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Logistics Automation Market is Hit to USD 67.5 Billion by 2031, driven by increasing growing of Supply Chain Complexity


The SNS Insider report indicates that the Logistics Automation Market Size was valued at USD 32.7 Billion in 2023, and is expected to reach USD 67.5 Billion by 2031 and grow at a CAGR of 9.5% over the forecast period 2024-2031.

E-commerce Boom and Efficiency Demands Fuel Market Growth

The demand for logistics automation is fueled by a confluence of factors. The e-commerce boom has caused a surge in order volumes and customer expectations for faster deliveries, making automation crucial for efficient order fulfillment and timely shipping. Additionally, the logistics industry grapples with a growing labor shortage, prompting automation to address repetitive tasks and reduce reliance on manual labor. Furthermore, automation solutions offer significant cost savings by minimizing errors, streamlining operations, and boosting overall productivity. Finally, automation plays a vital role in enhancing safety by reducing workplace accidents and injuries associated with manual goods handling. These combined forces are driving a significant shift towards automation within the logistics industry.

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Major The Key Players of Logistics Automation Market

Murata Machinery, Ltd., Honeywell International Inc., Jungheinrich AG, Daifuku Co., Ltd., SSI Schaefer Group, Knapp AG, Mecalux, S.A., Kion Group AG, TGW Logistics Group GmbH, Beumer Group GmbH & Co. KG, Dematic Corp, and other players

Segmentation Analysis: Sales Logistics Takes the Lead

The sales Logistics segment is expected to dominate the logistics automation market due to the booming e-commerce sector. This segment focuses on efficiently fulfilling and delivering orders, which has become crucial with the surge in online shopping. Automation solutions streamline processes like order picking, packing, and shipping, enabling businesses to meet the high demand for fast and accurate deliveries within the e-commerce landscape. While other segments like Inbound Logistics (optimizing warehouse operations), Production Logistics (streamlining manufacturing processes), and Reverse Logistics (managing returns) are also important, the sheer volume and growth within e-commerce currently drive the highest demand for automation solutions in Sales Logistics.

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Key Market Segments

By Component


  • Autonomous 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)


  • Warehouse Management System
  • Transportation Management System
  • Services
  • Consulting
  • Deployment & Integration
  • Support & Maintenance

By Function

  • Inventory & Storage Management
  • Transportation Management

By Logistics Type

  • Sales Logistics
  • Production Logistics
  • Recovery Logistics
  • Procurement Logistics

By Software Application

  • Inventory Management
  • Order Management
  • Yard Management
  • Shipping Management
  • Labor Management
  • Vendor Management
  • Customer Support
  • Others

By Organization Size

  • Large Enterprises
  • Small & Medium Enterprises

By Vertical

  • Retail & E-commerce
  • Healthcare
  • Automotive
  • Aerospace & Defense
  • Electronics & Semiconductors
  • Others

Impact of Global Disruptions

The Russia-Ukraine war has disrupted global supply chains, leading to increased transportation costs and shortages of raw materials. This has impacted the logistics automation market by causing delays in shipments and decreased demand for certain solutions. However, it also presents an opportunity for companies that can offer solutions that address these challenges, such as automation for near-shoring or alternative sourcing strategies.

Similarly, the ongoing economic slowdown might lead to budget constraints and cautious investments in automation projects. However, companies that can demonstrate a clear return on investment (ROI) through automation are likely to attract customers seeking cost-saving measures.

Key Regional Developments: North America Leads the Way

North America currently holds the dominant position in the global logistics automation market due to the presence of major logistics players and a strong focus on technological advancements. The region is further supported by a well-developed infrastructure and a rapidly growing e-commerce sector.

Asia-Pacific is expected to witness the fastest growth rate during the forecast period. This can be attributed to the region’s rapid economic development, particularly in e-commerce, and the presence of several logistical hubs like Singapore, China, and India. Moreover, the rising adoption of Industry 4.0 technologies in the region is further propelling the demand for logistics automation solutions.

Future Growth

The future of the logistics automation market appears promising, driven by continued technological advancements, increasing demand for operational efficiency, and the growing adoption of automation across various industry verticals. The integration of AI, robotics, and other cutting-edge technologies is expected to further revolutionize the logistics landscape, leading to even greater levels of automation and optimization.

Recent Developments

  • In January 2023: Jungheinrich acquired Storage Solutions, a leading provider of racking and warehouse automation solutions in the US, to strengthen its presence in the US warehousing and automation market.
Logistics Automation Market
Logistics Automation Market

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Key Takeaways

  • The logistics automation market is poised for significant growth driven by the e-commerce boom, the need for operational efficiency, and labor shortage concerns.
  • Sales logistics is expected to remain the dominant segment due to the increasing demand for efficient order fulfillment and delivery solutions.
  • North America currently leads the market, while Asia Pacific is expected to be the fastest-growing region due to its rapid economic development and strong focus on Industry 4.0 adoption.

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