New York, United States, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Automation has increased efficiency while enhancing control and making various purchases more manageable. It is also beneficial for controlling inventory and the manufacturing process. It assists in improving both customer service and the delivery of multiple commodities throughout time. Automation in this area has benefitted transportation and storage due to the increased use of automated vehicles, automatic mobile robots, robotic arms, automated retrieval, and storage systems. The usage of software and services has increased, which has enhanced warehouse management. It provides real-time updates on the loading and unloading of the cargo. In addition to these factors, the growing e-commerce sector will raise the demand for inventory management and warehousing.
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Market Dynamics
Exponential Growth of the E-commerce Industry and Customer Expectation Drives the Global Market
Scaling up and achieving innovative, practical standards are necessary for warehouses and fulfillment facilities. Automated warehouses have driven the demand for quicker responses and the requirement to manage a more significant number of stock-keeping units (SKUs) with less error due to the introduction of always-on e-commerce. The urgent need to cut costs, reorganize workflows, and boost productivity propels robotic breakthroughs. In addition, the economy is improving, and the industry under study has expanded due to the increased demand for automation brought on by the fierce competition in e-commerce.
Despite the comparatively developed marketplaces in industrialized nations and established businesses having set explicit norms, the digital shift is still in progress. The endeavor has been driven by increased funding from Asian economies and a flood of innovation from start-ups. As a result, there will probably be more warehouses and FCs worldwide. According to a recent Honeywell Intelligrated survey of 171 material-handling executives in the US, 35% of the executives said that their primary challenge was to fulfill more orders (quicker and cheaper), while their secondary concerns were to reduce order processing errors/improve order accuracy and to find enough labor to support operations. Making room in the region for automation as a result.
Increasing manufacturing complexity and technology availability creates tremendous market opportunity
To meet the demand for home delivery, warehouses and fulfillment centers have been observed using one of two strategies: extending their current location or building new ones (or curbside delivery). The latter, however, costs more than the former. By 2020, warehouses will have grown to approximately 200,000 square feet, up from an average size of roughly 65,000 square feet in 2000. Warehouses can accommodate higher volumes and SKUs due to their expanded size. The management of this further increases functional complexity. By hiring more workers, the centers would incur costs ranging from salaries to rent and a significant functional hit from delays and accidents. Automated, appropriate mini-load storage and retrieval systems (AS/RS), which use lightweight cranes to sort individual totes, cases, trays, and crates while enhancing storage and liberating priceless human and transportation resources, are designed to meet this market challenge. These systems maximize supply chain effectiveness by automating critical processes like receiving goods, optimal inventory management, and order fulfillment for outbound transportation. Additionally, several investments have been made to increase the technological capabilities of automation.
Regional Analysis
Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 12.37% during the forecast period. A substantial industry in the Asia-Pacific region is manufacturing. China's economy, which contributes significantly, is changing quickly due to rising labor costs and the traditional migrant workers availability. The Chinese economy has been compelled by these changes to automate its industrial processes. A significant supplier of warehouse robots in the Asia-Pacific region, particularly to the automotive, industrial, and e-commerce industries, is China, one of the largest economies in the world. This is causing the market to expand. E-commerce will help the industry and sales grow even more. Australian warehouses are already adjusting to the rise in demand. The industry will witness more lone orders rather than standard bulk orders. Due to increased sales and corporate expansion, warehouses are predicted to expand and hire more personnel. The country is adopting modern technologies and implementing more automated processes, increasing logistic automation's rise.
North America is expected to grow at a CAGR of 11.20% during the forecast period. The growth of e-commerce is the primary factor driving the increase in the usage of robots in warehouses and distribution facilities in the United States. The market has grown due to technological developments that have decreased costs, improved and shrunk robots, and produced a labor shortage in some areas. Significant firms with plenty of warehouses and distribution facilities also employ acquisition strategies to increase their profitability and reduce labor expenses. For instance, retail behemoths like Amazon recently paid USD 775 million for the startup robotics company Kiva Systems, giving it control over a new class of mobile robots. The foundation for creating new warehouse robotics models was created by this investment, opening the door for a potential future for the machines. Canada has one of the world's largest and most advanced manufacturing economies. A highly productive sector of the economy is the production of plastics, metal products, consumer goods, and vehicles. Despite growth in the manufacturing sector, there is a sizable demand from the country's e-commerce-focused storage and logistics industry.
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Key Highlights
- Based on components, the global logistics automation market is bifurcated into hardware, software, and services. The hardware segment is the highest contributor to the market and is estimated to grow at a CAGR of 12.03% during the forecast period.
- Based on the end-user industry, the global logistics automation market is bifurcated into food and beverage, post and parcel, groceries, general merchandise, apparel, manufacturing, and other end-user industries. The manufacturing segment is the highest contributor to the market and is estimated to grow at a CAGR of 11.55% during the forecast period.
- Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 12.37% during the forecast period.
Competitive Players
- Dematic Group (Kion Group AG)
- Daifuku Co. Limited
- Swisslog Holding AG (KUKA AG)
- Honeywell International Inc.
- Jungheinrich AG
- Murata Machinery Ltd
- Knapp AG
- TGW Logistics Group GmbH
- Kardex Group
- Mecalux SA
- BEUMER Group GmbH and Co. KG.
Recent Developments
- February 2022- KION announced the start of construction work for a new Dematic plant close to the recently commissioned forklift truck plant in Jinan. Sean Sun, Managing Director of Dematic in China, outlines the unique features of the Chinese market and the company’s development strategy.
- June 2022- Daifuku Co., Ltd. announced the reopening of Hini Arata Kan, one of the world’s largest full-scale material handling and logistics demo centers, located within Daifuku’s manufacturing plant Shiga Works (Shiga Prefecture, Japan).
Segmentation
- By Component
- Hardware
- Autonomous Robots (AGV, AMR)
- Automated Storage and Retrieval Systems (AS/RS)
- Automated Sorting Systems
- De-palletizing/Palletizing Systems
- Conveyor Systems
- Automatic Identification and Data Collection (AIDC)
- Software
- Warehouse Management System
- Transportation Management System
- Services
- Consulting
- Deployment & Integration
- Support & Maintenance
- Hardware
- By Function
- Inventory & Storage Management
- Transportation Management
- By Logistics Type
- Sales Logistics
- Production Logistics
- Recovery Logistics
- Procurement Logistics
- By Organization Size
- Large Enterprises
- Small & Medium Enterprises
- By Software Application
- Inventory Management
- Order Management
- Yard Management
- Shipping Management
- Labor Management
- Vendor Management
- Customer Support
- Others
- By End-User Industry
- Food and Beverage
- Post and Parcel
- Groceries
- General Merchandise
- Apparel
- Manufacturing
- Retail & E-commerce
- Healthcare
- Automotive
- Aerospace & Defense
- Electronics & Semiconductors
- Other
- By region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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Methodology and Approach: The accuracy of the research numbers derived from various data points is based on our approach which involves extrapolating information from a range of reputable sources including companies' revenue, reviews, social media presence, media citations, press releases, new product launches, public financial filings, marketing collateral, etc, guided by industry key market indicators. This methodology is particularly well-suited for situations where private and confidential data is not publicly available, and we anticipate a variance of approximately 10-15% in our estimates.
To provide transparency, we share a detailed list of sources, interview transcripts, and the assumptions made during our analysis. Additionally, our experience in tracking market trends over the past few years allows us to incorporate historical data effectively.
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