The increased urbanization and industrialization in emerging nations, the global logistics automation market is predicted to grow considerably throughout the forecast period
The covid 19 epidemic continues to have an impact on worldwide industry. The North American area, in particular, is confronted with several obstacles. Market demand is being impacted by supply chain interruptions. The consumer goods and retail industries have been hit the hardest by the epidemic. Changing government restrictions and lockdowns can provide a threat to the sector.
The freight service providers are constrained in their ability to deliver the products. The customer in the logistics business has unique challenges. However, because of the epidemic, all of these operations are hampered. The market's activities are likely to function smoothly after Covid 19. The market's demand rate is predicted to be enormous in the following years. It will have a favorable impact.
Service Segment to Account for Maximum Market Share
The integration of logistics automation components aids in the simplification of the complete logistics process, which includes storage and transportation duties across multiple end-user sectors. Conveyor belts, autonomous guided vehicles, and sortation software are examples of hardware and software that are being used in a variety of sectors. The incorporation of these components improves overall efficiency at a lower cost. The Amalgamation of all three is in rising demand with the coming time to save on the logistics and operations cost
WMS (Warehouse Management System) Software and TMS (Transportation Management System) Software are two subcategories of software. Warehouse and transportation management are aggressively employing logistics automation robots, which automate the process of transporting and storing items throughout supply chain operations. Logistics automation robots are integrated into storage and warehouse units for the purpose of product arrangement and transportation. These robots also give a higher level of uptime than manual labor, which helps the industry's increased profitability and production.
Transportation Segment Poised to Rapid Growth
One of the critical services covered in logistics operations is transportation. Physically transferring deliveries in reasonably good shape, at the correct time, and at a reasonable cost is what efficient transportation entails. The transfer of products from the point of manufacture or storage to the point of distribution is referred to as freight transit. The worldwide logistics automation market is divided into three segments based on the mode of freight transport: air, road, and sea. The criteria evaluated in mode selection would include speed, the flexibility offered by the mode, modal characteristics, and comparative unit cost.
Warehouse and Storage Management Sector Accounted for Largest Revenue in 2020
The warehouse and storage management sector will account for the greatest revenue share of the logistics automation market by 2020. Smart technology, such as IoT and robots, has fueled warehouse operations, resulting in a large proportion of the warehouse & storage management industry. Warehouse operations account for the majority of resource use. As more businesses seek innovative ways to raise warehouse efficiency while lowering costs, the usage of warehouse robots will undoubtedly rise in the coming years.
Warehouse management suppliers are collaborating with end-users to further democratize automation. The sector is witnessing a rise in creative financing alternatives for organizations trying to incorporate new technologies into warehouses. WMS firms who run automated equipment are increasingly working more directly with end-users to make it more accessible to a wider variety of customers.
Godrej & Boyce stated in August 2021 that its joint venture Godrej Körber has received a substantial order from a paint producer to establish an automated warehouse in Uttar Pradesh, India. The new initiative might help the firm handle the transfer and storage of 15,000 tonnes of decorative and industrial paints created at the factory in a more efficient manner.
Automobile Industry to Gain Strong Foothold in the Market
Massive rivalry in the automobile industry has increased the need for automated manufacturing systems and flexible logistics systems to enhance vehicle design and delivery. Logistics and fleet management systems are used in the automotive sector to handle, monitor, and track the transportation of commodities and vehicle fleets.
APAC is the Dominant Region
The logistic automation market is divided into three regions: Asia Pacific, North America, and Europe. The Asia Pacific area will take the lead over the other regional players. The revenue rate in this region will be the highest. There are also various opportunities for promotion. The main players are powerful and have large investments.
In the Asia Pacific, new innovations and improvements will occur. North America was a forerunner in the use of automation technologies. Some of the greatest logistics firms are based in this region. In this region, the United States and Canada will be the leading benefactors. This region will experience favourable growth due to its high purchasing power. Europe is seeing moderate demand. This region has more prospects for growth
Technological breakthroughs like as robots and automation is anticipated to provide favorable growth opportunities for the global in-plant logistics and automation market.
Owing to benefits such as enhanced in-plant visibility and tracking, efficient in-plant movement, improved workflow and automated operation process, the in-plant logistics and automation is experiencing rapid adoption as opposed to traditional manual in-plant work processes, thus fostering remarkable progress in global in-plant logistics and automation market.
The advantages such as increased efficiency of logistical operations, automated storage and retrieval systems, complete system consisting vertical lift modules, automated guided vehicles, as well as software and related services encourage further adoption of global in-plant logistics and automation market. These factors ensure thumping growth of global in-plant logistics and automation market. The global in-plant logistics and automation market is estimated to reach close to $85.3 billion by 2028, with a 12.4% CAGR over the forecast period.
The application of advanced automation software and gear in logistics services is referred to as logistics automation. The use of machinery and automation software to increase the efficiency of logistics operations is known as logistics automation. Software and hardware make up the Logistics Automation system.
Logistics automation is frequently used in warehouses because of its potential to minimize labor costs. Because of their capacity to lower costs in the industry, mobile robots are increasingly being used in small and medium-sized warehouses. During the projected period, the logistic automation market is likely to grow.
The flourishing e-commerce sector has had a significant impact on the retail, manufacturing, and logistics industries. In recent years, the retail industry has shifted from traditional physical storefronts to online businesses. Such a shift places a significant strain on supply chains and warehousing systems, which is exacerbated by labor constraints. Logistics Automation is viewed as a solution to these constraints and is being implemented throughout the world to simplify operational procedures. As a result, the thriving e-commerce industry is fuelling the global in-plant logistics and automation market.
Logistics automation systems are sophisticated and difficult to manage. It is difficult to manage technology without the assistance of a professional. The complexities of automation technologies provide a significant obstacle to this business. Handling the technology without expert supervision may result in blunders.
Proper training is required in every sector for personnel to be able to manage modern technology. It takes time to install and employ logistics automation. Also included in the specialized training are AL, big data, and complicated issues. The scarcity of such specialists is a major concern in this sector. A shortage of trained experts might result in revenue losses. This major industrial concern might have an influence on the logistics automation market's overall growth.
In addition, automation in the logistics industry requires a significant financial commitment. Robotics, for example, is an expensive technology. The cost element may be a stifling factor in global in-plant logistics and automation market. The adoption of sophisticated automation technology in large warehouses is a significant investment for any company. Installation of software, automation, and solutions equipment necessitates large sums of money. Many businesses struggle to keep this expenditure under control. Furthermore, medium-sized businesses will be unable to purchase this automation technology. The adoption of logistics automation may be slowed due to the large capital expenditure thereby hampering the growth of global in-plant logistics and automation market.
The major players in global in-plant logistics and automation market are Gaoko, Daifuku, Gangyu, Eoslift, SSI Schaefer, Beijing Materials Handing Research Institute, AFT Group, SANFENG, DEMATIC, CDTB Group, Blueswords, Kungming Shipbuilding Equipment, Siemens, OMH, Eisenmann, Huachangda Intelligent Equipment, NTI, Siasun, Miracle Automation, Swisslog (KUKA), and VanderLande Industries among others.
Latest Innovations in the Global In-Plant Logistics and Automation Market
- Beumer Group, Dematic (KION Group), Daifuku Co., Ltd., KNAPP AG, Honeywell Intelligrated, and other large corporations are employing strategies to increase their client base and acquire a significant portion of the global Logistics Automation industry, allowing them to maintain their brand name.
- Honeywell Robots was created in 2019 to help businesses develop the warehouse and distribution centre of the future, with a focus on automated solutions, software, and robots to improve speed, accuracy, and throughput in complicated material handling circumstances.
- In August 2021, Geek+ released a new "Smart Mixed Case Palletizing" solution co-developed with WSR Solutions. To aid warehouse staff in completing diverse jobs in a logical way, the solution combines Geek+ autonomous mobile robots with WSR's intelligent palletizing algorithm.
In-Plant Logistics and Automation Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||$85.3 billion|
|Growth Rate||CAGR of 12.4% during 2021-2028|
|Segment Covered||Component, Mode of Freight, Application, End-User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and South Africa|
|Key Players Profiled||Gaoko, Daifuku, Gangyu, Eoslift, SSI Schaefer, Beijing Materials Handing Research Institute, AFT Group, SANFENG, DEMATIC, CDTB Group, Blueswords, Kungming Shipbuilding Equipment, Siemens, OMH.|
Key Segments of the Global In-plant Logistics and Automation Market
Component Overview, 2018-2028 (USD Billion)
Mode of Freight Overview, 2018-2028 (USD Billion)
Application Overview, 2018-2028 (USD Billion)
- Transportation Management
- Warehouse Management
End-user Industry Overview, 2018-2028 (USD Billion)
- Oil and Gas
- Retail and E-Commerce
- Healthcare and Pharmaceutical
- Food and Beverage
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa