Global Logistics Automation Market Size projected to Reach USD 221.8 Billion by 2033 | CAGR of 10.75%.

Market Overview

The global logistics automation market size was valued at USD 82.1 Billion in 2024. It is expected to reach USD 221.8 Billion by 2033, growing at a CAGR of 10.75% during 2025-2033. The rise in e-commerce activities, advancements in robotics, AI, and IoT, and the need for efficient inventory and order fulfillment are driving this growth. Europe dominates the market with over 38.5% share in 2024 due to sophisticated logistics systems and high e-commerce adoption.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Logistics Automation Market Key Takeaways

• The global logistics automation market size was USD 82.1 Billion in 2024.
• The market is forecast to grow at a CAGR of 10.75% during 2025-2033.
• Europe held the largest market share with over 38.5% in 2024.
• Hardware segment commands a 54.2% market share driven by automated storage systems and mobile robots.
• Warehouse and storage management lead by function with 66.8% market share.
• Large enterprises dominate with 75.4% share due to complex supply chains and high investment capability.
• Retail and e-commerce industry vertical is leading at 29.7% market share due to increased online shopping demand.

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Market Growth Factors

The increasing popularity of online shopping is significantly driving demand for efficient logistics operations. Companies are automating inventory management, order fulfillment, and last-mile delivery to manage high volume and rapid delivery expectations. Automation enhances accuracy and speeds processes, improving client satisfaction. Innovations in robotics, artificial intelligence, and machine learning power automated guided vehicles, robotic sorters, and route optimization, reducing operational costs and enabling real-time agile supply chains.

Real-time tracking and supply chain visibility needs promote adoption of IoT, RFID, and cloud computing technologies. These enable seamless integration and operational transparency, enhancing decision-making and reducing errors. The U.S. logistics sector utilizes automation to cope with labor shortages and increasing wages. Robotic sorting, packing, and picking reduce human reliance while sustaining productivity and accuracy.

Strategic partnerships among industry leaders are accelerating innovation in logistics automation. For instance, KION North America and Fox Robotics partnered in 2024 to produce autonomous trailer loaders/unloaders to improve warehouse loading dock safety and efficiency. Such collaborations address labor shortages and efficiency demands, fostering comprehensive warehouse automation adoption and improving supply chain efficiencies.

Market Segmentation

By Component

• Hardware: Leading the market with 54.2% share in 2024, hardware includes mobile robots (AGV, AMR), automated storage and retrieval systems (AS/RS), automated sorting systems, de-palletizing/palletizing systems, conveyor systems, automatic identification and data collection (AIDC), and order picking. These technologies optimize warehouse activities, ensure accuracy, and reduce manual efforts.

By Function

• Warehouse and Storage Management: Dominating with 66.8% market share in 2024, this segment uses AS/RS, robotics, and IoT to enhance inventory precision, reduce manual labor, and increase warehouse efficiency. Automated systems facilitate real-time monitoring and integration for streamlined operations and safety improvements.

By Enterprise Size

• Large Enterprises: Leading with 75.4% market share, large enterprises employ robotics, AI, and IoT-enabled systems to efficiently manage complex, high-volume supply chains and optimize transportation and accuracy. Their extensive investments in innovative technologies enhance operational efficiency and scalability.

By Industry Vertical

• Retail and E-Commerce: Holding the largest share of 29.7% in 2024, this sector demands fast, accurate order fulfillment due to rising online shopping. Automation solutions improve warehousing, last-mile delivery, supply chain transparency, and resource allocation, accommodating seasonal and volume fluctuations.

Regional Insights

Europe is the dominant region in the logistics automation market, holding over 38.5% of the share in 2024. Driven by advanced logistics systems, rising e-commerce, and adoption of robotics, AI, and IoT, Europe focuses on energy-efficient, sustainable automation solutions. Collaborations among key players enhance productivity, client satisfaction, and regional market growth.

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Recent Developments & News

• December 2024: Massachusetts Institute of Technology Center for Transportation & Logistics (MIT CTL) launched a five-year partnership with Mecalux to integrate self-learning AI in logistics operations, aiming for breakthrough AI applications.
• October 2024: Viettel introduced an advanced logistics automation solution streamlining warehousing to delivery, showcased at Vietnam Innovation Day 2024.
• July 2024: Mytra, founded by former Tesla engineers, secured USD 78 Million to develop software-driven robotic solutions for automating critical warehouse material handling operations.

Key Players

• ABB Ltd.
• Beumer Group GmbH & Co. KG
• Daifuku Co. Ltd.
• Dematic (Kion Group AG)
• Honeywell International Inc.
• Jungheinrich AG
• Kardex Group
• Knapp AG
• Mecalux S.A.
• Murata Machinery Ltd.
• Oracle Corporation
• SAP SE
• Swisslog Holding AG (KUKA AG)

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