Photo from Pexels by Chanaka
Logistics automation market to grow to $55b by 2030
It will be driven by the e-commerce industry and supply chain transformation.
The logistics automation market is expected to grow to $55b by 2030, at a CAGR of 15% between 2024 and 2030, according to research and advisory firm LogisticsIQ.
LogisticsIQ sees the growth in the e-commerce industry, multichannel distribution channels, increasing e-grocery penetration and dark stores, and globalization of supply chain networks as key drivers for the market’s growth.
This surge in online retail is putting pressure on logistics providers to automate, transforming the $5t global logistics industry.
In 2024, order volumes began to rise again, but cautious capital expenditure from retailers slowed down investments due to inflation, low consumer spending, and geopolitical tensions, LogisticsIQ observed.
The grocery sector as a key area for logistics automation is driven by the need for high-frequency deliveries and the growing demand for online grocery services. It is expected to reach over $7b by 2030.
Tthe market for Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) is projected to have a CAGR of over 20% by 2030 and a 20% market share led by players such as Seegrid, Balyo, and Hai Robotics.
Top markets include the United States, China, and Germany which account for more than 50% of the demand, with strong market penetration in Europe, particularly in Germany, Italy, France, and the Netherlands.
Emerging markets in APAC, particularly in India and Southeast Asia, are also showing strong growth potential, as are regions like the Middle East and Latin America.
Latin America is still under-penetrated, although the market is set to observe high growth in Brazil and Mexico.
Within Europe, Central and Eastern Europe is a fast-growing region, with Poland and Czech Republic leading in the market.
The past years have seen the emergence of technologies like automated picking systems, mobile manipulators, and automated cold storage solutions. Significant investments in companies like Symbotic, Geek+, Fabric, and Exotec Solutions reflect this growth.
Additionally, major retailers including Walmart, Kroger, Amazon, Ocado, and Carrefour are actively adopting these technologies to enhance supply chain capabilities.
Over the last decade, the logistics automation market has also experienced significant consolidation. Traditional industry players are acquiring innovative technology leaders to stay competitive.
Notable acquisitions include Rockwell Automation's acquisition of Clearpath Robotics and OTTO Motors Toyota's acquisition of Vanderlande.
