Logistics Automation Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Component (Hardware, Software, and Services); Application (Warehouse Management and Transportation Management); Mode of Freight Transport (Air, Road, and Sea); End-User Industry (Retail and E-Commerce, Manufacturing, Oil and Gas, Food and Beverage, Automotive, Healthcare and Pharmaceutical, and Others), and Geography
The logistics automation market was valued at US$ 41.5 billion in 2019 and is projected to reach US$ 91.7 billion by 2027; it is expected to grow at a CAGR of 11.5% from 2020 to 2027.Logistics automation is replacing traditional logistics processes as it helps in enhancing the overall efficiency of the industry by streamlining and automating the whole process, involving various tasks such as processing freight operations, tracking, and documentation. Most common advantages of implementing logistic automation are reduced human errors as it shows clear visibility of freight rates, enhanced customer services, and improved scalability. Logistic automation became a significant part of the supply chain process for small and large businesses. These businesses provide services such as warehousing, transportation, inventory management, order fulfillment, distribution, and freight consolidation. With the help of logistic software and services, manufacturing companies are able to focus on product development, sales, and other core operations. The escalating demand for shipping cost reduction and timely delivery management, focus on core business, recordkeeping of stock are among the factors projected to drive the market for logistics automation during the forecast period. Moreover, the factors such as growth in the adoption and development of e-commerce in the retail sector are expected to generate remarkable growth opportunities for the industry players.
The regional demographics have also played a crucial role in the growth of the logistics automation services market. For instance, the growing adoption of logistics automation in the retail sector has propelled due to the advent of e-commerce. APAC claims more than one-third of the global population, and the market attractiveness for retail and e-commerce industry is very high in the region. Further, rising disposable incomes of individuals and developing economies have accentuated the growth in retail and e-commerce activities. Increasing demand for diversities on account of different demographics observed in the region contributes to the supply chain complexities, thus compelling the companies to adopt logistics automation software and services. The leading market players are continuously focusing on broadening their addressable market by diversifying client bases, expanding current product portfolios, and developing new applications and markets.
As per WHO, as of July 2020, there are around 16,523,815 confirmed COVID-19 cases globally, including 655,112 deaths, and the number is growing at varying rates in different countries. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in the year 2020 and likely in 2021 also. The outbreak has created significant disruptions in primary industries such as logistics, retail, and e-commerce, among others. The sharp decline in the international logistics business industry is negatively impacting the growth of the global logistics automation market. The factory shutdowns travel bans, trade bans, and border lockdowns to combat and contain the outbreak have adversely affected the logistics industry.
Overall size of the logistics automation marke thas been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the logistics automationmarketwith respects to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants typically involved in this process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultant such as valuation experts, research analysts and key opinion leaders specializing in the logistics automation market. A few of the major players operating in the global logistics automation market are Beumer Group, Daifuku Co., Ltd., Dematic (KION Group), Honeywell Intelligrated, KNAPP AG, Mecalux, S.A., Murata Machinery, Ltd., Swisslog Holding AG, TGW Logistics Group, and Vitronic.
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