Logistic Automation Market in India 2024-2028

Logistic Automation Market in India 2024-2028

Logistics automation is the integration of machinery, software, and control systems with storage and warehousing facilities to improve overall operational effectiveness. Manufacturers are implementing logistics automation in their systems to keep up with technological advancements and innovations.

The market is characterized by investments from foreign players such as Prologis, Alta Capital, and Anarock Capital in the logistics and warehouse sector in India, coupled with free trade agreements and economic partnerships with those operating in international markets.

Logistics automation combines industry 4.0 solutions such as artificial intelligence, machine learning, the Internet of Things (IoT), blockchain, and cloud computing in the logistics value chain. Automated guided vehicles, robotic arms, multi-purpose robots, RFID tunnels, drones, hand-held devices, and barcode scanners are some of the automation technologies.

The integration and use of artificial intelligence, global positioning systems (GPS), biometrics, and real-time tracking with logistics are a few trends in the market.

Market trends:

The Indian government and industry players are actively exploring blockchain applications in various sectors, including supply chain management. Indian regulators are set to introduce the National Logistics Policy (NLP), a framework with the potential to reduce logistics costs by 4% before 2030. Blockchain companies catering to supply chain and logistics include Zensar Technologies Inc., Vegavid Technology, and Primechain Technologies

Logistics Automation Trends In automotive industry:

The automobile industry has been increasing its investments in material handling, which comprises automated machinery such as robots for spot welding and related tasks.

In March 2022, Kodiak Robotics collaborated with CEVA Logistics, to assist with the development of improved logistics solutions such as autonomous freight delivery, to diversify its product portfolio, and to attract new clients.

Addverb, a Mumbai-based logistics software company, provides workflow-driven software solutions for real-time inventory tracking in warehouses.

Market drivers:

Robots are used to transfer products from one location to another efficiently and in a timely manner. Robotic technologies are being adopted by businesses to automate logistical procedures, which reduces the need for manual labor and lowers operational expenses.

The use of trained robots to carry out routine and physically demanding activities might reduce the workload of those working in logistics processes. One of the most significant factors expected to drive the growth of the logistics automation market is the increasing adoption of robots by various end-use industries to improve logistics operations.

Key deterrents to the growth of the market:

Implementation of automation requires business processes and workflows to be updated. This requires all personnel involved in warehouse operations to learn and adhere to the new processes. Such upgrades from traditional systems may face opposition from operators, thus limiting the adoption of the technology in the sector.