PUBLISHER: Grand View Research | PRODUCT CODE: 1529639
PUBLISHER: Grand View Research | PRODUCT CODE: 1529639
The global logistics automation market size is anticipated to reach USD 90.0 billion by 2030, expanding at a CAGR of 15.0% from 2024 to 2030, according to a new report by Grand View Research, Inc. Logistics operations are critical factors in the smooth functioning of the supply chain of any business, especially low-margin, high-volume businesses. The logistics sector is witnessing a continuous increase in investments with a significant emphasis on the automation of several logistics functions. Automation enhances efficiency and aids in integrating supply chains; thus, automation is increasingly being adopted across sectors. The growing tendency of the logistics industry toward adopting automation solutions is one of the significant factors driving the growth of the logistics automation industry.
According to a DHL report published in 2018, 80% of warehouses do not have any automation support and are still operated manually, while 15% of the total warehouses are just mechanized, which means the warehouses use sorters, conveyors, picker solutions, and other machined equipment which are not necessarily automated. The report states that only 5% of total warehouses are automated. The trend displays a remarkable opportunity for the growth of the market in the coming years as companies are increasingly adopting automation in their warehouses, including autonomous robots, automated sorting systems, conveyor systems, etc. Technological developments such as communication technologies, sensors, tracking devices, computer vision, artificial intelligence, and machine learning are aiding the growth of the target market.
The e-commerce boom is resulting in increasing adoption of automation solutions owing to the enormous volumes of shipments. The e-commerce shipment volume is growing exponentially by the year, and hence the warehouses require automation solutions to meet the short delivery timelines. The e-commerce fulfillment centers are implementing automated sorting and conveyor systems and highly benefit from inventory management and order management software. Moreover, the major labor challenges faced by the logistics industry across the globe are driving the demand for logistics automation solutions.