Brainy Insights estimates that the USD 62 billion in 2024 global logistics automation market will reach USD 250.82 billion in 2034. Logistics automation involves the use of advanced technology, software systems, and automated gear to optimise supply chain and logistics processes. The system handles inventory control, warehousing, transportation management, and order processing. The primary goal of logistics automation is to promote faster processes with more accuracy, efficiency, and lower personnel costs. The key driving technologies in logistic automation include robotics, AI, IoT, and machine learning. Warehouse workers employ Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) to transport materials as well as sort and package them. Companies may follow their merchandise in real time with IoT devices, resulting in improved monitoring capabilities as well as decision quality. Businesses can use predictive analytics features that optimize inventory operations by combining AI and ML technologies. Conveyor belts and automated storage and retrieval systems (AS/RS) are examples of automated warehouse technology that reduces human error and increases operational speed. Transportation firms use automation to manage their fleet of vehicles, plan their routes automatically, and use robots and drones to complete last-minute deliveries.

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North America will dominate the market during the forecast period.

The market for logistics automation is led by North America because of its advanced infrastructure, rapid technological adoption, and concentration of significant e-commerce businesses. To update their operational procedures, reduce labour costs, and meet the increasing expectations of delivery speed, Amazon, Walmart, and FedEx have invested significant resources in robotics, Autonomous Mobile Robots (AMRs), and Automated Storage and Retrieval Systems (AS/RS). Automation has been greatly expedited throughout the region due to the spike in demand for same-day and next-day delivery. The North American region is a leading hub for innovation in logistics operations because of its continued emphasis on research, which drives continuous improvements in automation solutions. The region's highly skilled workforce and well-established regulatory framework provide extra assistance for automation adoption.

In 2024, the hardware segment dominated the market with the largest market share of 42% and revenue of USD 26.04 billion.

The component segment is divided into hardware, software and services. In 2024, the hardware segment dominated the market with the largest market share of 42% and revenue of USD 26.04 billion.

In 2024, the warehouse automation segment dominated the market with the largest market share of 55% and revenue of USD 34.10 billion.

The function segment is divided into warehouse automation and transportation automation. In 2024, the warehouse automation segment dominated the market with the largest market share of 55% and revenue of USD 34.10 billion.

In 2024, the retail and e-commerce segment dominated the market with the largest market share of 38% and revenue of USD 23.56 billion.

The end use industry segment is divided into retail and e-commerce, automotive, consumer goods, pharmaceuticals and aerospace and defence. In 2024, the retail and e-commerce segment dominated the market with the largest market share of 38% and revenue of USD 23.56 billion.

Advancement in market

MiTek can supply the strong and precise steelwork needed to support intralogistics automation, including automated stores, conveyor technology, AGVs, and robotic handling systems. Whether it's a single steel platform or a multi-tier solution, and whether it's installed in a brand-new facility or an existing warehouse, the MiTek team designs and produces mezzanine solutions that allow automated logistics systems to achieve maximum efficiency and space utilisation. MiTek Industries GmbH, exhibited on booth K58 in hall 1 of the LogiMAT exhibition in Stuttgart. The company highlighted mezzanine systems and related steel solutions for intralogistics automation under the subject 'Empowering Automation'.

Market Dynamics

Driver: The quickly growing e-commerce and retail sectors.

The exponential expansion of e-commerce has brought about enormous changes to global economic operations by altering consumer behaviour, company practices, and distribution networks. Due to people's increased usage of cell phones, the internet, and distant buying alternatives, e-commerce has grown beyond all expectations. Competitive pricing, a wide range of products, personalised recommendations, and flexible payment options have all contributed to the explosive growth of online shopping. New developments that provide quick delivery, easy return policies, and intuitive user interfaces have cemented e-commerce as the go-to way for consumers to shop. This development was accelerated by the COVID-19 pandemic, which forced businesses and consumers to employ digital transactions in all sectors of the economy due to global lockdowns. The pandemic caused a significant shift in customer behaviour towards e-commerce platforms in a number of industries, including fashion, electronics, grocery stores, and healthcare. Supply chain systems are under tremendous strain from rapidly expanding e-commerce operations, and companies are increasingly actively striving to deliver enormous quantities of orders accurately. Businesses are implementing cutting-edge technological solutions, such as robotic warehouses, AI systems for inventory monitoring, and robotic order fulfilment and packaging, due to the urgent demand for efficient operations in e-commerce. Thus, the expansion of the global logistics automation market will be driven by the quickly growing retail and e-commerce industries.

Restraints: high implementation, acquisition, and operating expenses.

Due to the hefty implementation costs, SMEs have a difficult time embracing logistics automation. Before deploying cutting-edge technological solutions based on robotics, artificial intelligence, machine learning, and Internet of Things technologies, businesses must incur significant costs for infrastructure, software, and equipment. Businesses that want to expand their automated warehouses must purchase expensive equipment and make significant changes to their current facilities in order to accommodate automated systems like robotic machines, conveyor belts, and automated storage and retrieval systems (AS/RS). Expensive personnel skill development and workforce training add to the investment process's overall costs. Employees must learn system operation and support responsibilities, which adds to the costs of educating them to handle automated systems. The investment appears more difficult than it currently is due to the cost impact of maintenance responsibilities and potential system improvements. As a result, the market's expansion is hampered by the high costs of acquisition, implementation, and operation.

Opportunities: Technological developments in robots, AI, ML, and IoT.

Industrial logistics and supply chain operations have benefited greatly from modern technological advancements, which have increased production capacity and precision exponentially. These technical components—which include robotics, artificial intelligence, machine learning, the Internet of Things, and big data analytics—are the main cause of the developments. Robots with systematic automation, such as AGVs and AMRs, help warehouses become more efficient and reduce human error. Logistic optimisation is progressing thanks to AI and ML capabilities that use predictive analysis methodologies to create better demand projections, optimised inventory management, and optimised delivery routes. Leaders employ such technology to conduct systematic large-scale data analysis, allowing them to make predictive judgements while finding risk prevention trends before attaining operational excellence. The combination of connected sensors and monitoring equipment creates important data that allows for better asset management and delay prevention while maintaining product quality. These developing developments address the growing complexity of logistical operations.

Challenges: The increasing risk of cyberattacks.

The dependence of logistics automation on interconnected systems and cloud computing and real-time data sharing operations exposes these systems to cyberattacks. Systems automation requires the distribution of sensitive data consisting of shipment specifics and customer information and operational measurement values across networking systems. Such systems remain vulnerable to cyber incidents along with ransomware and data compromise because of inadequate cybersecurity protections. Certain weaknesses in IoT devices, cloud platforms and software applications make it possible for hackers to both disrupt operational processes and disrupt data integrity. Businesses need to allocate significant funds for cybersecurity tools including firewalls together with encryption and intrusion detection systems that create higher operational costs while reducing adoption rate. Developing economies encounter major challenges to logistics automation because they lack sufficient foundational infrastructure.

Some of the major players operating in the global logistics automation market are:

• Amazon Robotics
• AutoStore
• Bastian Solutions
• Dematic
• FANUC Corporation
• GreyOrange
• Honeywell Intelligrated
• JBT Corporation
• Knapp AG
• KUKA AG
• Mitsubishi Electric
• Siemens AG
• Swisslog
• Vecna Robotics

Key Segments covered in the market:

By Component

• Hardware
• Software
• Services

By Function

• Warehouse Automation
• Transportation Automation

By End Use Industry

• Retail and E-commerce
• Automotive
• Consumer Goods
• Pharmaceuticals
• Aerospace and Defence

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

About the report:

The market is analyzed based on value (USD Billion). All the segments have been analyzed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter's five forces model, attractiveness analysis, Product analysis, supply and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.