Logistics Automation Market to Hit $90.00 Billion by 2030: Grand View Research, Inc.
SAN FRANCISCO, May 24, 2023 /PRNewswire/ -- The global logistics automation market size is expected to reach USD 90.00 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to witness a CAGR of 14.7% over the forecast period. Logistics operations are critical factors in the smooth functioning of the supply chain of any business, especially low-margin, high-volume businesses. The logistics sector is witnessing a continuous increase in investments with a significant emphasis on the automation of several logistics functions. Automation enhances efficiency and aids in integrating supply chains; thus, automation is increasingly getting adopted across sectors. The growing tendency of the logistics industry towards adopting automation solutions is one of the significant factors driving the growth of the logistics automation industry.
Key Industry Insights & Findings from the report:
- The hardware segment dominated the market in 2022 with a market share of about 67%. Autonomous robots are the largest sub-segment of hardware components in terms of revenue owing to the increasing demand for automated warehouse logistics.
- The inventory & storage management function segment is anticipated to grow at a CAGR of 15.8% during the forecast period. The inventory & storage management ensures the stocks are maintained at optimum levels, and the demand for each product determines the stock levels.
- The sales logistics segment dominated the market in 2022, accounting for a market share of about 36%. Sales logistics is a critical aspect of the supply chain as it involves moving or delivering goods to the end consumer.
- The small and medium enterprises segment is anticipated to grow at the fastest CAGR of 15.6% during the forecast period. The growth can be attributed to the automation that helps SMEs to optimize their labor costs.
- The order management software segment held the largest market share in 2022. The dominance of the segment is owing to the need to fulfill the orders correctly and without any delivery delays. The order management process starts when an order is placed and ends when the customer receives the order.
- The retail and e-commerce segment is anticipated to grow at a CAGR of 15.2%. The growth can be attributed to the increasing preference for online shopping among consumers across the globe.
- The Asia Pacific segment is anticipated to register significant growth with a CAGR of 17.2%. The growth can be attributed to the increasing investments in logistics infrastructure projects in countries such as India and China.
Read full market research report, "Logistics Automation Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Function, By Logistics Type, By Organization Size, By Software Application, By Vertical, By Region, And Segment Forecasts, 2023 - 2030", published by Grand View Research.
Logistics Automation Market Growth & Trends
According to a DHL report published in 2018, 80% of warehouses do not have any automation support and are still operated manually, while 15% of the total warehouses are just mechanized, which means the warehouses use sorters, conveyors, picker solutions, and other machined equipment which are not necessarily automated. The report states that only 5% of total warehouses are automated. The trend displays a remarkable opportunity for the growth of the market in the coming years as companies are increasingly adopting automation in their warehouses, including autonomous robots, automated sorting systems, conveyor systems, etc. Technological development such as communication technologies, sensors, tracking devices, computer vision, artificial intelligence, and machine learning are aiding the growth of the target market.
The e-commerce boom is resulting in increasing adoption of automation solutions owing to the enormous volumes of shipments. The e-commerce shipment volume is growing exponentially by the year, and hence the warehouses require automation solutions to meet the short delivery timelines. The e-commerce fulfillment centers are implementing automated sorting and conveyor systems and highly benefit from inventory management and order management software. Moreover, the major labor challenges faced by the logistics industry across the globe are driving the demand for logistics automation solutions.
The COVID-19 pandemic accelerated the adoption of automation technologies such as robots, conveyors, and automation software, among others, in the logistics sector. The imposed lockdowns and social distancing norms necessitated the deployment of automation tools in warehouses and logistics functions. Although there were shortages and delays in receiving the hardware equipment during the lockdown, the market displayed a positive growth trend from 2020 to 2022.
Logistics Automation Market Segmentation
Grand View Research has segmented the global logistics automation market based on component, function, logistics type, organization size, software application, vertical, and region
Logistics Automation Market - Component Outlook (Revenue, USD Billion, 2017 - 2030)
- Hardware
- Autonomous Robots (AGV, AMR)
- Automated Storage and Retrieval Systems (AS/RS)
- Automated Sorting Systems
- De-palletizing/Palletizing Systems
- Conveyor Systems
- Automatic Identification and Data Collection (AIDC)
- Software
- Warehouse Management System
- Transportation Management System
- Services
- Consulting
- Deployment & Integration
- Support & Maintenance
Logistics Automation Market - Function Outlook (Revenue, USD Billion, 2017 - 2030)
- Inventory & Storage Management
- Transportation Management
Logistics Automation Market - Logistics Type Outlook (Revenue, USD Billion, 2017 - 2030)
- Sales Logistics
- Production Logistics
- Recovery Logistics
- Procurement Logistics
Logistics Automation Market - Organization Size Outlook (Revenue, USD Billion, 2017 - 2030)
- Large Enterprises
- Small & Medium Enterprises
Logistics Automation Market - Software Application Outlook (Revenue, USD Billion, 2017 - 2030)
- Inventory Management
- Order Management
- Yard Management
- Shipping Management
- Labor Management
- Vendor Management
- Customer Support
- Others
Logistics Automation Market - Vertical Outlook (Revenue, USD Billion, 2017 - 2030)
- Retail & E-commerce
- Healthcare
- Automotive
- Aerospace & Defense
- Electronics & Semiconductors
- Others
Logistics Automation Market - Regional Outlook (Revenue, USD Billion, 2017 - 2030)
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- KSA
- UAE
- South Africa
List of Key Players in the Logistics Automation Market
- Dematic Corp. (Kion Group AG)
- Daifuku Co. Limited
- Swisslog Holding AG (KUKA AG)
- Honeywell International Inc.
- Jungheinrich AG
- Murata Machinery Ltd
- Knapp AG
- TGW Logistics Group GmbH
- Kardex Group
- Mecalux SA
- Beumer Group GmbH & Co. KG
- SSI Schaefer AG
- Vanderlande Industries BV
- WITRON Logistik
- Oracle Corporation
- One Network Enterprises Inc.
- SAP SE
Check out more related studies published by Grand View Research:
- Connected Logistics Market - The global connected logistics market size is expected to reach USD 86.57 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to witness a CAGR of 14.5% in the forecast period. The term 'connected logistics' refers to a collection of tools, and platforms, including hardware and software, that enable real-time tracking of commodities sent by land, rail, air, and sea routes.
- Retail Logistics Market - The global retail logistics market size is anticipated to reach USD 639.14 billion by 2030, registering a CAGR of 12.3% over the forecast period, according to a new report by Grand View Research, Inc. The growth is likely to be fueled by new last-mile delivery methods in the retail e-commerce market and the introduction of IoT in the supply chain. An IoT-based supply chain links multiple technological devices with the help of sensors, allowing real-time data collection on various vital factors like filing rate and temperature.
- Reverse Logistics Market - The global reverse logistics market size is expected to reach USD 1,910.3 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 12.4% from 2022 to 2028. Legislation and regulatory initiatives by several governments to adopt reverse logistics practices in order to ensure the effective disposal of product waste and eco-friendly operation is one of the key factors that drive the market. The increasing awareness regarding the benefits of reverse logistics, along with the growing awareness regarding the environment, is also driving the market. Reverse logistics is expensive and high in cost and additionally, the lack of availability of funds and lack of awareness regarding the economic benefits of reverse logistics are the major factors restraining the market growth.
Browse through Grand View Research's Automotive & Transportation Industry Research Reports.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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