The global logistics automation market is experiencing significant growth, driven by factors such as improved efficiency, workforce safety, the rise of e-commerce, and advancements in robotics technologies. According to a recent report, the market is expected to reach $147.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 11.9%. Key players in the industry include Jungheinrich AG, Honeywell International Inc., Murata Machinery Ltd., Kion Group AG, Daifuku Co. Ltd., TGW Logistics Group GmbH, Knapp AG, SSI Schaefer Group, Beumer Group GmbH & Co.
KG, and Mecalux S.A. These companies are investing heavily in automation solutions to meet the increasing demands of the market. The market is segmented based on organization size, with large enterprises increasingly utilizing automated material handling technology for processes such as categorization and moving heavy items within warehouses. For example, in January 2022, DHL Supply Chain announced a $15 million investment in robotics solutions from Boston Dynamics to automate warehousing in North America.
North America is expected to dominate the global logistics automation market due to the growth in e-commerce and the adoption of automation solutions as a result of labor shortages in the region.
Market growth driven by automation
The adoption of robots in North America is also anticipated to drive demand for automation solutions and contribute to the market’s growth.
By application, the warehouse and storage management segment held the largest share in 2020, contributing to more than two-thirds of the global logistics automation market. This growth is driven by the adoption of stacker cranes, automated guided vehicles, and pallet conveyor systems. The transportation management segment is projected to exhibit the highest CAGR of 13.2% during the forecast period, as it helps decrease freight costs, track deliveries in real-time, and improve customer service.
Asia-Pacific is expected to register the highest CAGR of 13.4% during the forecast period, owing to the rise in e-commerce and the surge in adoption of automation solutions, such as robotics technology and autonomous mobile robots, and the greater need for fast last-mile delivery services. The software segment is estimated to portray the highest CAGR of 12.9% during the forecast period due to benefits such as shorter processes, increased speed, and high-quality performance. However, the hardware segment held the largest share in 2020, accounting for nearly two-thirds of the global logistics automation market, owing to the adoption of efficient automation technologies to control operational logistics costs.
As the logistics automation market continues to evolve, businesses that invest in these technologies will be well-positioned to meet the growing demands of consumers and remain competitive in the rapidly changing landscape of global commerce.
