Logistics Automation Market Grows with AI, Robotics, and Smart Warehousing Across Global Industries | DataM Intelligence

The logistics automation market is expanding rapidly, fueled by robotics, AI, and smart warehousing across retail, e-commerce, and global supply chains.

NEW YORK, NY, UNITED STATES, July 1, 2025 /EINPresswire.com/ -- The Logistics Automation Market is witnessing robust growth, fueled by the increasing need for operational efficiency, real-time tracking, and reduced human error in supply chain processes. Logistics automation incorporates advanced technologies like artificial intelligence (AI), robotics, IoT, and machine learning to streamline warehousing, transportation, inventory, and order fulfillment activities. The market is expected to grow at a CAGR of 14% between 2024 and 2031, driven by increasing efforts across sectors like retail, e-commerce, manufacturing, and healthcare to upgrade logistics infrastructure in response to rising consumer demands and intensifying market competition.

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Market Drivers are :

Rising e-commerce demand: Surging online retail volumes require faster, more accurate order fulfillment and delivery systems, driving automation investments.

Labor shortages and high operational costs: Automation offers a scalable alternative to rising labor costs and workforce shortages in warehouses and distribution centers.

Need for improved supply chain visibility: IoT sensors and software provide real-time insights into inventory, shipping, and delivery operations.

Emphasis on error reduction and quality control: Automated systems significantly reduce order picking and packaging errors.

Government support for smart infrastructure: National policies promoting smart manufacturing and digital logistics enhance market adoption.

Technological advancements in robotics and AI: Development of autonomous mobile robots (AMRs), predictive analytics, and digital twins enhances warehouse and transportation automation.

Integration of WMS and TMS solutions: Logistics companies are embracing integrated Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to enhance efficiency and coordination.

Key Market Players are :

The logistics automation market is highly competitive, with a mix of established players and emerging innovators. The following are some of the leading contributors:

Jungheinrich AG
TGW Logistics Group GmbH
Toshiba Logistics
Dematic Corp
Wisetech Global
Falcon Autotech
System Logistics SPA
SSI Schaefer
Murata Machinery
Honeywell Intelligrated

These companies are investing heavily in R&D, expanding automation portfolios, and forming strategic alliances with logistics service providers and retailers.

Market Segmentation :

By Component

Hardware: Automated storage and retrieval systems (ASRS), conveyor systems, sortation systems, robotic arms, and autonomous vehicles.

Software: Warehouse management software (WMS), TMS, and control systems.

Services: System integration, maintenance, and training services.

By Application

Warehouse & Distribution Center Automation

Transportation Management Automation

Order Fulfillment & Sorting

Inventory Management

Packaging & Palletizing

By Industry

E-commerce & Retail

Automotive

Healthcare & Pharmaceuticals

Food & Beverage

Manufacturing

3PL (Third-Party Logistics)

By Region

North America: Early adopter of smart logistics with dominant e-commerce penetration.

Europe: Automation driven by Industry 4.0 and labor cost challenges.

Asia-Pacific: Fastest growing region led by China, India, Japan, and South Korea.

Latin America & MEA: Emerging market potential with improving infrastructure and trade logistics.

H3: Latest News – USA

In March 2024, Dematic Corp unveiled a new generation of automated sortation solutions at ProMat in Chicago. These systems integrate AI-powered machine vision and predictive analytics to increase throughput by up to 30%. Meanwhile, Honeywell Intelligrated expanded its Ohio robotics facility to meet growing demand for modular AMRs and custom warehouse systems, targeting retailers and 3PLs across the U.S.

H3: Latest News – Japan

In early 2024, Murata Machinery launched a strategic partnership with a major Japanese electronics retailer to deploy AI-enabled robotic picking systems across five national distribution hubs. Additionally, Toshiba Logistics introduced blockchain-integrated transportation management software in collaboration with Japanese ports, aiming to enhance cargo traceability and customs clearance speed.

Recent Key Developments are :

Jungheinrich AG introduced a cloud-based fleet management platform, allowing real-time coordination and performance tracking of warehouse vehicles globally.

TGW Logistics rolled out its "OmniPick 2.0" solution with improved robotics arm dexterity, significantly reducing sorting time in high-volume distribution centers.

Wisetech Global expanded its CargoWise platform to include predictive delay alerts, using real-time GPS and weather data to reroute shipments.

Falcon Autotech announced integration of AI-powered machine vision into its sortation lines to reduce sorting errors in Indian e-commerce hubs.

SSI Schaefer began testing hydrogen-powered automated guided vehicles (AGVs) to improve sustainability in logistics automation.

System Logistics SPA opened a new automation R&D lab in Italy focused on AI and sustainable materials for smart warehouses.

These developments reflect the market’s strategic shift toward high-efficiency, energy-aware, and integrated logistics operations.

Conclusion
The Logistics Automation Market is rapidly transforming global supply chains, driven by a confluence of digitalization, labor dynamics, and rising consumer demand for speed and accuracy. With a projected CAGR of 14% from 2024 to 2031, the market is set to reshape the logistics industry through automation that is smarter, faster, and more responsive. Companies that embrace robotics, AI, integrated software platforms, and sustainability will be best positioned to lead in this evolving landscape. Whether it's optimizing warehouse operations or enabling predictive transportation, automation is now a core enabler of logistics excellence.

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Sai Kumar
DataM Intelligence 4market Research LLP
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