by The Logistics Automation Market is estimated to be valued at US$ 52.7 Bn in 2021 and is expected to exhibit a CAGR of 10.3% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Logistics Automation Market encompasses the use of automated technologies and software solutions to streamline and optimize the process of supply chain management. These solutions help in reducing manual errors, improving operational efficiency, and enhancing overall productivity. The market offers a wide range of products and services, including warehouse management systems, inventory management systems, transportation management systems, and robotics and automation solutions. These technologies find applications in various industries such as e-commerce, healthcare, automotive, food and beverage, and manufacturing.
Market Dynamics:
The Logistics Automation Market is driven by two main factors. Firstly, the rising demand for efficient supply chain management has fueled the adoption of automated solutions. By implementing logistics automation, companies can improve order accuracy, reduce shipping times, and enhance customer satisfaction. Secondly, the increasing adoption of artificial intelligence (AI) technologies in logistics automation has further boosted market growth. AI-powered solutions help in real-time tracking, predictive analysis, and intelligent decision-making, thereby enhancing operational efficiency and cost-effectiveness.
Overall, the Logistics Automation Market is poised for significant growth in the coming years, driven by the need for efficient supply chain management and the integration of advanced technologies.
Segment Analysis:
The logistics automation market can be segmented based on type, component, and application. In terms of type, automated storage and retrieval systems (AS/RS) dominate the market. AS/RS are widely used in warehouses and distribution centers for efficient storage and retrieval of products. These systems are equipped with advanced technologies such as robotics, conveyors, and sensors, which enable faster and accurate handling of goods. AS/RS offer benefits such as reduced labor costs, increased operational efficiency, and improved inventory management, thereby making it the dominating subsegment in the logistics automation market.
PEST Analysis:
Political: The political factors influencing the logistics automation market include government regulations, trade policies, and geopolitical tensions. Governments across the globe are recognizing the importance of automation in logistics to enhance efficiency and reduce costs.
Economic: The economic factors affecting the market include GDP growth, inflation rates, and currency exchange rates. The logistics automation market is expected to witness significant growth due to the rising demand for efficient supply chain management and the need to reduce transportation costs.
Social: The social factors impacting the market include changing consumer preferences, urbanization, and increasing e-commerce penetration. The growing e-commerce industry is driving the demand for logistics automation solutions to handle the increasing volume of online orders.
Technological: The technological factors influencing the market include advancements in robotics, artificial intelligence, and cloud computing. These technologies are enabling the development of innovative logistics automation solutions that offer real-time tracking, predictive analytics, and autonomous operations.
Key Takeaways:
The global Logistics Automation Market Share is expected to witness high growth, exhibiting a CAGR of 10.3% over the forecast period of 2021-2028, due to increasing demand for efficient supply chain management and the need for cost reduction in logistics operations.
In terms of regional analysis, North America is the fastest growing and dominating region in the logistics automation market. This can be attributed to the presence of major players, technological advancements, and the adoption of automation solutions in various industries.
Key players operating in the 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. These companies are focusing on strategic partnerships, product innovations, and geographical expansions to strengthen their market position.
*Note:
1) Source: Coherent Market Insights, Public sources, Desk research
2) We have leveraged AI tools to mine information and compile it
