The logistics automation market is projected to increase by over USD 17 billion by 2029.
It’s expected to increase from USD 35.14 billion to USD 52.53 billion over the next five years.
A new report by management consulting firm MarketsandMarkets shows that the logistics automation market is rapidly expanding.
It’s fueling an increased need for quicker and more effective supply chain processes.
With labor shortages and increasing labor costs, more companies are being pushed toward automating repetitive tasks.
Due to the advanced progress being made in robotics and artificial intelligence (AI), more accurate and expandable automation solutions are available.
Transport Management systems (TMS) projected to increase
With automation software, the transport system management segment is projected to grow at the highest CAGR during the forecast period.
More companies realize the potential and benefits of real-time tracking, route optimization, and efficient fleet management.
The report highlights that companies are adopting TMS because of the rise in online shopping, the interconnected nature of supply chains worldwide, and the need to reduce operational costs.
Integrating AI, the Internet of Things (IoT), and cloud technology in TMS reduces delivery times, and resources are better used.
Asia Pacific predicted to grow the highest CAGR
Logistics automation is most likely going to be the largest market area in the Asia Pacific region, states the report.
It’s largely driven by rapid industrialization, rising e-commerce volumes, and increased adoption of advanced technologies in supply chains.
Major countries like China, Japan, India, and South Korea are leading in implementing automation solutions. This is to meet the growing demand for faster and more efficient logistics operations.
The reason? The region has the most extensive consumer base. With more e-commerce businesses, there is an increased demand to streamline logistics processes.
This includes automated warehouses, autonomous vehicles, and AI-based inventory management systems.
NOW READ: Navigating supply chain challenges in logistics
Share this article
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
