Status : Published Published On : Sep, 2022 Report Code : VRICT5016 Industry : ICT & Media Available Format : Page : 145
2022
2030

Global Logistics Automation Market – Analysis and Forecast (2022 – 2030)
Industry Insights by Component (Transportation Management (Software and Services) and Warehouse & Storage Management (Hardware, Software and Services)), by Organization Size (Large Enterprises and Small and Medium Enterprises), by Vertical (Manufacturing, Pharmaceuticals & Healthcare, Retail & E-Commerce, Aerospace & Defense, Logistics & Transportation, Chemicals, Food & Beverage, Oil, Gas, & Energy, Automotive and Others)

Industry Overview

During the projection period of 2022–2030, the global market for logistics automation is expected to expand significantly, from $49.82 billion in 2021 to $90.2 billion in 2030, advancing at a CAGR of 10.8%. Logistic automation is the use of automated machinery and software in logistics services to help businesses increase the efficiency of their logistical processes.

Moreover, the development of the global logistics automation industry is significantly influenced by the deployment of drones and autonomous vehicles. These systems also include hardware, software, and related services. These systems aid in supplying clients with products of higher caliber because they are required to adhere to cost-effectiveness and prompt product delivery. Additionally, the development of IoT, the expansion of the e-commerce sector, and sophisticated robotic technology all contribute to the growth of the market.

The global logistics automation market was severely impacted by the COVID-19 outbreak, due to the disruption in the supply chain and logistics. The industrial, retail, and consumer goods sectors are just a few that have been severely impacted by the pandemic. Also, the COVID-19 pandemic had an impact on the production of electronic products, due to delays in logistics and a manpower shortage. Additionally, a few local e-commerce businesses had stopped offering non-essentials. A reversal in the trend of migration was seen in the area as a result of lockdowns. However, businesses in the logistics sector need to be aware of the specific demand effects that their operations have, develop a short-term synchronization strategy, and get ready for potential shifts, to improve their position in the market.

Logistics Automation Market Highlights

Market Segmentation

Insight by Component

The logistics automation market is bifurcated into two categories, based on components: transportation management and warehouse & storage management. Software and services are further separated under the category of transportation management. Hardware, software, and services are further subcategories of warehouse & storage management. The transportation management category is projected to have a higher CAGR during the forecast period. The desire for on-time delivery of goods and services and lower transportation costs among different corporate businesses are driving market growth in this category.

Insight by Organization Size

The logistics automation market is divided into two groups, based on the size of the organization: major organizations and small and medium enterprises. Small and medium-sized businesses will grow faster during the projection period, as a result of technical advancements, intense competition among major players, and decreased cost of automated warehouses. These elements promote the use of these systems by SMEs, which boosts the expansion of the logistics automation market on a global scale.

Insight by Vertical

The logistics automation market is categorized into manufacturing, retail and online sales, pharmaceuticals and healthcare, aerospace & military, chemicals, logistics & transportation, food & beverage, automotive, oil, gas & energy, and others, based on vertical. Due to intense rivalry in the logistics automation sector, the automotive category generates the most revenue in the market. To advance the supply, design, and production of cars, logistics automation has facilitated and fueled the demand for automated production techniques and flexible logistical systems.

                                   Logistics automation Market Report Coverage

Report Metric

Details

Historical Period

2018–2021

Base Year Considered

2021

Forecast Period

2022 - 2030

Market Size in 2021

$49.82 Billion

Revenue Forecast in 2030

$90.2 Billion

Growth Rate

CAGR 10.8%

Segments Covered in the Report

By Component, By Organization Size, and By Vertical

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and the Rest of the World

Industry Dynamics

Trends

With connected devices like radio frequency identification (RFID), gateways, and sensors, organizations may now create, process, store, and exchange massive volumes of data thanks to the surging acceptance of IoT technology. Additionally, there is a rising demand for smart devices, applications, and connection technologies across the world. IoT is crucial for automating, improving, and connecting, which enables businesses to create profitable and effective warehouses.

Growth Drivers

The rapid expansion of the e-commerce sector, lower operating costs, the rising need to increase warehouse productivity, and the development of robotics are the main drivers propelling the growth of the logistics automation market. A recent study found that the rise of the e-commerce industry has an impact on the expansion of the manufacturing, retail, and logistics industries. The shift from brick-and-mortar to online retail is putting a lot of pressure on the transportation, warehousing, labor, and supply chain needs of different corporate groups. 

Therefore, in order to maintain and enhance the seamless and effective operation of corporate operations, these issues are resolved by introducing logistics automation within the firm. Nevertheless, additional drivers that will drive the worldwide logistics automation market throughout the projected period include economic growth, changes in consumer purchasing habits, and an increase in disposable income.

Challenges

The constraints limiting the growth of the logistics automation market globally include a lack of standardization in regulatory requirements, a lack of talent and knowledge in managing modern systems, and high capital investment. Furthermore, it is projected that security and safety concerns pertaining to logistics would further restrain the expansion of the market.

Industry Ecosystem

Globally, market participants are leveraging market expansion through the application of a variety of strategies, including new product development, partnerships, joint ventures, acquisitions, collaborations, and agreements. As a result, market participants are influenced to make decisions that will allow them to remain competitive.

Geographic Overview

Geographically, North America's market for logistics automation contributes the most to global revenue and will expand rapidly over the coming years. Due to the presence of numerous businesses that frequently utilize logistic automation solutions to enhance the supply chain technique, including production, transportation, and product assembly, the logistics automation market in the region is growing. Additionally, the expansion of economies in the US, Canada, and Mexico has expanded the market in the region.

On the other hand, the APAC market will have the highest CAGR over the course of the projection period. This can be due to an increase in demand for several materials across a variety of manufacturing and warehouse sectors and the growth of the logistics and transportation sectors in the region.  

Competitive Insight

The market for logistics automation is dispersed. Small manufacturers and start-ups have a lot of potential in the logistics automation market to provide effective solutions for the creation of logistics automation goods. The rising customer demand can inspire some start-ups to introduce cutting-edge items in this industry. A few notable companies that are active in this market are Dematic Corporation, Daifuku Co. Ltd., Murata Machinery Ltd., KNAPP AG, SSI Schaefer AG, VITRONIC, Mecalux S.A., BEUMER Group, Honeywell Intelligrated Inc., Toshiba Logistics Corporation, Swisslog Holding AG, Jungheinrich AG, Falcon Autotech, System Logistics Spa, TGW Logistics Group GmbH, WiseTech Global Limited, and Matternet Inc.

In order to provide cloud-based robotic solutions, Honeywell worked with Fetch Robotics. The PalletTransport1500, an autonomous mobile robot developed for contactless pallet movement between distribution facilities, was unveiled by the companies.

The Manhattan Active Warehouse Management system was introduced by Manhattan Associates. It is the first enterprise-class warehouse management system (WMS) built entirely on the cloud, and it never needs to be updated. In terms of versatility, speed, and use, Manhattan Active WM is used in a new era of distribution management.

Recent Development by Key Players

Honeywell Intelligrated and Fetch Robotics, came closure in February 2021, to deliver cloud-driven robotic systems. For contactless pallet transfer around distribution centers, Fetch Robotics will introduce the Pallet Transport 1500 autonomous mobility robot. The Momentum warehouse execution system software from Honeywell Intelligrated will be used to move pallets and other heavy weights up to 1136 kg securely and effectively.

The Manhattan Active Warehouse Management solution was introduced by Manhattan Associates in May 2020. It is the only enterprise-class warehouse management system (WMS) in the world that is cloud-native, unifies every aspect of distribution, and never has to be upgraded. Manhattan Active WM delivers distribution management to a new level of speed, customization, and usability.

The most recent version of Dematic's warehouse automation system, the Dematic Multishuttle (DMS) 2 E, was released in March 2020.

Kion Group purchased Digital Applications International Limited (DAI) for Dematic in March 2020. The capabilities of the Dematic IQ Software will be improved, and the range of intralogistics software options will be expanded, by the acquisition of the UK-based software business that specializes in logistics automation solutions.

In September 2020, Jungheinrich signed a deal for strategic collaboration to develop the automation software and extend collaborative solutions for automated intralogistics and purchased a stake in the robotics firm Magazino, based in Munich.

The Global Logistics Automation Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2022–2030.

Segments Covered in the Report

  • By Component
    • Transportation Management 
    • Warehouse Storage Management
    • Image Collection and QC
    • Digital Image Conversion
    • Support and Maintenance
  • By Organization Size
    • Large Enterprises
    • Small and Medium Enterprises
  • By Vertical 
    • Manufacturing
    • Pharmaceuticals & Healthcare
    • Retail & e-commerce
    • Aerospace & Defence
    • Logistics & Transportation
    • Chemicals
    • Food & Beverage
    • Oil
    • Gas & Energy
    • Automotive
    • Others

Region Covered in the Report

North America

  • U.S.
  • Canada
  • Mexico

Europe

  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe

Asia-Pacific (APAC)

  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific

Rest of the World (RoW)

  • Brazil
  • Saudi Arabia
  • South Africa
  • U.A.E.
  • Other Countries

Frequently Asked Questions

Globally, industry players are leveraging market growth through implementation of various strategies such as new product development, partnerships, joint ventures, acquisitions and agreements that is influencing the key players to take decisions in order to sustain for a longer period of time.
The major factors that are driving the growth of the logistics automation market include extensive growth in the e-commerce industry along with advancements in the field of robotics.
The logistics automation market is fragmented and the key players operating in this market includes Dematic Corporation, Murata Machinery, Ltd., Daifuku Co., Ltd., SSI Schaefer AG, Mecalux, S.A., VITRONIC, BEUMER Group, Toshiba Logistics Corporation, Honeywell Intelligrated, Inc.
Increasing acceptance of IoT technology is helping the business enterprises to generate, store, process and share huge amount of data with other connected devices such as radio frequency identification (RFID), sensors and gateway.
On the basis of organization size, the logistics automation market is segmented into large enterprises and small and medium enterprises.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

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