Growth of the logistics automation market will be driven by the use of advanced technologies, including robotics, AI, and IoT.
The global logistics automation market is on the rise in a new report issued by MarketsandMarkets. We can expect to see a compound annual growth rate of 9.3% from now until 2028, translating to over $51 billion.
The report attributes the growth of this market to the advancement of technology, such as robotics, artificial intelligence, and the Internet of Things (IoT) in the logistics industry. Companies are adopting these technologies to streamline their operations, reduce labor costs, and increase efficiency in a sometimes-frustrating post-pandemic environment. With “unprecedented times” remaining the precedent, companies are looking for digital transformation tools to help minimize risk.
We’ll likely see the hardware segment drive the bulk share of the market with Autonomous Mobile Robots (AMRs), Automated Guided Vehicles (AGVs), and Automated Storage and Retrieval Systems (AS/RS) being the major components. These systems can autonomously move goods around the facility without the need for human intervention, helping to reduce labor costs and increase efficiency.
In software applications, shipping management is the main driver. This is thanks to on-demand, web-based solutions that help companies increase order throughput, accuracy, and speed by streamlining the picking and shipping process when the order is received. Retail and eCommerce will grow at the most rapid rate because technological improvements in logistics management solutions have helped companies in this industry to manage logistics operations, enhance customer satisfaction, increase customer loyalty, and expand market reach. Companies are under pressure to deliver high-quality goods faster with fewer unexpected delays.
It’s unsurprising that North America is expected to hold the largest share. The report cites an increase in innovation focus and a willingness to adopt logistics automation solutions across the supply chain to reduce unexpected disruptions.
Overall, this market offers significant opportunities for companies that are willing to invest in automation solutions to increase efficiency and reduce labor costs.