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    Logistics Automation Market

    ID: MRFR/ICT/6547-HCR
    111 Pages
    Ankit Gupta
    October 2025

    Logistics Automation Market Research Report: By Technology (Warehouse Management Systems, Transportation Management Systems, Automated Guided Vehicles, Robotic Process Automation), By Application (Inventory Management, Order Fulfillment, Shipping and Receiving, Freight Management), By End Use (Retail, Manufacturing, Healthcare, E-commerce), By Deployment Type (On-Premise, Cloud-Based) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035.

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    Logistics Automation Market Infographic
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    Logistics Automation Market Summary

    As per MRFR analysis, the Logistics Automation Market Size was estimated at 76.29 USD Billion in 2024. The Logistics Automation industry is projected to grow from 83.02 USD Billion in 2025 to 193.32 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 8.82 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Logistics Automation Market is experiencing robust growth driven by technological advancements and evolving consumer expectations.

    • The integration of Artificial Intelligence is transforming operational efficiencies across logistics processes.
    • North America remains the largest market, while Asia-Pacific is emerging as the fastest-growing region in logistics automation.
    • Warehouse Management Systems dominate the market, whereas Automated Guided Vehicles are witnessing rapid growth.
    • Increasing demand for efficiency and e-commerce growth are key drivers propelling the logistics automation market forward.

    Market Size & Forecast

    2024 Market Size 76.29 (USD Billion)
    2035 Market Size 193.32 (USD Billion)
    CAGR (2025 - 2035) 8.82%

    Major Players

    Amazon (US), Siemens (DE), Honeywell (US), SAP (DE), IBM (US), Oracle (US), Dematic (US), Kiva Systems (US), Blue Yonder (US)

    Logistics Automation Market Trends

    The Logistics Automation Market is currently experiencing a transformative phase, driven by advancements in technology and the increasing demand for efficiency in supply chain operations. Automation solutions, such as robotics, artificial intelligence, and data analytics, are being integrated into logistics processes to enhance productivity and reduce operational costs. Companies are increasingly recognizing the necessity of adopting these innovations to remain competitive in a rapidly evolving landscape. As a result, the market is witnessing a surge in investments aimed at modernizing logistics infrastructure and streamlining operations. Moreover, the emphasis on sustainability and environmental responsibility is shaping the Logistics Automation Market. Organizations are exploring automated solutions that not only improve efficiency but also minimize their carbon footprint. This dual focus on operational excellence and ecological impact suggests a shift in priorities among logistics providers. The ongoing evolution of consumer expectations, coupled with the need for real-time visibility and responsiveness, further indicates that the Logistics Automation Market is poised for continued growth and adaptation in the coming years.

    Integration of Artificial Intelligence

    The incorporation of artificial intelligence into logistics processes is becoming increasingly prevalent. AI technologies facilitate predictive analytics, enabling companies to forecast demand more accurately and optimize inventory management. This trend appears to enhance decision-making capabilities and streamline operations.

    Rise of Robotics and Automation

    The deployment of robotics in warehousing and distribution centers is gaining traction. Automated guided vehicles and robotic picking systems are being utilized to improve efficiency and reduce labor costs. This trend suggests a shift towards more automated environments in logistics.

    Focus on Sustainability

    There is a growing emphasis on sustainable practices within the Logistics Automation Market. Companies are seeking solutions that not only enhance operational efficiency but also contribute to environmental goals. This trend indicates a broader commitment to sustainability in logistics operations.

    The ongoing advancements in technology and the increasing demand for efficient supply chain solutions appear to drive the evolution of logistics automation, potentially reshaping the landscape of global trade and commerce.

    U.S. Department of Transportation

    Logistics Automation Market Drivers

    Focus on Supply Chain Resilience

    The focus on supply chain resilience is becoming a critical driver for the Logistics Automation Market. Recent disruptions in global supply chains have highlighted the need for robust and adaptable logistics solutions. Companies are increasingly investing in automation to enhance their supply chain resilience, enabling them to respond swiftly to unforeseen challenges. The logistics automation market is projected to benefit from this trend, as businesses seek to build more resilient operations through technology. By automating processes, firms can improve their ability to manage risks and maintain continuity, thereby reinforcing the importance of logistics automation in today's dynamic environment.

    Increasing Demand for Efficiency

    The Logistics Automation Market is experiencing a surge in demand for enhanced operational efficiency. Companies are increasingly adopting automated solutions to streamline their supply chain processes. This trend is driven by the need to reduce operational costs and improve service delivery. According to recent data, organizations that implement logistics automation can achieve up to a 30 percent reduction in operational costs. As businesses strive to meet customer expectations for faster delivery times, the integration of automated systems becomes essential. This demand for efficiency is likely to propel the growth of the Logistics Automation Market, as firms seek to leverage technology to optimize their logistics operations.

    Technological Advancements in Automation

    Technological advancements play a pivotal role in shaping the Logistics Automation Market. Innovations such as advanced robotics, machine learning, and the Internet of Things (IoT) are transforming traditional logistics operations. These technologies enable real-time tracking, predictive analytics, and automated decision-making, which enhance overall supply chain visibility. The market for logistics automation is projected to grow significantly, with estimates suggesting a compound annual growth rate of over 10 percent in the coming years. As companies increasingly recognize the potential of these technologies, investment in logistics automation solutions is expected to rise, further driving the market's expansion.

    Regulatory Compliance and Safety Standards

    Regulatory compliance and safety standards are increasingly influencing the Logistics Automation Market. Governments and regulatory bodies are implementing stringent guidelines to ensure safety and efficiency in logistics operations. Companies are compelled to adopt automated solutions to comply with these regulations while minimizing risks associated with human error. The logistics sector is witnessing a shift towards automation as a means to enhance safety protocols and ensure adherence to compliance requirements. This trend is expected to drive investment in logistics automation technologies, as firms seek to align their operations with evolving regulatory frameworks.

    E-commerce Growth and Consumer Expectations

    The rapid growth of e-commerce is a key driver of the Logistics Automation Market. As online shopping continues to gain popularity, consumers are demanding faster and more reliable delivery options. This shift in consumer behavior compels logistics providers to adopt automated solutions to meet these heightened expectations. Data indicates that e-commerce sales are projected to reach trillions of dollars, necessitating efficient logistics operations. Consequently, logistics automation becomes crucial for companies aiming to remain competitive in this evolving landscape. The need to fulfill orders quickly and accurately is likely to sustain the momentum of the Logistics Automation Market.

    Market Segment Insights

    By Technology: Warehouse Management Systems (Largest) vs. Automated Guided Vehicles (Fastest-Growing)

    The Logistics Automation Market has seen substantial growth, with Warehouse Management Systems (WMS) holding the largest market share. These systems streamline operations through inventory management and order processing that enhance overall efficiency. In contrast, Automated Guided Vehicles (AGVs) are emerging as the fastest-growing segment, driven by increased demand for automation in materials handling. This shift reflects a broader trend towards adopting technology-driven solutions to improve supply chain efficiency. The growth of the Logistics Automation Market is fueled by the increasing need for operational efficiency and cost reduction. Companies are investing in advanced technologies that support scalable solutions, such as Robotics Process Automation (RPA) and Transportation Management Systems (TMS). The integration of Artificial Intelligence in these technologies enhances decision-making and boosts productivity, further driving adoption in logistics operations across various sectors.

    Technology: Warehouse Management Systems (Dominant) vs. Robotic Process Automation (Emerging)

    Warehouse Management Systems (WMS) dominate the Logistics Automation Market, offering robust solutions for inventory control and warehouse operations. Their ability to optimize stock levels and reduce operational costs makes them invaluable for logistics firms. As businesses increasingly seek to enhance throughput and efficiency, WMS has become a critical component of supply chain management. On the other hand, Robotic Process Automation (RPA) is an emerging technology within this space, automating repetitive tasks to increase accuracy and efficiency. RPA's potential to streamline processes contributes to its growing popularity in logistics, transforming how companies manage their operations. Together, these two segments reflect the evolution of technology in logistics, catering to both current needs and future demands.

    By Application: Order Fulfillment (Largest) vs. Inventory Management (Fastest-Growing)

    Within the logistics automation market, the application segment is predominantly driven by order fulfillment, accounting for a significant portion of market share. This process optimizes the supply chain by ensuring timely and accurate deliveries, making it crucial for competitive positioning in various industries. Following closely, inventory management has emerged as an essential component, allowing businesses to track stock levels, streamline operations, and reduce overhead costs, thus securing a noticeable share in the segment distribution.

    Order Fulfillment: Dominant vs. Inventory Management: Emerging

    Order fulfillment stands as the dominant application in the logistics automation market due to its central role in enhancing customer satisfaction and operational efficiency. It integrates with various technologies to automate processes such as picking, packing, and shipping, contributing significantly to revenue generation for businesses. Meanwhile, inventory management is quickly becoming an emerging force, leveraging automation tools to improve stock visibility, reduce carrying costs, and enhance decision-making. As businesses increasingly adopt these systems, the trend signals a shift towards smarter inventory practices, making it a critical area for future investment and technological development.

    By End Use: Retail (Largest) vs. E-commerce (Fastest-Growing)

    The Logistics Automation Market is significantly shaped by its end-use sectors, with Retail commanding the largest market share. Retail operations have increasingly embraced automation to enhance inventory management, optimize supply chains, and improve customer experiences. This sector has adopted technologies like automated warehousing and robotics at a rapid pace, leading to greater efficiency and operational agility that address the complexities of high demand and diverse product ranges. Conversely, the E-commerce sector is emerging as the fastest-growing area within logistics automation. The exponential growth of online shopping has spurred a remarkable uptake of automated solutions, including AI-driven analytics and last-mile delivery innovations. This surge in demand for automation in E-commerce is driven by customer expectations for faster fulfillment, real-time tracking, and streamlined operations, accelerating the sector's evolution in logistics automation.

    Retail (Dominant) vs. E-commerce (Emerging)

    The Retail segment holds a dominant position in the Logistics Automation Market through its extensive investments in automation technologies. Retailers are integrating advanced systems to streamline inventory management and enhance supply chain visibility. This strong focus on operational efficiency allows retailers to respond rapidly to consumer trends and manage fluctuating demands effectively. In contrast, E-commerce is recognized as an emerging segment that is rapidly adapting to automation trends. With consumer preferences shifting towards online shopping, E-commerce businesses are investing heavily in automated processes, such as pick and pack systems, autonomous delivery vehicles, and AI-driven customer service tools. This dynamic growth is reshaping the logistics landscape, encouraging innovation and pushing traditional logistics practices to adapt.

    By Deployment Type: Cloud-Based (Largest) vs. On-Premise (Fastest-Growing)

    In the Logistics Automation Market, the distribution of deployment types shows a clear preference for cloud-based solutions, which currently dominate the landscape due to their scalability and flexibility. Businesses are increasingly adopting cloud technologies as they allow for smoother integration with existing systems and facilitate remote access to logistics operations, a vital capability in today’s digital-first environment. Conversely, while on-premise solutions hold a smaller share, they are experiencing heightened interest from businesses that prioritize control over their data and security, appealing particularly to industries with stringent compliance requirements.

    Deployment Type: Cloud-Based (Dominant) vs. On-Premise (Emerging)

    Cloud-based logistics automation solutions are considered the dominant force in the market, as they offer organizations the ability to harness advanced technologies without the need for substantial upfront investments in hardware and infrastructure. These solutions support real-time data processing, offering significant operational efficiencies and enhancing visibility across supply chains. On the other hand, on-premise solutions are emerging and gaining traction among businesses that require greater security and customization capabilities. Industries with heavy regulatory demands often favor on-premise deployments for their heightened control and privacy, demonstrating a growing segment that values a tailored approach to logistics automation.

    Get more detailed insights about Logistics Automation Market

    Regional Insights

    The Global Logistics Automation Market is experiencing robust growth across various regions, showcasing significant developments in automation technologies. North America leading the charge, holding a value of 25.0 USD Billion. This region is projected to double its valuation to 50.0 USD Billion by 2032, indicative of its major influence and investment in advanced logistics systems.

    Europe follows with a revenue of 20.0 USD Billion in 2023 and is anticipated to reach 40.0 USD Billion by 2032, reflecting strong demand driven by technological advancements and increasing supply chain complexities.The Asia-Pacific (APAC) region, valued at 15.0 USD Billion in 2023, is expected to grow to 30.0 USD Billion by 2032, showcasing its rising prominence due to rapid industrialization and e-commerce growth. South America and the Middle East Africa (MEA) sectors, while smaller, have demonstrated potential, with revenues of 5.0 USD Billion and 5.11 USD Billion in 2023, respectively, growing to 15.0 USD Billion for both by 2032.

    The growth in these regions presents opportunities driven by infrastructure improvement and increasing technology adoption, positioning them as important players in the Global Logistics Automation Market dynamics.

    Fig 3: Logistics Automation Market Regional Insights

    Logistics Automation Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    The Global Logistics Automation Market has witnessed substantial growth due to advancements in technology and the increasing need for efficiency and cost-effectiveness in supply chain management. The competitive landscape is characterized by a mix of established players and new entrants, each striving to leverage innovative automation solutions that optimize logistics operations. As businesses adapt to evolving consumer demands and international trade dynamics, the implementation of automated logistics systems has become critical for maintaining a competitive edge. Companies are continually enhancing their product offerings, investing in research and development, and forming strategic alliances to stay ahead in this rapidly growing market.

    The integration of artificial intelligence, robotics, and advanced analytics is reshaping the logistics landscape, fostering a more intelligent and responsive supply chain environment that is poised for further expansion.Siemens has established a significant presence in the Global Logistics Automation Market, driven by its robust portfolio of automation technologies and software solutions designed for various logistics applications. The company's strengths lie in its extensive experience in engineering, deep understanding of industrial processes, and a strong commitment to innovation. Siemens focuses on integrating advanced automation tools with existing logistics infrastructures, allowing for seamless scalability and improved operational efficiency.

    Their emphasis on digitalization and the Internet of Things empowers businesses to gain real-time visibility into their supply chains, which enhances decision-making and resource optimization. Moreover, Siemens leverages its global network to support customers in optimizing their logistics operations, ensuring that they are equipped with the latest technological advancements to meet modern challenges.Amazon, a prominent player in the Global Logistics Automation Market, has revolutionized the logistics landscape through its relentless pursuit of innovation and efficiency. The company's strengths include a vast distribution network, state-of-the-art fulfillment centers equipped with automation technologies, and a strong emphasis on customer-centric solutions.

    Amazon continually invests in robotics and artificial intelligence to streamline operations, reduce delivery times, and minimize operational costs. Its proprietary logistics software and automated systems enable real-time tracking and optimized inventory management, setting high benchmarks for other competitors in the industry. The integration of automation within Amazon's logistics operations not only enhances its service delivery but also positions the company as a leader in driving transformation within the global logistics sector. The ongoing advancements in their automation strategy signify a commitment to redefining future logistics operations, ensuring they meet the demands of an increasingly complex market.

    Key Companies in the Logistics Automation Market market include

    Industry Developments

    • Q2 2024: FedEx to open new automated sorting facility in Texas to boost e-commerce logistics FedEx announced the opening of a new state-of-the-art automated sorting facility in Dallas, Texas, aimed at increasing capacity and efficiency for e-commerce deliveries in the southern United States.
    • Q2 2024: Amazon Unveils Next-Gen Robotics System for Warehouse Automation Amazon introduced a new robotics system designed to automate more warehouse tasks, including item picking and sorting, as part of its ongoing investment in logistics automation technology.
    • Q2 2024: Locus Robotics raises $117M in Series F funding to expand warehouse automation Locus Robotics secured $117 million in Series F funding to accelerate the development and deployment of its autonomous mobile robots for warehouse automation.
    • Q3 2024: DHL Supply Chain and AutoStore Announce Strategic Partnership to Expand Automated Warehousing DHL Supply Chain entered a strategic partnership with AutoStore to deploy automated storage and retrieval systems across multiple logistics centers in Europe and North America.
    • Q3 2024: Maersk acquires logistics automation startup Covariant to boost AI-driven supply chain Maersk completed the acquisition of Covariant, a robotics and AI company, to enhance its logistics automation capabilities and improve supply chain efficiency.
    • Q3 2024: Siemens Logistics launches new automated parcel sorting system for urban delivery hubs Siemens Logistics launched a new automated parcel sorting system designed for high-throughput urban delivery hubs, aiming to address last-mile delivery challenges.
    • Q4 2024: JD Logistics opens fully automated distribution center in Shanghai JD Logistics opened a fully automated distribution center in Shanghai, featuring advanced robotics and AI to streamline order fulfillment and reduce delivery times.
    • Q4 2024: Ocado signs contract to supply automated warehouse technology to US grocer Kroger Ocado signed a contract to provide its automated warehouse technology to Kroger, expanding its presence in the US grocery logistics automation market.
    • Q1 2025: GreyOrange raises $140M Series D to scale AI-powered warehouse automation GreyOrange raised $140 million in Series D funding to expand its AI-powered warehouse automation solutions globally.
    • Q1 2025: Honeywell appoints new CEO for logistics automation division Honeywell announced the appointment of a new CEO to lead its logistics automation division, signaling a renewed focus on innovation and growth in the sector.
    • Q2 2025: Prologis acquires robotics startup Dexterity to enhance warehouse automation portfolio Prologis acquired Dexterity, a robotics startup specializing in automated material handling, to strengthen its warehouse automation offerings.
    • Q2 2025: XPO Logistics launches AI-driven route optimization platform for automated freight management XPO Logistics launched a new AI-driven platform designed to automate route optimization and freight management, aiming to improve efficiency and reduce operational costs.

    Future Outlook

    Logistics Automation Market Future Outlook

    The Logistics Automation Market is projected to grow at 8.82% CAGR from 2024 to 2035, driven by technological advancements, increased e-commerce demand, and supply chain optimization.

    New opportunities lie in:

    • Integration of AI-driven predictive analytics for inventory management.
    • Development of autonomous delivery drones for last-mile logistics.
    • Implementation of blockchain technology for enhanced supply chain transparency.

    By 2035, the Logistics Automation Market is expected to be robust, driven by innovation and efficiency.

    Market Segmentation

    Logistics Automation Market End Use Outlook

    • Retail
    • Manufacturing
    • Healthcare
    • E-commerce

    Logistics Automation Market Technology Outlook

    • Warehouse Management Systems
    • Transportation Management Systems
    • Automated Guided Vehicles
    • Robotic Process Automation

    Logistics Automation Market Application Outlook

    • Inventory Management
    • Order Fulfillment
    • Shipping and Receiving
    • Freight Management

    Logistics Automation Market Deployment Type Outlook

    • On-Premise
    • Cloud-Based

    Report Scope

    MARKET SIZE 202476.29(USD Billion)
    MARKET SIZE 202583.02(USD Billion)
    MARKET SIZE 2035193.32(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)8.82% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesIntegration of artificial intelligence and robotics enhances efficiency in the Logistics Automation Market.
    Key Market DynamicsRising demand for efficiency drives technological advancements and competitive consolidation in the Logistics Automation Market.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Ankit Gupta
    Senior Research Analyst

    Ankit Gupta is an analyst in market research industry in ICT and SEMI industry. With post-graduation in "Telecom and Marketing Management" and graduation in "Electronics and Telecommunication" vertical he is well versed with recent development in ICT industry as a whole. Having worked on more than 150+ reports including consultation for fortune 500 companies such as Microsoft and Rio Tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.

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    FAQs

    What is the expected market size of the Global Logistics Automation Market in 2032?

    The Global Logistics Automation Market is expected to be valued at 150.0 USD billion in 2032.

    What is the projected CAGR for the Global Logistics Automation Market from 2024 to 2032?

    The expected CAGR for the Global Logistics Automation Market is 8.82% from 2024 to 2032.

    Which region is expected to dominate the Global Logistics Automation Market by 2032?

    North America is projected to dominate the Global Logistics Automation Market with a value of 50.0 USD billion in 2032.

    What are the market values for Warehouse Management Systems in 2032?

    The Warehouse Management Systems segment is expected to reach a value of 48.25 USD billion by 2032.

    Who are the key players in the Global Logistics Automation Market?

    Major players in the market include Siemens, Amazon, DHL, Ryder System, Zebra Technologies and Honeywell.

    What is the value of the Transportation Management Systems segment in 2023?

    The Transportation Management Systems segment is valued at 16.84 USD billion in 2023.

    What is the expected market size for Automated Guided Vehicles by 2032?

    The Automated Guided Vehicles segment is projected to reach 31.32 USD billion in 2032.

    What is the market value for South America in 2032?

    The market value for South America is expected to be 15.0 USD billion in 2032.

    What was the market size of Robotic Process Automation in 2023?

    The Robotic Process Automation segment was valued at 16.47 USD billion in 2023.

    What is the value of the Global Logistics Automation Market in APAC in 2032?

    The value of the Global Logistics Automation Market in APAC is expected to be 30.0 USD billion in 2032.

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