Logistics Automation Market to be Worth $65.14 Billion by 2030
Logistics automation refers to the use of technology involving machinery and logistics software to minimize human intervention and ease the workflow of logistical processes from procurement to production, inventory management, distribution, customer service, and recovery. Besides reducing costs, logistics automation systems help improve the overall efficiency of supply chains. Logistics automation helps save businesses a massive number of repetitive workloads such as manual picking or data entry.
Some of the factors driving the growth of this market are the rapid growth in e-commerce and the increasing incorporation of robots in logistics. However, high capital investment requirements and the lack of standardization in the logistics sector restrain the growth of this market.
The global logistics automation market is segmented by offering (hardware (automated vehicle systems, automated storage & retrieval systems, automated sorting & conveyer systems, de-palletizing/palletizing systems, automatic identification & data capture systems, automated container handling equipment, packaging systems/machines, and other hardware), software (cloud-based, and on-premise), and services(consulting services, deployment & integration services, support & maintenance services)), type (inbound logistics, and outbound logistics), automation mode (semi-automatic systems, and fully automatic systems), application (inventory management, packaging, order management, cargo management, transportation management and other applications) and end user (retail & e-commerce, manufacturing, healthcare & pharmaceuticals, food & beverage, automotive, aerospace & defense, fashion & apparel, courier, express, and parcel, ports & warehouses, and other end users). The study also evaluates industry competitors and analyses the market at the regional and country levels.
Based on offering, the logistics automation market is broadly segmented into hardware, software, and services. In 2024, the hardware segment is expected to account for the largest share of 60% of the logistics automation market. However, the software segment is expected to register the highest CAGR during the forecast period. Factors such as the increasing use of advanced technologies in logistics software, market players' increasing focus on developing and enhancing logistics software, and the easy integration of logistics automation software with other supply chain management software are expected to drive the growth of this segment.
Furthermore, the growing focus of market players on product development and enhancement to optimize logistics operations, enhance supply chain visibility, and help companies make informed decisions is expected to drive the segment's growth. For instance, in November 2022, Amazon Web Services, Inc. (U.S.) launched the AWS Supply Chain. This new application helps businesses increase supply chain visibility to make faster, more informed decisions that mitigate risks, lower costs, and improve customer experiences.
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