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What Is Driving Global Logistics Automation Market Growth in 2025: The Role of E-Commerce Surge Fuels Robust Growth In The Logistics Automation Market
Use code ONLINE20 to get 20% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Logistics Automation Market Size Growth Forecast: What to Expect by 2025?
The market size for logistics automation has seen a considerable expansion in the past few years. The market, which was valued at $66.59 billion in 2024, is expected to reach $73.37 billion in 2025, with a compound annual growth rate (CAGR) of 10.2%. This growth in the historical period is a result of factors such as cost reduction, efficiency requirements, e-commerce development, globalization, customer expectations, and concerns about sustainability.
How Will the Logistics Automation Market Size Evolve and Grow by 2029?
The market size for logistics automation is predicted to witness swift expansion in the upcoming years, reaching a value of $123.37 billion in 2029, with a compound annual growth rate (CAGR) of 13.9%. The projected growth during the forecast period is credited to factors such as autonomous vehicles, warehouse robotics, robotic process automation (RPA), customization and flexibility, and collaborative robotics (Cobots). Key trends anticipated in the forecast period encompass blockchain technology, artificial intelligence (AI) integration, technological advancements, autonomous vehicles and drones, and warehousing robotics.
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What Drivers Are Propelling the Growth of Logistics Automation Market Forward?
The expansion of the e-commerce sector is anticipated to fuel the development of the logistics automation market in the future. E-commerce involves the online purchase and sale of products and services. The e-commerce sector utilizes logistics automation to manage its inventory in warehouses and distribution hubs, facilitating the smooth movement of goods within various company units. For instance, Forbes LLC, a British media firm, reported in June 2024 that the number of e-commerce consumers in the UK hit around 60 million in 2023, and it's predicted that this figure could rise to 62.1 million by 2025. Consequently, the escalating growth of the e-commerce sector is propelling the advancement of the logistics automation market.
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Which Emerging Trends Are Transforming the Logistics Automation Market in 2025?
Leading firms in the logistics automation market are prioritizing strategic partnerships to deliver trustworthy services to their clients. This type of collaboration involves a mutually advantageous relationship between two or more independent organizations that join forces to meet collective goals, in line with their particular strategic agendas. For example, in December 2023, the UK-based software company Logistex formed a partnership with Geek+, a Chinese global technology firm. This collaboration had the goal to provide comprehensive automation solutions for logistics to their clients. This partnership merges Logistex's proficiency in both warehouse layout and software with Geek+'s cutting-edge mobile robotic solutions, resulting in a comprehensive set of tools designed to enhance fulfillment processes and optimize productivity.
What Are the Key Segments in the Logistics Automation Market?
The logistics automationmarket 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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Who Are the Key Players Shaping the Logistics Automation Market's Competitive Landscape?
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 Geographic Markets Are Powering Growth in the Logistics Automation Market?
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.
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