Dublin, Aug. 04, 2023 (GLOBE NEWSWIRE) -- The "Logistics Automation Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" report has been added to ResearchAndMarkets.com's offering.
This report anticipates substantial growth in the logistics automation market, estimating it to reach USD 109.76 billion by 2028, with a remarkable CAGR of 9.90% during the forecast period from 2023 to 2028. The current estimated market size for 2023 is USD 68.46 billion.
Key Highlights
- The global logistics automation market is driven by the exponential growth in the e-commerce industry and the increasing demand for efficient warehousing and inventory management worldwide.
- The U.S. retail e-commerce sales witnessed a significant surge, reaching USD 257.3 billion in the second quarter of 2022, marking a 2.7% increase from the first quarter of the same year, according to the Census Bureau of the Department of Commerce.
- The Indian e-commerce market is predicted to flourish, projected to grow from USD 38.5 billion in 2017 to a staggering USD 200 billion by 2026, as reported by IBEF.
- Warehousing automation offers cost-cutting convenience for businesses, while reducing errors in product deliveries. Surprisingly, around 80% of warehouses still operate without any automation support, despite its advantages.
- Warehouse automation currently accounts for only 5% of total warehouses, while non-automated equipment like sorters, conveyors, and pick and place solutions make up 15% of warehouses.
- By 2025, 45% of all manufacturing is expected to be performed by robotic technology, as per Bank of America projections. This trend has already led to significant workforce replacement in large firms like Raymond Limited and Foxconn Technology, further driving the adoption of warehouse robotics.
- While automation presents numerous benefits, high upfront costs and long ROI periods have slowed down its mass adoption, particularly in labor-intensive economies like China and India. Small and medium-sized businesses (SMBs) have been cautious in adopting robotics due to these challenges.
- The COVID-19 pandemic accelerated the adoption of automation and robotics in warehouses, creating safer workplaces and boosting productivity to meet the surging demands of e-commerce.
Logistics Automation Market Trends
- Mobile Robots (AGV and AMR) to Witness Significant Growth: The primary usage of logistics robots is in the form of mobile AGVs (automated guided vehicles) in warehouses and storage facilities for efficient goods transportation. AGVs play a vital role in streamlining the supply chain and reducing logistics costs.
- AGVs are also extensively used for replenishment and picking during inbound and outbound handling, optimizing inventory accessibility and order-picking efficiency.
- Vendors in the market continuously innovate and launch new AGVs and AMRs (autonomous mobile robots) for warehouse operations, catering to the increasing demands for logistics. For example, JBT introduced its warehouse freezer AGV, capable of operating at various temperatures and offering a lift capacity of 2,500 pounds, optimizing operations in freezing environments.
- Automakers like BMW are witnessing an increase in production and shipment units, indicating a rising demand for AGVs and AMRs in the industry. The market offers various AGV and AMR solutions to suit diverse industrial and material handling applications.
Asia Pacific to Lead the Logistics Automation Market
- The Asia-Pacific region is witnessing rapid expansion in the logistics automation market, owing to the integration of automation in numerous industries to boost ROI.
- China, with its thriving automotive, manufacturing, and e-commerce sectors, serves as a significant supplier of warehouse robots in the region. In 2021, China ranked 5th globally with 322 robot units per 10,000 workers in the manufacturing industry.
- Japan aims to establish itself as a leading hub for robotic innovation through its "New Robot Strategy," which includes significant investments in autonomous driving, advanced air mobility, and integrated technologies.
- India's robust e-commerce sector is a key driver of market growth, with predictions of the e-commerce market reaching USD 200 billion by 2026. Major companies like Amazon are investing in automated warehouses and incorporating robotics to enhance productivity and reduce manual workload.
Logistics Automation Industry Overview
The logistics automation market features several global players competing in a dynamic market space. Notable players include:
- Dematic Corp. (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 & Co. KG
- SSI Schaefer AG
- Vanderlande Industries BV
- WITRON Logistik
- Oracle Corporation
- One Network Enterprises Inc.
- SAP SE
Market players are constantly innovating and investing in research and development to cater to the diverse demands of the logistics industry. The market poses moderate barriers to entry, providing opportunities for new players with competitive strategies and innovative solutions.
As the logistics automation market continues to flourish, companies are urged to seize emerging opportunities and strengthen their market presence to stay ahead in this dynamic and rapidly evolving industry.
For more information about this report visit https://www.researchandmarkets.com/r/g8mg3z
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