April 20, 2024
Logistics Automation Market

Logistics Automation Market to Witness High Growth owing to Increasing Need for Reduction in Operational Costs

Logistics automation refers to the application of computer software and robotics technologies to facilitate the automation of complicated logistics activities such as order processing, packaging, inventory tracking, transportation, and others. The use of logistics automation solutions can help businesses in reducing operational costs, improving productivity, and enhancing customer experience. Some key advantages of logistics automation include increased efficiency, reduced errors, improved order accuracy, real-time visibility into operations, and scalability. With the growing complexity of supply chain operations, there has been an increasing need amongst businesses to automate repetitive logistics tasks in order to optimize workflow and drive down costs.

The Global Logistics Automation Market is estimated to be valued at US$ 73.87 Bn 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 Growth are Trigger Point Performance, RumbleRoller, The Original Muscle Roller, LIVEPRO, TheraBand, GoFit, SKLZ, Gaiam, Body Benefits, Corength.

Logistics automation provides several opportunities for businesses such as enhanced inventory management, improved productivity and staff efficiency, streamlined operations, reduced transportation costs through route optimization, and improved customer experience. Rapid growth of the e-commerce industry has also opened up new opportunities for logistics automation solution providers.

Growing globalization has further driven the demand for logistics automation as companies look to optimize their complex global supply chain networks. The market has witnessed significant expansion in North America and Europe due to strong economic conditions and presence of global logistics automation companies in these regions. However, the Asia Pacific region is expected to offer lucrative growth opportunities owing to growth of manufacturing sector in countries like China and India.

Market Drivers

The key driver boosting the growth of Logistics Automation Market is the need for reduction in operational costs. As labor costs continue to rise, there is increasing pressure on businesses to automate repetitive logistics tasks in order to optimize workflow and reduce dependence on human labor. Automation ensures minimal errors and greater efficiency throughout the supply chain which directly helps in lowering operating expenses for companies.

PEST Analysis

Political: Logistics Automation market is positively impacted by favorable government regulations supporting automation adoption across industries. Governments are encouraging investments in automation to increase efficiency.

Economic: Strong economic growth is driving demand for logistics services. Rising labor costs are pushing logistics companies to invest in automation solutions to optimize operations and reduce costs.

Social: Younger generation prefers modern technologies and automated solutions. Customers demand faster deliveries which is driving logistics companies to incorporate automation.

Technological: Advancements in robotics, Internet of Things, Artificial Intelligence and associated technologies are enabling development of new automated solutions. Integration of automated guided vehicles, automated storage and retrieval systems in warehouses improves productivity.

North America dominates global Logistics Automation market in terms of value. Presence of major logistics companies and technology providers, high disposable incomes, and growing e-commerce sector drive significant growth in the region.

The Asia Pacific region is experiencing the fastest growth in the Logistics Automation market driven by increasing investments in supply chain infrastructure and automation by logistics companies in China, India to handle rising volumes. Government initiatives to strengthen industries and Make in India campaign are fueling regional market growth.

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