As per the current market research conducted by CMI Team, the US Logistics Automation Market size is expected to record a CAGR of 10.4% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 23,827.4 Million. By 2033, the valuation is anticipated to reach USD 58,049.5 Million.

US Logistics Automation Market: Growth Factors and Dynamics

  • E-commerce Expansion: The explosive growth of e-commerce has significantly increased the volume of orders processed through logistics networks. This surge has driven demand for automated warehouse and fulfillment solutions capable of handling large-scale order processing, picking, packing, and shipping efficiently. Automated systems such as automated storage and retrieval systems (ASRS), conveyor systems, and robotic picking technologies are crucial to meeting the demands of rapid order fulfillment in the e-commerce sector.
  • Labor Shortages: Ongoing labor shortages in the logistics industry, exacerbated by factors such as demographic shifts and competition for skilled workers, have spurred the adoption of automation technologies. Automated solutions help mitigate the impact of labor scarcity by reducing reliance on manual labor, improving operational efficiency, and minimizing labor-intensive tasks like repetitive picking and packing.
  • Technological Advancements: Continuous advancements in technologies such as robotics, artificial intelligence (AI), machine learning, and Internet of Things (IoT) are revolutionizing logistics operations. Robotics and AI-driven automation enable tasks such as autonomous guided vehicles (AGVs) for material handling, robotic arms for sorting and palletizing, and AI-powered predictive analytics for demand forecasting and route optimization.
  • Cost Efficiency: Automation in logistics offers significant cost benefits through improved inventory management, reduced errors, and optimized use of warehouse space. Automated systems minimize operational costs associated with manual labor, such as training, turnover, and labor-related injuries. Efficient use of space with ASRS and automated guided vehicles (AGVs) lowers facility costs by maximizing storage density and reducing the need for additional warehouse space.
  • Demand for Faster Delivery: Consumer expectations for fast and reliable delivery options have pushed logistics companies to adopt automation to accelerate order processing and shipment handling. Automated sorting systems, robotic picking technologies, and AI-driven route optimization enable faster order fulfillment and shipping, meeting the demand for same-day or next-day delivery services.

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US Logistics Automation Market: Partnership and Acquisitions

  • In 2024, Swisslog Holding AG partnered with Northern Tool + Equipment to implement an AutoStore system in Fort Mill, South Carolina. Designed to meet omnichannel distribution needs, the solution integrates Swisslog’s SynQ software to enhance operational efficiency, scheduled for full functionality by October 2024.
  • In 2022, Urban Outfitters, Inc. partnered with TGW for an automation solution at their new Kansas City fulfillment center. Utilizing TGW’s FlashPick system, the solution automates order picking processes, facilitating scalability and efficiency enhancements crucial for expanding their market presence.

US Logistics Automation Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the US Logistics Automation Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

  • Accelerated Adoption of Automation: The pandemic accelerated the adoption of automation in logistics to minimize human contact and ensure operational continuity amidst lockdowns and social distancing measures. Companies invested in automated systems like robotics and AI-driven solutions to maintain efficiency and meet heightened demand for essential goods.
  • Disruption in Supply Chains: COVID-19 disrupted global supply chains, causing delays in manufacturing, shipping, and distribution. This highlighted vulnerabilities in traditional supply chain models, prompting companies to enhance resilience through automation technologies that improve visibility, flexibility, and responsiveness.
  • Increased Investment in Automation Technologies: Post-pandemic recovery has seen increased investment in advanced automation technologies such as robotics, AI, and IoT. These technologies enhance operational efficiency, reduce dependency on manual labor, and improve supply chain resilience against future disruptions.
  • Expansion of E-commerce and Last-Mile Delivery Solutions: The surge in e-commerce during the pandemic has driven demand for automation solutions that support efficient order fulfillment and last-mile delivery. Companies are investing in automated sorting systems, robotic warehouses, and AI-powered logistics optimization to meet the growing demand for fast and reliable delivery services.
  • Focus on Supply Chain Resilience: Businesses are prioritizing supply chain resilience by deploying automated inventory management systems, predictive analytics, and real-time tracking solutions. These technologies enhance visibility into supply chain operations, mitigate risks, and improve agility in responding to changing market dynamics and disruptions.
  • Integration of Contactless Technologies: Contactless technologies such as automated guided vehicles (AGVs) and autonomous drones are being integrated into logistics operations to minimize human interaction and ensure safety. These technologies optimize warehouse operations, enhance productivity, and reduce the risk of operational disruptions due to workforce challenges.

List of the prominent players in the US Logistics Automation Market:

  • Dematic Corp.
  • Honeywell Intelligrated
  • Swisslog Holdings AG (KUKA)
  • Daifuku Co. Ltd.
  • KNAPP AG
  • Murata Machinery Ltd.
  • SSI SCHAEFER
  • Vanderlande Industries
  • BEUMER Group
  • TGW Logistics Group
  • Siemens Logistics GmbH
  • Bastian Solutions Inc. (a Toyota Advanced Logistics Company)
  • Fives Group
  • Intelligrated (Honeywell)
  • Mecalux, S.A.
  • Others

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