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Logistics Automation Market (By Components: Hardware, Software, Services; By Organization Size: Small and Medium Enterprises, Large Enterprises; By End User: Manufacturing, Healthcare and Pharmaceuticals, Fast-Moving Consumer Goods, Retail and E-commerce, Automotive, Others; By Type: Sales Logistics, Production Logistics, Recovery Logistics; By Mode of Freight Transport; By Application) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033
The global logistics automation market size accounted for USD 65.25 billion in 2023 and is expected to hit around USD 217.26 billion by 2033 and is poised to grow at a compound annual growth rate (CAGR) of 12.8% during the forecast period 2024 to 2033.
The U.S. logistics automation market size reached USD 19.28 billion in 2023 and is anticipated to be worth around USD 67.32 billion by 2033, poised to grow at a CAGR of 13.34% from 2024 to 2033.
Asia-Pacific region will grow at a highest CAGR of around 14.2% from 2024 to 2033. As there has been an increase in the manufacturing industries in the Asia Pacific region especially in China There shall be an increased demand for automation in the logistics sector. This region is expected to grow with the highest compound annual growth rate in the coming years. There shall be a maximum adoption of automation in logistics in various nations like Japan as well as China. There is an increased amount of transformation which has changed the cost of Labor in these regions. The increase costs Of Labor have led to an increased adoption of automation in the manufacturing units. Seven increased demands for automation for the sorting systems.
The market for logistics automation is growing well in the North American region due to the early adoption of this technology in the North American region there shall be a growing demand for the adoption of this technology which is supported by the various initiatives of the organizations. Apart from the North American region the European region is also expected to see good amount of growth in the market due to an increase in the investments that come through various industries. Adoption of machine learning, Internet of Things and automation will lead to the growth of the market in the coming years. Increased use of the ecommerce platforms led to the growth of the market in the European region.
Automation has helped in increasing efficiency, it provides better control and also benefits the procurement of various products. It is also extremely beneficial in the production process and the management of the inventory. It helps in enhancing the customer service and distribution of various products over a period of time period automation in this sector has provided benefits for the transportation and the storage due to the increased use of automated vehicles, automatic mobile robots, increased use of robotic arms and automation of the retrieval as well as the storage systems. It has also helped in enhancing the warehouse management due to the increased use of the software's and services. It provides real time information regarding the loading and unloading of the products.
Apart from all of these factors the growing e-commerce market shell create need for the management of the inventory and warehousing. Increase number of warehouses for various products shall create a greater need for automation. As supply chains focuses on increasing the profits of the organizations there are many standards laid down by the governments for this industry. In order to automate the logistics in the Asian countries there is a need of standardization shall hamper the market growth during the forecast period. There is also an increased risk of privacy issues and security due to the increased use of cloud-based services. As the confidential data is available on this platform data breach is common. But this will hamper the reputation of the organization and it shall negatively affect the growth. The unauthorized access to all of this data will threaten the business position of these organizations. All these factors will hinder the market growth in the coming years.
Due to the outbreak of COVID-19 pandemic there are many restrictions imposed by the government across the globe which changed the workforce patterns and the quality of performance. During the pandemic there was a greater demand for automated solutions. Disrupted supply chains and restrictions of movement created greater demand for automation. there was an increased consumption of various goods through the online platforms. Increased number of sales for various products through these platforms led to many changes in the warehouses of these companies. In order to ensure safety as well as the health off its people the organizations started adopting automation in its supply chain and logistics. Even after the pandemic there are cases of shortages of Labor due to which the logistics automation market is expected to grow well during the forecast period.
| Report Coverage | Details |
| Growth Rate from 2024 to 2033 | CAGR of 12.8% |
| Market Size in 2023 | USD 65.25 Billion |
| Market Size by 2033 | USD 217.26 Billion |
| Largest Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | By Components, By Organization Size, By End User, By Type, By Mode of Freight Transport, and By Application |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
The increased adoption of the e-commerce platforms
Automation has also been adopted by many companies as it helps in cutting down the cost. As compared to the manpower the benefits offered by automation armor. The use of this technology also helps in enhancing the safety of the workplace and it also helps in reducing the number of accidents. There's a growing adoption of these services and technologies in the logistics market as it helps in providing a safer environment for the employees which helps in preventing injuries and other risks associated with the work.
Automation is extremely beneficial in most of the repetitive tasks that are performed in the logistics units. Automation has also reduced the risk of handling dangerous materials and in turn it has improved the productivity of these organizations. Constant performance monitoring is one of the benefits associated with the use of automation in logistics. These systems are also developed in a manner that help in gaining better solutions in case of emergencies. Automation has helped in preventing different types of accidents as these systems since various dangers and allowed the employees about the same.
On the basis of the components, the hardware segment is expected to dominate the market during the forecast period. There shall be an increased use of the system in the automation for the retrieval system and the storage system. Maximum use of the hardware's in the form of sortation systems and conveyors will also lead to the growth of the market.
Growing demand for robots in various businesses shall lead to the growth of the market. Due to an increased use of these robots in the supply chain and shall grow well in the future. The hardware segment is expected to grow well as there has been an increased use of robots in the management of the warehouses that have helped in the expansion of the market.
Depending upon the basis of application, the transport management segment is expected to have a dominant position in the coming years period this segment has dominated the market in the past and it is expected to grow well during the forecast period. Due to an increased use of various advanced technologies for the supply chain and logistics the market is expected to grow well during the forecast period.
The systems have been instrumental in formulating plans, executing these plans and optimizing the transportation of various goods. These systems have also been extremely beneficial for the documentation purpose which is related to the compliance part of their supply chain and logistics. It also helps in ensuring quick delivery and all of these factors are expected to drive the market growth for the logistics automation market during the forecast period.
On the basis of the end user, the manufacturing segment accounted largest share in 2023. There is an increased use of robots in the manufacturing industries that leads to the automation of most of the little since it's. In the manufacturing industries there are various risk associated with the usual various equipment's that may lead to accidents. The use of the words has released these risks of accidents and ensured better safety for the employees. It has provided safer environment for the employees.
Also, when it comes to the manufacturing of hazardous substances the use of automation or robotics relief to an increased productivity and the exposure of the employees to these products to a great extent extremely beneficial for the organization as well as the employees. In the manufacturing industries that are a lot of repetitive tasks that are performed by the automated systems or the robots due to which the employees can perform other functions.
In order to expand the business Amazon had planned to construct five buildings in metro Vancouver in the year 2021. This new building shall comprise of delivery stations, fulfillment centers and or Center for sortation. In order to meet the growing demand of various products this new building shall be instrumental in improving the time required for delivery and providing better support as well as services.
Segments covered in the report
By Components
By Organization Size
By End User
By Type
By Mode of Freight Transport
By Application
By Geography
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