Logistics Automation Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component, By Function, By Vertical, By Region & Competition, 2021-2031F

The Global Logistics Automation Market is projected to experience substantial growth, rising from USD 36.87 Billion in 2025 to USD 70.58 Billion by 2031, with a compound annual growth rate of 11.43%. This sector centers on the strategic combination of robotic machinery, autonomous vehicles, and control software designed to streamline supply chain functions, including warehousing, inventory management, and transportation. The market is primarily propelled by structural necessities rather than fleeting trends; these include the booming e-commerce sector's requirement for rapid order fulfillment, a severe scarcity of skilled manual labor, and the critical operational need for precision within complex distribution networks to address fundamental efficiency gaps in global trade.

Despite these strong drivers, the market encounters significant obstacles, particularly the high capital expenditure needed for initial deployment and the technical complexity involved in merging automated systems with legacy infrastructure. Data from the International Federation of Robotics indicates that in the year prior to 2025, global sales of professional service robots for transportation and logistics reached 102,900 units, representing a 14% increase. This statistic highlights a sustained commitment to investing in automation solutions, even as organizations contend with the financial and operational challenges associated with modernizing their logistics operations.

Market Driver

The pressing issues of acute global labor shortages and rising workforce costs serve as major structural catalysts accelerating the adoption of logistics automation. As the disparity between labor demand and the supply of skilled workers grows, organizations are increasingly forced to replace manual workflows with automated alternatives to ensure business continuity and protect profit margins. This deficit is now viewed not as a cyclical trend but as a persistent operational risk; according to a January 2024 study by Descartes Systems Group, 76% of supply chain and logistics leaders reported facing significant workforce shortages. Consequently, the implementation of automated robotics and conveyance systems has evolved from a strategic advantage to a necessity for survival, allowing firms to separate their throughput capacity from the volatility of the labor market.

Concurrently, the integration of Artificial Intelligence and Machine Learning is transforming static machinery into intelligent, adaptive ecosystems capable of self-optimization. This technological convergence enables capabilities that legacy systems cannot support, such as predictive maintenance, dynamic route planning, and real-time decision-making, thereby maximizing the return on hardware investments. A Rockwell Automation report from April 2024 indicates that 83% of manufacturers globally expect to incorporate generative AI into their operations within the year to drive business results. This tech-forward momentum is reflected in capital allocation strategies, with MHI reporting in 2024 that 55% of supply chain leaders are increasing their investments in technology and innovation to meet these evolving efficiency requirements.

Market Challenge

The substantial initial capital expenditure required for implementation, combined with the technical difficulties of integrating automated systems into legacy infrastructure, acts as a formidable restraint on the broader expansion of the logistics automation market. This financial barrier effectively divides the industry, restricting the adoption of advanced robotics and control software to large, well-capitalized enterprises while excluding smaller players unable to absorb the sunk costs. As a result, a large segment of the potential market remains dependent on manual processes, as the return on investment for retrofitting older facilities often appears too distant or uncertain to justify the immediate drain on liquidity.

The magnitude of this investment threshold is confirmed by recent industry data reflecting the high cost of entry. According to the Material Handling Institute, in 2025, 19% of supply chain leaders intended to allocate over $10 million toward technology and innovation, while 60% anticipated spending more than $1 million. These figures underscore that automation is increasingly a capital-intensive commitment, where the high price of admission directly limits market penetration among small and medium-sized enterprises. This financial exclusivity, compounded by the operational risks of disrupting existing workflows during integration, compels many organizations to postpone modernization, thereby stalling aggregate market growth.

Market Trends

The rise of Autonomous Mobile Robots (AMRs) is rapidly superseding traditional Automated Guided Vehicles (AGVs) as the standard solution for internal logistics transport. Unlike legacy AGVs, which depend on fixed infrastructure like magnetic tapes or wires, AMRs utilize advanced navigation algorithms and onboard sensors to dynamically map environments and avoid obstacles in real time. This technological advancement allows facilities to scale throughput flexibly without the need for expensive facility retrofitting, making them ideal for the fluctuating volumes inherent in modern e-commerce. According to the April 2024 'Intralogistics Robotics Survey' by Logistics Management, 71% of respondents plan to expand their robotic fleets over the next two years, signaling a decisive industry pivot toward these adaptable mobile solutions.

Simultaneously, the market is witnessing a strategic shift toward workforce augmentation through Collaborative Robots (cobots) and wearable technology, moving beyond simple labor substitution. Rather than replacing human operators, these technologies are designed to assist employees, reducing physical strain and improving decision-making to create a 'human-centric' automated environment. This approach mitigates the operational risks of full automation while maximizing the productivity of the existing labor pool. As noted in Rockwell Automation's 'State of Smart Manufacturing Report' from April 2024, 94% of manufacturers plan to maintain or expand their workforce following the adoption of smart manufacturing technology, confirming that the prevailing implementation model prioritizes human-machine collaboration over pure replacement.

Key Market Players

• 6 River Systems LLC
• BEUMER Group
• E&K Automation Limited
• ABB Ltd.
• Dematic Global
• Falcon Autotech Private Limited
• SBS Toshiba Logistics
• TGW Logistics Group
• Zebra Technologies
• Honeywell Intelligrated

Report Scope

In this report, the Global Logistics Automation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Logistics Automation Market, By Component

• Software
• Hardware-integrated Systems-integrated Systems
• Services

Logistics Automation Market, By Function

• Warehouse and Storage Management
• Transportation Management

Logistics Automation Market, By Vertical

• Manufacturing
• Healthcare and Pharmaceuticals
• Fast-Moving Consumer Goods (FMCG)
• Retail and eCommerce
• 3PL
• Aerospace and Defense
• Oil
• Gas
• Energy
• Chemicals
• Others (Paper Printing, Textiles Clothing)

Logistics Automation Market, By Region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Logistics Automation Market.

Available Customizations:

Global Logistics Automation Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).