Press release
Logistics Automation Market to Benefit from Rapid Technological Advancements During the Forecast Period (2020-2027)
Growing Adoption of Industrial 4.0 across Manufacturing Industry boost the logistics automation market in the forecast periodThe manufacturing sector is increasing globally; as per the China Federation of Logistics and Purchasing (CFLP), the global manufacturing purchasing managers' index (PMI) accounted approximately 50% in August 2019, which was down from 51.3 in August 2018.This signifies a robust recovery of the manufacturing sector across the developed countries, growing industrial advancement in the developing economies as well as the escalation of commodities prices on the global market.
Thus, the expansion of the manufacturing industry due to the adoption of technologically advanced solution, results in the enhancement of the plant productivity, gain competitive advantage and maintain the edge with the customers, this increased demand is expected to fuel the growth of global logistics automation market.
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Global Logistics Automation Market - Company Profiles
o Beumer Group
o Daifuku Co., Ltd.
o Dematic (KION Group)
o Honeywell Intelligrated
o KNAPP AG
o Mecalux, S.A.
o Murata Machinery, Ltd.
o Swisslog Holding AG
o TGW Logistics Group
o VITRONIC
High Cost of Implementation of Logistics Automation may restrain the future growth of the logistics automation market
Warehouse management accounts for about 60% of the functions, such as stock handling, inventory management, and dispatching. With the advancement in technology, warehouse management is focusing on the deployment of robots and automated machines to enhance efficiency and reduced human errors. It has been estimated by Raconteur, that more than 1.4 million innovative and advanced industrial robots will be installed in factories globally. Furthermore, the cost might be incurred in different form such as the addition of maintenance staff as well as inventory for equipment parts. Thus, the implementation might hinder the logistic automation market in the forecast period.
Component Segment Insights
The logistics automation market on the basis of component is segmented into hardware, software, and services. The hardware component of the logistics automation system comprises conveyors, fixed machinery, industrial robots, sortation, and automated storage and retrieval systems. The hardware automatically tracks and identifies containers with the help of barcodes and RFID tags. These components are scalable and are designed to be used for high, mid, or low rate applications and are suitable for SMEs and large enterprises to expand their business in the market. Thus, anticipated to create significant market space for logistics automation market players operation worldwide.
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Frequently Asked Questions
Which mode of freight transport is most commonly used for logistic automation?
Transportation is one of the essential services included in the logistics operations. The efficient transportation involves physically moving deliveries in relatively right condition, at right time, and in a cost-effective manner. The most common mode of freight transport used for logistic automation is the road transport. In road transport, vehicles are owned or managed by a third party and transportation operations adhere to licensing, insurance, and regulation of vehicles. A license is required to operate the vehicle on a public highway, and the vehicle also requires documentation relating to maximum permissible weight in terms of gross vehicle weight and payload. The logistic service through roadways is considered as one of the feasible alternatives as it ensures rapid and cost-effective transportation.
What are market opportunities for logistics automation market?
The continuous growth in retail & e-commerce sector is one of the major driver which is propelling the logistics automation market. Logistic automation is one of the substantial components of e-commerce for managing the issues of inventory, tracking, packing, warehousing, and shipping. In retail & e-commerce business is liable for safeguarding timely delivery and return policy if the goods or products have to be replaced, then the company has to handle all the operations in reverse logistics. In the retail & e-commerce business, logistic automation provider delivers upgraded technology, scalability & flexibility, and efficiency. Moreover, the logistics requirement and services provided by the logistic automation software firms to retail & e-commerce business are warehouse management, supply chain management, consolidated services, and order fulfillment.
Which continent has highest demand for logistic automation?
Logistic automation is mature market in the some of the countries of APAC region such as China and Japan, whereas, with some recent development in countries such as India, Australia and Korea among others, it is expected that major chunk of the demand is expected to generate from the above mentioned countries. E-commerce industry represents 15% of total retail sales across the region. The warehouses present in the region are implementing cutting-edge technology. Also, the growing number of products from suppliers is encouraging warehouse managements to adopt robotics and logistics automation software for systematic and feasible operations. The emerging markets in Asian countries are facing challenges such as growing market competitiveness, cost pressures, inflation triggers, and market volatility.
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About The Insight Partners :
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
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