Logistics Automation Market Trend:
Autonomous Truck and Truck Platooning
With technological advancements, the adoption of automated machines across various industries is gaining high momentum, especially in the manufacturing & retail industry. The acceptance of automation in this industry has helped reduce human errors. The manufacturing & retail industry is continuously focusing on reducing total operational costs by eliminating human interference in operations. Autonomous vehicle providers are focusing on developing autonomous vehicles and truck platooning, which integrates advanced connectivity technology and automated driving support systems to provide efficient logistics services to its customers. These autonomous vehicles automatically maintain a close distance between a number of trucks, which connect with each other for short journeys. The truck at the start of the platoon is the front-runner, and the vehicles behind it adapt and react to variations in its movement, and the truck does not require action from drivers. Truck platooning holds a huge potential to make road journeys safer, cleaner, and more efficient. For instance, Scania, a developer of autonomous vehicles, is focusing strongly on semiautonomous platoons where the driver handles a main truck and monitors a train of unmanned follower trucks.
Logistics Automation Market Segmental Overview
The "logistics automation market analysis" has been carried out by considering the following segments: component, mode of freight transport, application, and end-user. Based on component, the logistics automation market is segmented into hardware, software, services. Based on mode of freight transport, the market is segmented into land, water, air. Based on application, the logistics automation market size is segmented into warehouse management, transportation management. Based on the end-user industry, the market is segmented into Manufacturing, Retail and E-Commerce, Oil and Gas, Food and Beverages, Automotive, Healthcare and Pharmaceutical, Others.
The hardware component of the logistics automation system comprises conveyors, fixed machinery, industrial robots, sortation, and automated storage and retrieval systems. The hardware automatically tracks and identifies containers with the help of barcodes and RFID tags.
In addition, the logistics automation software is integrated with the warehouse management system and can track stock details for future reference. This software also provides real-time stock updates, allowing warehouses to analyze the inventory turnover ratio efficiently. A few processes accessed by the software include traceability management, inventory management, and billing management. The software facilitates cross-docking, evaluation of vendor performance, and quality management. It supports the increasing sophistication of warehousing needs and is flexible to varying fulfilments such as omnichannel/multi-tenanted.
Similarly, the logistics automation software for transportation management is integrated with emerging technologies into their supply chain process. This software offers public transportation mapping interfaces, ERP applications, transit planning applications, and dispatch systems for integrated solutions. The logistics automation software enhances the overall efficiencies of the transportation system, saves time, reduces carrier overcharges, and offers automated freight audits.
Logistics Automation Market Competitive Landscape and Key Developments
The logistics automation market report is based on the annual performances of major players such as Beumer Group, Daifuku Co., Ltd.; KNAPP AG; Mecalux, S.A.; Dematic (KION Group); Murata Machinery, Ltd.; TGW Logistics Group; Swisslog Holding AG; and Toshiba Infrastructure Systems and Solutions Corp. Several other essential logistics automation market players were analyzed to get a holistic view of the market and its ecosystem. The logistics automation market report emphasizes the key factors driving the market and prominent players' developments.
Key Findings of Study:
Growing technological advancements have encouraged the adoption of robots in various industries. Logistics automation is becoming essential for retailers owing to the growing retail and e-commerce sectors worldwide. Logistics automation market players are trying to achieve omnichannel and online strategies. Thus, logistics automation is necessary for retailers. Logistics automation ensures inventory management, tracking, reporting and forecasting, packaging, transportation of goods, and warehouse management. The retailers attract customers by providing free and fast delivery options. Thus, various industries are shifting toward adopting logistics automation to achieve effective supply chain processes and gain a competitive advantage to maintain their strong presence in the logistics automation market. Continuous technological advancements and the rise in demand for automation positively impact the global market share.
North America is an early adopter of technologies and has a sound IT infrastructure, with the US being the headquarters for many large logistics automation firms. The North America logistics automation market growth can be attributed to the rise in investment by industries such as manufacturing and automotive to automate their processes. Furthermore, the increasing government initiative to promote the adoption of automation across production facilities is boosting the demand for automotive solutions. For instance, the US President's "Made In America" initiative is encouraging the adoption of automated solutions in the manufacturing sector. The rising retail & e-commerce industry is contributing to the adoption of automation in warehouses and logistic facilities. This is one of the crucial factors boosting the growth of the logistics automation market share.
Europe is a technologically advanced region. The growth of e-commerce and online retail sectors in the region fuels the demand for diverse types of warehouses such as parcel sorting centers, mega fulfillment centers (merchandise storage and pick-up), local parcel delivery centers, return processing centers, dot.com warehouses (fulfillment of online orders), and local delivery centers (for same-day deliveries). The global warehouse and storage market in Europe has grown annually by ~2-3% due to online retail and e-commerce growth. These factors contribute to the high logistics automation market growth in this region.
APAC is anticipated to witness the fastest growth rate over the forecast period. Rapid digitalization and developments in the economy, adequate government support, and an increase in middle-class income have ensured a smooth transition of economies in the region from the developing stage toward the developed stage. According to the Asian Development Bank, Asia is the fastest-growing region in the global e-commerce marketplace, with the largest share of the world's business-to-consumer e-commerce market. Thus, the growing e-commerce industry generates the demand for automation in the region, fueling the Asia Pacific logistics automation market size.
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