The Logistics Automation Market is expected to register a CAGR of 12. 42% during the forecast period (2021 – 2026). The emergence of the Industrial Internet of Things (IIoT) and the advent of a network of connected systems are helping industries perform a multitude of tasks, such as material batching, picking, ordering, packaging, warehouse security, and inspection.
New York, Dec. 23, 2021 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report "Logistics Automation Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)" – https://www.reportlinker.com/p06020215/?utm_source=GNW
The factor helps improve operational efficiency by huge margins, which, in turn, drives the market.
The growth in the e-commerce industry worldwide and the growing need for efficient warehousing and inventory management are driving the market growth. Further, Significant investments are witnessing increased market demand. For instance, In September 2021, Spirit AeroSystems announced a new Global Digital Logistics Center, a seven-story 150,000-square-foot structure, as a part of the company’s 1 billion investment.
Also, according to the Bank of America, by 2025, 45% of all manufacturing will be performed by robotic technology. Following this trend, large firms, such as Raymond Limited (an Indian textile major) and Foxconn Technology (a China-based supplier for large technology manufacturers, like Samsung) have replaced (or plan to replace) 10,000 and 60,000 workers, respectively, by incorporating automated technology into their factories. These factors have had a direct impact on the increasing adoption of warehouse robotics. The rising number of warehouses and increasing investments in warehouse automation, coupled with the global rise in labor costs and availability of scalable technological solutions, have been driving the market for warehouse robots across the world.
Further, the emergence of the Industrial Internet of Things (IIoT) and the advent of a network of connected systems are helping industries perform a multitude of tasks, such as material batching, picking, ordering, packaging, warehouse security and inspection, and helping improve the operational efficiency by huge margins. The use of IoT technologies allows warehouses for real-time data transfer, flexible communication, and Big Data analytics. These, along with the cloud-based solution, enable automated, sophisticated, and agent-based control.
Additionally, amidst the COVID-19 situation, the warehouse and e-commerce market has been experiencing a crippling effect on the business operations owing to the major challenges posed by disruptions in the supply chain management and lack of workers. However, leveraging the automated systems, companies are expecting to revamp their operations. This instance is expected to drive the growth of the market going forward.
Key Market Trends
Warehouse Management is Expected to Witness Significant Demand
Warehouse management vendors are working with end-users to democratize automation further. The market is seeing more creative financing opportunities increase for companies looking to infuse new technology into warehouses. WMS vendors that run the automated equipment are now working more closely with end-users to help make it more affordable for a wider swath of customers.
In August 2021, Godrej & Boyce announced that its joint venture Godrej Körber had secured a significant order from a paint manufacturer to set up an automated warehouse attached in Uttar Pradesh, India. The new project may help the company seamlessly manage the movement and storage of 15,000 tons of decorative and industrial paints manufactured at the plant. The proposed system is seismic compliant, consisting of double-deep linear stacker cranes, 15,000+ storage locations within the facility connected by input/output conveyors and auto lifts, bridging the connection between manufacturing and warehouse.
In February 2021, SafeLog launched warehouse robots that may operate individually or in a "swarm" and offer customized automated guided vehicle solutions that do not need a control station connection. The company adds that the latest model of the SafeLog AGV L1 lifts loads of up to 1500 kg.
Furthermore, in November 2020, Toyota Material Handling (TMH) announced two new automated guided vehicles (AGVs) that add the latest in proven automation technology to existing and trusted Toyota products. Toyota Material Handling’s new center-controlled rider automated forklift and core-tow tractor automated forklift may transform how customers meet their manufacturing, warehousing, and distribution challenges.
Robots are witnessing increased demand in warehouse management for case picking and pallet picking, and market vendors are expanding to various regions. For instance, in September 2021, Locus Robotics, a provider of autonomous mobile robots (AMRs) for fulfillment warehouses in the United States, acquired Waypoint Robotics, which develops omnidirectional AMRs for material transport. The Vector and MAV3K flexible mobile robot platforms from waypoint robotics provide omnidirectional mobility and can be attached to various modules and attachments.
Further, the market is driving better warehouse management with technology collaborations. For instance, In August 2021, C&A, the fashion retailer company, streamlined its warehouse management. The retailer, which has 2,000 stores in 21 countries, selected Manhattan Associates’ Active Warehouse Management technology in five Brazilian distribution centers by 2022. The cloud-native WMS will be implemented first at C&A’s e-commerce fulfillment center in So Paulo, and it is expected to help the retailer manage rapidly growing online business.
WMS vendors have been working with OEMs to democratize automation further; the market is seeing even more creative financing opportunities to infuse new technology into their warehouses. For instance, in June 2021, Hot Topic is modernizing its warehouse management system to expand its omnichannel business. The retailer, which operates 700 stores, chose Manhattan Associates for its Manhattan Active WMS. The cloud enterprise-class WMS is intended to provide order streaming, warehouse execution system (WES) functionality, and more robust picking and packing capabilities, all of which are expected to assist Hot Topic in streamlining its fulfillment processes.
Asia Pacific Expected to Witness Significant Growth
Manufacturing serves as a significant industry in Asia-Pacific and China economy, being a significant contributor, is undergoing a rapid transformation as labor costs have risen and the conventional model of migrant workers. Such trends have pushed the economy to adopt automation as a part of manufacturing processes.
In March 2021, Vietnam Post Corporation launched an automated packages sorting system at its logistics center in the central region, located at the Hoa Khanh Industrial Park in Da Nang city. With logistics services globally facing labor shortages during the COVID-19 outbreak, the company witnessed increasing demand for its automation systems that could replace repetitive warehouse work, intending to respond to the uptick in e-commerce sales and undertake disease prevention methods.
The vendors operating in the region are expanding business and partnering with other market vendors. For instance, in May 2020, Geek+, a Chinese robotics company specializing in logistics automation for warehouses and factories, and supply chains, announced a strategic partnership with Conveyco, an order fulfillment and distribution center system integrator.
The adoption of robots in corporate Japan has largely been confined to the manufacturing sector, with retail lagging behind. However, the current efforts by the retailers may drive the use of robots in the sector. In September 2021, SB logistics in Ichikawa, Japan, implemented robotics systems for piece picking and packaging. Additionally, the company also deployed conveyance, sortation, automated storage, and retrieval to make its warehouse completely autonomous to meet the exacting quality standards expected by Japanese consumers primarily.
Moreover, the progress of e-commerce companies in the region has been a testimony to the growth of the trade, driving the market. For instance, in December 2020, Amazon India announced that 4,152 small and midsized sellers on its marketplace surpassed INR 1 crore in sales, and the number of ‘crorepati’ sellers grew by 29% Y-o-Y. Multiple foreign companies are making significant investments in India. For instance, in November 2020, UAE-based warehouse automation major ACME Intralog announced a major expansion outside the Middle East in India.
The Logistics Automation Market is moderately competitive, with a considerable number of regional and global players. Players in the market adopt strategies such as product innovation, partnerships, mergers, and acquisitions to increase their market share. Some of the major players in the market are Dematic Group and Vanderlande.
November 2021 – Berkshire Grey Inc. announced the general availability of its robotic shuttle product sortation (RSPS) solution for order fulfillment. The system supports filling e-commerce orders through stores and in-person shopping by automating store replenishment, allocation order processing, split-case cross-docking, sortation, and packing. RSPS increases processing capacity and throughput for existing operations without adding the labor, helps right-size store inventories, and enables e-commerce fulfillment from stores to scale.
October 2021 – Grocery robot vendor Fabric secured USD 200 million in venture backing, pushing it over the "nicorn" threshold and providing fuel for the continued growth of its robotic on-demand fulfillment technology stack. According to the company, the venture will further help the retailers to cope with a leap in e-commerce sales penetration rates that more than doubled to 35% in 2020, which was the equivalent of roughly ten years of growth within a few months.
September 2021 – Mouser Electronics Inc. invested heavily in state-of-the-art automation in its global distribution center to increase order processing, accuracy, and speed, helping customers further reduce time-to-market. Mouser has installed 102 vertical lift modules (VLMs), the most at any company in the Western Hemisphere and the fourth largest VLM installation globally. This increases efficiency and floor space and reduces an employee’s walking time by 45% or more.
February 2021 – Dematic announced an agreement to provide an automated mixed-case fulfillment solution to Merchants Distributors (MDI), a wholesale grocery distributor, for the primary operations center’s upcoming renovation and expansion.
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