by Logistics automation refers to the mechanization and integration of different processes in supply chain management through automation technology and equipment. This includes automated storage and retrieval systems, automated guided vehicles, autonomous mobile robots, conveyor systems and sortation systems used for transportation, storage, and sorting in warehouses and distribution centers. Automation in logistics helps in reducing operational costs by improving productivity and efficiency. It allows 24/7 functioning of warehouses and distribution centers with minimum human intervention thereby reducing labor costs. Automated systems also minimize errors and improve accuracy in processes like order picking, packing, tracking, and shipping. This leads to better customer satisfaction by enabling faster and error-free deliveries. The global Logistics Automation Market is estimated to be valued at US$ 64.12 Bn in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trends in the Global logistics automation market size include growing adoption of autonomous mobile robots, increasing focus on warehouse automation, and the emergence of micro-fulfillment centers. Autonomous mobile robots are becoming popular for applications like transportation, sorting, and put-away of goods in warehouses. Benefits like flexibility, adaptability, and ability to work in confined spaces are boosting their adoption. With warehouse automation, processes such as picking, sorting, packaging are getting automated through integrated technologies and equipment which is improving efficiency. Moreover, micro-fulfillment centers that cater to smaller geographical areas and enable one to two hours deliveries are emerging. They utilize automated solutions to the maximum to facilitate fast order processing and last-mile delivery. Such trends will drive continued growth in the logistics automation market over the forecast period.
Porter’s Analysis
Threat of new entrants: Low economies of scale and capital requirements in logistics and supply chain networks pose low threat of new entrants. However, established industry players dominate major markets and technological advancement acts as a barrier.
Bargaining power of buyers: Buyers have moderate bargaining power due to variety of logistics automation solutions available. Switching costs are relatively low.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of alternative suppliers and common components used across solutions. However, technological expertise helps major suppliers negotiate better.
Threat of new substitutes: Threat from new substitutes is moderate as logistics automation complements rather than replaces traditional logistics. Alternative methods such as outsourcing provide options.
Competitive rivalry: Industry houses global technology giants and regional players. Intense competition on pricing and capability leads to industry concentration.
Key Takeaways
The global logistics automation market is expected to witness high growth.
Regional analysis: North America holds the major share currently led by U.S. due to focus on operational efficiency and customer satisfaction. Asia Pacific is expected to grow at highest CAGR with China, Japan and India emerging as lucrative markets. Investments in developing manufacturing and transportation infrastructure boost regional growth.
Key players operating in the logistics automation market are Trigger Point Performance, RumbleRoller, The Original Muscle Roller, LIVEPRO, TheraBand, GoFit, SKLZ, Gaiam, Body Benefits, Corength. The market shares a presence of global giants alongside regional mid-sized players. Strategic partnerships and mergers & acquisitions remain common. Focus on innovating supply chain solutions through robotic automation and AI increases competitiveness.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
