Logistics Automation Market is Estimated to Witness High Growth Owing to Advancements
The logistics automation market is estimated to be valued at US$ 53.71 Billion in 2024 and is expected to reach US$ 115.27 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 11.5% from 2024 to 2031.
Key Takeaways
Key players operating in the logistics automation market are Trigger Point Performance, RumbleRoller, The Original Muscle Roller, LIVEPRO, TheraBand, GoFit, SKLZ, Gaiam, Body Benefits, Corength.
The rising e-commerce industry is generating substantial volumes of warehouse and distribution center operations globally. Technologies such as mobile robots, automated guided vehicles, autonomous mobile robots, and cloud-based Warehouse Management Systems (WMS) are enabling the automation of order picking, sortation, and transportation of goods within distribution centers, thus providing higher order fulfillment speed and volumes at lower costs.
Technological advancements in robotics, artificial intelligence, Internet of Things (IoT), sensor technology, automated sortation systems, and automated storage and retrieval systems are enhancing the efficiency, productivity, and accuracy of logistics operations. Collaborative robots or cobots are augmenting human capabilities to efficiently carry out complex logistics tasks such as order picking and packing. Logistics Automation Market Size Advancements in automated warehousing solutions are expected to contribute significantly to improved throughput, lean operations, and reduced turnaround times.
Market Drivers
The growth of the e-commerce industry is generating huge volumes of B2C shipments, driving the need for fast-paced order fulfillment through logistics automation. Technologies such as collaborative robotics, autonomous mobile robots, goods-to-person systems, and automated storage & retrieval systems are enabling the handling of surge volumes efficiently. Shortage of labor, emphasis on minimizing error-prone manual processes, and need for lean inventory handling are further supporting the increased adoption of logistics automation across industries.
Current Challenges in Logistics Automation Market
The logistics automation market is facing challenges in terms of high initial investments required for automation solutions. Implementing warehouse automation systems, material handling equipment, automated sortation and picking systems require heavy capital expenditure which is difficult for small and medium-sized enterprises. Additionally, the need for skilled workforce to operate and maintain advanced automated solutions is also a challenge faced by companies. Geographical and infrastructural barriers in developing countries further restrict the adoption of logistics automation technologies.
SWOT Analysis
Strength: Logistics automation solutions help improve operational efficiency, productivity and reduce manual errors. They offer cost savings over long term through optimized warehouse operations and higher storage capacity.
Weakness: High dependence on technologies makes logistics automation systems prone to technical faults and glitches. Downtime caused by system failures can disrupt supply chain operations.
Opportunity: Growing e-commerce sector is driving demand for automation in order fulfillment and distribution centers. Emerging technologies like AI, IoT, robotics offer new opportunities to automate complex logistics functions.
Threats: Job losses caused due to increasing automation could lead to social and political issues. Economic slowdowns may impact technology investments of logistics companies.
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