PUBLISHER: Orion Market Research | PRODUCT CODE: 1681024
PUBLISHER: Orion Market Research | PRODUCT CODE: 1681024
Logistics Automation Market Size, Share, and Trends Analysis Report by Offerings (Automated Systems and Automated Software), by Deployment (Cloud-Based, and On-Premise), by Logistic Type (Inbound Logistics (Production Logistics, and Procurement Logistics), Outbound Logistics, and Reverse Logistics), by Technology (RPA, AI and Analytics, IoT Platform, Big Data, and Blockchain), by Organization Type (SMEs, and Large Enterprises), and by End-User Industry (Manufacturing, Healthcare and Pharmaceuticals, Automotive, Third-Party Logistics, Metal and Machinery, Food and Beverage, E-Commerce and Retail, and Others), Forecast Period (2025-2035)
Industry Overview
The logistics automation market is anticipated to grow at a CAGR of 12.9% during the forecast period (2025-2035) with total revenue projected to increase from $32.9 billion in 2024 to $124.33 billion in 2035. In recent years, automation has been a key enabler across diverse industries, including logistics, which is majorly owing to rapidly expanding e-commerce and retail quick commerce sectors, increasing global obstacles relating to labor availability and maintenance, and a growing industrial shift towards adopting automation technologies in complex and unsafe logistical activities. Relatively, the overall logistics industry is additionally experiencing several developments, such as the incorporation of autonomous robots and drone-based solutions and investments in advanced and smart manufacturing hubs, showcasing the growing prominence of the deployment and development of logistical infrastructure with automated solutions.
Market Dynamics
Increasing Complexity in Supply Chain
The global supply chain dynamics is experiencing difficulties owing to expanding logistic business across geographies, cross-border regulations, involvement of several stakeholders, transportation issues, and increasing supply chain disruptions. The growing impediments to smooth logistical operation are gradually stimulating companies and logistic providers to integrate automated logistical solutions into the business workflow, to deliver seamless cross-border trade, optimize inventory management, better respond to transportation challenges, mitigate logistical risks, and enhance customer experience. Furthermore, the introduction and expansion of specialized solution providers for logistics are helping in the inclusion of automation technologies to raise productivity and profits and enhance the basis of decision-making. For instance, in July 2024, Rapyuta Robotics Inc. introduced its Automated Storage and Retrieval Systems (ASRS) in the US market. The system has been proven in Japan and features multi-agent coordination, a modular design, and flexible scalability, which improved the productivity of operations for picking and efficient storage of inventories.
Expansion of E-Commerce Industry
In recent years, the e-commerce industry has become a prominent contributor to the growth of the overall logistics market. Its contribution is anticipated to extend in the future owing to the rapid expansion of e-commerce companies across geographies, shifting consumer buying patterns towards online channels, and increasing adoption of omnichannel distribution approaches by market players. The growth trajectory is augmented by the acceptance of different types of automation technologies in e-commerce, which include automated sorting systems, transport management software enabled by artificial intelligence, and robotic solutions for goods management. Additionally, the dominance of quick commerce for providing same-day or 10-minute deliveries and flexibility in the return feature are together facilitating the incorporation of advanced and automated mechanisms to cater to the enormous demands and enhanced productivity. For instance, according to the International Trade Administration, the global B2B e-commerce market is anticipated to reach $36 trillion in 2026, when APAC will be about 80% of the portion. Growth is additionally visible in Latin America and the Middle East. Since 2020, over 90% of B2B companies have transitioned to virtual sales, although South Korean and Japanese consumers still favor traditional commerce. Further, the B2C e-commerce segment will reach $5.5 trillion by 2027, with fashion and consumer electronics as leaders, and BioHealth pharmaceuticals being the growth leader. India will be the biggest contributor to e-commerce growth, with a CAGR of 14.1% from 2023 to 2027.
Market Segmentation
The Automation Software Segment is Projected to Hold a Considerable Market Share
The automation software segment dominates the market owing to the development of smarter and autonomous systems, the integration of advanced technologies such as AI, ML, and robotics, and the growing emphasis by market players on digitizing logistical workflow. Further, the software market has been a key enabler for small organizations in integrating and deploying automation solutions at low cost, resulting in rapid innovations across the automation software space. For instance, EliteX unveiled its transportation ERP software. It is an all-in-one solution that integrates fleet management, telematics, maintenance, inventory, and more.
Outbound Logistics Segment is Projected to Exponentially Gain Market Share
Outbound logistics is projected to lead the market owing to the expanding e-commerce market, increase in innovative offerings by logistical providers, and extension in the geographical footprint of businesses. Further, advancement in outbound delivery techniques such as autonomous drones and the growing popularity of quick commerce is expected to drive segmental growth during the forecast period.
The global logistic automation market is further divided by geography, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East and Africa, and Latin America)
North America is leading the logistics automation market, attributed to various factors, such as growing investment in automation technologies, including robotics and AI-based software, a matured market for utilization of automated technologies in logistical workflow, the presence of major automated software and hardware providers, including IBM, SAP, and others, and developed infrastructure for seamless transformation of logistical automation. Further, the region is additionally recording increased collaboration among market players for a better transition into logistical automation. For instance, in April 2024, MODE Global, a multi-brand 3PL platform, entered into a partnership with Transporeon, a Trimble Company. The collaboration will utilize autonomous procurement by Transporeon to automate the tendering of both spot and dedicated freight. Under the collaboration, Transporeon's Transportation Management Platform will be white-labeled and customized for MODE, creating the MODE Global Marketplace.
Asia-Pacific is the Fastest Growing Region in the Global Logistics Automation Market
Asia-Pacific is the fastest-growing region in the global market for logistics automation, supported by regional shifts towards adopting automation technology in the logistics sector, increasing labor acquisition costs, rapid expansion in the quick commerce industry, and substantial investment and support by state-owned organizations for developing domestic manufacturing industries with automation technologies. Further, the regional countries including Singapore, India, Thailand, and Malaysia account for major logistical hubs in global commerce and trade, necessitating regional players to automate logistical workflow to meet future demand. For instance, OMRON opened the first automation center for logistics in Singapore, serving Southeast Asia and Oceania. The center is OMRON's second in Singapore, sixth in APAC, and thirty-eighth globally. The center will focus on developing solutions for the Robotics Middleware Framework (RMF) to enable multi-robot systems to collaborate with human workers in warehouses, autonomously handling and storing goods.
The major companies operating in the global logistic automation market include ABB Group, IBM Corp., Honeywell International Inc., Oracle Corp., and SAP SE, among others. Market players are leveraging partnerships, collaborations, mergers and acquisition strategies for business expansion and innovative product development to maintain the market positioning.
Recent Developments