United Kingdom (UK) Logistic Automation Market Research Report, 2029

The UK logistics automation industry has expanded rapidly, owing to technology improvements, the expansion of e-commerce, and the demand for efficient supply chains. Logistics automation in the UK first gained traction in the early 2000s, but it intensified in the 2010s as industries underwent digital transformations. Key technologies including robotics, artificial intelligence (AI), machine learning (ML), and automated guided vehicles (AGVs) have transformed warehousing and supply chain operations. One of the first developments in logistics automation was the implementation of automated storage and retrieval systems (ASRS), which enabled more effective warehouse management. In 2010, firms such as Ocado pioneered automation in grocery retail logistics by developing very sophisticated warehouse robots. In 2013, the advent of e-commerce put further strain on supply chains, resulting in a surge in demand for automated solutions. Companies like as Amazon have invested considerably in robotics and warehouse management software (WMS), pushing warehouse automation into the mainstream. Similar advances occurred in the United Kingdom, with the retail and logistics industries focussing on improving efficiency through the integration of robotics, data analytics, and cloud technologies. Amazon's adoption of Kiva robots in 2014 represented a watershed moment in automation, prompting other UK-based companies to adopt similar technologies. The Health and Safety Executive (HSE) establishes rules for the safe use of automated systems in industrial settings, ensuring that such systems do not endanger human workers. According to the research report "UK Logistics Automation Market Research Report, 2029," published by Actual Market Research, the UK logistics automation market is anticipated to grow at more than 12.48% CAGR from 2024 to 2029. Ocado, Tesco, DHL, and Hermes are among the leading participants in the UK logistics automation sector. Ocado, in particular, has been at the forefront of automation, with its Ocado Smart Platform providing automated warehousing and delivery solutions not only in the UK, but globally. Tesco and Sainsbury's have also been major players, particularly in the retail logistics sector, investing in robotics and automated solutions to improve operational efficiency. DHL, one of the world's leading logistics companies, has been a key player in adopting automation throughout its UK facilities and delivery networks. Key providers include Swisslog, Dematic, and Honeywell Intelligrated, who provide automation solutions to UK businesses. In recent years, there has been a surge in the number of domestic providers providing speciality automation technologies, particularly AI and software-based solutions. In terms of import and export, the UK obtains a substantial portion of its automation technology from Germany, Japan, and the United States. Robots used in warehouses and supply chains, for example, are frequently sourced from top worldwide manufacturers such as ABB and KUKA. However, the UK has been exporting its own automation breakthroughs. Ocado and Marks & Spencer (M&S) collaborated in 2020, using Ocado's automated technology to improve M&S's e-commerce fulfilment capabilities. Similarly, DHL has teamed with different technology companies to integrate robotics and AI into their logistical processes, including collaborations with Locus Robotics. Following the pandemic, promotions for logistics automation technology have increased, with industry trade events such as IMHX and Multimodal 2023 featuring UK firms demonstrating the newest developments in logistics automation.

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In the UK logistics automation industry, multiple types of logistics, including Production, Sales, Recovery, and Procurement Logistics, play critical roles across industries, each providing a specific function throughout the supply chain. In the United Kingdom, Sales Logistics is the most automated sort of logistics. This is partly owing to the rapid expansion of e-commerce, which increased even further during the COVID-19 pandemic. Domestic vendors include Swisslog, Dematic, and Honeywell Intelligrated, which offer automation technology such as warehouse management systems (WMS), AGVs, and robotics for the retail and e-commerce industries. Companies such as Ocado and Tesco have automated their warehouses with robots and AI-powered systems to meet rising customer demand for rapid, precise delivery. The goal of production logistics is to ensure that supplies and information move smoothly between phases of production. This type of logistics uses automation technologies such as automated guided vehicles (AGVs), robotics, and real-time data analytics to improve the efficiency of production processes. Recovery logistics, sometimes known as reverse logistics, focusses on the return, recycling, or disposal of commodities. This sector has grown in prominence in the UK as laws on sustainability and environmental compliance have become more stringent. Procurement Logistics is the transportation and storage of raw materials and components required for manufacture. Automation in procurement logistics has improved supply chain operations, enabling just-in-time delivery and real-time inventory tracking, reducing waste and optimising procurement processes for manufacturers. In the UK logistics automation sector, both Large Enterprises and Small and Medium-Sized Enterprises (SMEs) play important roles, despite considerable differences in adoption, demands, and problems. Large enterprises dominate the UK logistics automation market. This supremacy stems principally from their control over the capital, infrastructure, and operational complexity required for large-scale automation. Large businesses must manage massive volumes of products, complex supply systems, and rising customer demands for speed. Ocado's Smart Platform, a highly automated supermarket fulfilment technology, exemplifies how huge companies are leading in logistics automation. These businesses frequently collaborate with top-tier providers like Swisslog, Dematic, and Honeywell Intelligrated to integrate advanced automation systems throughout their supply chains, from warehouse to last-mile delivery. Small and Medium-Sized Enterprises (SMEs), while not as fully automated as large corporations, are rapidly embracing logistics automation as technology becomes more available and affordable. For SMEs, automation focusses on increasing operational efficiency in areas such as warehousing, order fulfilment, and inventory management. UK-based suppliers such as Kite Packaging and RMGroup cater to SMEs by providing more scalable and cost-effective solutions, such as automated packaging equipment and robotics designed for smaller operations. SMEs may also use cloud-based WMS or entry-level robotic systems to optimise limited resources and increase production, but due to financial constraints, they are less likely to develop completely automated solutions. In the UK logistics automation sector, two important functions Inventory and Storage Management and Transportation Logistics play critical roles in optimising supply chains. Inventory and Storage Management now leads the UK logistics automation industry due to the fast expansion of e-commerce, which has put great pressure on businesses to manage larger inventories and execute orders swiftly and properly. Automation technologies such as automated storage and retrieval systems (ASRS), robotics, and warehouse management systems (WMS) are utilised to improve operational efficiency. Companies like Ocado and Tesco have used advanced robots and AI-powered WMS solutions to efficiently manage large amounts of goods. Domestic companies such as Swisslog and Dematic offer automated solutions that allow firms to track inventories in real time, reduce human error, and maximise space utilisation. Transportation logistics refers to the transfer of commodities from suppliers to distribution centres, and then to customers. Automation in this job includes technology such as route optimisation software, automated vehicles, and self-driving delivery systems. Key players in the UK, such as DHL and Hermes, have integrated automated technologies for real-time tracking, optimising delivery routes to cut fuel usage and enhance delivery times. Domestic suppliers such as Paragon and Microlise offer fleet management solutions that enable businesses to automate route planning, track vehicle performance, and assure on-time deliveries.

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Kripa Shah

Senior Analyst

In the UK logistics automation market, a variety of components—hardware, software, transportation management systems (TMS), and services—play critical roles in allowing automation across supply chains. Among these components, software dominates the UK logistics automation market. Software solutions such as Warehouse Management Systems (WMS), Enterprise Resource Planning (ERP), and artificial intelligence (AI) applications are critical for automating decision-making processes. These systems optimise inventory levels, track commodities in real time, and forecast demand. Leading UK-based companies, such as Kerridge Commercial Systems and Manhattan Associates, provide customisable software to increase warehouse productivity and inventory control. Equipment used in logistics automation includes robots, automated guided vehicles (AGVs), conveyor systems, and automated storage and retrieval systems (ASRS). Domestic suppliers such as Swisslog and Dematic offer high-end automated hardware solutions for warehouses and distribution centres. A Transportation Management System (TMS) optimises the movement of commodities across various channels by controlling shipping routes, tracking vehicles, and improving delivery times. TMS solutions are provided by UK firms such as Paragon and Microlise, which assist businesses in optimising their transportation operations. Services are critical components of logistics automation system. These include Value-Added Services (VAS), maintenance, consultation, implementation and integration, as well as support and maintenance. Domestic service providers such as JLL and Cushman & Wakefield provide advisory services for optimising warehouse designs and automation implementation. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 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

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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.