Driven by the utilisation of computer software or automated machinery to improve the efficiency of logistics operations, the global logistics automation market is expected to reach a value of $121.27 billion.
According to the recent report by Research and Markets - Logistics Automation Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027, the global logistics automation market size reached $58.65 billion in 2021 and is anticipated to grow at a CAGR of 12.87% during 2021-2027.
Software or automated machinery minimises manual data entry errors and improves customer services by using features like auto pick-up, real-time freight tracking, proper insurance, and automatic notifications. It also aids in reducing the workforce required for processing tasks like sorting, weighting, barcoding, counting, picking, and packing. Moreover, as it is scalable, speedy, and accurate, its demand is rising globally.
Market Trends
Currently, e-commerce platforms worldwide are gaining immense popularity because of the increasing sales of smartphones and the rising penetration of high-speed internet connections. This represents one of the key factors driving the market. Apart from this, there is a significant rise in the number of warehouses and a consequent increase in investments in warehouse automation. This can be accredited to the surging need for efficient warehousing and inventory management and reducing the cost of labour, which is contributing to market growth, the report said.
Furthermore, leading market players are introducing warehouse robots to eliminate the need for manual involvement in various activities, such as warehousing and material handling, by automating laborious and dangerous tasks and ensuring the safety of the workforce. They are also automating logistics with advanced technologies, such as global positioning systems (GPS), artificial intelligence (AI), biometrics, and real-time tracking for streamlining businesses.
Other major factors include the development of autonomous heavy-duty freight vehicles and flying drones for performing numerous intralogistics processes within the warehouse and storage facilities and their expanding applications in retail, automotive, and food and beverage (F&B) industries, which are anticipated to strengthen the market growth.
Keeping in mind, the uncertainties of COVID-19, the Research and Markets team is continuously tracking and evaluating the direct as well as the indirect influence of the pandemic.
Courtesy: Research and Markets. Photo is representational; courtesy: DHL.