-of-the-art sorting techniques and warehousing technology was noted to enhance delivery efficiency and scalability of operations throughout select Brazilian states.

UAE to experience substantial growth in the Middle East and Africa logistics automation market in 2025.

• Strategic measures within UAE Vision 2031 and the National Logistics Strategy include improving the efficiency of the logistics chains, digitization of trading processes, and intelligent operations at the ports located in Dubai, Abu Dhabi, and the free zones logistics clusters. This is aimed at ensuring that UAE becomes a preferred logistic destination by encouraging the adoption of automation technologies and digital systems.
• May 2025 witnessed DP World launching the project to expand further on the smart ports and automated terminals within its global network, including UAE ports like Jebel Ali Port. Some of the technologies that would be used in this regard include automated cargo handling equipment, artificial intelligence-powered port management software, and supply chain technology solutions.

Logistics Automation Market Share

The top 7 companies in the market are ABB, Daifuku, Honeywell, KION Group, KNAPP, SSI SCHAEFER Group and TGW Logistics 25.1% of the market in 2025.

• ABB provides industrial robots and automation technologies for logistics tasks like picking, packing, and moving materials. These systems are integrated into industrial operations to improve efficiency.
• Daifuku offers intralogistics systems such as automated storage and retrieval systems (AS/RS), conveyors, and sortation solutions. These are used in large warehouses to improve material flow and save space.
• Honeywell delivers warehouse automation solutions, including material handling systems, sortation technologies, and warehouse software. These solutions help improve workflows, inventory tracking, and efficiency in distribution and e-commerce centers.
• KION Group, through its Dematic brand, provides warehouse automation systems like AS/RS, conveyors, robots, and software. These tools support storage, picking, sorting, and distribution processes.
• KNAPP develops intralogistics systems such as shuttle systems, robotic picking, and goods-to-person technologies. These solutions help optimize workflows and improve order accuracy in retail and healthcare warehouses.
• SSI SCHAEFER provides modular warehouse systems, including storage solutions, conveyor systems, and automated picking technologies. These systems help warehouses handle materials efficiently and improve storage and distribution.
• TGW Logistics offers warehouse automation solutions like shuttle systems, picking robots, and conveyors. These systems combine equipment and software to improve efficiency and speed in distribution centers.

Logistics Automation Market Companies

Major players operating in the logistics automation industry are:

• ABB
• Daifuku
• Honeywell
• KION (Dematic)
• KNAPP
• Körber
• KUKA
• SSI SCHAEFER
• Symbotic
• TGW Logistics

• Daifuku combines deep AS/RS engineering with turnkey integration services, winning large‑scale shuttle and pallet projects in automotive and omnichannel retail where throughput and reliability are central. KION Group, through Dematic, emphasizes end‑to‑end program delivery that pairs conveyors, shuttles, and high‑density storage with WMS/WES orchestration and partner AMR fleets to shorten ramp times and standardize upgrades.
• Honeywell focuses on harmonizing its Intelligrated hardware with Momentum software modules to trim integration effort, improve diagnostics, and enable cross‑site governance for large North American retailers and parcel carriers.
• KNAPP, Körber, and Beumer Group differentiate through software‑led orchestration, parcel sortation, and high‑throughput solutions, often targeting European hubs that require energy‑aware routing and sustainability reporting in line with EU policies.
• Among robotics and software specialists, Locus Robotics, GreyOrange, and Symbotic prioritize fast time‑to‑value, fleet‑level orchestration, and multi‑site replicability. Symbotic’s high‑density automation is operating at major U.S. retailers to handle hundreds of thousands of cases per day, often paired with upstream WMS integration to synchronize induction rates and downstream pallet movements.
• Locus and GreyOrange focus on AMR fleets that flex capacity during peaks and integrate with WES for dynamic tasking, charging, and traffic control — a model that aligns with RaaS pricing and outcome‑based SLAs favored by mid‑market buyers.

Logistics Automation Industry News

• In April 2026, KION and Siemens partnered to improve physical AI in logistics. They use artificial intelligence to analyze data and create digital twins, which are virtual models of machines, systems, and logistics centers. These models help companies test and improve processes before using them in real warehouses, making operations more efficient and reducing risks.
• In April 2026, Siemens and Humanoid reached a major milestone in bringing physical AI to industry. Humanoid's HMND 01 robot, built with NVIDIA's physical AI technology, successfully performed logistics tasks on its own at Siemens' electronics factory in Erlangen, Germany.
• In March 2026, DHL Supply Chain introduced SVT Robotics' SOFTBOT platform in its global warehouses. DHL, which already uses over 8,000 collaborative robots, can now connect and deploy robots up to 12 times faster than before. This helps DHL expand automation quickly and improve efficiency across its logistics network.
• In January 2026, The Otto Group started working with NVIDIA to improve supply chain operations using smart robotics. They plan to use a "Robotic Coordination Layer," powered by NVIDIA's Omniverse libraries and Isaac Sim, in 120 logistics locations. This system trains robots in virtual environments, making logistics operations more efficient, scalable, and integrated.

The logistics automation market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2022 to 2035, for the following segments:

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Market, By Component

• Hardware
  • Autonomous Robots
  • Automated Storage & Retrieval Systems (AS/RS)
  • Automated Sorting Systems
  • Conveyor Systems
  • De-palletizing/Palletizing Systems
  • Automatic Identification & Data Collection (AIDC)
• Software
  • Warehouse Management System (WMS)
  • Transportation Management System (TMS)
• Services
  • Consulting
  • Deployment & Integration
  • Support & Maintenance

Market, By Application

• Warehouse & Storage Management
• Transportation Management

Market, By Organization Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

Market, By End Use

• Manufacturing
• Retail & E-Commerce
• Food & Beverage
• Healthcare & Pharmaceuticals
• Automotive
• Post & Parcel
• Oil & Gas
• Others 

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
  • Norway
  • Sweden
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Indonesia
  • Singapore
  • Vietnam
  • Philippines
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• MEA
  • South Africa
  • Saudi Arabia
  • UAE