Logistics Automation Market Size, Share, By Component [Hardware (Autonomous Robots, Automated Storage and Retrieval Systems (AS/RS), Automated Sorting Systems, Conveyor Systems, and Others), Software (Warehouse Management System, Transportation Management System, and Order Management System), Services (Deployment & Integration, Support & Maintenance, and Consulting)], Technology (Robotic Process Automation [RPA], Artificial Intelligence [AI] & Machine Learning [ML], Blockchain, Internet of Things [IoT], and Augmented Reality [AR] & Virtual Reality [VR]), Logistics Type (Sales Logistics, Production Logistics, Recovery Logistics, and Procurement Logistics), Organization Size (Large Enterprises, and Small & Medium Enterprises), Application (Inventory & Storage Management, Shipping Management, Labor Management, Vendor Management, and Others), End-User (Automotive, Retail & E-commerce, Aerospace & Defense, Electronics & Semiconductors, Healthcare, and Others), and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the Logistics Automation Market size is projected to develop at a rate of USD 281.6 Billion.
• In 2024, the market valued was USD 80.1 Billion.
• The market is expanding at a CAGR 13.5%.

Logistics automation is the use of technology and automate various tasks, processes within the logistics, and supply chain industry. This includes transportation, warehousing, autonomous vehicles, drones, and inventory management system. Logistics automation aim to improve efficiency, reduce operation cost and minimize human error. Using robots, automated guided vehicles (AGVs), and conveyor systems, reduces the need for human labor and speed up warehouse automation process. Use of robots for automatically pick, pack, ship orders, and use of software tools to track inventory levels in real time, which helps to manage supply chains more efficiently.

The rapid growth in online retail and e-commerce, rises the demand for efficient logistics operation, is estimated to growth of target market. Increasing customer demand for quick, error-free delivery, challenges related to labor shortage in manual, repetitive roles, and growing focus on supply chain optimization, is predictable to drive of logistics automation market share.

The increasing adoption of autonomous vehicles, drone, delivery robots for last-mile delivery, and integration of AI-powered analytics to optimize inventory management is projected to propel expansion of logistics automation market size. The development of robotic picking system, automated guided vehicles, growth in emerging economics and integration of IoT in logistics to provide an opportunity to connect devices across the logistics network is attributed to growth of target market.

Impact of Generative AI on Logistics Automation Market:

• AI systems can analyze large datasets and make real-time decisions without human intervention. This leads to faster decision-making processes, optimizing inventory management, and route planning. AI-powered robots and system can manage and automate repetitive tasks in warehouses, such as sorting, picking, and packing. These AI systems work continuously and with high precision, reducing human error and increasing throughput. AI enhances inventory management by predicting demand, optimizing stock levels, and help to automatically recorder items based on data analysis.

Key Drivers:

Growth in E-commerce and Online Shopping Fostering Target Market

The growth in e-commerce and online-shopping is the major driver for logistics automation market growth and it is fueling the demand for more efficient, scalable, and automated logistics system. The rise in e-commerce leading to a significant increase in the volume of online orders, to manage the surge demand for products, business need more efficient logistics operation. The increasing customers expectation about faster delivery times, many companies are focusing to offer same-day or next-day delivery, which rises the demand for automated sorting system and AI-driven route optimization. The adoption of robotic couriers and autonomous delivery vehicles in e-commerce can help companies to navigate in urban areas, and AI-driven logistics automation help businesses predict demand more accurately, optimize inventory levels, and reduce stock outs or overstocking, resulting to drive logistics automation market growth.

• For instance, over 33% of the world’s population shopping online, e-commerce, in 2025 it is a valued of USD 6.8 trillion and will reach the USD 8 trillion mark by 2027. From the dedicated e-commerce platforms, and social media stores, around globally 897 billion people are shop online. There are over 28 million e-commerce stores are present globally, in which 52% of online shopper are looking for international products, 34% of shopper shop online at least once a week, and 99% of customers are looking for reviews during online shopping. The number of online shoppers will increase to 2.86 billion in 2026, reflecting the boost in e-commerce due to the increased internet penetration and convenience.

Restraints:

Market Hindered by Technical Complexity and Integration Challenges

Integrating automation systems with existing infrastructure and legacy systems can be complex and time-consuming. Many companies operate with nonoperational or incompatible systems, making it challenging to adopt new technology in existing business which can limits the target market growth.

• Counterbalance Statements: Cloud-based solutions and open-source platforms are facilitating easier integration, providing businesses with flexible, scalable solutions that can be incorporated into existing systems. Companies are increasingly offering integration services and referring to help businesses with this technology.

Opportunities & Trends:

Growing Adoption of Automation in Transportation, Logistics, and Warehousing Industry will Create Significant Opportunities

The growing adoption of automation in the transportation, logistics, and warehousing (TLW) industry is creating significant opportunities for the logistics automation market. The growing e-commerce and rising customer expectation, increased the warehouse automation system management. The adoption of automated storage and retrieval systems (AS/RS), robotic picking systems, automated guided vehicles (AGVs) is increasing rapidly which help to increase efficiency, reduce costs and reduce reliance on labor.

 Logistics industry facing labor shortage and lack of skilled workforce challenges, which increases the adoption of advanced automation solutions. The growing customer preference for faster delivery, surge the demand for autonomous delivery vehicles, drone, and AI-driven route optimization solution, are help to reduce reliance on labor in transportation industry. Further advancements in technology and increased global adoption of automation solutions are expected to drive continued growth in the logistics automation market.

• For instance, the adoption of warehouse automation is rapidly increasing, with a projection rate of 26% by 2027. The automation field is increasing from 14% in 2017, and 18% by 2021. Digital transformation and adoption of automation in transportation, logistics, and warehousing (TLW) industry navigate challenges, such as labor shortage, skill gaps, and surge in demand for logistics services. Labor shortages have become one of the largest issues facing the TLW industry. The aging workforce, shifting demographics, and changing job preferences have resulted to labor shortage, increased demand for automation by 12% per year since 2015. More than 40% of logistics organizations faces lack of required skills or talent workforce, which limits digital transformation. Based on a research study focusing on supply chain automation, with the 58% reliance on technology and 42% reliance on human resources to accomplish logistics tasks.

The logistics automation market is segmented into component, logistics type, organization size, application, end-user, and region.

By Component:

Based on component, logistic automation market is divided into hardware, software and services. The hardware segment has largest logistics automation market share. The increasing demand for fast delivery, adoption of automated sorting system, focusing on reduce labor costs, and technological innovation in robotics, machine learning, AI for more efficient, affordable, is expected to pitch growth of segment in logistics automation market share.

Software segment is experiencing significant growth in target market. The target market growth is attributed by, growing integration of software solutions into hardware, increasing importance of data in logistics, and adoption of software platforms in warehouse management system. 

By Technology:

On the basis of technology, the target market is categorized into robotic process automation [RPA], artificial intelligence [AI] & machine learning [ML], blockchain, internet of things [IOT], and augmented reality [AR] & virtual reality [VR]. Artificial Intelligence (AI) and Machine Learning (ML) are emerging as dominant segment. AI and ML are transforming logistics operations by analyzing large datasets from IoT devices, sensors, and historical transactions to predict demand, optimize delivery routes, and improve inventory management, resulting to drive growth of segment in market size.

By Logistics Type:

Based on logistics type, the logistics automation market is divided into sales logistics, production logistics, recovery logistics, and procurement logistics. Sale logistics dominates in logistics automation market share. The growing demand for fast, accurate delivery and last-mile optimization has made sales logistics a dominant sector in logistics automation. Technologies such as automated sorting systems, robotics, and AI-powered route optimization are heavily used in sales logistics, is estimated to segment’s expansion in logistics automation market size.

Procurement logistics is the second major segment in logistics automation market. The growth in global supply chains, growing use in inventory management, and growing focus on Just-in-Time production, which reduces storage costs, improve production efficiency, is projected to growth of segment in logistics automation market size.

By Organization Size:

Large enterprises and small & medium enterprises are classified by organization sale for logistics automation market. Large enterprises play dominating role in target market. The large-scale operations demand for efficient, scalable logistics solutions, growing need of advanced technologies to handle large volumes of deliveries, adopt cutting-edge automation technologies and have the infrastructure to support their implementation across global supply chains, is expected to fuel the enlargement of logistics market share in this segment.

By Application:

On the basis of application, the market is classified into inventory & storage management, shipping management, labor management, vendor management, and others. Inventory & storage management is the largest and most dominant segment in logistics automation market share. The rise in e-commerce, growing complexity in global supply chains, growing need of inventory, storage management for accurate order fulfillment, and focus on improving warehouse efficiency, is anticipated to segment’s growth in target market share.

By End-User:

Under end-user, the market is categorized into automotive, retail & e-commerce, aerospace & defense, electronics & semiconductors, healthcare, and others. The retail & e-commerce sector is the largest and fastest-growing end-user segment in target market. Rising e-commerce, online shopping demand, increasing customer expectation for fast delivery, retailer are adopting Omni channel strategies, is estimated to growth of segment in logistics automation market size.

Regional Insights:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This region led the logistics automation market with a revenue share of 37.2%.  The presence of major e-commerce platforms, growing demand of logistics automation in warehouses, last-mile delivery system, development & adoption of advanced technologies, and significant investment in infrastructure, AI-based system, is fuel the expansion of region in logistics automation market size.

• U.S. Logistics Automation Market Insights:

The market for logistics automation in U.S. has experienced significant growth in recent years, and is expected to continuous growth. U.S. is the global leader in automation, robotics, and advanced manufacturing technologies. The growing use of automation in industrial tasks, and lack of skilled labor, is making the U.S. a dominant player in the market.

Asia Pacific: This is the fastest-growing region in the logistics automation market due to rapid industrialization. The region growth in target market is attributed by, increasing e-commerce activity, significant technological advancements, presence of major manufacturing hub, and growing support to Industry 4.0 imitative to adopt automation technology in logistics.

• China Logistics Automation Market Insights:

China is the most leading country in Asia Pacific region for logistics automation market. The target market is driven due to China contain largest manufacturing hub, especially for electronics & semiconductors, automotive, consumer goods, and textiles industries. The growing manufacturing industries, rises the demand for logistics automation to reduce labor cost, and improve operational costs, is anticipated to drive target market growth.

Europe: This region has strong market for logistic automation, as is rapidly growing from forecast period. The well-established industries, with the increasing focus on automation, and growing industry 4.0, rises the demand   to region growth in target market size. 

• Germany Logistics Automation Market Insights:

Germany has experienced highest growing CAGR country in the Europe region, for the Logistics Automation market. The increasing demand for logistics automations is particularly high in automotive manufacturing and warehouse management, growing adoption Industry 4.0, and rapid growth in e-commerce, leading to growth of target market share in this country.

Logistics Automation Market Report Scope:

Attribute	Details
Market Size 2025	USD 89.0 Billion
Projected Market Size 2035	USD 281.6 Billion
CAGR Growth Rate	13.5% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Billion & CAGR from 2025 to 2035
Regional scope	North America - U.S. and Canada Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia, Malaysia, South Korea, and Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, and Rest of Latin America Middle East & Africa – GCC, Israel, South Africa, and Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Component:

• Hardware
  • Autonomous Robots
  • Automated Storage and Retrieval Systems (AS/RS)
  • Automated Sorting Systems
  • Conveyor Systems
  • Others
• Software
  • Warehouse Management System
  • Transportation Management System
  • Order Management System
  • Others
• Services
  • Deployment and Integration
  • Support and Maintenance
  • Consulting

By Technology:

• Robotic Process Automation (RPA)
• Artificial Intelligence (AI) & Machine Learning (ML)
• Blockchain
• Internet of Things (IoT)
• Augmented Reality (AR) & Virtual Reality (VR)

By Logistics Type:

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

By Organization Size:

• Large Enterprises
• Small and Medium Enterprises

By Application:

• Inventory & Storage Management
• Shipping Management
• Labor Management
• Vendor Management
• Others

By End-User:

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

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

ABB, KION GROUP AG, Daifuku Co., Ltd., and among others, are the major key players are operating in logistics automation market. This companies are integrating logistics automations in human tasks, to reduce labor cost, and manufacturing cost, is anticipated to drive target market growth. The major key players are focused to advancement in logistics, with more affordable costs, with improved work operations, is projected to growth of market share in logistics automations. 

Logistics Automation Market Companies:

• ABB
• KION GROUP AG
• Daifuku Co., Ltd.
• Murata Machinery, Ltd.
• Honeywell International Inc.
• Swisslog Holding AG
• BEUMER Group
• Jungheinrich AG
• Kardex
• TGW Logistics
• Mecalux, S.A.
• SSI SCHÄFER
• Vanderlande Industries B.V.
• Oracle
• SAP SE

View an Additional List of Companies in the Logistics Automation Market

• In March 2025, Hai Robotics Europe BV joint Asociación Española de Manutención (FEM-AEM). This membership focused Hai Robotics commitment in automation and innovation in the material handling industry, especially within Spain, and European market. Hai Robotics is a global leader in warehouse automation, known for its HaiPick Systems, which were advanced goods-to-person robotic solutions designed to enhance operational efficiency, scalability, and productivity for businesses globally. This membership aimed to drive technological advancement and industry best practices in warehouse automation.
• In February 2025, Cleo partnered with Saksoft, to create solutions for companies in logistics & transportation, retail, fintech and more. The partnership aimed to empower Saksoft in the logistic industry, with the Cleo Integration Cloud platform, enabling to harness EDI (Electronic Data Interchange) and API automation and real-time data visibility, gave customers to control over their supply chains. 
• In September 2024, Accio Rbotics and SCM Champs announced collaboration with SAP and supply chain consulting services. This collaboration aimed to enhance warehouse efficiency and modernize supply chain processes through the integration of Accio Robotics’ solution with SAP system. This system focused to continuous devlivery, advanced solution, which help customers to enhance efficiency and simplify their supply chain processes.
• In February 2024, Dematic announced partnership with Groupe Robert, to open Quebec’s first fully automated cold storage facility as the Third Party Logistics. This facility featured with Dematic Automated Storage and Retrieval Systems (AS/RS), with 130-foot-tall cranes that support fulfillment of fresh and frozen products from high-density cold storage. This partnership aimed to make Groupe Robert the first 3PL provider in Quebec with an automated warehouse for both fresh and frozen foods.

Analyst View:

The logistics automation market is experiencing significant growth and transformation, driven by advancements in automation, robotics technology, and the increasing need for efficiency in industrial and manufacturing processes. The rise of industry 4.0 and the increasing integration of artificial intelligence (AI), machine learning algorithms, is anticipated to drive target market growth. The rise in e-commerce, online shopping, and increasing customer demand for fast delivery, resulting to growth of logistics automation market size.

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Company Name	Oracle Corporation
Headquarter	Austin, Texas, U.S.
CEO	Safra A. Catz
Employee Count (2024)	159,000 Employees