Global Logistics Automation Market Size Expands at Significant CAGR of 11.21% to Reach USD 25 Billion by 2030
Global Logistics Automation Market is flourishing due to the increasing demand for efficient supply chain management and growing need to ensure workforce safety.
Report Ocean, a leading strategic consulting and market research firm, in its recent study, estimated the Global Logistics Automation Market size at USD 17.28 billion in 2023. During the forecast period between 2024 and 2030, Report Ocean expects the Global Logistics Automation Market size to expand at a CAGR of 11.21% reaching a value of USD 24.89 billion by 2030. The Global Logistics Automation Market is propelled by the increasing consumer preference for online shopping and the escalating demand for swift delivery services. This surge in consumer demands has led to a proliferation of fulfillment centers focused on last-mile and quick deliveries. Notably, these fulfillment centers are progressively embracing automation, transitioning from mechanized support to operator-free equipment. The ongoing maturation of automated vehicle and robotics technologies is expected to significantly expand their applications in logistics and warehousing, thereby creating substantial growth opportunities for the target market over the forecast period.
Opportunities - Booming e-commerce sector
The expanding e-commerce market is poised to be a catalyst for the demand and evolution of inventory and warehousing management. As the number of warehouses proliferates to accommodate a burgeoning array of products, the imperative for automation intensifies. The dynamic nature of the e-commerce sector, fueled by increased consumer demands, propels supply chains to seek automated solutions for heightened operational efficiency. Concurrently, government standards designed to augment safety and efficiency in this sector further contribute to market expansion. The e-commerce boom emerges as a pivotal opportunity driving the need for advanced logistics and supply chain solutions.
Rapid adoption of technological advancements
Autonomous vehicle deployment in logistics has evolved significantly, initially within regulated environments like yards and warehouses. The prospect of introducing autonomous vehicles to shared public spaces, including highways and city streets, is poised to revolutionize logistics processes. This transition hinges on advancements in Artificial Intelligence (AI), substantial investments in sensor technology, and innovations in vision technologies. The intersection of technological advancements with logistics not only signifies a leap towards efficiency but also underscores the industry's commitment to staying at the forefront of innovation.
Impact of Geopolitical Tensions on Global Logistics Automation Market
The Global Logistics Automation Market is impacted by geopolitical tensions in several ways. Trade disputes, sanctions, and tariffs have created a climate of constant uncertainty, forcing companies to adapt rapidly. Brexit has added complexity, leading to logistical obstacles and increased operational costs in Europe. The intricacies introduced by Brexit have resulted in logistical challenges and escalated operational costs across Europe. Concurrently, evolving international relations, the surge of protectionism, and the geopolitical clash between China and the United States contribute to a climate of heightened uncertainty, characterized by tariff barriers and a reconfiguration of domestic market dynamics. Political trends fueled by populism prioritize domestic markets at the expense of international cooperation, injecting further unpredictability into business conditions. Simultaneously, technological advancements are revolutionizing global trade, albeit with uncertainties related to job security and technology divisions. The looming specter of climate change poses existential threats, prompting businesses to devise strategies for sustainability and resilience. In this complex geopolitical landscape, strategic thinking, proactive risk mitigation, and a readiness to embrace opportunities are paramount for businesses navigating the intricate terrain of global trade and logistics.
Global Logistics Automation Market
Segmental Information
Global Logistics Automation Market - By Component
On the basis of component, the Global Logistics Automation Market is divided into Hardware, Software, and Services segments. The hardware segment holds the highest share in the Global Logistics Automation Market and is expected to maintain its dominance by component during the forecast period. The hardware segment is sub-divided into mobile robots (AGV, AMR), automated storage and retrieval systems (AS/RS), automated sorting systems, and de-palletizing/palletizing. The mobile robots sub-segment holds the highest share in the global logistics automation market. It is primarily due to rising adoption of automated transportation. The mobile robots are also known as Automated Guided Vehicles (AGVs) that function within predefined pathways to facilitate the movement of products for shipping and storage. An essential contribution of AGVs lies in cost reduction within logistics and the optimization of supply chain processes. AGVs serve various purposes, including replenishment and picking for both inbound and outbound operations. For instance, they transport inventory from receiving areas to storage locations and move items from long-term storage to forward-picking locations for efficient stock replenishment. This strategic movement ensures that adequate inventory is readily available for pickers, enhancing the overall efficiency of the order-picking process
Global Logistics Automation Market - By Region
The in-depth research report on the Global Logistics Automation Market covers the market in a number of major countries across five regions: North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The Asia Pacific region dominates the market and is expected to maintain its dominance during the forecast period. It is primarily due to the expanding manufacturing industries, particularly in China, driving a heightened demand for logistics automation. Countries like Japan and China are anticipated to lead in the adoption of automation, influenced by a shift in labor costs and a surge in demand for sorting systems. In North America, the logistics automation market thrives due to early technology adoption, spurred by organizational initiatives. Europe also anticipates substantial growth, driven by increased investments, adoption of machine learning, IoT, and automation, further stimulated by the flourishing e-commerce landscape.
Competitive Landscape
The Global Logistics Automation Market is fragmented, with numerous players serving the market. The key players dominating the Global Logistics Automation Market include Dematic, Honeywell Intelligrated, Daifuku, Oracle, SAP, IBM, SSI Schaefer, Knapp, Swisslog, TGW Logistics Group, ABB (Switzerland), Symbotic, and Falcon Autotech. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.
The report's in-depth analysis provides information about growth potential, upcoming trends, and the Global Logistics Automation Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Global Logistics Automation Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.