Logistics Automation Market in India 2022

Logistics Automation Market in India 2022

Logistics automation refers to the integration of software, machinery, and control systems in warehouses and storage facilities to improve overall operating efficiency. Manufacturers are keen on implementing logistics automation in their systems to be able to keep up with technological advancements and innovations. It is being adopted across industries, including manufacturing, healthcare, oil and gas, chemicals, e-commerce, and fast-moving consumer goods.

Market insights:

The India logistics automation market was valued at INR 67.33 Bn in 2021. It is expected to reach INR 145.10 Bn by the end of 2027, expanding at a CAGR of 13.28% during the 2022 – 2026 period. With significant investments in technology adoption, India's logistics sector is expected to improve operational efficiencies. The use of the Internet of Things (IoT), data analysis, and automation can help businesses move and track cargo efficiently, as well as run their distribution networks smoothly.

Impact of COVID-19:

The COVID-19 pandemic resulted in a lot of pressure on warehouses and the e-commerce market. Their business operations faced major challenges because of disruptions in supply chain management and the unavailability of workers. Companies have started using artificial intelligence and have enabled digital payments as a solution to deal with circumstances such as those similar to the pandemic.

Market Influencers:

Market drivers:

Organizations are adopting robotic technologies to automate logistic processes, which implies the reduced need for manual labor, resulting in lower operational costs. In India, the growth of e-commerce has benefited several enterprises, especially those in the supply and logistics sector, where data science is used extensively to track shipments.

Key deterrents to the growth of the market:

Logistics automation technologies are advanced and rely on the expertise of trained professionals to be operated. The automation of logistics operations needs major capital investment. For example, establishing a large-scale automated warehouse requires the installation of automation equipment, software, and solutions, all of which entail significant costs.