Future of Logistics Automation Market

Logistics isometric icons set with cargo symbols isolated vector illustration

During the projected period, the Logistics Automation Market is estimated to grow at a compound annual growth rate (CAGR) of 12.42 percent (2021 – 2026). Materials batching, picking, ordering, packaging, warehouse security, and inspection are just a few of the duties that the Industrial Internet of Things (IIoT) and the development of a network of connected systems are assisting companies in performing.

The expansion of the e-commerce industry around the world, as well as the increasing demand for effective warehousing and inventory management, are driving the market’s expansion. Furthermore, significant investments are seeing an increase in demand from the market. To use an example, Spirit AeroSystems announced the construction of a new Global Digital Logistics Center, a seven-story, 150,000-square foot building, as part of a $1 billion investment in the company’s global digital infrastructure.

Furthermore, according to the Bank of America, robotic technology will be used to do 45 percent of all production by 2025. By incorporating automated technology into their factories, large corporations such as Raymond Limited (an Indian textile major) and Foxconn Technology (a China-based supplier for large technology manufacturers such as Samsung) have replaced (or plan to replace) 10,000 and 60,000 workers in recent years, respectively. These considerations have had a direct impact on the rising deployment of warehouse robotics in recent years. In recent years, the growing number of warehouses and increased expenditures in warehouse automation, combined with global increases in labor costs and the availability of scalable technical solutions, have propelled the global market for warehouse robots.

The emergence of the Industrial Internet of Things (IIoT) and the establishment of a network of connected systems are also assisting industries in a variety of tasks, including material batching, picking and ordering, packaging, warehouse security and inspection, as well as in significantly increasing operational efficiency. Real-time data transfer, flexible communication, and Big Data analytics are all made possible by the usage of Internet of Things technology in warehouses. Automated, intelligent, and agent-based control are made possible by these features, in conjunction with the cloud-based solution.

Additionally, the warehousing and e-commerce markets have been facing a debilitating effect on their business operations as a result of the substantial obstacles provided by disruptions in supply chain management and a shortage of personnel during the COVID-19 scenario. Companies, on the other hand, hope to see a significant improvement in their operations as a result of using automated technologies. This particular case is predicted to be a major driver of market expansion in the future.

The Asia Pacific region is expected to experience significant growth.

Because of rising labor costs and a shift away from the traditional model of migrant workers, manufacturing is a large industry in Asia-Pacific, with China accounting for a significant portion of the region’s output and contributing significantly to its growth. As a result of these developments, the economy has been compelled to incorporate automation into its manufacturing processes.

When the Vietnam Post Corporation opened its logistics center in Da Nang, located in the Hoa Khanh Industrial Park, in March 2021, it installed an automated package sorting system, which was the first of its kind in the country. During the COVID-19 outbreak, when logistics services around the world were experiencing labor shortages, the company saw an increase in demand for its automation systems, which could replace repetitive warehouse work, in order to respond to the increase in e-commerce sales and implement disease prevention methods.

Sellers operating in the region are expanding their operations and forming alliances with other market vendors to achieve greater success. Examples include Geek+, a Chinese robotics startup focused on warehouse and factory automation, as well as supply chain automation, which announced a strategic alliance with Conveyco, a provider of order fulfillment and distribution center system integration services, in May 2020.

While robot adoption in corporate Japan has been primarily limited to the manufacturing sector, the retail sector has lagged behind in this regard. The current efforts of merchants, on the other hand, may spur the usage of robots in the retail sector in the near future. SB Logistics in Ichikawa, Japan, plans to introduce robotics systems for component selecting and packaging in September 2021, according to their website. Additionally, the corporation installed conveyance, sortation, automated storage, and retrieval systems to entirely automate its warehouse in order to fulfill the high quality requirements demanded particularly by Japanese consumers.

Furthermore, the rise of e-commerce companies in the region has been a testament to the expansion of trade, which has been the driving force behind the sector. To give an example, in December 2020, Amazon India announced that 4,152 small and midsized sellers on its marketplace had made more than INR 1 crore in sales, and that the number of ‘crorepati’ sellers had increased by 29 percent year on year. A large number of international corporations are making considerable investments in India. For example, in November 2020, the UAE-based warehouse automation company ACME Intralog announced a significant expansion outside of the Middle East, with a focus on the Indian market.

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