Logistics Robot Market Size Driven by 15.95% CAGR

Logistics Robot Market Strategic Growth, Innovation and Investment Trends

The logistics robot industry is projected to rise from USD 14.45 billion in 2024 to USD 63.47 billion by 2034, reflecting a CAGR of 15.95% over the next decade. Asia Pacific led the logistics robot market, while Middle East & Africa is set for the fastest growth. AGVs, picking & sorting, hardware, warehouses, light payloads, LiDAR navigation, in-house systems, and e-commerce dominated, with AMRs, software, heavy loads, RaaS, and healthcare growing fastest.

The logistics robot market is forecast to grow at a CAGR of 15.95%, from USD 16.75 billion in 2025 to USD 63.47 billion by 2034, over the forecast period from 2025 to 2034. The growing adoption of automated solutions in the logistics sector coupled with technological advancements in the robotic industry has driven the market expansion.

Additionally, the rising application of automated guided vehicles (AGVs) in the retail industry along with rapid investment by market players for opening up new production facilities is playing a vital role in shaping the industrial landscape. The integration of AI and ML in AMRs is expected to create ample growth opportunities for the market players in the future.

Logistics Robot Market Growth and Trends 2025

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Introduction

The logistics robot market is a prominent sector of the robotics & automation industry. This industry deals in manufacturing and distribution of robots designed for the logistics sector. There are several types of robots developed in this sector comprising of automated guided vehicles (AGVs), autonomous mobile robots (AMRs), robotic arms, drones, palletizing & depalletizing robots, hybrid & collaborative robots (cobots) and some others. These robots perform numerous functions consisting of picking & sorting, transportation & material handling, loading & unloading, packaging & palletizing, last-mile delivery, inventory management & cycle counting, and some others. The end-users of these robots consist of e-commerce & retail, manufacturing, food & beverage, healthcare & pharmaceuticals, 3PL & supply chain providers, postal & parcel delivery, aerospace & defense logistics and some others. This market is expected to rise significantly with the growth of the e-commerce sector in different parts of the world.

Highlights of the Logistics Robot Market

  • Asia Pacific generated highest revenue of the logistics robot market.
  • Middle East & Africa is expected to rise with the highest CAGR during the forecast period.
  • By robot type, the automated guided vehicles (AGVs) segment led the market.
  • By robot type, the autonomous mobile robots (AMRs) segment is expected to rise with the highest CAGR during the forecast period.
  • By function, the picking & sorting segment held the largest share the market.
  • By function, the last-mile delivery segment is expected to grow with the highest CAGR during the forecast period.
  • By component, the hardware segment dominated the market.
  • By component, the software segment is expected to rise with the fastest CAGR during the forecast period.
  • By operation environment, the warehouse & fulfillment centers segment held the largest share of the market.
  • By operation environment, the retail stores & backrooms segment is expected to rise with the highest CAGR during the forecast period.
  • By payload capacity, the up to 100 kg segment dominated the market.
  • By payload capacity, the above 1,000 kg segment is expected to rise with the fastest CAGR during the forecast period.
  • By navigation technology, the laser/LiDAR-based navigation segment held the largest share the market.
  • By navigation technology, the GPS & sensor fusion-based navigation segment is expected to grow with the highest CAGR during the forecast period.
  • By deployment mode, the in-house / owned systems segment led the industry.
  • By deployment mode, the robotics-as-a-service (RaaS)segment is expected to grow with the fastest CAGR during the forecast period.
  • By end-use industry, the e-commerce & retail segment led the industry.
  • By end-use industry, the healthcare & pharmaceuticals segment is expected to grow with the fastest CAGR during the forecast period.

The major trends in this market consists of partnerships, business expansions and development of the logistics sector.

Partnerships

  • Several robot manufacturing companies are partnering with logistics providers to deploy advanced robots to enhance the transportation process. For instance, in May 2025, Boston Dynamics partnered with DHL. Through this partnership, Boston will provide 1000 robots to DHL for enhancing logistics operations.

Business Expansions

  • Numerous market players are investing heavily for opening up new manufacturing plants to enhance the production of logistics robots. For instance, in June 2025, Agile Robots announced to invest around Rs 300 crores. This investment is done for opening up new robot manufacturing plant in Tamil Nadu, India.

Development of the Logistics Sector

  • The rapid development in the logistics sector has increased the demand for advanced robots to enhance transport operations. According to the India Brand Equity Foundation, the Indian logistics industry is expected to reach US$ 159.54 billion by 2028.

Robot Type Insights

How did the Automated Guided Vehicles (AGVs) Segment Led the Logistics Robot Market in 2025?

The automated guided vehicles (AGVs) segment dominated the logistics robot market. The growing use of AGVs for transporting materials automatically in various industries such as manufacturing and warehousing by following predefined paths has boosted the market expansion. Additionally, numerous benefits of AGVs including improved efficiency, enhanced safety, cost reduction, superior flexibility & scalability and some others is expected to propel the growth of the logistics robot market.

The autonomous mobile robots (AMRs) segment is expected to expand with the highest CAGR during the forecast period. Autonomous Mobile Robots (AMRs) are used to perform several tasks including delivery, inspection, material handling, and sanitation in various industries by moving materials autonomously and safely within complex environments, thereby driving the market growth. Moreover, various advantages of AMRs such as superior efficiency & productivity, reduced labor costs, easy integration & flexibility and some others is expected to foster the growth of the logistics robot market.

Function Insights

What Made the Picking & Sorting to be the Most Dominant Segment of the Logistics Robot Market in 2025?

The picking & sorting segment led the logistics robot market. The growing use of articulated robotic arms in the logistics sector for picking, packing, and palletizing has driven the market expansion. Additionally, rapid investment by robotic companies for developing collaborative robots and collaborative robots to enhance sorting operations is expected to drive the growth of the logistics robot market.

The last-mile delivery segment is expected to rise with the highest CAGR during the forecast period. The increasing use of last-mile delivery robots for navigating various environments such as urban streets, residential areas, university campuses and some others has driven the market expansion. Also, the rising application of robots for transporting goods including packages, food, and groceries autonomously from a distribution hub to consumers is expected to boost the growth of the logistics robot market.

Component Insights

Why did the Hardware Segment Held the Largest Share of the Logistics Robot Market in 2025?

The hardware segment dominated the logistics robot market. The growing use of advanced sensors and high-quality cameras in logistics robots has driven the market expansion. Additionally, rapid investment by robotic companies for developing wide range of hardware components for enhancing the performance of robots is expected to accelerate the growth of the logistics robot market.

The software segment is expected to grow with the fastest CAGR during the forecast period. Robot software provides coded instructions to control a robot's actions, movement, and decision-making by enabling autonomous task performance, thereby driving the market growth. Also, the integration of AI in robotic software for analyzing data, forecast demand, and improve supply chains is expected to boost the growth of the logistics robot market.

Operation Environment Insights

Why did the Warehouse & Fulfillment Centers Segment Held the Largest Share of the Logistics Robot Market in 2025?

The warehouse & fulfillment centers segment held the highest share of the logistics robot market. The growing use of automated guided vehicles in modern warehouses for transporting pallets, cartons, and containers has boosted the market growth. Additionally, rapid investment by e-commerce brands for opening new warehouses to enhance the goods storage capacity is expected to proliferate the growth of the logistics robot market.

The retail stores & backrooms segment is expected to grow with the highest CAGR during the forecast period. The increasing application of palletizing robots and collaborative robots in retail outlets by automating repetitive tasks has driven the market expansion. Also, rapid deployment of AI-integrated robots by retail owners to enhance numerous applications is expected to drive the growth of the logistics robot market.

Payload Capacity Insights

What Made the up to 100 kg Segment to Lead the Logistics Robot Market in 2025?

The up to 100 kg segment led the logistics robot market. The increasing use of medium-capacity robots in retail centers for performing basic tasks has boosted the market growth. Additionally, the growing application of robots with 100 kg payload capacity in several industries such as automotive, aerospace, and machinery is expected to drive the growth of the logistics robot market.

The above 1,000 kg segment is expected to grow with the fastest CAGR during the forecast period. The growing demand for articulated robots with more than 1000 kg payload capacity in the manufacturing sector to enhance lifting operations has driven the market expansion. Also, rapid investment by robotic companies for developing logistics robots with high-payload capacity is expected to propel the growth of the logistics robot market.

Why did the Laser/LiDAR-based Navigation Segment Held the Largest Share of the Logistics Robot Market in 2025?

The laser/LiDAR-based navigation segment held the largest share the logistics robot market. The increasing focus of robotic companies to use laser/LiDAR-based navigation technology in modern robots has boosted the market expansion. Additionally, the integration of LiDAR technology in mobile robots for material handling and delivery is expected to boost the growth of the logistics robot market.

The GPS & sensor fusion-based navigation segment is expected to expand with the highest CAGR during the forecast period. The growing adoption of GPS & sensor fusion-based navigation in logistics robots for operating different tasks in warehouses has driven the market expansion. Also, the advancements in GPS & sensor fusion technology is expected to drive the growth of the logistics robot market.

Deployment Mode Insights

Why did the in-house / Owned Systems Segment Held the Largest Share of the Logistics Robot Market in 2025?

The in-house / owned systems segment led the logistics robot industry. The rapid deployment of robots in the retail sector for enhancing numerous tasks and easing operations of manual staffs has boosted the market expansion. Additionally, the rising investment by large business organizations for deploying advanced robotic systems in their production units is expected to drive the growth of the logistics robot market.

The robotics-as-a-service (RaaS) segment is expected to rise with the fastest CAGR during the forecast period. The growing adoption of subscription-based robots in small organizations to automate several tasks has driven the market growth. Also, constant emphasis of robot manufacturers to launch robotics-as-a-service plans is expected to foster the growth of the logistics robot market.

End-Use Industry Insights

Why did the E-commerce & Retail Segment Held the Largest Share of the Logistics Robot Market in 2025?

The e-commerce & retail segment led the logistics robot industry. The growing development in the e-commerce sector has boosted the market expansion. Additionally, the rapid deployment of AGVs in the retail industry for enhancing real-time operations is expected to drive the growth of the logistics robot market.

The healthcare & pharmaceuticals segment is expected to expand with the fastest CAGR during the forecast period. The rapid growth in the pharmaceutical sector has increased the demand for AMRs to enhance to automate processes, improving accuracy, speed, and safety in drug discovery has driven the market expansion. Also, the increasing use of logistics robots in the healthcare sector for automating the movement of supplies, medications, food, and samples is expected to boost the growth of the logistics robot market.

Geographical Insights

Why Asia Pacific Dominated the Logistics Robot Market in 2025?

Asia Pacific held the highest share of the logistics robot market. The increasing sales of robots in various countries such as Japan, China, India, South Korea and some others has boosted the market growth. Additionally, the deployment of collaborative robots in the manufacturing sector coupled with rapid investment by robot companies for opening up new robot manufacturing facilities is playing a crucial role in shaping the industrial landscape. Moreover, the presence of several market players such as Yaskawa Electric Corporation, Omron Corporation, Fanuc Corporation and some others is expected to boost the growth of the logistics robot market in this region.

  • In July 2025, YASKAWA Electric Corporation launched MOTOMAN-GP10 in Japan. MOTOMAN-GP10 is a versatile robot designed for the logistics sector.

Middle East & Africa is expected to grow with the fastest CAGR during the forecast period. The growing adoption of SCARA robots in the logistics sector across Middle-East region has driven the market expansion. Also, numerous government initiatives aimed at deploying AI-based robots in the e-commerce sector along with technological advancements in the robotics industry is contributing to the industry in a positive direction. Moreover, the various market players such as Unique World Robotics, Dexter Robotics, Harbot, Tahaluf and some others is expected to drive the growth of the logistics robot market in this region.

  • In April 2025, Dexterity launched Mech. Mech is a super-humanoid robot designed to transform logistics sector across the Middle East.

Logistics Robot Market – Value Chain Analysis

1. Raw Material Sourcing

There are several types of raw materials used in the production of logistics robots such as metals, carbon fiber and composite materials.

  • Key Companies: Toray, Hexcel Corporation, Solvay and Teijin Limited.

2. Component Fabrication

Component fabrication for logistics robots involves creating parts for sensors, actuators, structural elements, and control systems using materials such as metals, plastics, and composites.

  • Key Companies: Vecna Robotics, Fanuc and ABB Ltd.

3. Testing and Quality Control

Testing and quality control (QC) of logistics robots involve hardware inspection, software validation using methods such as the V-model for requirements verification, functional testing of navigation, manipulation, and sensor performance, and integrated system testing in realistic environments.

  • Key Companies: Intertek, Baker Hughes and GMR Group.

Industry Leader Announcement

  • In June 2025, Ola Rollén, chairman of the board at Hexagon made an announcement stating that, “Hexagon’s legacy in precision measurement and sensor technologies has always been about enabling next-generation autonomy. For the past 10 years, we’ve been working on robotics innovation across our divisions, Hexagon is one of the best-placed companies in the world to lead and shape the field of humanoid robotics. AEON represents a state-of-the-art, industrially bespoke humanoid. It’s a leap forward in our goal to help customers drive sustainable growth in the face of structural demographic changes. I’m proud to see AEON come to life."

Competitive Landscape

The logistics robot market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Boston Dynamics, Clearpath Robotics, KUKA AG, ABB Ltd., FANUC Corporation, Yaskawa Electric Corporation, Omron Corporation, Daifuku Co., Ltd., Geek+ Robotics, GreyOrange, Locus Robotics, Fetch Robotics, Vecna Robotics, Amazon Robotics, Toyota Industries Corporation and some others. These companies are constantly engaged in manufacturing logistics robots and adopting numerous strategies such as partnerships, joint ventures, business expansions, collaborations, launches, expansions, acquisitions, and some others to maintain their dominance in this industry.

Yaskawa Geographic Revenue % (2024)

  • According to the annual report of Yaskawa, around 28% revenue of the company was generated from Japan followed by others in 2024.

Recent Developments

  • In July 2025, Pudu Robotics launched PUDU T600. PUDU T600 is a logistics robot that features a built-in touchscreen, ergonomic handlebar, intuitive control buttons and some others.
  • In March 2025, RobotLAB launched BroBot. BroBot is a new range of humanoid robot designed for the logistics sector.
  • In March 2025, ABB launched an AI-powered robot. These robots are designed to enhance speed, accuracy, and adaptability in the logistics sector.

Top Logistics Robot Market Players

Logistics Robot Market Top Key Players

  • KUKA AG
  • ABB Ltd.
  • FANUC Corporation
  • Yaskawa Electric Corporation
  • Omron Corporation
  • Daifuku Co., Ltd.
  • Fetch Robotics
  • Boston Dynamics
  • Clearpath Robotics
  • Vecna Robotics
  • Amazon Robotics (formerly Kiva Systems)
  • Toyota Industries Corporation
  • Geek+ Robotics
  • GreyOrange
  • Locus Robotics

Logistics Robot Market Segments

By Robot Type

  • Automated Guided Vehicles (AGVs)
  • Autonomous Mobile Robots (AMRs)
  • Robotic Arms
  • Drones
  • Palletizing & Depalletizing Robots
  • Hybrid & Collaborative Robots (Cobots)

By Function

  • Picking & Sorting
  • Transportation & Material Handling
  • Loading & Unloading
  • Packaging & Palletizing
  • Last-Mile Delivery
  • Inventory Management & Cycle Counting

By Component

  • Hardware
  • Software
  • Services

By Operation Environment

  • Warehouse & Fulfillment Centers
  • Manufacturing Facilities
  • Outdoor Logistics Yards
  • Retail Stores & Backrooms

By End-Use Industry

  • E-Commerce & Retail
  • Manufacturing
  • Food & Beverage
  • Healthcare & Pharmaceuticals
  • 3PL & Supply Chain Providers
  • Postal & Parcel Delivery
  • Aerospace & Defense Logistics

By Payload Capacity

  • Up to 100 kg
  • 100 kg – 500 kg
  • 500 kg – 1,000 kg
  • Above 1,000 kg

By Navigation Technology

  • Laser/LiDAR-Based Navigation
  • Vision & Camera-Based Navigation
  • GPS & Sensor Fusion-Based Navigation
  • Magnetic/Inductive Tape-Based Navigation

By Deployment Model

  • In-House / Owned Systems
  • Robotics-as-a-Service (RaaS)

By Region

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • The Middle East and Africa
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  • Insight Code: 1806
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 02 September 2025
  • Report Covered: Revenue + Volume
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Ajit Bansod is a skilled and research-driven analyst at Towards Automotive, with over 3 years of experience specializing in the intersection of automotive innovation and intelligent communication technologies.

Learn more about Ajit Bansod

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

Learn more about Aditi Shivarkar

FAQ's

The logistics robot market is projected to expand from USD 16.75 billion in 2025 to USD 63.47 billion by 2034, at a strong CAGR of 15.95%. This growth is driven by automation demand in logistics, rising e-commerce penetration, and investments in advanced robotic solutions across retail, healthcare, and supply chain sectors.

Key drivers include the rapid expansion of e-commerce, labor shortages in warehousing, rising need for efficiency in supply chains, and technological advances such as AI, ML, and LiDAR. Companies are also adopting robotics to reduce operational costs and enhance safety in high-volume logistics environments.

Automated Guided Vehicles (AGVs) currently lead the market due to their reliability in material transport. However, Autonomous Mobile Robots (AMRs) are set to grow fastest, as they offer higher flexibility, real-time navigation, and integration with AI systems, making them ideal for dynamic and complex logistics operations.

Picking & sorting is the dominant application, driven by warehouse automation and the need for faster order fulfillment. Last-mile delivery robots, though emerging, are expected to record the fastest growth as companies seek innovative, cost-efficient solutions for urban and last-leg logistics.

Hardware dominates today due to the rising use of high-quality sensors, cameras, and robotic arms. However, software is becoming increasingly crucial, with AI-driven solutions enabling predictive analytics, route optimization, and autonomous decision-making, creating strong growth potential for investors.

Asia Pacific leads with the largest revenue share, driven by strong robotics adoption in China, Japan, India, and South Korea. Meanwhile, the Middle East & Africa is forecast to grow fastest due to government initiatives, rising e-commerce penetration, and local robotics innovation hubs.

High-growth opportunities exist in AMRs, AI-powered navigation, robotics-as-a-service (RaaS), and high-payload robots. Investors should also look at retail backroom automation, last-mile delivery robotics, and healthcare logistics, which are projected to see rapid adoption.

The industry is highly competitive, with players like Boston Dynamics, ABB, FANUC, Yaskawa, Omron, Geek+, GreyOrange, and Amazon Robotics leading. Companies are focusing on partnerships, manufacturing expansions, and AI-powered product launches to secure market dominance.

The market is poised for rapid adoption across e-commerce, healthcare, manufacturing, and defense logistics. The shift toward RaaS models, humanoid robots, and AI-integrated navigation systems suggests strong long-term growth and attractive investment returns for early movers.

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