Logistics Automation Market Dynamics, Competitive Forces and Strategic Pathways

Logistics Automation Market Size, Demand and Competitive Landscape

The logistics automation market is expected to increase from USD 67.82 billion in 2025 to USD 181.37 billion by 2034, growing at a CAGR of 11.55% throughout the forecast period from 2025 to 2034.

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Introduction

The logistics automation market is a crucial branch of the logistics industry. This industry deals in manufacturing and distribution of automation solutions for the logistics sector. There are numerous products developed in this sector comprising of autonomous robots (AGV, AMR), automated sorting systems, automated storage and retrieval systems, conveyor systems and some others. These products are designed for operating in different types of logistics operations including sales logistics, production logistics, recovery logistics, procurement logistics and some others. It finds applications in numerous end-user sectors consisting of retail & e-commerce, healthcare, automotive, aerospace & defense, electronics & semiconductors and some others. This market is expected to rise significantly with the growth of the robotics industry across the globe.

Highlights of the Logistics Automation Market

• North America generated highest revenue of the logistics automation market.
• Asia Pacific is expected to rise with the fastest CAGR during the forecast period.
• By component, the hardware segment dominated this industry.
• By component, the software segment is expected to grow with the fastest CAGR during the forecast period.
• By vertical, the retail and e-commerce segment held the largest share of the market.
• By vertical, the healthcare segment is expected to grow with a significant CAGR during the forecast period.

Key Metrics and Overview

What are the Trends of Logistics Automation Market in 2025?

The major trends in this market consists of autonomous robots, rapid integration of advanced technologies in modern warehouses and collaborations.

Autonomous robots

Several robotic companies are constantly engaged in developing AGVs and AMRs for enhancing logistics operations. For instance, in March 2025, Scott Technology launched NexBot modular AGV. This AGV is designed for enhancing material handling capabilities in logistics sector. (Source: Dcvelocity

Rapid Integration of Advanced Technologies in Modern Warehouses

The logistics providers have started integrating advanced technologies such as AI and IoT in modern warehouses to enhance logistics efficiency. For instance, in March 2025, Gather AI launched an AI-enabled camera. This AI-based camera is designed for enhancing warehouse efficiency. (Source: Businesswire)

Collaborations

Several market players are collaborating with each other for developing advanced automation solutions for the logistics sector. For instance, in June 2025, NT Logistics collaborated with Qued. This collaboration is done for developing a new range of AI-based automation tools for the logistics sector. (Source: Tradingview)

Component Insights

Why hardware segment held the largest share of the logistics automation market in 2025?

The hardware segment led this industry. The growing demand for autonomous robots and automated sorting systems from the e-commerce sector has boosted the market expansion. Additionally, the rising adoption of automated storage and retrieval systems (AS/RS) and de-palletizing/palletizing systems in the logistics sector is expected to propel the growth of the logistics automation market.

• In April 2025, Cartken launched Cartken Hauler autonomous robot. This robot is designed for operating material handling capabilities in the logistics sector. (Source: Robotics 24/7)

The software segment is expected to rise with the fastest CAGR during the forecast period. The rapid deployment of warehouse management software in smart warehouses has driven the market growth. Also, the growing deployment of transportation management systems in the logistics sector is expected to drive the growth of the logistics automation market.

• In March 2025, Mecalux Software Solutions launched a new warehouse management software. This software is designed for enhancing warehouse operations across India. (Source: Manufacturing Today India)

Vertical Insights

How did the retail and e-commerce segment led the logistics automation market in 2025?

The retail and e-commerce segment dominated the market. The growing development in the e-commerce sector in different countries such as the U.S., India, UK and some others has boosted the market expansion. Additionally, rising popularity of online shopping platforms such as Amazon, Flipkart, Walmart, Ebay and some others is expected to propel the growth of the logistics automation market.

• According to the International Trade Administration, the global e-commerce industry was valued at US$ 32118 billion in 2025. (Source: Trade)

The healthcare segment is expected to rise with a significant CAGR during the forecast period. The growing adoption of automated solutions in pharmaceutical warehouses has boosted the market growth. Additionally, the deployment of advanced robots in healthcare logistics is expected to drive the growth of the logistics automation market.

• In May 2024, Richtech Robotics Inc. launched Medbot. Medbot is a robot designed for streamlining pharmacy operations. (Source: Richtech Robotics)

Geographical Insights

Why North America dominated the logistics automation market in 2025?

North America held the dominant position in the logistics automation market. The growing adoption of automation solutions for enhancing logistics operations of aerospace and defense sector has driven the market growth. Additionally, the presence of several market players such as Honeywell international inc., One Network Enterprises, Dematic and some others is expected to boost the growth of the logistics automation market in this region.

• In March 2025, Honeywell launched a cloud-based warehouse execution software. This software is designed for enhancing logistics capabilities in the North American region. (Source: Honeywell International Inc)

Asia Pacific is expected to grow with the fastest CAGR during the forecast period. The rising deployment of robotics solution in several industries such as automotive and electronics & semiconductor has driven the market expansion. Additionally, the presence of various market players such as Daifuku Co., Ltd, Murata Machinery, Ltd, Toshiba Corporation and some others is expected to foster the growth of the logistics automation market in this region.

• In April 2025, Daifuku announced to inaugurate a new production facility in Hyderabad, India. This manufacturing plant is opened to develop a wide range of logistics automation solutions in India. (Source: Indian Transport & Logistics News.)

Industry Leader Announcement

• In May 2025, Aamir Paul, the President of North America Operations at Schneider Electric made an announcement stating that,” We are at a pivotal moment where industry must reimagine and redefine what is possible by leveraging the latest technologies, including AI, advanced robotics, and software-defined automation, to enhance US competitiveness and address the growing skills gap, the industrial workforce needs new tools. Our copilot, developed in collaboration with Microsoft, bridges this gap by simplifying processes and boosting worker confidence. It ensures that engineers and operators can leverage Schneider Electric's deep domain expertise to bring systems online faster and optimize them for long-term success.”

Competitive Landscape

The logistics automation market is a highly fragmented industry with the presence of numerous dominating players. Some of the prominent companies in this industry consists of BEUMER GROUP; Dematic (Kion Group AG); Daifuku Co., Ltd.; TGW Logistics Group; KNAPP AG; Kardex; Mecalux, S.A.; Honeywell International Inc.; Swisslog Holding AG (KUKA AG); Murata Machinery, Ltd.; Jungheinrich AG; SSI SCHÄFER AG; Vanderlande Industries B.V.; and some others. These companies are constantly engaged in developing battery electric buses and adopting numerous strategies such as joint ventures, launches, collaborations, acquisitions, partnerships, business expansions and some others to maintain their dominance in this industry.

• In May 2025, Dematic launched a next-gen sorting solution. This sorting solution is designed for enhancing logistics operations across Southeast Asia. (Source: Dematic)

• According to the annual report of Dematic, the EMEA region generated around 67% revenue of the company followed by Americas (22%) and APAC (11%). (Source: Kiongroup)

Recent Developments

• In May 2025, Blue Yonder launched a new range of AI solutions for logistics sector. This AI-based solutions are designed for automating logistics operations. (Source: Supplychain247)
• In May 2025, Hai Robotics launched HaiPick Climb. HaiPick Climb is a robotic solution designed for revolutionizing logistics automation. (Source: Logistics)
• In May 2025, DHL Group signed a MoU with Boston Dynamics. This MoU is aimed at deploying 1000 robots for automating logistics operations.(Source: DHL Group)

Logistics Automation Market Segments

By Component

• Hardware
• Autonomous Robots (AGV, AMR)
• Automated Storage and Retrieval Systems (AS/RS)
• Automated Sorting Systems
• De-palletizing/Palletizing Systems
• Conveyor Systems
• Automatic Identification and Data Collection (AIDC)
• Software
• Warehouse Management System
• Transportation Management System
• Services
• Consulting
• Deployment & Integration
• Support & Maintenance

By Function

• Inventory & Storage Management
• Transportation Management

By Logistics Type

• Sales Logistics
• Production Logistics
• Recovery Logistics
• Procurement Logistics

By Organization Size

• Large Enterprises
• Small & Medium Enterprises

By Software Application

• Inventory Management
• Order Management
• Yard Management
• Shipping Management
• Labor Management
• Vendor Management
• Customer Support
• Others

By Vertical

• Retail & E-commerce
• Healthcare
• Automotive
• Aerospace & Defense
• Electronics & Semiconductors
• Others

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa