Global Logistics Automation Market Size, Share & Trends Analysis Report By Enterprise Type (Large Enterprises, and SMEs), By Logistics Type, By Component, By Application, By Industry, By Regional Outlook and Forecast, 2024 - 2031

Global Logistics Automation Market Size, Share & Trends Analysis Report By Enterprise Type (Large Enterprises, and SMEs), By Logistics Type, By Component, By Application, By Industry, By Regional Outlook and Forecast, 2024 - 2031

The Global Logistics Automation Market size is expected to reach $84.97 billion by 2031, rising at a market growth of 12.2% CAGR during the forecast period.

The automotive segment is fueled by the complexity of its supply chains, which require precise coordination of components, assembly processes, and distribution networks. Automation technologies such as automated guided vehicles (AGVs), robotic arms, and IoT-enabled systems play a critical role in optimizing production logistics and ensuring just-in-time (JIT) delivery of components. The automotive industry's requirement for automation has been further exacerbated by the transition to electric vehicles (EVs) and the implementation of smart manufacturing practices. These technologies enable manufacturers to improve efficiency, reduce production timelines, and enhance supply chain flexibility in a highly competitive environment. Thus, the automotive segment witnessed 25% revenue share in the market in 2023.

The major strategies followed by the market participants are Product Launch as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2024, ABB Group has launched OmniCore, an advanced automation platform offering modular control architecture integrating AI, sensors, and cloud computing. OmniCore delivers high-speed, precise robot performance with up to 25% faster operation and 20% less energy consumption. Its scalable design supports diverse applications, enhancing flexibility and efficiency in automation. Additionally, In May, 2024, Manhattan Associates, Inc. unveiled Manhattan Active Supply Chain Planning, the first unified platform that integrates supply chain planning and execution systems. This solution enables real-time collaboration across inventory, labor, transportation, and warehouse operations, eliminating silos and optimizing resources for a shared business objective.

Based on the Analysis presented in the KBV Cardinal matrix; Oracle Corporation is the forerunner in the Logistics Automation Market. Companies such as Honeywell International, Inc., ABB Group, FANUC Corporation are some of the key innovators in Logistics Automation Market. In June, 2024, ABB Group has launched OmniCore, an advanced automation platform offering modular control architecture integrating AI, sensors, and cloud computing. OmniCore delivers high-speed, precise robot performance with up to 25% faster operation and 20% less energy consumption. Its scalable design supports diverse applications, enhancing flexibility and efficiency in automation

Market Growth Factors

Another critical area that has been affected by the e-commerce boom is last-mile delivery, which is the concluding stage of the logistics process. As consumer expectations for same-day and next-day delivery grow, companies increasingly turn to advanced technologies like autonomous delivery vehicles, drones, and route optimization algorithms to streamline this stage.

Additionally, IoT enhances connectivity and data exchange between devices, enabling real-time inventory, equipment, and transportation monitoring. IoT sensors in warehouses and vehicles track temperature, humidity, and location, ensuring that perishable goods and high-value items are stored and delivered optimally. Thus, these advancements are supporting the growth of the market.

Market Restraining Factors

Logistics automation relies on advanced technologies such as robotics, artificial intelligence (AI), Internet of Things (IoT) devices, and automated storage systems. While these technologies offer significant long-term benefits, their implementation requires a substantial initial investment. Businesses must allocate funds to purchase these systems, upgrade existing infrastructure, and train employees to operate them effectively. Hence, the combination of high initial investments and recurring maintenance costs poses a significant barrier to the widespread adoption of logistics automation.

Type Outlook

Based on enterprise type, the market is bifurcated into large enterprises and SMEs. The SMEs segment procured 31% revenue share in the market in 2023. Cost-effective and modular automation systems designed specifically for SMEs have lowered entry barriers, enabling smaller businesses to implement automated storage solutions, IoT devices, and cloud-based logistics software.

Logistic Type Outlook

On the basis of logistics type, the market is classified into sale logistics, production logistics, recovery logistics, and procurement logistics. The sale logistics segment acquired 41% revenue share in the market in 2023. This dominance results from the retail and e-commerce industries' explosive growth, which calls for effective distribution networks and last-mile delivery solutions.

Component Outlook

By component, the market is divided into hardware, software, and services. The software segment garnered 29% revenue share in the market in 2023. Solutions such as warehouse management systems (WMS), transportation management systems (TMS), and real-time tracking platforms are critical for optimizing workflows, enhancing visibility, and supporting data-driven decision-making.

Application Outlook

Based on application, the market is segmented into transport management, warehouse management, labor management, and others. The transport management segment procured 39% revenue share in the market in 2023. The logistics automation market is currently led by the transport management segment, which is being driven by the growing demand for cost-effective and efficient transportation solutions in response to the growth of e-commerce and globalization.

Industry Outlook

On the basis of industry, retail & e-commerce, food & beverages, healthcare & pharma, aerospace & defense, energy & utility, automotive, and others. The retail & e-commerce segment recorded 30% revenue share in the market in 2023. The consumer demand for fast, accurate, and cost-effective deliveries and the exponential growth of online purchasing are the primary factors driving the retail and e-commerce segment.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment acquired 29% revenue share in the market in 2023. The region’s focus on sustainability, regulatory support, and cross-border trade optimization drives Europe's logistics automation market. Germany and the United Kingdom have been at the forefront of the incorporation of AI and robotics to improve efficiency and reduce carbon footprints in accordance with the sustainability objectives of the European Union.

Recent Strategies Deployed in the Market

• Jul-2024: FANUC Corporation expanded its geographical footprint by opening a new facility in Michigan, United States. The facility would support advanced manufacturing and automation solutions of the company.
• Jun-2024: ABB Group has launched OmniCore, an advanced automation platform offering modular control architecture integrating AI, sensors, and cloud computing. OmniCore delivers high-speed, precise robot performance with up to 25% faster operation and 20% less energy consumption. Its scalable design supports diverse applications, enhancing flexibility and efficiency in automation.
• May-2024: Manhattan Associates, Inc. unveiled Manhattan Active Supply Chain Planning, the first unified platform that integrates supply chain planning and execution systems. This solution enables real-time collaboration across inventory, labor, transportation, and warehouse operations, eliminating silos and optimizing resources for a shared business objective.
• Feb-2024: Knapp AG partnered with Takeoff, an eGrocery fulfillment services provider, to enhance eGrocery fulfillment, offering a modular product portfolio and coordinated technology roadmap. This partnership empowers retailers with flexible, right-sized automation solutions, streamlining fulfillment operations and driving profitability.
• Jan-2024: ABB Group took over Sevensense, a Swiss corporation specializing in AI-enabled 3D vision navigation for autonomous mobile robots (AMRs). This acquisition enhances ABB’s AMR portfolio with advanced Visual SLAM technology, improving navigation and scalability in dynamic environments.
• Dec-2023: Honeywell International, Inc. took over Carrier Global’s Global Access Solutions business. The acquisition enhances Honeywell's building automation capabilities.

List of Key Companies Profiled

• Honeywell International, Inc.
• Murata Machinery, Ltd.
• Knapp AG
• ABB Group
• FANUC Corporation
• Kuka AG (Midea Group Co., Ltd.)
• Oracle Corporation
• KION GROUP AG
• Daifuku Co., Limited
• Manhattan Associates, Inc.

Global Logistics Automation Market Report Segmentation

By Enterprise Type

• Large Enterprises
• SMEs

By Logistics Type

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

By Component

• Hardware
• Software
• Services

By Application

• Transport Management
• Warehouse Management
• Labor Management
• Other Applications

By Industry

• Retail & E-commerce
• Food & Beverages
• Healthcare & Pharma
• Aerospace & Defense
• Energy & Utility
• Automotive
• Other Industries

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA