Logistics Automation Market: Size, Trends, and Strategic Insights
Author : jeevan Kumbhar | Published On : 28 Oct 2025
The logistics automation industry is rapidly transforming supply chain management, driven by innovations in robotics, AI, and IoT technologies. This shift is redefining operational efficiencies and enhancing business growth across sectors, positioning logistics automation as a critical focus within modern industrial automation.
Market Size and Overview
The Logistics Automation Market is estimated to be valued at USD 60.00 Bn in 2025 and is expected to reach USD 130.25 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 11.7% from 2025 to 2032.
Logistics Automation Market Growth is propelled by increasing investments in automated warehousing, last-mile delivery solutions, and smarter material handling. Market drivers include the rising demand for supply chain digitalization and the need to optimize operational costs, with some market segments witnessing accelerated adoption due to evolving industry trends.
Use Case Scenarios
- E-commerce Fulfillment Centers: In 2024, major retail enterprises deployed autonomous mobile robots (AMRs) to speed up order picking, achieving a 30% increase in throughput and significantly reducing labor costs.
- Cold Chain Logistics: Enhanced automation systems were integrated by food and pharmaceutical companies in 2025 to ensure temperature compliance while improving inventory tracking, using IoT-based sensors combined with automated conveyors.
- Urban Last-Mile Delivery: Robotics firms deployed autonomous delivery drones and automated lockers in metropolitan zones to address rapid urbanization challenges, resulting in a 20% reduction in delivery time frames.
These use case scenarios reflect high-impact operations that underscore the logistics automation market’s contributions to efficiency and scalability across different industry segments.
Policy and Regulatory Impact
- The introduction of international standards like ISO 44001 in 2024 on collaborative business relationship management is shaping cooperation frameworks for logistics automation integrators.
- Governments in North America and Europe passed data security regulations impacting IoT deployments in logistics automation solutions, emphasizing compliance and privacy protection since 2024.
- Subsidies and incentives for green logistics technologies, including automation aimed at reducing carbon footprints, have spurred market growth, with notable policies enacted in Asia-Pacific in early 2025.
- Regulatory frameworks supporting workforce transition and reskilling have indirectly influenced market dynamics by reshaping labor availability in automated facilities.
The evolving policy and regulatory landscape continues to trigger both market challenges and opportunities by mandating safer, more secure, and environmentally responsible logistics automation practices.
Key Players
Significant market players driving logistics automation market revenue and innovations include:
- Daifuku Co., Ltd.
- Dematic
- ek robotics GmbH
- Falcon Autotech
- Grey Orange Pte. Ltd.
- Hardis Group
- HighJump
In 2024-2025, key strategic activities included:
- Dematic’s partnership with a leading robotics supplier, expanding its automation portfolio to cater to mid-sized warehouses, enhancing market opportunities.
- Grey Orange secured regulatory clearance for its AI-driven robotic systems in European markets, accelerating adoption in high-demand distribution centers.
- Daifuku Co., Ltd. expanded operations into Southeast Asia, tapping into emerging markets and increasing industry share through localized solutions.
These steps highlight clear market growth strategies aimed at strengthening leadership positions and responding to dynamic market trends.
FAQs: Logistics Automation Market
1. Who are the dominant players in the logistics automation market?
Dominant market players include Daifuku Co., Ltd., Dematic, ek robotics GmbH, Falcon Autotech, Grey Orange Pte. Ltd., Hardis Group, and HighJump, all leading in innovation and deployment scale.
2. What will be the size of the logistics automation market in the coming years?
The market size is projected to grow from USD 60.00 billion in 2025 to USD 130.25 billion by 2032, reflecting robust growth at an 11% CAGR.
3. Which end-user industry has the largest growth opportunity?
E-commerce fulfillment centers represent the largest growth opportunity, driven by increasing demand for rapid order processing and efficient last-mile delivery automation.
4. How will market development trends evolve over the next five years?
Market development trends will see greater integration of AI, IoT, and robotics into supply chains, expansion into emerging economies, and stronger adherence to environmental and data security regulations.
5. What is the nature of the competitive landscape and challenges in the logistics automation market?
The market remains highly competitive with rapid technological advancements; however, challenges include regulatory compliance complexities, high initial investments, and workforce adaptation.
6. What go-to-market strategies are commonly adopted in the logistics automation market?
Key strategies include forming technology partnerships, regional market expansion, regulatory approvals, and customizing scalable automation solutions tailored to diverse industry segments.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
