The Logistics Automation Market is estimated to be valued at US$ 64.12 Bn in 2023 and is expected to exhibit a CAGR of 11.41%over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Logistics automation makes use of advanced technologies such as robotics, autonomous vehicles, machine learning, etc. to optimize warehouse operations and material handling. It aims to increase efficiency by reducing operational costs, handling times and inventory levels while improving order accuracy.
Market key trends:
The development of Industry 4.0 technologies and increasing adoption of automation in warehouses is a major trend driving the growth of logistics automation market. Advanced technologies help improve workflow, reduce errors and optimize inventory management by automating tasks such as picking, sorting, packing and transporting of goods. They assist in seamless tracking of shipments and real-time monitoring of transportation networks. Furthermore, labor shortage and rising labor costs have compelled companies to invest in logistics automation solutions to improve productivity and workflow.
Porter’s Analysis
Threat of new entrants: Logistics Automation market requires high capital investment for machinery and equipment which makes the entry difficult for new players. Bargaining power of buyers: Large fleet and warehouse owners have stronger bargaining power over technology providers due to the volume of business. Bargaining power of suppliers: Suppliers in the market are highly fragmented and there is always pressure on price, few key technology giants have strong hold. Threat of new substitutes: Advancement in robotics, artificial intelligence and IoT enables new substitute solutions to emerge regularly. Competitive rivalry: Intense competition between existing players to gain market share through technological innovation and service differentiation.
SWOT Analysis
Strength: Robust technological capabilities of major players and improved efficiency & productivity offered by logistics automation solutions. Weakness: High initial investment and complexity of implementation limits adoption across SMEs. Opportunity: Growth in e-commerce and increasing focus on optimization of logistics activities globally. Growth of third party logistics also acts as an opportunity. Threats: Vulnerabilities related to cyber security and data privacy. Disruptions in global supply chain like Covid-19 pandemic also poses challenges.
Key Takeaways
The Global Logistics Automation Market Size is expected to witness high growth, exhibiting CAGR of 11.41%over the forecast period, due to increasing penetration of e-commerce sector. The rising adoption of advanced technologies like artificial intelligence, robotics, automation, and IoT across various industries has led to the growth of the logistics automation market globally. Regionally, North America dominated the logistics automation market in 2023 with over 35% share and is expected to grow at robust rate during the forecast period on account of extensive adoption of advanced technologies in the region and presence of various key technology providers. Asia Pacific is projected to grow at a fastest rate driven by economic development, rapid urbanization and increasing focus of companies to optimize logistics operations in developing countries.
Key players operating in the Logistics Automation market are ABB, BEUMER GROUP, Blue Yonder Group, Inc, Daifuku Co., Ltd., E&K AUTOMATION LIMITED, Falcon Autotech Private Limited, GreyOrange, HighJump, Infor, Locus Robotics, Manhattan Associates, One Network Enterprises, Oracle, SwanLeap Inc, and Toshiba Logistics.
Read more: https://www.dailyprbulletin.com/logistics-automation-market-size-trends/
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