DUBLIN--(BUSINESS WIRE)--The "Logistics Automation Market by Component, Function (Warehouse and Storage Management, Transportation Management), Organization Size (SMES, Large Enterprises), Vertical (3PL, Retail and Ecommerce, FMCG, Manufacturing), and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The global logistics automation market size is projected to grow from USD 48.4 billion in 2020 to USD 88.9 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 10.6% during the forecast period.
The logistics automation market is gaining traction due to digital transformation in the logistics industry, emergence of IoT, exponential growth in the eCommerce industry, advancements in robotics, and growing need to ensure workforce safety.
Based on Function, the warehouse and storage management segment is expected to hold a larger market share during the forecast period
The warehouse and storage management segment is projected to account for a larger market share in 2020 to 2026. The rising need to optimize warehouse spaces and distribution centers is fuelling the importance of warehouse and storage management function. An effective warehouse management system ensures the efficient execution of warehousing operations, such as receiving, slotting, picking, and shipping. This system can process large amounts of data and coordinate movements within the warehouse, which in turn, helps in the efficient management of the supply chain network of a company. Thus, warehouse operating companies are adopting warehouse and storage management solutions to manage inventory by streamlining storage and distribution operations.
Based on Organization size, the SMEs segment to grow at the highest CAGR during the forecast period
SMEs are focused on the deployment of logistics automation solutions to improve competitiveness and reduce operating costs. Despite the high cost involved in automating logistics processes, the adoption of logistics automation solutions provides long-term RoI. However, due to limited budgets, SMEs are unable to automate logistics processes fully. With advancements in automation technology and intense competition among vendors, the cost of automating warehouses is declining. This, in turn, will enable SMEs to adopt automation solutions and services in the near future. Furthermore, the adoption of cloud-based logistics automation software is expected to rise in SMEs as they require only necessary functions and features for small-scale warehouse operations.
Asia Pacific (APAC) region to record the highest growth in the logistics automation market
North America is expected to hold the largest market share during the forecast period and APAC is expected to grow at the highest CAGR during the forecast period. APAC is transforming dynamically with respect to the adoption of new technologies across various sectors, especially in China, Japan, India, and ANZ. These countries have always supported and promoted industrial and technological growth. Also, they possess a developed technological infrastructure, which is promoting the adoption of logistics automation solutions across all industry verticals. Moreover, the eCommerce companies in the region are investing in improving their supply chain network and logistics processes through the adoption of logistics automation solutions. Global companies are significantly investing in the manufacturing, automobile, retail, and healthcare industries in the region. Further, the expansion of the transportation and logistics industry and the increase in trade agreements are key factors projected to drive the growth of the logistics automation market in APAC.
Market Dynamics
Drivers
- Digital Transformation in the Logistics Industry
- Emergence of IoT
- Exponential Growth in the Ecommerce Industry
- Advancements in Robotics
- Need to Ensure Workforce Safety
Restraints
- Lack of Uniform Governance Standards
- High Capital Investment
Opportunities
- Adoption of Autonomous Vehicles and Drones
- Increasing Adoption of Industry 4.0
Challenges
- Lack of Skill and Expertise in Operating Advanced Automated Systems
- Security and Privacy Concerns
Companies Mentioned
- 6 River Systems
- ABB
- Beumer Group
- Blue Yonder
- Daifuku
- Dematic
- E&K Automation
- Eyesee (Hardis Group)
- Falcon Autotech
- Greyorange
- Highjump (Korber)
- Honeywell Intelligrated
- Jungheinrich
- Knapp
- Locus Robotics
- Manhattan Associates
- Murata Machinery
- Oracle
- SAP
- SBS Toshiba Logistics
- Seegrid
- SSI Schaefer
- Swisslog
- System Logistics
- TGW Logistics Group
- Zebra Technologies
For more information about this report visit https://www.researchandmarkets.com/r/erxpv
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