India Logistic Automation Market Research Report, 2029

India's logistic automation market is experiencing a significant transformation as businesses across various sectors seek to enhance operational efficiency and meet growing consumer demands. The country’s logistics landscape is vast, encompassing diverse industries such as retail, manufacturing, e-commerce, healthcare, and more. As India's economy continues to expand, so does the need for streamlined and automated logistics solutions that reduce operational bottlenecks and improve supply chain management. In the Indian market, logistics automation focuses on optimizing processes such as warehousing, inventory management, transportation, and order fulfillment. Automation technologies help companies overcome the traditional challenges of manual handling, delays in delivery, and inefficiencies in storage. Businesses are increasingly adopting automation solutions to ensure better control over their supply chains, meet faster delivery timelines, and cater to the needs of an expanding customer base, especially in metropolitan and rapidly urbanizing areas. Key industries, including retail, e-commerce, and manufacturing, are driving the demand for automation in logistics. With India becoming a critical hub for manufacturing and a booming market for e-commerce, businesses are exploring innovative automation systems that streamline warehousing, distribution, and order processing. Moreover, large enterprises and small to medium-sized enterprises (SMEs) alike are recognizing the importance of automation to stay competitive in the market, focusing on reducing costs while improving overall service delivery. India’s geographic diversity also adds a layer of complexity, making automation crucial for managing large-scale distribution networks that span urban centers and rural regions. By automating logistics functions, businesses in India are positioning themselves to scale more effectively, handle increasing volumes, and remain agile in a rapidly evolving market. According to the research report "India Logistics Automation Market Research Report, 2029," published by Actual Market Research, the India Logistics Automation market is anticipated to grow at more than 15.37% CAGR from 2024 to 2029. The India logistics automation market is witnessing several dynamic trends that reflect the rapid evolution of the industry. One prominent trend is the increasing adoption of advanced technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and machine learning. These technologies enhance predictive analytics and real-time tracking, allowing companies to optimize their supply chain operations and improve decision-making. Additionally, robotics and automation in warehousing are becoming more common, with businesses investing in Automated Guided Vehicles (AGVs) and robotic picking systems to increase efficiency and reduce labor costs. Government initiatives like the "Make in India" campaign and the implementation of the Goods and Services Tax (GST) are further driving logistics automation. These policies aim to simplify and streamline the logistics process, reducing barriers to interstate commerce and encouraging investments in infrastructure. Improved connectivity through projects like the Bharatmala and Sagarmala initiatives is enhancing the logistics framework, making automation solutions more viable for companies. Dominating companies in the market, such as Delhivery, Blue Dart, and Flipkart, are leading the charge by implementing state-of-the-art logistics automation solutions to meet the demands of a rapidly growing e-commerce sector. Delhivery, in particular, has invested heavily in technology to create an integrated logistics platform that utilizes data analytics and automation to streamline operations. Indian logistics automation market is on a growth trajectory, driven by a combination of technological advancements, supportive government policies, and a robust demand from various sectors. As businesses continue to embrace automation, they are likely to achieve greater operational efficiency, reduced costs, and improved service levels, positioning themselves competitively in both domestic and global markets.

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In the India logistics automation market, the segmentation by logistics type is vital for operational efficiency. Production logistics focuses on the management and automation of materials used in manufacturing processes. It encompasses the seamless flow of materials from suppliers to manufacturing plants and internal movements within those facilities, enhancing productivity. Sales logistics is equally important, concentrating on the distribution of finished products to end customers, including order processing, warehousing, and transportation. Automation in this area facilitates faster order fulfillment, ensuring timely deliveries and improved customer satisfaction. Recovery logistics, which deals with managing returns, recycling, and disposal of products, is becoming essential as companies seek to minimize waste and streamline reverse logistics. Effective automation in recovery logistics enables quicker processing of returns, refurbishments, and waste management. Lastly, procurement logistics focuses on acquiring the necessary raw materials for production. This involves planning, sourcing, and managing supplier relationships, where automation technologies like e-procurement systems can optimize procurement processes, reduce costs, and enhance supply chain responsiveness. Together, these logistics types form a comprehensive framework that supports operational excellence in India's logistics automation market. The segmentation by end user in the India logistics automation market highlights the diverse industries leveraging automation to enhance supply chain efficiency. Retail and e-commerce are significant segments, driven by the demand for faster, more reliable service. Automated solutions, such as sorting systems and inventory management tools, streamline order fulfillment processes, enabling retailers to meet customer expectations. Manufacturing is another key sector, where automation optimizes complex supply chains and production lines, particularly in industries like automotive and consumer electronics. The healthcare and pharmaceuticals sector relies on logistics automation to ensure compliance and maintain product integrity, employing automated tracking systems for effective inventory management. The food and beverage industry benefits from automation by ensuring compliance with health regulations and managing perishable goods efficiently. Sectors like automotive, logistics and transportation, and specialized industries such as chemicals and aerospace are increasingly adopting automation solutions to enhance productivity and streamline operations. This diverse array of end users underscores the growing importance of logistics automation in India’s evolving market landscape. In the India logistics automation market, the segmentation by organization size reveals distinct dynamics in the adoption of automation technologies. Large enterprises lead the way, typically investing in advanced systems due to their extensive operations and significant capital resources. These organizations implement sophisticated technologies like automated storage and retrieval systems (ASRS) and comprehensive warehouse management systems (WMS) to streamline supply chain processes and reduce operational costs. In contrast, small and medium-sized enterprises (SMEs) are increasingly recognizing the benefits of logistics automation, though they often face budgetary constraints. However, many SMEs are adopting affordable, scalable automation solutions tailored to their specific needs. Cloud-based WMS and entry-level robotics provide SMEs with pathways to improve efficiency without substantial upfront investments. This enables them to compete more effectively with larger players by enhancing inventory management and order fulfillment capabilities. The growing emphasis on automation across both large enterprises and SMEs signifies a broader trend in India’s logistics landscape, highlighting the importance of operational efficiency and responsiveness in a competitive environment.

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Kripa Shah

Senior Analyst

The segmentation by function in the India logistics automation market is crucial for understanding how businesses optimize their operations. Inventory and storage management is a primary function where automation has made significant advancements. This function focuses on the efficient organization, tracking, and retrieval of goods within warehouses and distribution centers. Automated systems, such as robotic shelving and advanced inventory management software, help companies maximize storage capacity while ensuring real-time visibility into stock levels. The other vital function, transportation logistics, involves automating the planning and management of goods movement. This includes route optimization, load planning, and fleet management, where technologies like AI-driven route planning and automated fleet tracking enhance logistics operations. Automation in transportation logistics enables businesses to streamline delivery schedules, reduce transit times, and optimize fuel consumption, crucial in a geographically diverse country like India. Together, these functions form the backbone of an effective logistics automation strategy. By focusing on both inventory management and transportation logistics, companies in India can significantly enhance supply chain performance and improve customer satisfaction. The India logistics automation market can be analyzed through its various components: hardware, software, and services. Hardware is a critical component, including technologies such as automated guided vehicles (AGVs), autonomous mobile robots (AMRs), and automated sorting and conveyor systems. These hardware solutions facilitate the efficient movement and handling of goods within warehouses and distribution centers, significantly enhancing operational efficiency. For instance, AGVs transport materials between production lines and storage areas, minimizing the need for manual labor and reducing error risks. Software solutions are equally important, with Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) managing inventory, optimizing storage, and planning efficient delivery routes. These software applications provide real-time insights into supply chain activities, enabling businesses to make data-driven decisions and respond promptly to market changes. Comprehensive services, including value-added services (VAS), maintenance, and consulting, further enhance operational capabilities. The integration of advanced hardware, robust software, and comprehensive services enables businesses to optimize logistics processes and improve overall supply chain performance in India’s dynamic market. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029

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Aspects covered in this report • Logistic Automation market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Activity • On-farm Sales • By Logistics Type • Production Logistics • Sales Logistics • Recovery Logistics • Procurement Logistics By End User • Retail and E-Commerce • Manufacturing • Healthcare and Pharmaceuticals • Food and Beverage • Automotive • Logistics and Transportation • Others (chemicals, aerospace) By Organization Size • Large Enterprises • Small and Medium-Sized Enterprises (SMEs) By Function • Inventory and Storage Management • Transportation Logistics By Component • Hardware (AMRs, AGVs, AS/RS, Automated Sorting and Conveyor Systems, De-Palletizing/Palletizing Systems, AIDC, Order Picking Systems) • Software(Warehouse Management System (WMS), Transportation Management System (TMS)) • Services (VAS, Maintenance, Consulting, Deployment and Integration, Support and Maintenance) The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Logistic Automation industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.