Logistics Automation Market

[318 Pages Report] The global Logistics Automation Market size is projected to grow from USD 32.7 billion in 2023 to USD 51.2 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 9.3% during the forecast period. The digital transformation across logistics industry will drive the market.

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Market Dynamics

Driver: Increasing adoption of robots to improve logistics operations

Logistics robots are a growing trend that has taken off in recent years. The progressive complexity of warehousing and the demand for agile and efficient operations have caused companies to invest in automating movements and the different areas in the facility with automated storage and retrieval systems (AS/RS). The boom in logistics robots responds to the need to reduce costs and optimize processes to improve competitiveness. Unlike conventional equipment, logistics robots ensure maximum throughput 24/7 if required, in addition to the safety of the goods, the operators, and all other elements involved in the warehouse. Robots are used to transfer products from one location to another in an efficient and timely manner. They automate tedious, dull, and unsafe tasks involved in various processes, such as warehousing and material handling, without manual intervention.

Restraints: Lack of uniform governance standards

Logistics businesses are focused on maximizing supply chain efficiency to enhance profitability and viability. There is a requirement for common governance standards for the logistics industry. The US and the European countries, logistics standardization in Asian countries, such as China and South Korea, is limited due to the lack of government involvement and the absence of regional organizations that can actively initiate and unify multinational logistics standardization efforts. A common standardization in logistics management makes it easier and more convenient for every vendor to offer a majority of solutions in one package. The lack of uniform governance standards makes it difficult for end users to fully automate the supply chain and logistics operations, thereby acting as a restraint to the growth of the logistics automation market.

Opportunity: Implementation of autonomous vehicles and drones

In recent years, the significance of autonomous vehicles in the logistics industry has increased as it has gradually been adopted in carefully controlled environments, such as warehouses and yards. However, deploying autonomous vehicles in shared and public spaces, such as on highways and city streets, can be the next big step for the industry, helping to optimize logistics operations and increase safety. The growing technological advancements in AI and increasing heavy investments in the development of sensors and vision technologies can help self-driving vehicles transform the way vehicles are assembled, operated, utilized, and serviced. Autonomous vehicles and drones play a vital role in automated logistics processes. Companies, such as Google and Tesla, have made significant advances in driverless vehicle technologies

Challenge: Lack of skill and expertise in operating advanced automated systems

Industrial automation devices and systems need to be operated by skilled workers, owing to the complexity of these systems. The operating process of digital systems may be misinterpreted by an unskilled person, which might lead to mistakes and faults in the logistics process. For this purpose, employees need to undergo training in the particular areas of technology to ensure that they understand and can use physical and software robotics in logistics.

Logistics Automation Market: Value Chain Analysis

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Based on Hardware, automated storage, and retrieval systems segment to hold the highest market share during the forecast period

ASRS is a system used to automatically store and retrieve materials from a defined storage location. These systems comprise four major parts: storage racks, input/output systems, storage, and retrieval (S/R) equipment, and computer management systems. Some major automated functions performed by ASRS include unloading, sorting, storing, order picking, staging, and loading. These systems, based on their material handling capacity, can be categorized into unit load, mini load, carousel, shuttle, mid load, auto store, and goods-to-person. ASRS are used to reduce the monotonous work of picking and placing high volumes of inventory moving in and out of warehouses

Based on Software Application, Inventory Management segment to hold the highest market share during  the forecast period

Inventory management is an essential aspect of logistics automation. Automation can help businesses improve inventory management by reducing errors, increasing efficiency, and providing real-time visibility into inventory levels. Inventory management helps companies identify the quantity and type of stock to order at time. It tracks inventory from purchase to the sale of goods. The practice identifies and responds to trends to ensure there is always enough stock to fulfill customer orders and proper warning of a shortage.

Based on logistics Type, Sales Logistics segment to hold the highest market share during the forecast period

Sales logistics, also known as outbound logistics, refers to the processes involved in delivering finished products or services from its customers. It is an essential aspect of the supply chain management process that involves the planning, implementation, and control of the movement of goods or services from the point of production to the point of consumption. Sales logistics typically includes activities such as order processing, inventory management, packaging, transportation, and delivery. It also involves managing relationships with customers and ensuring timely delivery of products or services.

North America to account for the highest market share during the forecast period.

The presence of leading logistics automation solution providers that have established themselves globally is a major factor leading to the rapid growth of the logistics automation market in North America. The other factors such governments taking appropriate initiatives to promote robust infrastructure will drive the logistics automation market in this region.

Key Market Players

This research study outlines the market potential, market dynamics, and major vendors operating in the logistics automation market. Key and innovative vendors in the logistics automation market include Dematic (US), Honeywell Intelligrated (US), Daifuku (Japan), Oracle (US), SAP (Germany),IBM(US) ,SSI Schaefer (Germany), Knapp (Austria), Manhattan Associates (US), Swisslog (Switzerland), Blue Yonder (US),Mantis(US),Murata Machinery (Japan), TGW Logistics Group (Austria), Jungheinrich (Germany), System Logistics (Italy), Zebra Technologies (US), ABB (Switzerland), BEUMER Group (Germany),Korber(Germany), O9 Solutions(US), JR Automation(US), Automated Logistics Systems(US),SBS Toshiba Logistics (Japan), SAVOYE(France), Symbotic(US), Locus Robotics(US), GreyOrange (US), Eyesee (Hardis Group) (France), Falcon Autotech (India), Logistically(US),and Logiwa(US).The study includes an in-depth competitive analysis of these key players in the logistics automation market with their company profiles, recent developments, and key market strategies.

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Scope of the Report

This research report categorizes the logistics automation market to forecast revenue and analyze trends in each of the following submarkets:

Based on Components:

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

Based on Function:

• Inventory and Storage Management
• Transportation logistics

Based on Logistics Type:

• Sales Logistics
• Production Logistics
• Recovery Logistics
• Procurement Logistics

Based on Organization size:

• SMEs
• Large Enterprises

Based on Software Application:

• Inventory Management
• Order Management
• Yard Management
• Shipping Management
• Labor Management
• Vendor Management
• Customer Support
• Other Applications

Based on Vertical:

• Retail & eCommerce
• Manufacturing
• Healthcare & Pharmaceuticals
• Food & Beverages
• Automotive
• Aerospace and Defense
• Chemicals
• Other Verticals (paper and printing, and textiles and clothing)

Based on Regions:

• North America
• Europe
• APAC
• MEA
• Latin America

Recent Developments:

• In January 2023, Jungheinrich acquired the Indiana-based Storage Solutions group (Storage Solutions), a leading provider of racking and warehouse automation solutions in the US to gain enhanced access to the US warehousing and automation.
• In October 2022, Supply Sensing, a new generation solution introduced by 09 Solutions, would assist businesses in better anticipating supply disruptions by localizing the impact of macro-level shocks on their particular supply chains and developing mitigating strategies to minimize any negative effects on their operations.
• In May 2022, Oracle announced new logistics management capabilities within Oracle Fusion Cloud Supply Chain & Manufacturing (SCM). The updates to oracle fusion cloud transportation management and oracle fusion cloud global trade management can help organizations reduce costs and risks, improve customer experience, and become more adaptable to business disruptions.
• In September 2021, SAP Yard Logistics’ various options are possible to provide a sustainable solution to customers for managing all processes in the yard. A sustainable, future-proof yard management, for simple as well as for complex scenarios, is supported by SAP Yard Logistics, which plans and ensures the smooth and efficient processes within the yard.
• In March 2021, Manhattan Associates launched the Manhattan Active Warehouse Management solution. It is the world’s first cloud-native enterprise-class Warehouse Management System (WMS) that unifies every aspect of distribution.

Frequently Asked Questions (FAQ):

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