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E-Commerce Surge Fuels Robust Growth In The Logistics Automation Market: A Significant Driver Propelling The Logistics Automation Market In 2025
Logistics Automation Market Size
What Is the Expected Logistics Automation Market Size During the Forecast Period?
The size of the logistics automation market has seen significant expansion over the past few years. The market, which is expected to rise from $66.59 billion in 2024 to $73.9 billion in 2025, will have a compound annual growth rate (CAGR) of 11.0%. Factors contributing to the growth observed in the historic period include cost savings, the need for efficiency, the surge in e-commerce, increasing globalization, client expectations, and issues related to sustainability.
The market size of logistics automation is projected to witness a significant surge in the coming years, elevating to $126.19 billion by 2029 with a Compound Annual Growth Rate (CAGR) of 14.3%. This considerable expansion over the forecast period can be credited to advancements such as autonomous vehicles, warehouse robotics, robotic process automation (RPA), and the adaptability and customizability of collaborative robotics (Cobots). The period also foresees major trends like the incorporation of blockchain technology and artificial intelligence (AI), technological progressions, the introduction of autonomous vehicles and drones, and the growing use of robotics in warehousing.
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What Are the High-Growth Segments in the Logistics Automation Market?
The logistics automation market covered in this report is segmented -
1) By Component: Hardware, Software, Services
2) By Function: Warehouse and Storage Management, Transportation Management
3) By Organization Size: Small-Medium Size Organizations, Large Scale Organization
4) By End-User: Retail and E-Commerce, Automotive, Food and Beverage, Logistics and Transportation, Other End Users
Subsegments:
1) By Hardware: Workstations and Desktops, Laptops and Mobile Devices, Printers and Scanners, Networking Equipment, Servers and Storage Devices, Audio-Visual Equipment, Security Hardware
2) By Software: Workplace Management Software, Collaboration and Communication Tools, Project Management Software, IT Service Management (ITSM) Software, Document Management Software, Customer Relationship Management (CRM) Software, Security Software (Antivirus, Firewalls)
3) By Services: Technical Support Services, Consulting Services, Training and Development Services, Maintenance and Repair Services, Implementation Services, Managed Services, Cloud Services
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What Key Drivers Are Expected to Influence Future Logistics Automation Market Growth?
The expansion of the e-commerce sector is anticipated to drive the future development of the logistics automation market. Ecommerce is the online buying and selling of goods and services. The e-commerce industry uses logistics automation to manage its inventory in warehouses and distribution centers, which facilitates the smooth transfer of goods within different areas of the business. For example, Forbes LLC, a media company based in the UK, reported in June 2024 that the number of e-commerce users in the UK had risen to around 60 million in 2023. They also predicted that this number could surge to 62.1 million by 2025. Hence, the upward trajectory of the e-commerce sector is fuelling the growth of the logistics automation market.
Which Companies Hold the Largest Share Across Different Logistics Automation Market Segments?
Major companies operating in the logistics automation market include Oracle Corporation, ABB Ltd., Toshiba Logistics Corporation, Murata Manufacturing Co Ltd., Kion Group AG, Jungheinrich Aktiengesellschaft, Daifuku Co Ltd., Kuka Robotics GmbH, Yaskawa Electric Corporation, Dematic GmbH, JBT Corporation, SSI Schaefer AG, Knapp AG, Körber Supply Chain Solutions, Mecalux S.A., Beumer Group GmbH, TGW Logistics Group GmbH, Manhattan Associates Inc., Swisslog Holding AG, JDA Software Group Inc., WiseTech Global Limited, Descartes Systems Group Inc., System Logistics SpA, VITRONIC GmbH, Falcon Autotech Private Limited, One Network Enterprises Inc., HighJump Software LLC, Matternet Inc., FANUC Corporation, Kawasaki Heavy Industries Ltd.
What Trends Are Driving Growth in The Logistics Automation Market?
The major players in the logistics automation market are making strategic collaborations a priority in their efforts to deliver dependable services to clients. This strategic collaboration involves a advantageous alliance between two or several independent organisations that partner to achieve common objectives that align with their respective strategic goals. For instance, in December 2023, Logistex, a Software company from the UK, formed a partnership with Geek+, a global technology company based in China, to provide an all-in-one automation solution for logistics to clients. This partnership leverages Logistex's warehouse design and software expertise with Geek+'s innovative mobile robotic solutions, creating an inclusive suite aimed at streamlining fulfillment and boosting productivity.
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What Are the Emerging Geographies for The Logistics Automation Market Growth?
North America was the largest region in the logistics automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the logistics automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Logistics Automation Market?
2. What is the CAGR expected in the Logistics Automation Market?
3. What Are the Key Innovations Transforming the Logistics Automation Industry?
4. Which Region Is Leading the Logistics Automation Market?
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