Logistics automation is the application of advanced computer software or automated machines that improve the logistics operations of an organization. Logistics automation refers to the operations within a warehouse or utility distribution center and the transportation management.
Increasing e-commerce industry across the globe and the introduction of advanced solutions and hardware are further boosting the demand for logistics automation market across the globe. For instance, according to Coherent Market Insights analysis, in the year 2020, UK was the largest e-commerce market in the European region, and the revenue is expected to grow with a CAGR of around 7% as compared to the year 2020, furthermore, the revenue in Germany is expected to reach up to US$ 95 Bn in the year 2021, up from US$ 87.6 Bn in the year 2020.
Global Logistics Automation Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has significantly disrupted the revenue of several industries including infrastructure, retail, manufacturing, automotive, logistics, and others. For instance, according to the International Finance Corporation, the logistics firms involved in the movement, storage, and flow of goods were severely get impacted due to COVID–19. Moreover, many countries such as India, UK have put strict lockdown across the country, which restrains the movement of people as well as goods, across the national and international borders. This negatively impacts the revenue of logistics companies, and in turn hampers the adoption of advanced technologies across the logistics sector.
North America region is expected to hold dominant position in the global logistics automation market during the forecast period.
Among region, North America held dominant position in the global logistics automation market in 2019, accounting for 33.1% share in terms of value, followed by Europe and Asia Pacific.
Logistics Automation Market Report Coverage
|Base Year:||2020||Market Size in 2021:||US$ 52.7 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||10.3%||2028 Value Projection:||US$ 104.7 Bn|
Major companies operating in the global logistics automation market include ABB, BEUMER GROUP, Blue Yonder Group, Inc, Daifuku Co., Ltd., E&K AUTOMATION LIMITED, Falcon Autotech Private Limited, GreyOrange, HighJump, Infor, Locus Robotics, Manhattan Associates, One Network Enterprises, Oracle, SwanLeap Inc, and Toshiba Logistics
|Restraints & Challenges:||
Figure 1: Global Logistics Automation Market Share (%), By Region, 2019
The North America region accounted for the highest market share in the global logistics automation market in the year 2020, and is expected to maintain its dominance over the forecast period. This is owing to the increasing focus of North American organizations on reducing operational costs, factory modernization, implementation of advanced technologies in delivery centers and warehouses, and the launch of advanced technologies and solutions in North America for logistics automation. For instance, in May 2020, U.S.-based Manhattan Associates launched a warehouse management solution called Manhattan Active. It is a cloud-based system that provides high speed, adaptability, and ease-of-use within distribution management.
Major companies operating in the global logistics automation market include ABB, Beumer Group, Blue Yonder Group, Inc., Daifuku Co., Ltd, E&K Automation Limited, Falcon Autotech Private Limited, GreyOrange, HighJump, Infor, Locus Robotics, Manhattan Associates, One Network Enterprises, Oracle, SwanLeap Inc, and Toshiba Logistics
Among application, the transportation management sub-segment is expected to showcase highest CAGR in the market during the forecast period, owing to high sales of passenger cars across the globe.
The global logistics automation market is segmented on basis of application as warehouse and storage management, and transportation management. The transportation management segment is expected to dominate the market, owing to an increase in adoption of advanced technologies in the logistics sector. This provides advantages associated with transportation management system such as TMS, which can help businesses to plan, execute, and optimize the physical movement of goods. In addition, transportation management system can provide better visibility in day-to-day operations of transportation operations, trade compliance documentation, and in ensuring timely delivery of products.
Figure 2: Global Logistics Automation Market Value (US$ Bn), 2017 - 2028
The global logistics automation market was valued at US$ 42.9 Bn in 2019 and is expected to reach US$ 104.7 Bn by 2028 at a CAGR of 10.3% between 2021 and 2028.
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