Home
News
Logistics automation market expected…

Logistics automation market expected to surge over next decade

logistics-automation-market-share-by-region.jpg

The global logistics automation market size is predicted to increase from US$65.25 billion in 2023 to approximately US$217.26 billion by 2033, according to a study published by Precedence Research.

The logistics automation market is driven by increasing demand for new technology, beneficial properties of automation and government initiatives.

In 2024, the global logistics market size accounted for US$9.97 trillion, while the logistics market is projected to grow at 9.35 per cent of annual growth.

The Europe logistics automation market size is estimated to grow from US$17.01 billion in 2023 to reach around USS48.62 billion by 2033, expanding at a remarkable CAGR of 11.18 per cent from 2024 to 2033. The Europe logistics automation market is driven by the fast growth in both the retail and e-commerce industries.

The logistics automation market refers to the industry segment focused on the development, implementation and utilization of automated technologies and systems to optimize various processes within the logistics and supply chain management ecosystem. The application of computer software or automated equipment to improve the productivity of logistics processes, usually at a warehouse or distribution centre, is known as logistics automation. It can be customized for specific nodes within a larger logistics network and function in tandem with higher-level computer systems.

Systems include mobile technology, conveyors, sortation systems, automated storage and retrieval systems and industrial robots. Operational control software handles low-level decision-making, business control software handles higher-level functions and integration software handles overall control of the automation gear. Automated goods in processes, automated goods retrieval for orders, automated dispatch processing and automated repackaging are some of the advantages of logistics automation.

Logistics automation market key insights:

  • North America has held a major revenue share of 42.13 per cent in 2023.
  • Asia-Pacific is expected to grow at the fastest rate during the forecast period.
  • By component, the hardware segment has contributed more than 61.5 per cent of revenue share in 2023.
  • By application, the transportation segment has generated the biggest revenue share in 2023.
  • By end-use, the manufacturing segment dominated the market in 2023.

U.S. logistics automation market size and forecast

The U.S. logistics automation market size was valued at US$19.28 billion in 2023 and is predicted to surpass around US$67.32 billion by 2033, registering a solid CAGR of 13.34 per cent between 2024 and 2033.

North America dominated the logistics automation market in 2023 due to its benefits, including increased customer service, scalability, speed, organizational control and fewer errors. Robotics is a rapidly developing supply chain technology, with the U.S. ranking as one of the world’s major marketplaces for automated solutions. The strong U.S. economic growth, e-commerce activity and growth in manufacturing are driving demand for solutions for automation in industries such as retail, automotive, food  and beverage and pharmaceuticals. The largest industry is food and beverage manufacturing, which requires equipment such as palletizers and sorting systems. The region is collaborating with cutting-edge technologies to generate higher-quality products at faster rates and lower costs.

Asia-Pacific is expected to grow at the fastest rate during the forecast period. Companies in APAC are increasingly recognizing the value of automation in warehouse processes, with 46 per cent of transport and logistics and 42 per cent of manufacturing organizations planning to use IoT solutions. Automation technologies have become more scalable and versatile, resulting in faster ROI. Smart fulfillment, which combines RFID, real-time location systems, and wearables, improves operational efficiency by providing dynamic picking assignments, increased workflow efficiency and automated analysis for decision-makers. The need for breakthrough technology and speedy deployment is driving the automation trend.

Logistics automation market highlights

The hardware segment dominated the logistics automation market in 2023. Automated Guided Vehicles (AGVs) steer themselves using magnetic tape or rods. Overhead trolleys are self-contained carts used for cargo transport. Automated conveyance robots with AI have emerged, including those that transport goods without magnetic tape, follow workers and move shelves.

Conveyors and sorters are used to sort and transport huge cargoes. Automatic labeling machines print and attach labels on containers. Racks and shelves are examples of storage equipment, whereas autonomous guided vehicles are included in factory automation designs.

Application outlook

The transportation segment dominated the logistics automation market in 2023. There are five advantages to logistics automation in transportation management systems (TMS): lower costs, better customer service, organizational control, faster processing and real-time data. Reducing manual data entry, increasing speedier product transit and integrating with ERP systems are ways to cut costs.

Auto-pick-up and real-time tracking improve customer service by guaranteeing on-time delivery. The ability of TMS to enforce efficiency policies and adapt to unique business regulations preserves organizational control. Reducing the need for extra staff to oversee the transportation, freight and logistics divisions is how speed is increased. With real-time data, activities are fully visible, allowing for more informed business decisions based on historical and trend data.

End-use outlook

The manufacturing segment dominated the logistics automation market in 2023. Logistics process automation (LPA) expedites order processing, shortens lead times and boosts manufacturing operational performance by increasing speed and efficiency in the supply chain. Better resource usage, less excess stock and optimized inventory levels lower costs.

Moreover, LPA reduces errors in order processing, data entry and other processes, increasing accuracy. It facilitates scalability as manufacturing processes expand, streamlines production scheduling and sequencing, and offers real-time visibility into supply chain operations. The process of collecting and evaluating data from different stages of the manufacturing process leads to data-driven decision-making.

Related Posts

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *