PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930212
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930212
The global logistics automation market is witnessing rapid growth, driven by advancements in technology, increasing e-commerce activities, and the rising need for operational efficiency across supply chains. The market was valued at USD 88.09 billion in 2025 and is projected to grow from USD 99.43 billion in 2026 to USD 260.75 billion by 2034, exhibiting a CAGR of 12.8%. Logistics automation leverages hardware and software solutions, such as autonomous drones, automated guided vehicles (AGVs), robotic arms, predictive analytics software, and conveyor systems, to optimize warehousing, transportation, and overall supply chain operations.
Market Overview
The COVID-19 pandemic disrupted global supply chains due to lockdowns and restrictions, leading to delays in raw materials and finished goods. Despite this, 92% of businesses continued investing in technology, emphasizing the importance of digital supply chains. Post-2020, as operations partially resumed, the market regained momentum and is expected to maintain healthy growth in the coming years.
Impact of Generative AI
Generative AI is transforming the logistics industry by automating processes, optimizing routes, and improving customer satisfaction. It enables dynamic route planning, predictive maintenance, and customized logistics solutions tailored to business needs. Around 90% of consumers expect 2-3 day delivery, with 30% demanding same-day fulfillment, which drives the adoption of AI-powered logistics solutions. Generative AI also supports real-time fleet tracking, disruption forecasting, and decision-making efficiency.
Market Trends
The rapid expansion of e-commerce is reshaping logistics. The global e-commerce logistics market is expected to reach USD 858.89 billion by 2026, highlighting the increasing demand for efficient shipping and supply chain management. Integration of AI, IoT, and data analytics provides end-to-end visibility, improves inventory management, and enhances customer service, supporting the overall logistics automation ecosystem.
Market Drivers
Market Restraints
Market Opportunities
By Component: Hardware dominated in 2026 with 48.6% share, driven by AGVs, AMRs, and robotic systems. Software adoption is also increasing as companies streamline operations and data management.
By Logistics Type: Production logistics is projected to grow at the highest CAGR of 16%, focusing on optimizing material flow within manufacturing sites. Sales logistics dominated in 2026 with 34.06% share, reflecting the importance of e-commerce and order fulfillment.
By Enterprise Type: Large enterprises held 59.27% share in 2026, while SMEs are expected to grow at the highest CAGR of 15.73% due to increasing automation adoption.
By Application: Transport management dominated in 2026 with 37.28% share, while warehouse management is expected to grow at the highest CAGR of 15.6%, driven by automated picking, packing, and storage.
By Industry: Retail & e-commerce led in 2024 with 26% share, reflecting demand for faster and precise deliveries. Healthcare & pharma is projected to grow at the highest CAGR of 18.8%, as timely and accurate delivery of medicines becomes critical.
Competitive Landscape
Major players include Daifuku, Honeywell, TGW Logistics, Toyota Industries, KUKA, SSI SCHAEFER, Jungheinrich, KION Group, Murata Machinery, Knapp, ABB, Dematic, BEUMER GROUP, WITRON Logistik, One Network Enterprises, Toshiba, among others. Companies focus on strategic partnerships, acquisitions, and R&D to enhance product offerings and global reach.
Industry Developments:
Conclusion
The logistics automation market is expected to reach USD 260.75 billion by 2034, driven by e-commerce expansion, AI and IoT integration, and increased demand for operational efficiency. North America leads in market share, followed by Asia Pacific and Europe. Advancements in robotics, autonomous vehicles, and generative AI, combined with digital transformation, are creating significant growth opportunities, making logistics automation a critical investment area for businesses worldwide.
Segmentation By Component, Logistics Type, Enterprise Type, Application, Industry, and Region
Segmentation By Component
By Logistics Type
By Enterprise Type
By Application
By Industry
By Region