Advanced warehouses in Canada and U.S. drive North American logistics robot market share

The use of robots in the logistics market is expected to jump over the next decade, reaching US$33.08 billion by 2032, according to SNS Insider Research.

Online shopping is seen as one of the key drivers of the increase, which the report indicates will grow by nearly US$25 billion in 10 years.

In 2023, with e-commerce sales accounting for 22 per cent of U.S. retail and average order values hitting US$90, retailers are under growing pressure to provide fast delivery. In order to keep up with the need for quicker shipping, companies are making big investments in automation technologies such as logistics robots to improve warehouse functions and boost the effectiveness of order processing.

Government assistance is driving the need for logistics robots in the manufacturing industry in the U.S. Just-in-time inventory systems greatly benefit from logistics robots, which rely on precise timing and coordination to streamline material transport. These machines improve efficiency and safety by handling hazardous or bulky items, thus fueling growth in the logistics robot market.

Automated guided vehicles (AGVs) are the leading players in the logistics robot industry, holding more than 41 per cent of the market in 2023 thanks to their dependable performance. Nevertheless, the scenery is changing quickly due to the rise of autonomous mobile robots (AMRs). AMRs are experiencing quick market growth due to their increased flexibility and adaptability. Their capacity to maneuver through changing surroundings and manage a range of logistical duties sets them up for significant market dominance down the line.

In 2023, palletizing and de-palletizing applications dominated the logistics robot market, securing more than 40 per cent of the market share. E-commerce’s boom is pushing the growth of this sector, highlighting the need for effective warehouse management. Logistics robots greatly decrease labor expenses, improve accuracy, and enhance overall goods management by automating the process of stacking and unstacking products.

Logistics robot market key segmentation:

By type:

• Automated guided vehicles
• Autonomous mobile robots
• Robot arms
• Others (UAVs)

By application:

• Palletizing & de-palletizing
• Pick & place
• Transportation
• Others (shipment & delivery)

By industry:

• E-commerce
• Healthcare
• Retail
• Food & beverages
• Automotive
• Others (consumer electronics)

North America gained a significant market share, exceeding 35 per cent in 2023, due to its embrace of advanced technology, significant investment in automation and highly developed infrastructure. The United States and Canada both have many advanced warehouses and distribution centers that use robotics to improve how they operate. Leading companies such as Amazon and Walmart are making significant investments in robotic technology for logistics to improve the efficiency of their supply chains. The technological skills, thriving economy, and expensive labor in the region also drive the need for automation.

The Asia-Pacific (APAC) region is accounted to grow at a faster CAGR during the forecast period 2024-2032, driven by fast-paced industrialization, urbanization and the expansion of e-commerce. Nations such as China, Japan and South Korea are making significant investments in robotics to update their logistics and supply chain activities. The area enjoys cost savings on labour, an expanding tech-savvy labor force and government efforts backing automation. The implementation of logistics robots is being driven by China’s Belt and Road Initiative and Japan’s emphasis on Industry 4.0.

Recent developments for logistic robot market:

• In March 2024, Anyware Robotics introduced an add-on for its Pixmo robot, designed to aid in truck and container unloading. The accessory features a vertical lift and conveyor belt for enhanced efficiency.
• In March 2024, Mobile Industrial Robots unveiled the MiR1200, an autonomous pallet jack using 3D vision and AI for precise pallet handling. It was showcased at LogiMAT 2024.

Key takeaways for logistic robot market:

• Comprehend new trends and technologies in order to take advantage of fresh market opportunities.
• Evaluate the possible ROI for incorporating logistics robots by analyzing market information.
• Find locations where robots in logistics can boost effectiveness, cut expenses and increase efficiency.