Logistics Automation Market is Estimated to Reach USD 130.22 Billion by 2032 | SkyQuest Technology Consulting

The global logistics automation market is expanding significantly due to the expanding use of IoT platforms in supply chain management and logistics. By facilitating real-time tracking and monitoring of inventory, shipments, and equipment, IoT devices increase supply chain visibility. Additionally, integrating IoT with automation technologies facilitates seamless system-to-system communication, enhancing coordination and expediting response times. As companies seek to improve the efficiency and transparency of their logistics operations, the market will keep growing and IoT solution adoption will pick up speed.

WESTFORD, Mass., Sept. 3, 2025 /PRNewswire/ -- SkyQuest Technology Consulting published a report, titled, Logistics Automation Market- Global Opportunity Analysis and Industry Forecast, 2025-2032", valued at USD 53.35 Billion in 2024. With a projected CAGR of 11.8% from 2025 to 2032, the market is expected to reach USD 130.22 Billion by the end of 2032. The market is expanding significantly due to the growing use of big data in automated logistics systems.

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Logistics Automation Market Dynamics:

One significant technological development in logistics automation is the use of robotics in warehouse management. Innovations like autonomous mobile robots (AMRs) and automated guided vehicles (AGVs) increase operational efficiency by automating repetitive tasks like picking, packing, and sorting. These robotic systems increase order fulfillment accuracy by reducing labor costs and human error. Furthermore, advancements in machine learning and artificial intelligence (AI) have made it possible for these robots to instantly adapt to changing warehouse conditions and optimize their routes. This flexibility is essential in high-demand environments like e-commerce where prompt fulfillment is essential. As companies learn more about the benefits of robotic automation—such as higher productivity, scalability, and reduced operating costs—they are more inclined to invest in it. This is fueling the growth of the logistics automation market.

Recent Developments in Logistics Automation Market

• In April 2025, Hai Robotics, a top name in warehouse automation from the Netherlands, launched its HaiPick Climb system at the Hai Robotics Innovation Summit 2025 event. The new offering is a next-generation robotic solution designed to address the rising need for smarter, space-saving warehouse automation.
• In March 2025, Ferag, a leading provider of intralogistics and material flow systems launched a new global website for its modular warehouse automation platform, doWarehouse. The platform is a fully integrated Warehouse Management System, Warehouse Control System, and Warehouse Execution System.
• In March 2025, Maersk Contract Logistics, a robust network of warehouses, announced the launch of the first phase of Levi's automation sortation system at Columbus, Ohio site. The new logistics automation solution enhances the throughput and efficiency of operations.

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Major Challenges in Logistics Automation Industry

Integrating automation solutions with legacy logistics infrastructure is a major challenge that increases deployment costs and causes some operational disruption. Therefore, it is anticipated that challenging integration will hinder the logistics automation market growth.

Logistics automation is a capital and resource intensive task because it is expensive to acquire automation solutions and to have qualified professionals deploy them. As not all businesses can afford to invest in expensive automation solutions, the demand for logistics automation is somewhat slowed down.

Competitive Landscape:

With major rivals like Siemens, Honeywell, and Daifuku using tactics like acquisitions, strategic alliances, and AI-driven automation, the logistics automation market has an extremely innovative competitive environment. Businesses concentrate on developing real-time tracking systems, warehouse robotics, and automated material handling. While incumbents are incorporating IoT and machine learning to boost operational efficiency and meet the expanding demands of e-commerce and fulfillment, emerging businesses are utilizing cloud-based logistics solutions.

The major players in the Logistics Automation industry include,

• Daifuku
• Dematic
• Honeywell International
• IBM
• Knapp AG
• Murata Machinery
• Oracle Corporation
• SSI Schaefer
• Swisslog Holding AG
• TGW Logistics Group

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Logistics Automation Market Segmentation:

The global logistics automation market is segmented into component, function, logistics type, organization size, software application, vertical and region. By component, the market is classified into hardware, software and services. Depending on function, it is bifurcated into warehouse automation and transportation automation. According to logistics type, the market is divided into inbound logistics, outbound logistics, and reverse logistics. As per organization size, it is categorized into small and medium-sized enterprises (SMEs) and large enterprises. According to software application, it is fragmented into inventory management, order fulfillment, shipping & receiving, and freight management. As per the vertical, the market is segregated into retail, manufacturing, healthcare, e-commerce, food and beverage, post and parcel, groceries, general merchandise, and apparel.

• By component, hardware accounted for the largest percentage of all components in 2024 due to the extensive use of robotic arms, automated guided vehicles (AGVs), and conveyor systems in warehouses and distribution centers.
• By function, the growing need for quicker, more precise inventory management and order fulfillment, particularly in the retail and e-commerce industries, propelled warehouse automation to the top of the market.
• By logistics type, outbound logistics emerged as the logistics category leader in 2024 due to the growing emphasis on real-time cargo tracking and last-mile delivery optimization to improve the customer experience.
• By organization size, large enterprises hold the largest market share by organization size because they have the resources and infrastructure to automate supply chains from start to finish.
• By software application, inventory management is the most popular software application subsegment because of its vital role in preserving real-time stock visibility, lowering holding costs, and minimizing human error.
• By vertical, e-commerce category dominated the market. This is because businesses in this industry swiftly embraced automation technology to manage large order volumes and satisfy customers' demands for same-day or next-day delivery.

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Regional Insights 

North America dominates the logistics automation market because of its strong e-commerce growth and early adoption of cutting-edge technologies. Large companies like FedEx and Amazon are making significant investments in last-mile delivery automation, artificial intelligence, and warehouse robotics. A robust logistics network and a thriving innovation economy have allowed the United States to dominate the region.

Why Logistics Automation Adoption is High in the United States?

Growing investments of businesses in streamlining supply chains, reducing costs, and enhancing operational efficiency are promoting logistics automation adoption in the country. A boom in e-commerce activity, demand for faster deliveries, and quick adoption of automation solutions help this country lead revenue generation in the North American region. Advancements in robotics, autonomous vehicles, and AI-powered software, coupled with growing investments in R&D of the same, are also helping cement the dominance of the United States going forward. Growing labor shortages and rising operational complexities are also helping bolster the demand for logistics automation solutions.

The logistics automation market is expanding at the fastest rate in Asia-Pacific, primarily due to increased labor, manufacturing, and e-commerce expenses. China, Japan, and India are among the leading contributors, having made investments in automated supply chain systems and smart warehouses. The region's growth is also being accelerated by government initiatives to modernize its logistics infrastructure.

Europe holds a substantial portion of the global logistics automation market due to the extensive adoption of Industry 4.0 technologies and the increased emphasis on sustainable supply chains. Due to their widespread use of robotics and artificial intelligence in logistics, Germany and the Netherlands are hotspots for automation. More automation is being pushed throughout the continent by regulatory limitations and growing labor costs.

The logistics automation market in LAMEA is steadily growing due to expanding trade networks and infrastructure, particularly in the Gulf countries. Automated systems are being used quickly by nations like Saudi Arabia and the United Arab Emirates to enhance their position as major global logistics hubs. However, issues like the lack of technology in some African countries could make it more difficult for the continent to grow steadily.

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