Logistics Automation Market
By Logistics Type;
Sales Logistics, Production Logistics, Recovery Logistics and Procurement LogisticsBy Mode of Freight Transport;
Air, Road and SeaBy Deployment Type;
On-Premise and Cloud-BasedBy Application;
Transportation, Infotainment System, Safety & Alerting System and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)Logistics Automation Market Overview
Logistics Automation Market (USD Million)
Logistics Automation Market was valued at USD 78,204.69 million in the year 2024. The size of this market is expected to increase to USD 172,885.66 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 12.0%.
Logistics Automation Market
*Market size in USD million
CAGR 12.0 %
Study Period | 2025 - 2031 |
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Base Year | 2024 |
CAGR (%) | 12.0 % |
Market Size (2024) | USD 78,204.69 Million |
Market Size (2031) | USD 172,885.66 Million |
Market Concentration | Low |
Report Pages | 342 |
Major Players
- SAP SE
- Oracle
- Honeywell International Inc.
- Daifuku Co., Ltd.
- Dematic
- ek robotics GmbH
- Hardis Group
- Falcon Autotech
- Grey Orange Pte. Ltd.
- Toshiba Corporation
- Murata Machinery, Ltd
- Zebra Technologies Corp.
- HighJump
- Jungheinrich AG
- KNAPP AG
- Locus Robotics
- Manhattan Associates
- System Logistics S.p.A
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Logistics Automation Market
Fragmented - Highly competitive market without dominant players
The Logistics Automation Market is evolving rapidly with the integration of cutting-edge technologies such as robotics, artificial intelligence, and machine learning. Companies are turning toward automated logistics solutions to improve efficiency, accuracy, and delivery speed. Currently, nearly 65% of logistics providers have adopted automation in warehousing and transportation, signaling a major industry shift toward intelligent systems.
Technology Adoption
The surge in e-commerce and digital commerce has created immense demand for smarter logistics processes. Automation tools, including robotic picking, autonomous vehicles, and AI-driven analytics, are helping companies boost efficiency, with 45% of organizations reporting productivity improvements. These technologies are reducing errors, optimizing inventory, and creating seamless delivery experiences.
Cost and Efficiency Benefits
A strong driver behind this growth is the need for cost reduction and efficiency enhancement. Research highlights that automated logistics solutions can cut costs by up to 30%, while significantly increasing warehouse throughput. By reducing reliance on manual operations, companies can lower labor costs and scale their logistics activities effectively.
Smart Warehousing Expansion
The rise of smart warehousing underscores this transformation. More than 55% of distribution facilities now employ robotics and IoT-based tracking systems. These upgrades are expediting order fulfillment, enhancing accuracy, and delivering greater visibility across operations, making warehouses smarter and more efficient than ever before.
Logistics Automation Market Recent Developments
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In 2023, Dematic launched cutting-edge automation technologies for the new KION logistics facility, aiming to enhance the efficiency of customer deliveries across Europe. With a highly dynamic Dematic Multishuttle boasting 110,000 storage locations and 150 shuttles, automatic storage and retrieval processes are streamlined.
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In 2023, Swisslog launched the robotic CarryPickmobile system, featuring a significantly improved working speed and innovative lifting turntable. This advancement enables faster and more flexible storage and retrieval processes for goods-to-person solutions, enhancing overall operational efficiency.
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In 2022, Supply Sensing, a revolutionary solution by 09 Solutions, helps businesses anticipate and mitigate supply disruptions by localizing the impact of macro-level shocks on their specific supply chains. This proactive approach enables organizations to minimize negative effects on operations and ensure resilience in volatile market conditions.
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In 2021, SAP Yard Logistics offers comprehensive options for sustainable yard management, enabling customers to efficiently manage all yard processes. With seamless planning and execution within the yard, SAP Yard Logistics supports sustainable and future-proof yard management for both simple and complex scenarios.
Segment Analysis
The Global Logistics Automation Market has been segmented by Logistics Type, Mode of Freight Transport, Application, and Geography. When segmented by logistics type, the market encompasses Sales Logistics, Production Logistics, Recovery Logistics, and Procurement Logistics, each addressing specific aspects of the supply chain. Sales Logistics focuses on the efficient movement of goods from manufacturers to end consumers, optimizing processes such as order fulfillment and last-mile delivery. Production Logistics streamlines the flow of materials within manufacturing facilities, ensuring timely delivery of components to assembly lines to maintain production schedules. Recovery Logistics involves the reverse flow of goods, encompassing processes like returns management and recycling to minimize waste and maximize resource utilization.
Procurement Logistics, on the other hand, manages the acquisition of raw materials and components, integrating sourcing, purchasing, and supplier management to ensure a seamless supply chain. In addition to logistics type, segmentation by mode of freight transport further delineates the market, encompassing Air, Road, and Sea transportation. Each mode presents distinct opportunities and challenges for logistics automation. Air transportation offers speed and efficiency for time-sensitive shipments, driving the demand for automation solutions that optimize cargo handling and customs clearance processes. Road transport, being the most widely used mode, benefits from automation technologies such as fleet management systems and route optimization software to improve delivery accuracy and reduce transit times.
Sea transport, while slower, handles a significant portion of global trade, necessitating automation solutions for container handling, port operations, and maritime logistics to enhance efficiency and minimize delays. Furthermore, the Global Logistics Automation Market is segmented by application, encompassing Transportation, Infotainment System, and Safety & Alerting System. In transportation, logistics automation technologies such as GPS tracking, fleet management systems, and autonomous vehicles play a vital role in optimizing route planning, vehicle utilization, and driver safety. Infotainment systems leverage automation to enhance the in-vehicle experience, offering features like real-time traffic updates, navigation assistance, and entertainment options to improve driver comfort and convenience. Safety & alerting systems utilize automation technologies such as collision avoidance systems, lane departure warnings, and emergency braking systems to enhance vehicle safety and mitigate accidents on the road.
Global Logistics Automation Segment Analysis
In this report, the Global Logistics Automation Market has been segmented by Logistics Type, Mode of Freight Transport, Application, and Geography.
Global Logistics Automation Market, Segmentation by Logistics Type
The Global Logistics Automation Market has been segmented by Logistics Type into Sales Logistics, Production Logistics, Recovery Logistics, and Procurement Logistics.
Sales logistics primarily focuses on the efficient distribution of products to customers, encompassing activities such as order processing, inventory management, and transportation planning. In an era dominated by e-commerce, the demand for streamlined sales logistics processes has surged, driving the adoption of automation solutions to optimize order fulfillment and delivery operations. Production logistics, on the other hand, revolves around the coordination of materials, components, and resources to support manufacturing operations. Automation technologies play a crucial role in production logistics by enabling real-time inventory tracking, just-in-time inventory management, and automated material handling systems, thereby enhancing production efficiency and minimizing downtime.
Recovery logistics, also known as reverse logistics, pertains to the management of product returns, refurbishment, recycling, and disposal. As sustainability and environmental concerns gain prominence, there is a growing need for efficient recovery logistics processes to manage the reverse flow of goods effectively. Automation solutions such as automated sorting systems, barcode scanning, and RFID technology facilitate the handling and processing of returned items, optimizing resource utilization and reducing waste.
Lastly, procurement logistics involves the planning, sourcing, and procurement of materials, components, and services necessary for production and operations. Automation in procurement logistics streamlines supplier management, procurement workflows, and inventory replenishment processes, enabling organizations to achieve cost savings, mitigate supply chain risks, and enhance supplier collaboration. Overall, the segmentation of the Global Logistics Automation Market into sales logistics, production logistics, recovery logistics, and procurement logistics reflects the distinct stages and functions within the supply chain where automation technologies can drive efficiencies and create value. By addressing the unique requirements and challenges associated with each logistics type, automation solutions empower businesses to optimize their operations, improve customer service, reduce costs, and adapt to evolving market dynamics.
Global Logistics Automation Market, Segmentation by Mode of Freight Transport
The Global Logistics Automation Market has been segmented by Mode of Freight Transport into Air, Road, and Sea.
The air segment caters to the high-speed, time-sensitive logistics needs of industries such as aerospace, pharmaceuticals, and perishable goods. In this segment, logistics automation solutions play a crucial role in optimizing cargo handling processes, streamlining customs clearance, and ensuring efficient route planning to meet tight delivery schedules. Moreover, the road transport segment, which encompasses trucking and other land-based transportation modes, represents the backbone of global logistics networks, facilitating the movement of goods across local, regional, and international borders.
Here, logistics automation technologies such as route optimization software, fleet management systems, and autonomous vehicles enhance efficiency, safety, and reliability while reducing operational costs and environmental impact. Additionally, the sea transport segment, vital for global trade and bulk cargo transportation, relies on logistics automation to manage complex supply chains, optimize container handling at ports, and enhance vessel scheduling and tracking.
Automated container terminals, smart port solutions, and predictive analytics enable seamless integration of sea transport into end-to-end supply chain operations, ensuring timely delivery and cost-effective logistics management. Overall, the segmentation of the global logistics automation market by mode of freight transport reflects the diverse requirements and challenges inherent in each transportation channel, driving the adoption of innovative automation solutions to enhance efficiency, visibility, and competitiveness in the modern logistics landscape.
Global Logistics Automation Market, Segmentation by Mode of Application
The Global Logistics Automation Market has been segmented by Mode of Application into Transportation, Infotainment System, Safety & Alerting System, and Others.
Transportation serves as a fundamental pillar of logistics automation, encompassing technologies and systems designed to optimize the movement of goods and materials from one point to another. This includes automated vehicles, drones, and advanced routing and scheduling software, all aimed at streamlining the transportation process, reducing delivery times, and minimizing operational costs.
Infotainment systems play a crucial role in enhancing communication and information exchange within the logistics network. These systems leverage technologies such as GPS tracking, real-time monitoring, and digital communication platforms to provide stakeholders with comprehensive visibility into the status and location of shipments, enabling better decision-making and improving overall efficiency. Moreover, safety & alerting systems constitute a critical component of logistics automation, focusing on ensuring the safety of both assets and personnel throughout the supply chain.
This includes technologies such as collision detection sensors, predictive maintenance tools, and emergency alert systems, all geared towards preventing accidents, mitigating risks, and enhancing overall safety standards. By segmenting the logistics automation market based on mode of application, stakeholders can gain deeper insights into the specific needs and requirements of different functional areas within the logistics ecosystem, allowing for more targeted and effective deployment of automation solutions to drive operational excellence and business growth.
Global Logistics Automation Market, Segmentation by Geography
In this report, the Global Logistics Automation Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Global Logistics Automation Market Share (%), by Geographical Region, 2024
The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America dominates in the logistics automation is driven by widespread adoption across industries and the expansion of oil and gas exploration activities. This trend is expected to continue during the forecast period due to increased efficiency and cost savings associated with automation. The region's well-established infrastructure and technological advancements further contribute to its leadership position in this market segment. As industries seek to streamline operations and improve productivity, North America remains at the forefront of innovation in logistics automation.
The Asia-Pacific is experiencing significant growth in the logistics automation market due to burgeoning economies driving increased demand. This growth is fueled by manufacturers and suppliers allocating substantial investments towards implementing automation solutions in warehouses and distribution centers. As these economies develop, there's a heightened focus on efficiency and scalability, prompting a surge in the adoption of automated vehicles and technologies to streamline logistics operations. This trend positions Asia-Pacific as a key hub for innovation and advancement in the logistics sector during the forecast period.
The country section of the global sales force automation software market report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as consumption volumes, production sites and volumes, import export analysis, price trend analysis, cost of raw materials, down-stream and upstream value chain analysis are some of the major pointers used to forecast the market scenario for individual countries. Also, presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Logistics Automation Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers
- Demand for Improved Efficiency
- Adoption of Industry 4.0 Technologies
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Focus on Workforce Safety and Ergonomics- As the industry increasingly adopts automation solutions, there's a heightened focus on mitigating risks and promoting a safer working environment for employees involved in logistics operations. Automated systems such as conveyor belts, robotic arms, and autonomous vehicles are designed to handle repetitive and physically demanding tasks, reducing the risk of workplace injuries associated with manual labor. By automating tasks that pose ergonomic challenges, such as heavy lifting or repetitive motion, companies can significantly decrease the likelihood of musculoskeletal disorders and other workplace injuries among their workforce. Automation technologies enable the implementation of safety features and protocols that enhance overall workplace safety. For instance, collaborative robots (cobots) are equipped with sensors and programmed to detect the presence of humans in their vicinity, allowing them to operate safely alongside human workers without posing a risk of collision or injury. Additionally, advanced safety systems such as collision detection sensors and emergency stop mechanisms are integrated into automated equipment and vehicles to prevent accidents and minimize the impact of unforeseen events.
The emphasis on workforce safety and ergonomics in the logistics automation market extends beyond physical risks to encompass mental and emotional well-being as well. Automation can alleviate the stress and strain associated with manual tasks, leading to improved job satisfaction and employee morale. Moreover, by freeing up workers from repetitive and mundane tasks, automation enables them to focus on more value-added activities that require creativity, problem-solving, and critical thinking skills, ultimately enhancing job satisfaction and engagement.
Restraints
- Complexity of Integration
- Skilled Workforce Requirement
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Technological Limitations and Risks- One significant constraint is the complexity and interoperability challenges associated with integrating diverse automation technologies into existing logistics systems. This integration process often requires substantial investment in infrastructure, software customization, and training, leading to prolonged deployment timelines and higher implementation costs. Moreover, the reliance on interconnected digital systems exposes the logistics network to cybersecurity threats, including data breaches, ransomware attacks, and system vulnerabilities.
As logistics automation systems become increasingly interconnected and reliant on digital communication channels, the risk of cyber threats escalates, necessitating robust cybersecurity measures and ongoing monitoring to safeguard sensitive data and prevent disruptions to operations. Additionally, the rapid pace of technological innovation in the logistics automation space introduces the risk of obsolescence, as companies must continuously upgrade and adapt their systems to remain competitive and meet evolving customer demands. Furthermore, concerns related to job displacement and workforce disruption arise as automation technologies replace traditional manual labor tasks, necessitating proactive workforce planning and reskilling initiatives to mitigate potential socioeconomic impacts. These technological limitations and risks underscore the importance of strategic planning, risk management, and collaboration among stakeholders to navigate the complexities of the global logistics automation market effectively. By addressing these challenges head-on and leveraging technological advancements responsibly, companies can unlock the full potential of logistics automation to drive efficiency, agility, and innovation in their operations while mitigating associated risks and ensuring long-term sustainability.
Opportunities
- Adoption of Autonomous Vehicles and Drones
- Greater Demand for Warehouse Automation
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Integration of Robotics Technologies- Robotics technologies, including autonomous mobile robots (AMRs), robotic arms, and collaborative robots (cobots), offer unprecedented levels of efficiency, flexibility, and scalability, driving innovation across various aspects of logistics operations. In warehousing and distribution centers, the deployment of AMRs enables autonomous material movement, order picking, and goods transportation, reducing reliance on manual labor and optimizing warehouse layout and space utilization. Robotic arms streamline processes such as palletizing, packing, and loading/unloading, enhancing throughput rates and ensuring consistent product handling. Moreover, cobots are increasingly utilized alongside human workers to perform repetitive or physically demanding tasks, enhancing worker safety and ergonomics while boosting productivity.
The integration of robotics technologies also extends to transportation and last-mile delivery, where autonomous vehicles and drones are being leveraged for efficient and cost-effective goods transportation, particularly in urban areas with congested roadways. Furthermore, robotics technologies enable the integration of advanced functionalities such as artificial intelligence (AI), machine learning, and computer vision, enabling robots to adapt to dynamic environments, make real-time decisions, and interact seamlessly with other automated systems. As logistics providers seek to meet the growing demands of e-commerce, globalization, and customer expectations for faster delivery and enhanced service levels, the integration of robotics technologies offers a transformative solution for driving operational excellence, reducing costs, and gaining a competitive edge in the market. Additionally, the ongoing advancements in robotics technologies, coupled with the declining costs of automation hardware and software, make it increasingly accessible to businesses of all sizes, further fueling adoption and innovation in the logistics automation space. Overall, the integration of robotics technologies represents a paradigm shift in the logistics industry, unlocking new possibilities for efficiency, productivity, and agility, and paving the way for the next generation of automated logistics solutions.
Competitive Landscape Analysis
Key players in Global Logistics Automation Market include:
- SAP SE
- Oracle
- Honeywell International Inc.
- Daifuku Co., Ltd.
- Dematic
- ek robotics GmbH
- Hardis Group
- Falcon Autotech
- Grey Orange Pte. Ltd.
- Toshiba Corporation
- Murata Machinery, Ltd
- Zebra Technologies Corp.
- HighJump
- Jungheinrich AG
- KNAPP AG
- Locus Robotics
- Manhattan Associates
- System Logistics S.p.A
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Logistics Type
- Market Snapshot, By Mode of Freight Transport
- Market Snapshot, By Deployment Type
- Market Snapshot, By Application
- Market Snapshot, By Region
- Logistics Automation Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Demand for Improved Efficiency
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Adoption of Industry 4.0 Technologies
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Focus on Workforce Safety and Ergonomics
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- Restraints
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Complexity of Integration
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Skilled Workforce Requirement
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Technological Limitations and Risks
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- Opportunities
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Adoption of Autonomous Vehicles and Drones
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Greater Demand for Warehouse Automation
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Integration of Robotics Technologies
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bragaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Industry Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Logistics Automation Market, By Logistics Type, 2021 - 2031 (USD Million)
- Sales Logistics
- Production Logistics
- Recovery Logistics
- Procurement Logistics
- Logistics Automation Market, By Mode of Freight Transport, 2019 - 2033 (USD Million)
- Air
- Road
- Sea
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Logistics Automation Market, By Deployment Type, 2021 - 2031 (USD Million)
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On-Premise
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Cloud-Based
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Logistics Automation Market, By Application, 2021 - 2031 (USD Million)
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Transportation
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Infotainment System
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Safety & Alerting System
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Others
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- Logistics Automation Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Logistics Automation Market, By Logistics Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- SAP SE
- Oracle
- Honeywell International Inc.
- Daifuku Co., Ltd.
- Dematic
- ek robotics GmbH
- Hardis Group
- Falcon Autotech
- Grey Orange Pte. Ltd.
- Toshiba Corporation
- Murata Machinery, Ltd
- Zebra Technologies Corp.
- HighJump
- Jungheinrich AG
- KNAPP AG
- Locus Robotics
- Manhattan Associates
- System Logistics S.p.A
- Company Profiles
- Analyst Views
- Future Outlook of the Market