Logistics Automation Market - By Component, By Organization Size, By Application, By Logistics, By End Use & Forecast, 2024 - 2032

Logistics Automation Market Size

The global logistics automation market was valued at USD 54.7 billion in 2023 and is projected to grow at a CAGR of 12.3% between 2024 and 2032. The market is experiencing substantial growth, driven by the increasing adoption of big data in automated logistics technologies. Companies leverage big data analytics to collect and analyze extensive information from various sources, thereby enhancing decision-making processes.
 

For instance, according to Statista, the global big data market is forecasted to grow to USD 103 billion by 2027, more than double its market size of USD 42 billion in 2018. By utilizing big data, organizations can optimize inventory management, forecast demand more accurately, and improve transportation route planning. This data-driven approach boosts operational efficiency, reduces costs, and increases customer satisfaction through timely deliveries. As businesses increasingly recognize the value of data analytics in improving logistics operations, the demand for automated logistics solutions incorporating big data is expected to rise, further propelling market growth.
 

Moreover, the logistics automation market is growing significantly due to the increasing adoption of IoT platforms in logistics and supply chain management. IoT devices enable real-time tracking and monitoring of inventory, shipments, and equipment, enhancing visibility throughout the supply chain. This connectivity allows organizations to make data-driven decisions, optimize routes, and manage resources more effectively. IoT-enabled sensors can predict maintenance needs, reducing downtime and improving operational efficiency. Additionally, integrating IoT with automation technologies fosters seamless communication between various systems, leading to enhanced coordination and faster response times. As companies seek to improve efficiency and transparency in their logistics operations, the adoption of IoT solutions will continue to accelerate, driving the growth of the market.
 

Logistics Automation Market Trends

Logistics automation is witnessing significant technological advancements in robotics in warehouse management. Innovations such as autonomous mobile robots (AMRs) and automated guided vehicles (AGVs) enhance operational efficiency by automating repetitive tasks like picking, packing, and sorting. These robotic systems reduce labor costs and minimize human error, leading to increased accuracy in order fulfillment. Moreover, advancements in artificial intelligence (AI) and machine learning enable these robots to optimize their routes and adapt to changing warehouse conditions in real-time. This flexibility is essential in high-demand environments, such as e-commerce, where rapid fulfillment is critical. As businesses increasingly recognize the benefits of robotic automation such as improved productivity, scalability, and reduced operational costs, they are more inclined to invest in these technologies, further fueling market growth in logistics automation.
 

For instance, in June 2024, Renault Group launched a 100% automated logistics facility in Villeroy, France, utilizing Exotec's Skypod robots. This groundbreaking initiative marks a world first for a car manufacturer and aims to enhance operational efficiency while reducing lead times and human error in the supply chain. The facility employs 191 Skypod robots to automate the flow of parts from receipt to shipment. These robots are designed to pick items at height, significantly improving safety and efficiency by eliminating the need for operators to handle heavy items manually. The automation process is expected to reduce order processing time by a factor of six, decreasing the time from order initiation to shipment from two hours to just 20 minutes. This enhancement allows the facility to prepare nearly 4,000 order lines per hour at peak activity.
 

High capital investment requirements pose a significant challenge in the logistics automation market, particularly for smaller enterprises and startups. Technologies such as robotics, automated storage systems, and advanced software solutions often require substantial upfront costs, deterring budget-constrained organizations. This financial burden slows adoption rates, especially among small and medium-sized enterprises (SMEs) that lack the resources for heavy investment in automation. Additionally, the delayed return on investment (ROI) exacerbates potential adopters' hesitation. Consequently, these high capital demands can hinder overall market growth by limiting the number of organizations willing to invest in logistics automation solutions.
 

Logistics Automation Market Analysis

Based on components, the market is segmented into hardware, software, and services. In 2023, the hardware segment accounted for over 55% of the market share and is expected to exceed USD 85 billion by 2032. Several key factors contribute to the hardware segment holding the largest share of the logistics automation industry. First, essential hardware components such as automated storage and retrieval systems (AS/RS), conveyor systems, and robotics play a pivotal role in efficient material handling and storage operations. These systems reduce manual labor while enhancing operational speed and accuracy. Second, with the growing demand for rapid fulfillment in e-commerce and retail, businesses are significantly investing in hardware solutions to optimize their logistics processes.
 

Third, advancements in robotics and sensor technology have made automation more accessible and affordable, encouraging widespread adoption. Lastly, hardware serves as the backbone for integrated logistics systems, facilitating real-time tracking and inventory management crucial aspects of modern supply chains. Collectively, these factors underscore hardware's dominance in the logistics automation landscape.
 

Based on organization size, the market is divided into large enterprises and SMEs. The large enterprises segment held around 64% of the market share in 2023. Firstly, their substantial financial resources enable them to invest in advanced automation technologies such as robotics, warehouse management systems, and AI-driven solutions. Additionally, these organizations typically have extensive and complex supply chains, where automation significantly enhances efficiency, accuracy, and scalability.
 

The ability to handle high volumes of inventory and distribution demands makes automation crucial for maintaining competitiveness. Moreover, large enterprises prioritize operational efficiency and cost reduction, which logistics automation directly addresses by minimizing labor costs and streamlining processes. Lastly, they benefit from established infrastructure and partnerships, facilitating smoother integration of automation solutions into their existing operations, further solidifying their market position.
 

In 2023, the North America region accounted for a market share of over 30% and is expected to exceed USD 50 billion by 2032. U.S. leads the market in the North America region and is expected to exceed USD 45 billion by 2032. The U.S. logistics automation market is witnessing robust growth, driven by the rapid expansion of e-commerce and the demand for operational efficiency. Key sectors such as retail, manufacturing, and healthcare are increasingly adopting automation technologies like robotics, warehouse management systems, and AI solutions to streamline processes and reduce costs. Significant investments in advanced technologies and infrastructure are fostering innovation within the market. Additionally, a strong emphasis on supply chain resilience, especially post-pandemic, is prompting organizations to enhance their logistics capabilities through automation, positioning the U.S. as a leader in the global market.
 

Europe logistics automation market is experiencing significant growth, driven by rising e-commerce activities, increased demand for efficient supply chain operations, and technological advancements. Germany, the UK, and France lead the market due to their robust manufacturing sectors and advanced logistics infrastructure. The adoption of automation technologies, including robotics and AI, enhances operational efficiency and accuracy. Additionally, government initiatives promoting digital transformation and sustainability are fueling investments in logistics automation. However, challenges such as high initial costs and integration complexities may impact market growth in the region.
 

Asia Pacific market is witnessing substantial growth, driven by rapid urbanization, increased e-commerce activities, and a rising demand for efficient supply chain solutions. China, India, and Japan are at the forefront of this market due to their extensive manufacturing bases and expanding retail sectors. The adoption of technologies such as robotics, AI, and IoT is significantly enhancing operational efficiency and accuracy in logistics processes. Additionally, government initiatives promoting smart manufacturing and infrastructure development are contributing to market expansion. However, challenges such as high initial investment costs and workforce adaptation to automation remain critical considerations for growth in the region.
 

In the MEA region, increasing technology investments, particularly in the Gulf Cooperation Council (GCC) countries, drive the market. This focus aims to enhance supply chain efficiency amid the expanding e-commerce sector. In Latin America, rising urbanization and a shift towards modern logistics practices support market growth. Key players such as Brazil and Mexico are adopting automation to improve operational efficiency and competitiveness in logistics.
 

Logistics Automation Company Market Share

Dematic, Daifuku Co. Ltd., and Honeywell International Inc. collectively held a substantial market share of over 14% in the logistics automation industry in 2023. Dematic integrates advanced automation technologies, including AI-driven warehouse solutions and robotics, to optimize material handling and enhance supply chain efficiency. They prioritize flexible, modular systems for scalability and utilize data analytics for real-time decision-making. By partnering with e-commerce and retail giants, Dematic emphasizes sustainability by offering energy-efficient systems that reduce operational costs and carbon emissions.
 

Daifuku focuses on developing smart logistics solutions by incorporating automated storage and retrieval systems (AS/RS) and autonomous mobile robots (AMRs). The company aims to create flexible, scalable solutions that improve operational efficiency. Additionally, Daifuku leverages IoT technologies for real-time data monitoring and predictive maintenance, addressing the growing demand from the e-commerce, manufacturing, and food sectors.
 

Honeywell targets end-to-end automation solutions by integrating advanced robotics, IoT-enabled sensors, and AI-powered software. They focus on providing real-time data analytics to enhance warehouse management, order fulfillment, and predictive maintenance. Honeywell’s strategy also includes promoting sustainability through energy-efficient solutions while expanding its presence in the e-commerce, retail, and industrial logistics sectors.
 

Logistics Automation Market Companies

Major players operating in the market are:

• Daifuku
• Dematic
• Honeywell International
• IBM
• Knapp AG
• Murata Machinery
• Oracle Corporation
• SSI Schaefer
• Swisslog Holding AG
• TGW Logistics Group
   

Logistics Automation Industry News

• In October 2024, Logistics automation firm Elixia successfully raised $1 million in a pre-Series A funding round led by the JITO Incubation and Innovation Foundation (JIIF). This funding will support Elixia's expansion into the Middle East, where it aims to offer advanced logistics solutions tailored to regional businesses. Elixia plans to enhance its product offerings by integrating Generative AI and Machine Learning technologies. This integration aims to improve multimodal visibility and operational efficiency within logistics operations.
   
• In October 2024, SpeedFloor unveiled its next-generation automation solutions aimed at transforming the logistics industry. This innovative approach focuses on enhancing operational efficiency and streamlining processes within logistics operations. SpeedFloor's solutions incorporate cutting-edge technologies that automate various logistics processes, from inventory management to order fulfillment. This aims to reduce manual labor and minimize errors. By automating repetitive tasks, SpeedFloor enhances throughput and accelerates the overall logistics workflow.
   

The logistics automation market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2032, for the following segments:

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Market, By Component

• Hardware 
  • Automated Storage and Retrieval System (AS/RS)
  • Conveyor system
  • Automated Guided Vehicles (AGVs)
  • Robotics
  • Others
• Software 
  • Warehouse Management System (WMS)
  • Transportation Management System (TMS)
• Services 
  • Consulting
  • Maintenance and support

Market, By Organization Size

• Large enterprises
• SME

Market, By Application

• Warehouse and storage management
• Transportation management

Market, By Logistics

• Sales logistics
• Production logistics
• Recovery logistics
• Procurement logistics

Market, By End User

• Manufacturing
• Healthcare and pharmaceuticals
• Fast-moving consumer goods
• Retail and e-commerce
• Automotive
• Others

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

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa