Logistics Automation Market – By Organization Size , By Type , By Vertical , By Geography - Opportunity Analysis & Industry Forecast, 2024-2030
Logistics Automation Market Overview:
The Logistics Automation Market size is estimated to reach $56.9 billion by 2030, growing at a CAGR of 7.9% during the forecast period 2024-2030. With the growing orders and demand in e-commerce, the logistics industry is in need of automated solutions that accept large order volumes and handle the order in a quick and accurate way. The growing need for workers coupled with rising wages is motivating businesses to bankroll robots and automated systems to lessen reliance on human labor and cut costs and enable greater productivity. Advancements in AI and IoT enable better resource tracking and allocation, while technological progress and sustainability goals are promoting the adoption of eco-friendly solutions, such as electric AGVs, to reduce emissions and support environmental responsibility.
The two major trends reshaping the logistics landscape are autonomous delivery vehicles and drones along with the growth of robotics and AI in warehousing. Autonomous vehicles and drones like Amazon’s Prime Air drone delivery service in Arizona that launched in November 2024 are improving last mile delivery by eliminating the need of human resources and allowing for faster service. Over 50,000 products can be delivered to customers in under an hour in Arizona, showing how drone technology can fulfil e-commerce requirements. At the same time, robotics and AI in warehousing are revolutionising efficiency and accuracy. In October 2024, Amazon launched its advanced fulfilment centre in Shreveport, Louisiana, which uses robotic systems and AI for sorting and picking to speed up operations and decrease human error. This is a broader trend towards automation in logistics, which meets consumer expectations and optimises operations.
Market Snapshot:
Logistics Automation Market - Report Coverage:
The “Logistics Automation Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Logistics Automation Market.
Attribute | Segment |
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By Organization Size |
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By Type |
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By Vertical |
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By Geography |
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COVID-19 / Ukraine Crisis - Impact Analysis:
- The COVID-19 pandemic drastically disrupted global supply chains causing significant adoption of logistics automation technologies. As lockdowns and limited workforce availability meant companies needed to run with automated solutions to continue working at operational efficiency and to cope with surging e-commerce demands. As businesses prioritised resilient, contactless systems, logistics automation tools like robotics and automated storage systems became popular.
- The Russia-Ukraine war affected the logistics automation market by disrupting the transportation routes and creating supply uncertainties. The increase in conflict only increased the need for flexible logistics solutions to mitigate the risks of unpredictable trade routes and volatile fuel costs. This resulted in many companies investing in automation to minimise dependence on human intervention and to protect supply chains.
Key Takeaways:
North America is the Leading Region
North America is projected as the leading region in Logistics Automation Market with a market share of 35% in 2023. The U.S. is leading the logistics automation market thanks to its robust e-commerce presence and high-tech adoption, which drives the market in North America. BuiltWith estimates that the United States is home to more than 13 million of the 26.2 million e-commerce websites globally, which represents a large portion of the world’s e-commerce infrastructure. The logistics automation is critical in handling high volumes of orders efficiently and accurately, given this vast network. In addition, U.S. Census Bureau reported that e-commerce accounted for 15.6% of total retail sales in the U.S. by the end of 2023, which demonstrates its significance as a significant retail channel. North American companies are increasingly investing in automated warehousing, robotics, and AI based logistics solutions to support this growing sector to streamline operations, increase speed, and increase accuracy. For instance, Amazon’s $1 billion Industrial Innovation Fund exemplifies this trend, investing in emerging technologies that enhance warehouse automation and optimize supply chain processes. With recent funding in companies like Rightbot, which automates container unloading, and Instock, which develops robotic storage systems, Amazon demonstrates the potential of robotics in streamlining operations. The investments have placed North America in the lead of logistics automation to meet the growing e-commerce needs.
Retail and E-commerce Dominates the market
Retail and e-commerce are the largest segments in the logistics automation market, largely due to the rapid growth in online shopping and globalized consumer demand. As per the International Trade Association (ITA), global B2C e-commerce revenue will reach $5.3 trillion by 2027. The enormous demand for efficient logistics solutions to manage high volumes of goods will be the primary driver of this. To handle the complex supply chains that are needed for online orders, warehousing, sorting, packaging and last mile delivery, all need to be automated. Additionally, the International Trade Association (ITA) further states that cross border e-commerce is huge with marketplaces representing 31% of consumers’ product search sources, driving demand for seamless, automated logistics systems. A lot of companies are investing heavily in automation technologies such as robotics, AI and IoT tracking to improve efficiency and reduce operational costs. Retail and e-commerce’s reliance on automation shows how the sector is fundamental to evolving the logistics market to meet evolving consumer expectations.
Warehouse & Storage Management Lead the Market
By type, the largest share in the logistics automation market is held by the Warehouse & Storage Management segment, due to the rapid growth of warehousing facilities and rising automation. According to the U.S. Bureau of Labor Statistics, there were over 19,000 warehouse establishments in the U.S. in 2020 and more than 21,000 in 2023, indicating a demand for warehousing capacity to meet the growing e-commerce and supply chain demands. Furthermore, automation in warehouses is growing fast, and by 2030, it is estimated that robots will replace about 40% of warehouse jobs, as per Tarqan. This shift highlights the need for automated storage solutions, robotics and sophisticated software to optimize inventory, picking and packing processes. As companies are pushing for faster, cheaper, error free operations, the warehouse and storage automation is becoming a dominant force in the logistics automation market.
Growing E-Commerce to Drive the Market
Growth in the logistics automation market is being driven by the rapid expansion of e-commerce, as companies seek to meet rising demand for efficient and timely order fulfillment. For example, the Indian e-commerce sector is forecast to be worth $325 billion by 2030, as per the India Brand Equity Foundation (IBEF), which shows a great potential for growth that will boost the demand for advanced logistics solutions. In addition, International Trade Association (ITA) states that third party logistics providers will be handling close to 17 billion shipments over the next seven years, indicating the need for automated warehousing and transportation management. For instance, ecommerce adoption is on the rise in Canada with more than 27 million online shoppers (75% of the population) in 2022, and reaching 77.6% by 2025. The sustained increase in online shopping requires highly automated logistics systems to manage inventory, optimize deliveries and provide a seamless customer experience.
High Installation Costs
One of the biggest challenges faced by the logistics automation sector is the high cost of installing the technology into enterprises. According to statistics from 6 River Systems, completely automated systems can cost up to $25 million, semi-automated solutions ranging from $5 to $15 million, and even simple mechanised systems can cost $1 to $5 million. Despite potential benefits over time, these expenditures are burdensome for enterprises with limited finances, especially small and mid-sized businesses, making it difficult to defend the investment. Financial resources are strained by even more cost-effective alternatives that only enhance manual picking, which can still cost anywhere from $500,000 to $1 million. The economic burden becomes even greater by maintenance expenses because automated systems need to be operated by qualified staff and get frequent upgrades. Widespread adoption is hampered by this high cost since companies must carefully weigh the return on investment, which slows down the market's overall growth and transformation for logistics automation.
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Key Market Players:
Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Logistics Automation Market. The top 10 companies in this industry are listed below:
- Daifuku Co., Ltd.
- KION Group
- Rockwell Automation
- Jungheinrich AG
- Knapp AG
- SSI Schaefer
- Swisslog
- TGW Logistics Group GmbH
- Beumer Group
- Murata Machinery
Scope of the Report:
Report Metric | Details |
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Base Year Considered |
2023 |
Forecast Period |
2024–2030 |
CAGR |
7.9% |
Market Size in 2030 |
$56.9 billion |
Segments Covered |
By Organization Size, By Type, By Vertical and By Geography. |
Geographies Covered |
North America (U.S., Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Netherlands and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), Rest of the World (Middle East and Africa). |
Key Market Players |
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LIST OF TABLES
1.Global Logistics Automation Market By Component Market 2023-2030 ($M)
1.1 Warehouse & Storage Management Market 2023-2030 ($M) - Global Industry Research
1.1.1 Hardware Market 2023-2030 ($M)
1.1.2 Software Market 2023-2030 ($M)
1.1.3 Services Market 2023-2030 ($M)
1.2 Transportation Management Market 2023-2030 ($M) - Global Industry Research
1.2.1 Software Market 2023-2030 ($M)
1.2.2 Services Market 2023-2030 ($M)
2.Global Logistics Automation Market By Organization Size Market 2023-2030 ($M)
2.1 Large Enterprises Market 2023-2030 ($M) - Global Industry Research
2.2 Small & Medium-Sized Enterprises Market 2023-2030 ($M) - Global Industry Research
3.Global Logistics Automation Market By Vertical Market 2023-2030 ($M)
3.1 Retail & E-Commerce Market 2023-2030 ($M) - Global Industry Research
3.2 Manufacturing Market 2023-2030 ($M) - Global Industry Research
3.3 Pharmaceuticals & Healthcare Market 2023-2030 ($M) - Global Industry Research
3.4 Logistics & Transportation Market 2023-2030 ($M) - Global Industry Research
3.5 Automotive Market 2023-2030 ($M) - Global Industry Research
3.6 Aerospace & Defense Market 2023-2030 ($M) - Global Industry Research
3.7 Food & Beverage Market 2023-2030 ($M) - Global Industry Research
3.8 Chemicals Market 2023-2030 ($M) - Global Industry Research
4.Global Logistics Automation Market By Component Market 2023-2030 (Volume/Units)
4.1 Warehouse & Storage Management Market 2023-2030 (Volume/Units) - Global Industry Research
4.1.1 Hardware Market 2023-2030 (Volume/Units)
4.1.2 Software Market 2023-2030 (Volume/Units)
4.1.3 Services Market 2023-2030 (Volume/Units)
4.2 Transportation Management Market 2023-2030 (Volume/Units) - Global Industry Research
4.2.1 Software Market 2023-2030 (Volume/Units)
4.2.2 Services Market 2023-2030 (Volume/Units)
5.Global Logistics Automation Market By Organization Size Market 2023-2030 (Volume/Units)
5.1 Large Enterprises Market 2023-2030 (Volume/Units) - Global Industry Research
5.2 Small & Medium-Sized Enterprises Market 2023-2030 (Volume/Units) - Global Industry Research
6.Global Logistics Automation Market By Vertical Market 2023-2030 (Volume/Units)
6.1 Retail & E-Commerce Market 2023-2030 (Volume/Units) - Global Industry Research
6.2 Manufacturing Market 2023-2030 (Volume/Units) - Global Industry Research
6.3 Pharmaceuticals & Healthcare Market 2023-2030 (Volume/Units) - Global Industry Research
6.4 Logistics & Transportation Market 2023-2030 (Volume/Units) - Global Industry Research
6.5 Automotive Market 2023-2030 (Volume/Units) - Global Industry Research
6.6 Aerospace & Defense Market 2023-2030 (Volume/Units) - Global Industry Research
6.7 Food & Beverage Market 2023-2030 (Volume/Units) - Global Industry Research
6.8 Chemicals Market 2023-2030 (Volume/Units) - Global Industry Research
7.North America Logistics Automation Market By Component Market 2023-2030 ($M)
7.1 Warehouse & Storage Management Market 2023-2030 ($M) - Regional Industry Research
7.1.1 Hardware Market 2023-2030 ($M)
7.1.2 Software Market 2023-2030 ($M)
7.1.3 Services Market 2023-2030 ($M)
7.2 Transportation Management Market 2023-2030 ($M) - Regional Industry Research
7.2.1 Software Market 2023-2030 ($M)
7.2.2 Services Market 2023-2030 ($M)
8.North America Logistics Automation Market By Organization Size Market 2023-2030 ($M)
8.1 Large Enterprises Market 2023-2030 ($M) - Regional Industry Research
8.2 Small & Medium-Sized Enterprises Market 2023-2030 ($M) - Regional Industry Research
9.North America Logistics Automation Market By Vertical Market 2023-2030 ($M)
9.1 Retail & E-Commerce Market 2023-2030 ($M) - Regional Industry Research
9.2 Manufacturing Market 2023-2030 ($M) - Regional Industry Research
9.3 Pharmaceuticals & Healthcare Market 2023-2030 ($M) - Regional Industry Research
9.4 Logistics & Transportation Market 2023-2030 ($M) - Regional Industry Research
9.5 Automotive Market 2023-2030 ($M) - Regional Industry Research
9.6 Aerospace & Defense Market 2023-2030 ($M) - Regional Industry Research
9.7 Food & Beverage Market 2023-2030 ($M) - Regional Industry Research
9.8 Chemicals Market 2023-2030 ($M) - Regional Industry Research
10.South America Logistics Automation Market By Component Market 2023-2030 ($M)
10.1 Warehouse & Storage Management Market 2023-2030 ($M) - Regional Industry Research
10.1.1 Hardware Market 2023-2030 ($M)
10.1.2 Software Market 2023-2030 ($M)
10.1.3 Services Market 2023-2030 ($M)
10.2 Transportation Management Market 2023-2030 ($M) - Regional Industry Research
10.2.1 Software Market 2023-2030 ($M)
10.2.2 Services Market 2023-2030 ($M)
11.South America Logistics Automation Market By Organization Size Market 2023-2030 ($M)
11.1 Large Enterprises Market 2023-2030 ($M) - Regional Industry Research
11.2 Small & Medium-Sized Enterprises Market 2023-2030 ($M) - Regional Industry Research
12.South America Logistics Automation Market By Vertical Market 2023-2030 ($M)
12.1 Retail & E-Commerce Market 2023-2030 ($M) - Regional Industry Research
12.2 Manufacturing Market 2023-2030 ($M) - Regional Industry Research
12.3 Pharmaceuticals & Healthcare Market 2023-2030 ($M) - Regional Industry Research
12.4 Logistics & Transportation Market 2023-2030 ($M) - Regional Industry Research
12.5 Automotive Market 2023-2030 ($M) - Regional Industry Research
12.6 Aerospace & Defense Market 2023-2030 ($M) - Regional Industry Research
12.7 Food & Beverage Market 2023-2030 ($M) - Regional Industry Research
12.8 Chemicals Market 2023-2030 ($M) - Regional Industry Research
13.Europe Logistics Automation Market By Component Market 2023-2030 ($M)
13.1 Warehouse & Storage Management Market 2023-2030 ($M) - Regional Industry Research
13.1.1 Hardware Market 2023-2030 ($M)
13.1.2 Software Market 2023-2030 ($M)
13.1.3 Services Market 2023-2030 ($M)
13.2 Transportation Management Market 2023-2030 ($M) - Regional Industry Research
13.2.1 Software Market 2023-2030 ($M)
13.2.2 Services Market 2023-2030 ($M)
14.Europe Logistics Automation Market By Organization Size Market 2023-2030 ($M)
14.1 Large Enterprises Market 2023-2030 ($M) - Regional Industry Research
14.2 Small & Medium-Sized Enterprises Market 2023-2030 ($M) - Regional Industry Research
15.Europe Logistics Automation Market By Vertical Market 2023-2030 ($M)
15.1 Retail & E-Commerce Market 2023-2030 ($M) - Regional Industry Research
15.2 Manufacturing Market 2023-2030 ($M) - Regional Industry Research
15.3 Pharmaceuticals & Healthcare Market 2023-2030 ($M) - Regional Industry Research
15.4 Logistics & Transportation Market 2023-2030 ($M) - Regional Industry Research
15.5 Automotive Market 2023-2030 ($M) - Regional Industry Research
15.6 Aerospace & Defense Market 2023-2030 ($M) - Regional Industry Research
15.7 Food & Beverage Market 2023-2030 ($M) - Regional Industry Research
15.8 Chemicals Market 2023-2030 ($M) - Regional Industry Research
16.APAC Logistics Automation Market By Component Market 2023-2030 ($M)
16.1 Warehouse & Storage Management Market 2023-2030 ($M) - Regional Industry Research
16.1.1 Hardware Market 2023-2030 ($M)
16.1.2 Software Market 2023-2030 ($M)
16.1.3 Services Market 2023-2030 ($M)
16.2 Transportation Management Market 2023-2030 ($M) - Regional Industry Research
16.2.1 Software Market 2023-2030 ($M)
16.2.2 Services Market 2023-2030 ($M)
17.APAC Logistics Automation Market By Organization Size Market 2023-2030 ($M)
17.1 Large Enterprises Market 2023-2030 ($M) - Regional Industry Research
17.2 Small & Medium-Sized Enterprises Market 2023-2030 ($M) - Regional Industry Research
18.APAC Logistics Automation Market By Vertical Market 2023-2030 ($M)
18.1 Retail & E-Commerce Market 2023-2030 ($M) - Regional Industry Research
18.2 Manufacturing Market 2023-2030 ($M) - Regional Industry Research
18.3 Pharmaceuticals & Healthcare Market 2023-2030 ($M) - Regional Industry Research
18.4 Logistics & Transportation Market 2023-2030 ($M) - Regional Industry Research
18.5 Automotive Market 2023-2030 ($M) - Regional Industry Research
18.6 Aerospace & Defense Market 2023-2030 ($M) - Regional Industry Research
18.7 Food & Beverage Market 2023-2030 ($M) - Regional Industry Research
18.8 Chemicals Market 2023-2030 ($M) - Regional Industry Research
19.MENA Logistics Automation Market By Component Market 2023-2030 ($M)
19.1 Warehouse & Storage Management Market 2023-2030 ($M) - Regional Industry Research
19.1.1 Hardware Market 2023-2030 ($M)
19.1.2 Software Market 2023-2030 ($M)
19.1.3 Services Market 2023-2030 ($M)
19.2 Transportation Management Market 2023-2030 ($M) - Regional Industry Research
19.2.1 Software Market 2023-2030 ($M)
19.2.2 Services Market 2023-2030 ($M)
20.MENA Logistics Automation Market By Organization Size Market 2023-2030 ($M)
20.1 Large Enterprises Market 2023-2030 ($M) - Regional Industry Research
20.2 Small & Medium-Sized Enterprises Market 2023-2030 ($M) - Regional Industry Research
21.MENA Logistics Automation Market By Vertical Market 2023-2030 ($M)
21.1 Retail & E-Commerce Market 2023-2030 ($M) - Regional Industry Research
21.2 Manufacturing Market 2023-2030 ($M) - Regional Industry Research
21.3 Pharmaceuticals & Healthcare Market 2023-2030 ($M) - Regional Industry Research
21.4 Logistics & Transportation Market 2023-2030 ($M) - Regional Industry Research
21.5 Automotive Market 2023-2030 ($M) - Regional Industry Research
21.6 Aerospace & Defense Market 2023-2030 ($M) - Regional Industry Research
21.7 Food & Beverage Market 2023-2030 ($M) - Regional Industry Research
21.8 Chemicals Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Logistics Automation Market Revenue, 2023-2030 ($M)
2.Canada Logistics Automation Market Revenue, 2023-2030 ($M)
3.Mexico Logistics Automation Market Revenue, 2023-2030 ($M)
4.Brazil Logistics Automation Market Revenue, 2023-2030 ($M)
5.Argentina Logistics Automation Market Revenue, 2023-2030 ($M)
6.Peru Logistics Automation Market Revenue, 2023-2030 ($M)
7.Colombia Logistics Automation Market Revenue, 2023-2030 ($M)
8.Chile Logistics Automation Market Revenue, 2023-2030 ($M)
9.Rest of South America Logistics Automation Market Revenue, 2023-2030 ($M)
10.UK Logistics Automation Market Revenue, 2023-2030 ($M)
11.Germany Logistics Automation Market Revenue, 2023-2030 ($M)
12.France Logistics Automation Market Revenue, 2023-2030 ($M)
13.Italy Logistics Automation Market Revenue, 2023-2030 ($M)
14.Spain Logistics Automation Market Revenue, 2023-2030 ($M)
15.Rest of Europe Logistics Automation Market Revenue, 2023-2030 ($M)
16.China Logistics Automation Market Revenue, 2023-2030 ($M)
17.India Logistics Automation Market Revenue, 2023-2030 ($M)
18.Japan Logistics Automation Market Revenue, 2023-2030 ($M)
19.South Korea Logistics Automation Market Revenue, 2023-2030 ($M)
20.South Africa Logistics Automation Market Revenue, 2023-2030 ($M)
21.North America Logistics Automation By Application
22.South America Logistics Automation By Application
23.Europe Logistics Automation By Application
24.APAC Logistics Automation By Application
25.MENA Logistics Automation By Application
26.Dematic, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Daifuku, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Swisslog, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Honeywell Intelligrated, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Murata Machinery, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Knapp AG, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Jungheinrich AG, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.SSI Schaefer, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Vitronic, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Beumer Group, Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.Toshiba Logistics, Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.TGW Logistics Group GmbH, Sales /Revenue, 2015-2018 ($Mn/$Bn)
38.System Logistics SPA, Sales /Revenue, 2015-2018 ($Mn/$Bn)
39.Falcon Autotech, Sales /Revenue, 2015-2018 ($Mn/$Bn)
40.Key Innovators, Sales /Revenue, 2015-2018 ($Mn/$Bn)
The Logistics Automation Market is projected to grow at 7.9% CAGR during the forecast period 2024-2030.
The Logistics Automation Market size is estimated to be $33.4 billion in 2023 and is projected to reach $56.9 billion by 2030
The leading players in the Logistics Automation Market are Daifuku Co., Ltd., KION Group, Rockwell Automation, Jungheinrich AG, Knapp AG and Others.
Autonomous delivery vehicles and drones and the growth of robotics and AI in warehousing are some of the major Logistics Automation Market trends in the industry which will create growth opportunities for the market during the forecast period.
E-commerce growth, labor shortages and rising labor costs, technological advancements, demand for supply chain visibility, need for cost reduction and operational efficiency, growth in omnichannel retailing, enhanced customer expectations, government incentives and investments are the driving factors of the Logistics Automation market.