Logistics Automation System Market Size, Share, Growth, and Industry Analysis, By Type (Automated Storage and Retrieval System, Automated Handling and Conveying System, Automated Sorting and Picking System, and Electrical Control and Information Management System), By Application (Automobile, Tobacco, Medicine, Machine Made, Chain Retail, Food and Beverage Industry, Chemical & Metallurgy & Building Materials Industry), Regional Insights to 2034

• 

  Request a Free sample to learn more about this report

LOGISTICS AUTOMATION SYSTEM MARKET OVERVIEW

The Global Logistics Automation System Market is projected to reach USD 81.331 billion in 2025, grow further to about USD 88.732 billion in 2026, and is anticipated to achieve nearly USD 178.106 billion by 2034, progressing at a CAGR of 9.1% during 2025–2034.

Automation systems logistics is a way that is technology supported to make transport and stock processes more accurate and effective. These systems apply narrow artificial intelligence for example the input of data and output of useful information and data analytics for planning and ensuring effective process flow through production to consumer.

Key Findings

COVID-19 IMPACT

Market Growth increased by Pandemic due to Accelerated Adoption of Automation

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The rapid growth of logistics automation systems adoption is reflected to still continue throughout the pandemic, where businesses aim to keep everybody away from human contact, implement social, distancing measures and reduce the possibility of virus transmission for their logistics and supply chain operations. Human-to-human contact managed the challenge with increased calls from contactless order fulfillment, touchless delivery, and automated warehouse operations driving demand for automation technologies like robotics, AI-powered systems, and autonomous vehicles.

LATEST TRENDS

Artificial Intelligence (AI) and Machine Learning to Drive Market Growth

AI and machine learning are becoming popular in logistics control systems due to higher intelligence; they provide accurate predictions and optimize task performance. AI algorithms with algorithms built into them process an enormous variety of data from sensors, IoT devices, and the supply chain and provide routing, scheduling, inventory management, or demand forecasting optimizations. AI and ML algorithms process a tremendous amount of information including the history of traffic, the weather, and conviction constraints and they decide on the best routes and delivery schedules. Technologies like these can allow companies to lessen their transportation expenditures, decrease delivery times, and increase on-time delivery rates.

• Around 68% of supply-chain companies have adopted AI-driven visibility and tracking tools, showing a rapid push toward automation for real-time monitoring and predictive analytics.

• Nearly 88% of logistics carriers now prioritize AI-powered fleet optimization and route planning, while about 61% of companies still rely on outdated logistics systems, highlighting a dual trend of modernization and legacy challenges.

Request a Free sample to learn more about this report

LOGISTICS AUTOMATION SYSTEM MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Automated Storage and Retrieval System, Automated Handling and Conveying System, Automated Sorting and Picking System, and Electrical Control and Information Management System.

• Automated Storage and Retrieval System- AS/RS is an automation system activating robotized systems and computer-guided machines to speed up and mechanize product storage and retrieval within a warehouse or distribution center.

• Automated Handling and Conveying System- Good and material movement within a warehouse, distribution center, or manufacturing facility is done by an automated handling and conveying system, which eliminates the need for human workers, thereby increasing productivity and reducing costs in these areas.

• Automated Sorting and Picking System- The self-automated sorting and picking systems are designed to streamline the process of sorting and pulling an item from the inventory and packing an order.

• Electrical Control and Information Management System- The control and information management system based on electricity equipment plants, heavy machinery, and other automation tools in the warehouse or production environment with a centralized control and watch system.

By Application

Based on application the global market can be categorized into Automobile, Tobacco, Medicine, Machine Made, Chain Retail, Food and Beverage Industry, Chemical & Metallurgy & Building Materials Industry, and Others.

• Automobile- Automobile production will be streamlined by the implementation of logistics automation systems which help with effective scheduling of production, stock management, and distribution to assembly plants.

• Tobacco- Automated warehouse operations manage the storage, taking, and shipping of all types of cigarette products, resulting in a very high and effective management of the inventory and meeting the standards and regulations of the business.

• Medicine- Machines from picking, packing, and sorting to product delivery to pharmacies, hospitals, and healthcare facilities are automated. These systems are a perfect example of compliance with regulatory requirements and accuracy during order fulfillment to ensure as well as the supply of pharmaceutical products.

• Machine Made- Integration of automation systems with manufacturing systems is a powerful tool for production schedule coordination, procurement of raw materials, and managing inventory at an optimized efficiency level without high lead times.

• Chain Retail- The automated control systems manage and record stock movements, forecast based on demand and send replenishment orders, thus utilizing inventory turning and reducing stockouts.

• Food and Beverage Industry- Automated Cold Chain Logistics systems keep to trace of the temperature controlled-transit and storage of perishable food and beverage products in and out of the cold industry chain, making sure the freshness and quality.

• Chemical & Metallurgy & Building Materials Industry- The automated systems of handling and storage for hazardous chemicals, toxic metals, and construction materials will reduce risks of associated accidents and the contamination of neighboring environments.

DRIVING FACTORS

Rising e-Commerce Demand to Boost the Market

One of the key driving factors in the global Logistics Automation System market growth is the Rising E-Commerce Demand. The growing electronic commerce and online purchasing of orders have pushed for automation advancement within the logistics system. Companies are increasingly relying on automation solutions that are time-efficient and scalable to handle the growing order quantities, speed up the filling process, and meet customer satisfaction criteria for fast and flawless delivery as long as possible. Accounting for the tsunami of orders that accompanies the growing popularity of e-commerce, businesses are appropriately seeing a spike in the number of orders they are receiving. Manual working that traditionally finds it difficult to compete with the quickness of demands nowadays. Integrated automation systems in logistics resulted in more efficiency and scalability, because they help manage an increase in the order flows in a timely manner – from processing to picking, packing, and shipping.

Need for Operational Efficiency to Expand the Market

Another driving factor in the global Logistics Automation System market is the Need for Operational Efficiency. The companies aim at enhancing the operational effectiveness, accuracy, and trustworthiness in the trade logistics and supply chain segments. Logistics automation systems aim to optimize warehousing management, transportation procedures, and order delivery processes which help companies reduce warehouse operations time, increase delivery accuracy, and decrease fulfillment cycle time. The frontier of Operational Efficiency makes it possible for companies to reduce costs and improve processes by eliminating waste and using the resource in the best way. Automation of logistics systems at large scales utilizes these benefits of streamlining the routine, reducing manual labor needs, and eliminating efficiencies which result in cost savings in labor, inventory, and transportation.

• The number of online shoppers in India grew by approximately 125 million in just three years, with another 80 million expected by 2025, driving higher demand for automated logistics solutions to handle the surge in e-commerce orders.

• Warehousing demand in India is projected to reach 1.2 billion sq ft by 2027, fueling the adoption of automated storage, retrieval, and robotics systems for large-scale distribution.

RESTRAINING FACTORS

High Initial Investment to Potentially Impede Market Growth

One of the key restraining factors in the global Logistics Automation System market is High Initial Investment. Installing logistic automation systems does need an immediate expenditure for tools, infrastructural setup, and personnel training. The upfront costs of procuring, installing, and integrating automation hardware and software may scare some businesses, including small-sized and medium-sized enterprises (SMEs) from making the decision to use that kind of solution. The cost to purchase automation equipment, AS/RS (automated storage and retrieval systems), conveyor systems, robotic systems, and warehouse management software, which is the initial funds required, may make it difficult for a business to adapt an integrated automation system. Companies will likely have to put a large chunk of the budget they have in this area where they will have to harness automation technologies. This may lead to a situation where smaller businesses will struggle financially to do so.

• Logistics costs account for about 13% of the total cost of goods in India, compared to an average of 8% in other major economies, making it harder for companies to invest heavily in automation.

• Approximately 61% of logistics firms still operate on outdated or patchwork systems, which limits their ability to integrate modern automated technologies effectively.

• Request a Free sample to learn more about this report

•  

LOGISTICS AUTOMATION SYSTEM MARKET REGIONAL INSIGHTS

North America Region Dominating the Market due to Presence of Major Hub for Logistics and Supply Chain Management.

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the global Logistics Automation System market share due to several factors. Historically, north America-and particularly the US-has regarding leading and management of. A major chunk of the strategic region houses the logistics service providers, e-commerce companies, manufacturing facilities, and distribution centers. The above facilities demand automation systems in logistics. Firstly, North America is advanced in information technology; the solutions providers of automation here are multiple digital centers present as well as the technological vendors that specialize in logistics and warehouse automation.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Innovation and Market Expansion

The Logistics Automation System market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of Logistics Automation System options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in Logistics Automation System, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

• Daifuku Co., Ltd: Recognized as one of the global leaders in warehouse automation, Daifuku operates in over 26 countries and has delivered automation solutions to more than 10,000 facilities worldwide, making it one of the largest providers of automated storage and retrieval systems (AS/RS).

• Okamura Corporation: A Japanese automation and material handling specialist, Okamura supplies systems to over 2,000 distribution centers globally. The company’s solutions are widely adopted in retail and industrial logistics, with a strong presence across Asia-Pacific and North America.

List of Top Logistics Automation System Companies

• Daifuku Co., Ltd (Japan)
• Okamura (Japan)
• SSI Schaefer (U.S.)
• DEMATIC (U.S.)
• Murata Machinery, Ltd (Japan)

INDUSTRIAL DEVELOPMENT

March 2021: Trelleborg Sealing Solutions rests its newly established service center in Europe on Dematic AutoStore machines for space and inventory management. Saving on space and hurdles within the warehouse is what this compact automation solution prioritizes.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.