Logistics Automation includes automated systems that efficiently manage inbound and outbound movement and storage of raw materials, inventory, and finished goods. This helps in improving the accuracy and efficiency of e-commerce warehousing and distribution centers. Logistics automation systems incorporate various technologies like automated storage and retrieval systems (ASRS), pick and place systems, conveyor systems, robotic arms, and autonomous mobile robots for handling inventory. The increasing trend of e-commerce shopping has made it imperative for warehouses and distribution centers to implement automation solutions to optimize warehouse space utilization and handling of large volumes of inventory.

The global Logistics Automation Market is estimated to be valued at US$ 73.87 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The growth in the e-commerce industry is one of the major market opportunities for logistics automation. With the ongoing trends of online shopping and one-day delivery promises by e-commerce majors, the demand on warehousing and fulfillment centers has increased tremendously. Many traditional retailers are focusing on establishing their online presence to grab market share in the e-commerce boom. This has fuelled the need for advanced logistics automation technologies across various stages like inventory management, order picking, packaging, and shipping. The logistics automation solutions help in optimally handling the increased volumes and maintaining operational efficiency even during peak sales seasons for online retailers. The market players are developing innovative solutions customized for the evolving needs of e-commerce supply chains to capitalize on this opportunity.

Porter's Analysis

Threat of new entrants: The Global Logistics Automation Market Size requires high capital investment for equipment and technology which poses a barrier for new companies.

Bargaining power of buyers: Large buyers such as e-commerce giants have significant bargaining power to negotiate on prices and demand better services.

Bargaining power of suppliers: A few large suppliers dominate the market, however, availability of alternative suppliers provides some balance.

Threat of new substitutes: Adoption of alternative technologies such as AI and robotics poses a potential threat.

Competitive rivalry: Intense competition exists between existing players to gain market share through innovative automation solutions.

SWOT Analysis

Strengths: Automation improves productivity and efficiency of logistics operations.

Weaknesses: High initial investment and risks of technology disruptions.

Opportunities: Growth in e-commerce and demand for fast deliveries.

Threats: Job losses due to increased automation and trade barriers can impact market growth.

Key Takeaways

The global logistics automation market is expected to witness high growth over the forecast period supported by rising ecommerce activities. The global Logistics Automation Market is estimated to be valued at US$ 73.87 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.

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