From manual to mechanical, the logistics automation revolution and its impact on global trade
Automotive & Transport
Due to advancements in technology, a growing need for efficient supply chains, and the growth of e-commerce, the logistics automation sector has experienced significant growth in recent years. These technologies include automated storage and retrieval systems (ASRS), robotics, artificial intelligence (AI), the Internet of Things (IoT), self-driving vehicles, and warehouse management systems. The early 2000s saw the growth of e-commerce, driven by businesses like Amazon, which raised demand for quicker and more effective fulfilling processes. This period witnessed the creation of automated storage and retrieval systems (ASRS) and the incorporation of robots into warehouse operations. A significant advancement in robotics in logistics was made possible by Amazon's acquisition of Kiva Systems in 2012. The application of AI and machine learning to logistics in the 2010s, which enhanced inventory management, demand forecasting, and route planning, was another noteworthy development. One of the most revolutionary innovations has been the use of drones and autonomous mobile robots (AMRs). AMRs are being used more frequently in warehouses to transport products, reducing the need for physical labour and boosting productivity. Businesses like Fetch Robotics and Locus Robotics debuted autonomous mobile robots (AMRs) in 2018 that could navigate challenging warehouse conditions. Predictive analytics in logistics is being made possible by AI and machine learning, which is also enhancing inventory control and reducing stockouts. Artificial intelligence is being used by businesses like SAP and IBM to enhance supply chain processes, from route optimisation to demand forecasting.
According to the research report, “Global Logistics Automation Market Research Report 2029” published by Actual Market Research, the market is anticipated to cross USD 69 Billion by 2029, increasing from USD 34.63 Billion in 2023. The market is expected to grow with a 12.54% CAGR from 2024 to 2029. E-commerce saw a sharp growth in Global during the pandemic, and worldwide sales are predicted to rise in 2020. This led to an urgent demand for additional automated fulfillment centers, which prompted businesses like Walmart, Alibaba, and Ocado to step up their automation efforts. Automation technologies like as AMRs, drone-based contactless delivery, and AI-powered route optimization were deployed to deal with the increase in demand and limit human touch. Businesses in the market for logistics automation are collaborating more and more to improve their skills. For instance, DHL and Locus Robotics have installed AMRs in DHL's warehouses. Walmart also collaborated with Symbotic to automate supply chain processes. Marketing campaigns usually emphasize how automation may increase productivity, save expenses, and speed up delivery. During major shopping holidays like Singles' Day, Alibaba and JD.com have aggressively marketed their automated warehouses and fulfillment centers, highlighting the value of automation in handling high order volumes. Another interesting last-mile delivery innovation is the use of drones. In 2016, Amazon successfully completed its first drone delivery in the UK, suggesting that unmanned aerial vehicles (UAVs) could find widespread application in logistics. In a similar vein, companies like DHL and UPS have been testing drone delivery services in remote and challenging-to-reach areas. Furthermore, the use of autonomous vehicles (AVs) for freight transportation has grown in acceptance.
A variety of logistical operations, including manufacturing, sales, recovery, and procurement logistics, play different roles in the Global logistics automation market and all add to the overall efficacy and efficiency of the supply chain. Because efficient order fulfillment is necessary due to the expansion of e-commerce, Sales Logistics is now leading the industry in the implementation of automation. Automation technologies such as advanced WMS, robotics, and autonomous delivery systems are vital for managing the high volume and speed demanded in sales logistics. Leading companies such as Amazon, Alibaba, and DHL are utilizing cutting-edge automation solutions to boost efficiency and meet the increasing demands of their clientele. The administration of supplies and products during the manufacturing process is referred to as production logistics. Its main objective is to guarantee timely delivery of raw materials to production lines and effective transportation of finished items to storage or distribution centers. Reverse logistics, also referred to as recovery logistics, is the process of having customers return goods to the manufacturer or supplier. Items can be thrown away, recycled, or returned. Recovery logistics hasn't gotten much attention in the past, but as environmental concerns and customer expectations for hassle-free returns increase, it will become more important. The process of locating and obtaining the supplies and products needed for production is known as procurement logistics. Inventory control, purchasing procedures, and supplier management are all involved.
Organizational size has a significant influence on the adoption and use of automation technology in the logistics automation sector. Large businesses and small and medium-sized organizations (SMEs), each with distinct needs and features for logistics automation, are the two market categories that are frequently separated apart. At the moment, big businesses are adopting automation at the highest rate. Their extensive supply chain operations and significant financial resources drive the need for state-of-the-art automation systems. Through large investments in technology and innovation, they frequently set industry standards and shape market trends. However, SMEs are taking part in and profiting from logistics automation more and more as more affordable and adaptable automation solutions become available. Small and medium-sized businesses face a variety of challenges. Smaller businesses and those with limited financial means usually find it difficult to invest in large-scale automation technologies. .. SMEs are, nevertheless, quickly putting into place scalable and modular automation systems that are tailored to their unique needs and financial constraints. SME access to technologies that improve operational efficiency and remove manual labor is growing, such as low-cost robotics, automated picking solutions, and warehouse management systems (WMS). Businesses like Amazon-purchased Kiva solutions offer scalable solutions that can be customized to fit various operational sizes, making automation more accessible to smaller companies.
Within the logistics automation industry, inventory and storage management, together with transportation logistics are essential services that each have a distinct function in supply chain optimization. In terms of automation usage, Transportation Logistics is currently in the lead. This trend is being driven by the growing need for faster delivery times as well as the growing complexity of global supply chains. Transportation logistics automation technology includes things like telemetry systems, self-driving cars, and sophisticated route optimization algorithms. Through the use of artificial intelligence and machine learning, route optimization finds the most efficient delivery routes, saving fuel and speeding up delivery times. Among the top companies in the sector offering complete transportation management and visibility solutions are Trimble, Project44, and ClearMetal. While inventory and storage management are still essential, especially to ensure efficient warehouse operations, transportation logistics is now receiving more automation investment due to the rapid growth of e-commerce and the need for quick delivery processes. By reducing the possibility of stock outs or overstocking and offering real-time visibility into stock levels, RFID and barcode scanning enhance inventory tracking and control. Among the top suppliers of inventory and storage management systems are Swisslog, Daifuku, and Honeywell Intelligrated. This position is essential for businesses that have to effectively handle large quantities of inventory, making sure that items are stored correctly and are available when needed.
In the logistics automation market, value-added services (VAS), maintenance, consultancy, deployment and integration, support and maintenance, hardware, software, and transportation management systems (TMS) are some of the essential elements that propel operational efficiency and effectiveness. Software is currently the most significant and commonly used of these components. Sophisticated software solutions are now required to enhance performance and connect multiple automation systems due to the increasing complexity of logistics operations and the need for real-time data analytics. Among the leading companies in the software sector are SAP, Oracle, and JDA Software (Blue Yonder), which offer comprehensive solutions for integrating and streamlining logistics operations. For automation systems to function properly and for data to be used effectively in decision-making, software is essential. The term "hardware" describes the actual tools used in logistics automation, including robots, conveyors, sensors, and Automated Storage and Retrieval Systems (ASRS). This equipment is needed to automate manual tasks like picking, sorting, and moving items around warehouses. Specialized software programs known as Transportation Management Systems (TMS) enhance the organization, performance, and monitoring of transportation-related activities. Carrier selection, freight management, and route optimization are all included in TMS solutions. Value-Added Services (VAS), Maintenance, Consulting, Deployment and Integration, and Support and Maintenance are among the logistics automation services. Customized labeling or packaging services are examples of VAS that raise the value of logistical operations.
Asia-Pacific is the leader in the global logistics market because of its advantageous location, fast expanding economies, and extensive networks for commerce and manufacturing. China, the biggest exporter in the world, is important, as are other big players like Japan, India, and the nations of Southeast Asia. Massive volumes of cargo can be handled effectively in the region, because of its strong infrastructure, which includes contemporary ports, railroads, and highways, as well as its emphasis on digital transformation in logistics. The need for logistics services has increased as a result of the growth of e-commerce, especially in China and India. Automation, warehousing, and supply chain management innovations have increased operational efficiency and garnered international attention. Prominent logistics firms in this area include SF Express (China), Nippon Express (Japan), Yusen Logistics (Japan), and DHL (Germany), which has significant operations throughout Asia. Alibaba's logistics division, Cainiao Network, has grown quickly and now employs cutting edge technologies to maximise delivery times. Global Swiss player Kuehne + Nagel also benefits from Asia's expansion. Asia-Pacific is more competitive due to government policies that support free trade and logistics-friendly laws, in addition to developments in infrastructure and digital technology. The region's dominance in global logistics is further cemented by its strong linkages to international trade accords, such as the Regional Comprehensive Economic Partnership (RCEP).
According to the research report, “Global Logistics Automation Market Research Report 2029” published by Actual Market Research, the market is anticipated to cross USD 69 Billion by 2029, increasing from USD 34.63 Billion in 2023. The market is expected to grow with a 12.54% CAGR from 2024 to 2029. E-commerce saw a sharp growth in Global during the pandemic, and worldwide sales are predicted to rise in 2020. This led to an urgent demand for additional automated fulfillment centers, which prompted businesses like Walmart, Alibaba, and Ocado to step up their automation efforts. Automation technologies like as AMRs, drone-based contactless delivery, and AI-powered route optimization were deployed to deal with the increase in demand and limit human touch. Businesses in the market for logistics automation are collaborating more and more to improve their skills. For instance, DHL and Locus Robotics have installed AMRs in DHL's warehouses. Walmart also collaborated with Symbotic to automate supply chain processes. Marketing campaigns usually emphasize how automation may increase productivity, save expenses, and speed up delivery. During major shopping holidays like Singles' Day, Alibaba and JD.com have aggressively marketed their automated warehouses and fulfillment centers, highlighting the value of automation in handling high order volumes. Another interesting last-mile delivery innovation is the use of drones. In 2016, Amazon successfully completed its first drone delivery in the UK, suggesting that unmanned aerial vehicles (UAVs) could find widespread application in logistics. In a similar vein, companies like DHL and UPS have been testing drone delivery services in remote and challenging-to-reach areas. Furthermore, the use of autonomous vehicles (AVs) for freight transportation has grown in acceptance.
A variety of logistical operations, including manufacturing, sales, recovery, and procurement logistics, play different roles in the Global logistics automation market and all add to the overall efficacy and efficiency of the supply chain. Because efficient order fulfillment is necessary due to the expansion of e-commerce, Sales Logistics is now leading the industry in the implementation of automation. Automation technologies such as advanced WMS, robotics, and autonomous delivery systems are vital for managing the high volume and speed demanded in sales logistics. Leading companies such as Amazon, Alibaba, and DHL are utilizing cutting-edge automation solutions to boost efficiency and meet the increasing demands of their clientele. The administration of supplies and products during the manufacturing process is referred to as production logistics. Its main objective is to guarantee timely delivery of raw materials to production lines and effective transportation of finished items to storage or distribution centers. Reverse logistics, also referred to as recovery logistics, is the process of having customers return goods to the manufacturer or supplier. Items can be thrown away, recycled, or returned. Recovery logistics hasn't gotten much attention in the past, but as environmental concerns and customer expectations for hassle-free returns increase, it will become more important. The process of locating and obtaining the supplies and products needed for production is known as procurement logistics. Inventory control, purchasing procedures, and supplier management are all involved.
Organizational size has a significant influence on the adoption and use of automation technology in the logistics automation sector. Large businesses and small and medium-sized organizations (SMEs), each with distinct needs and features for logistics automation, are the two market categories that are frequently separated apart. At the moment, big businesses are adopting automation at the highest rate. Their extensive supply chain operations and significant financial resources drive the need for state-of-the-art automation systems. Through large investments in technology and innovation, they frequently set industry standards and shape market trends. However, SMEs are taking part in and profiting from logistics automation more and more as more affordable and adaptable automation solutions become available. Small and medium-sized businesses face a variety of challenges. Smaller businesses and those with limited financial means usually find it difficult to invest in large-scale automation technologies. .. SMEs are, nevertheless, quickly putting into place scalable and modular automation systems that are tailored to their unique needs and financial constraints. SME access to technologies that improve operational efficiency and remove manual labor is growing, such as low-cost robotics, automated picking solutions, and warehouse management systems (WMS). Businesses like Amazon-purchased Kiva solutions offer scalable solutions that can be customized to fit various operational sizes, making automation more accessible to smaller companies.
Within the logistics automation industry, inventory and storage management, together with transportation logistics are essential services that each have a distinct function in supply chain optimization. In terms of automation usage, Transportation Logistics is currently in the lead. This trend is being driven by the growing need for faster delivery times as well as the growing complexity of global supply chains. Transportation logistics automation technology includes things like telemetry systems, self-driving cars, and sophisticated route optimization algorithms. Through the use of artificial intelligence and machine learning, route optimization finds the most efficient delivery routes, saving fuel and speeding up delivery times. Among the top companies in the sector offering complete transportation management and visibility solutions are Trimble, Project44, and ClearMetal. While inventory and storage management are still essential, especially to ensure efficient warehouse operations, transportation logistics is now receiving more automation investment due to the rapid growth of e-commerce and the need for quick delivery processes. By reducing the possibility of stock outs or overstocking and offering real-time visibility into stock levels, RFID and barcode scanning enhance inventory tracking and control. Among the top suppliers of inventory and storage management systems are Swisslog, Daifuku, and Honeywell Intelligrated. This position is essential for businesses that have to effectively handle large quantities of inventory, making sure that items are stored correctly and are available when needed.
In the logistics automation market, value-added services (VAS), maintenance, consultancy, deployment and integration, support and maintenance, hardware, software, and transportation management systems (TMS) are some of the essential elements that propel operational efficiency and effectiveness. Software is currently the most significant and commonly used of these components. Sophisticated software solutions are now required to enhance performance and connect multiple automation systems due to the increasing complexity of logistics operations and the need for real-time data analytics. Among the leading companies in the software sector are SAP, Oracle, and JDA Software (Blue Yonder), which offer comprehensive solutions for integrating and streamlining logistics operations. For automation systems to function properly and for data to be used effectively in decision-making, software is essential. The term "hardware" describes the actual tools used in logistics automation, including robots, conveyors, sensors, and Automated Storage and Retrieval Systems (ASRS). This equipment is needed to automate manual tasks like picking, sorting, and moving items around warehouses. Specialized software programs known as Transportation Management Systems (TMS) enhance the organization, performance, and monitoring of transportation-related activities. Carrier selection, freight management, and route optimization are all included in TMS solutions. Value-Added Services (VAS), Maintenance, Consulting, Deployment and Integration, and Support and Maintenance are among the logistics automation services. Customized labeling or packaging services are examples of VAS that raise the value of logistical operations.
Asia-Pacific is the leader in the global logistics market because of its advantageous location, fast expanding economies, and extensive networks for commerce and manufacturing. China, the biggest exporter in the world, is important, as are other big players like Japan, India, and the nations of Southeast Asia. Massive volumes of cargo can be handled effectively in the region, because of its strong infrastructure, which includes contemporary ports, railroads, and highways, as well as its emphasis on digital transformation in logistics. The need for logistics services has increased as a result of the growth of e-commerce, especially in China and India. Automation, warehousing, and supply chain management innovations have increased operational efficiency and garnered international attention. Prominent logistics firms in this area include SF Express (China), Nippon Express (Japan), Yusen Logistics (Japan), and DHL (Germany), which has significant operations throughout Asia. Alibaba's logistics division, Cainiao Network, has grown quickly and now employs cutting edge technologies to maximise delivery times. Global Swiss player Kuehne + Nagel also benefits from Asia's expansion. Asia-Pacific is more competitive due to government policies that support free trade and logistics-friendly laws, in addition to developments in infrastructure and digital technology. The region's dominance in global logistics is further cemented by its strong linkages to international trade accords, such as the Regional Comprehensive Economic Partnership (RCEP).
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