Global Logistics Automation Market Is Estimated To Witness High...

Global Logistics Automation Market Is Estimated To Witness High Growth Owing To Increasing Adoption of Industry 4.0 Technologies and Rising Demand for Supply Chain Optimization

Posted 2023-09-22 07:25:36

The Global Logistics Automation Market is estimated to be valued at US$ 52.7 Bn in 2021 and is expected to exhibit a CAGR of 10.3% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The Logistics Automation Market refers to the use of automated systems and software applications to enhance the efficiency of logistics operations. It includes a range of technologies such as robotics, artificial intelligence, machine learning, and advanced analytics. These technologies enable companies to streamline their supply chain processes, reduce manual errors, improve inventory management, and enhance overall productivity. Logistic automation solutions find applications in various industries including e-commerce, retail, automotive, healthcare, and food and beverage.

Market Dynamics:
Short Content: The growth of the logistics automation market can be attributed to two key drivers. Firstly, the increasing adoption of Industry 4.0 technologies, such as the Internet of Things (IoT), cloud computing, and big data analytics, is driving the demand for logistics automation solutions. These technologies enable real-time tracking, predictive analytics, and intelligent decision-making, thereby improving operational efficiency and reducing costs. Secondly, the rising demand for supply chain optimization is encouraging companies to implement automated systems to streamline their logistics processes, reduce transportation time, and enhance customer satisfaction. By automating tasks such as inventory management, order fulfillment, and warehouse management, companies can achieve faster order processing, accurate tracking, and timely delivery. Overall, the logistics automation market is poised for significant growth in the forecast period, driven by the need for operational efficiency and cost reduction in the global supply chain.

SWOT Analysis:

Strength:
The logistics automation market is experiencing significant growth, driven by the increasing demand for efficiency and cost reduction in supply chain operations.
Technological advancements, such as robotics, artificial intelligence, and advanced analytics, are enabling automation in various logistics processes, improving productivity and accuracy.
Established key players in the market, such as ABB, Daifuku Co., Ltd., and Manhattan Associates, possess strong expertise and market presence, enhancing their competitive advantage.

Weakness:
The initial investment required for adopting logistics automation solutions can be high, restraining the market growth for small and medium-sized enterprises with limited budgets.
Integration challenges when implementing logistics automation systems with existing infrastructure and legacy systems might pose obstacles for some organizations, further hindering market growth.

Opportunity:
The growing e-commerce industry and increasing online retail activities are driving the demand for efficient and automated logistics solutions to handle the higher volume of shipments, presenting a significant opportunity for market growth.
The emergence of Industry 4.0 and the Internet of Things (IoT) technologies enable the integration of various devices and systems, providing extensive data and analytics capabilities, which can be leveraged for optimizing logistics operations.

Threats:
Concerns regarding data security and privacy in logistics automation systems can hinder market growth, as organizations need to ensure the protection of sensitive information and prevent potential cyber threats.
Increasing competition among key players and the presence of local and regional players offering competitive solutions may intensify the rivalry in the market, limiting market share growth for established players.

Key Takeaways:

The global Logistics Automation Market Share is expected to witness high growth, exhibiting a CAGR of 10.3% over the forecast period (2021-2028), due to increasing demand for efficiency and cost reduction in supply chain operations. The market size for 2021 is estimated to be US$ 52.7 billion. The fastest growing and dominating region in the logistics automation market is expected to be North America, driven by the presence of key players, strong technological infrastructure, and the high adoption of automation technologies in various industries.

Key players operating in the logistics automation market include 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. These key players possess strong expertise, market presence, and offer a wide range of logistics automation solutions to cater to the growing demand.