Logistics Automation Market to reach $56.9 billion by 2030; E-commerce growth, labor shortages and rising labor costs, technological advancements, demand for supply chain visibility, need for cost reduction and operational efficiency, growth in omnic

The Logistics Automation Market size is estimated to reach $56.9 billion by 2030, growing at a CAGR of 7.9% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Logistics Automation Market – By Organization Size (Large Enterprises, Small & Medium-Sized Enterprises), By Type (Logistics Automation Market by Component: Warehouse & Storage Management - Hardware, Software, Services; Transportation Management - Software, Services), By Vertical (Retail & E-Commerce, Manufacturing, Pharmaceuticals & Healthcare, Logistics & Transportation, Automotive, Aerospace & Defense, Food & Beverage, Chemicals, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

The growth of e-commerce is increasing the need for efficient logistics automation. Companies are automating operations because of labour shortages and rising labour costs. More sophisticated automation solutions are becoming possible due to technological advancements. Automated tracking systems are being adopted because of the demand for supply chain visibility. Investment in automated logistics is encouraged by the need for cost reduction and operational efficiency. Seamless, automated fulfilment across channels is critical for omnichannel retailing to grow. Logistics automation is being boosted by enhanced customer expectations for faster deliveries. Automation in logistics is supported by government incentives and investments to develop and implement automation.

North America accounted for the largest share of 35% of the Logistics Automation Market in 2023 The logistics automation market is driven by extensive trade networks across the continent and with global partners, which makes North America the leader in the market. Surface modes of transportation (truck and rail) lead North American commerce, together accounting for 80.3% of all freight flows by dollar value in 2023., according to the U.S. Department of Transportation's Bureau of Transportation Statistics. The vast quantity of goods needs advanced logistics solutions to handle the high volume and meet the needs of a sprawling supply chain. Furthermore, as the value of freight is forecast to grow faster than tonnage, automation is indispensable in the management of the flow of high value, low weight commodities, especially in the handling of exports and imports, which are expected to increase substantially by 2050.

Technological advancements of the logistics automation market serve to drive efficiency, accuracy and customer satisfaction, which drives growth in the market. For example, Renault Group's collaboration with Exotec to roll out 191 Skypod® robots in its Villeroy warehouse shows how the process was automated, increasing productivity sixfold, processing up to 4,000 order lines per hour and making workers safer through 'goods to operator' systems. Likewise, FedEx’s newly automated facility at its Memphis World Hub, with six side scanning and high-speed conveyors, handles 484,000 packages per hour, speeding delivery and reducing sorting times. Logistics automation is an indispensable growth driver, such technologies not only facilitate operations, but also reduce errors, decrease energy consumption and meet growing consumer demands. 

Logistics automation is a result of labour shortage and rising labour cost, as companies aim to keep efficiency up despite the challenges of workforce. During the COVID 19 pandemic, many workers in supply chain roles sought safer, more flexible jobs, which slowed logistics operations and overloaded supply chains, according to Lean Supply Solutions. What’s more, the logistics sector is ageing; over 60 million individuals from the post-World War II generation are projected to retire by 2030, leaving a gap that might not be fully filled by younger generations. In addition, logistics jobs are very physically demanding, and are therefore less attractive than careers involving technical skills, leading to high turnover rates. These labour shortages lead to shipment delays, disrupt supply chains and driveup operational costs. This means companies must become automated to tackle these issues to remain competitive, efficient and responsive to customer needs in a tight labour market. 

Key companies profiled in the Logistics Automation Market are Daifuku Co., Ltd., KION Group, Rockwell Automation, Jungheinrich AG, Knapp AG, SSI Schaefer, Swisslog, TGW Logistics Group GmbH, Beumer Group, Murata Machinery and others.

General Logistics Market - The General Logistics market size is forecast to reach USD 8,456.2 billion by 2029, after growing at a CAGR of 5.2% during the forecast period 2024-2029. The growth of this market is driven by the increasing demand for efficient supply chain solutions, the expansion of e-commerce, and the adoption of digitalization in logistics operations.

Collaborative Robots (Cobots) Market - The cobots market in 2020 was around $785 million and is estimated to grow at a CAGR of 25.6% during the forecast period to reach $2.31 billion by 2026. Market growth is driven by the rising need for automation in manufacturing, improved worker safety, and the cost-efficiency of collaborative robots compared to traditional industrial robots.

Warehouse Management Systems (WMS) Market - Warehouse Management System (WMS) market size is set to grow at a CAGR of 15% during the forecast period 2024-2030 and projected to reach $11.1 billion by 2030. This growth is attributed to the increasing demand for efficient inventory management, advancements in supply chain automation, and the rising adoption of cloud-based WMS solutions across industries.