April 13, 2024
Logistics Automation Market

Logistics Automation is trending toward robotic process automation

Logistics automation involves the integration of automation and technology solutions into traditional logistics workflows to optimize efficiency. Automation solutions help logistics operators reduce manual handling, improve accuracy, and streamline material movement and inventory management. Automated storage and retrieval systems, conveyor systems, sortation systems, automated guided vehicles, and robotic arms help automate warehouse operations including receiving, sorting, storage, order picking, packaging, and shipping.

The Global Logistics Automation Market is estimated to be valued at US$ 73.87 Billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the Logistics Automation Market Demand include Trigger Point Performance, RumbleRoller, The Original Muscle Roller, LIVEPRO, TheraBand, GoFit, SKLZ, Gaiam, Body Benefits, Corength. Logistics automation solutions help optimize workflows and meet the growing demand for faster deliveries, increased inventory visibility, and 24/7 operations. Major logistics operators are increasingly adopting automation to expand globally and address the shortage of labor.

Growing demand: The growing demand for same-day and instant deliveries is driving adoption of logistics automation. Automation helps logistics operators reliably meet tight delivery timelines through high-volume sorting and order fulfillment. Technological advancements are making automation affordable for small and medium enterprises as well.

Global expansion: Leading logistics operators are leveraging automation to expand global operations. Automation helps standardized operations across regions and countries, facilitating multi-market expansion. It addresses issues related to lack of skilled labor globally and helps companies maintain consistent quality of service.

Market key trends

The trend of robotic process automation (RPA) is gaining momentum in the Logistics Automation Market. RPA utilizes software robots or artificial intelligence (AI) assistants to automate repetitive and routine tasks, allowing human employees to focus on more strategic work. Leading logistics operators are implementing RPA solutions from firms like UiPath, Automation Anywhere and Blue Prism to automate back-office workflows like data entry, invoice processing, documentation and reporting.

Porter’s Analysis

Threat of new entrants: High upfront investments in automation equipment and warehouse infrastructure raise the barriers to entry in the logistics automation market.

Bargaining power of buyers: Large logistics companies have greater bargaining power over automation solution providers due to their high purchasing power.

Bargaining power of suppliers: The presence of numerous established automation solution providers with specialized expertise keeps the bargaining power of suppliers in check.

Threat of new substitutes: No viable alternatives currently offer the labor cost savings and efficiency gains provided by logistics automation technologies.

Competitive rivalry: Intense competition exists among industry leaders fighting for large contracts from global logistics firms and e-commerce companies to automate fulfillment centers and distribution networks.

Geographical Regions

North America currently accounts for the largest share of the global logistics automation market due to strong demand from the thriving e-commerce sector and extensive adoption of warehouse automation across major logistics hubs in the US and Canada.

The Asia Pacific region is poised to witness the fastest growth in the logistics automation market over the forecast period supported by the rapidly expanding warehousing capacities, initiatives to upgrade logistics infrastructure, and rising labor costs prompting greater uptake of automation solutions in China, India, Japan, and other developing Asian countries.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it