As per the report published by Fior Markets, the global logistics automation market size is projected to grow from USD 30.2 billion in 2020 to USD 63.80 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 9.8% during the forecast period.
The logistics automation market is witnessing significant growth in the past years. One of the most important reasons expected to fuel the growth of the logistics automation market is the rising use of robotics by various end-use industries to enhance logistics operations. Factors restraining the market growth are the scarcity of competent employees in the logistics sector; firms are undertaking in-house training programmes in conjunction with logistics automation solution providers.
The use of computer software or automated technology to increase the efficiency of logistics operations is known as logistics automation. This usually relates to activities within a warehouse or distribution centre, with supply chain management and enterprise resource planning systems handling the larger duties. Organizations may become more efficient by automating logistics management operations, which can have a major influence on their bottom lines. There are a few more significant advantages to automating the warehouse and distribution routes in order to attain these higher profit margins.
The global logistics automation market is expected to witness significant growth. The Internet of Things (IoT), the e-commerce industry’s expansion, and sophisticated robotics technology are all contributing to the global growth of logistics automation industries. The logistics automation market’s global expansion is hampered by a lack of uniformity in regulatory regulations, costly capital investment, and a lack of experience and competence in running modern systems. The logistics business has been negatively impacted by industrial closures; travel prohibitions, trade bans, and border lockdowns enacted to battle and control the epidemic.
Key players operating in the global logistics automation market include Toshiba Logistics Corporation, Murata Machinery, Ltd., Daifuku Co., Ltd., Mecalux, WiseTech Global Limited, Matternet Inc., VITRONIC, BEUMER Group, Dematic Corporation, Honeywell Intelligrated, Inc., KNAPP AG, SSI Schaefer AG, TGW Logistics Group GmbH, Jungheinrich AG, Swisslog Holding AG, Falcon Autotech, System Logistics Spa, Pcdata BV, and JBT Corporation. Industry players are capitalising on market expansion by implementing different strategies such as new product development, partnerships, joint ventures, acquisitions, collaborations, and agreements, prompting industry players to make decisions in order to stay competitive. Toshiba Logistics Corporation and Murata Machinery, Ltd. are some of the key manufacturers operating in the logistics automation market.
- For instance, , in February 2021, Honeywell Intelligrated collaborated with Fetch Robotics, a start-up that delivers cloud-based robotic solutions. Fetch Robotics will introduce the PalletTransport1500, an autonomous mobile robot designed for contactless pallet transfer throughout distribution centres. To transport pallets and other heavy payloads, it will employ Honeywell Intelligrated’s Momentum warehouse execution system software.
- In March 2020, On behalf of Dematic, Kion Group purchased Digital Applications International Limited (DAI). The purchase of Dematic IQ Software, a UK-based software firm that specialises in logistics automation solutions, will expand Dematic IQ Software’s capabilities and intralogistics software products.
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The transportation management segment dominated the market and held the largest market share of 53.4% in the year 2020
On the basis of function, the global logistics automation market is segmented into warehouse and storage management, and transportation management. The transportation management segment dominated the market and held the largest market share of 53.4% in the year 2020. The rising need for on-time delivery of products and services, as well as lower transportation costs, has fuelled the expansion of this industry.
The automotive segment dominated the market and held the largest market share of 27.15% in the year 2020
On the basis of the end-user industry, the global logistics automation market is segmented into food and beverage, retail and e-commerce, oil and gas, manufacturing, and automotive. The automotive segment dominated the market and held the largest market share of 27.15% in the year 2020. In retail companies attempting to achieve online and omnichannel strategies, automation software and service providers play a critical role. Customers value free delivery these days, therefore retailers are turning to logistics automation solution providers to help them manage their supply chain processes and satisfy customer expectations.