How Automation is the key to Logistics Efficiency? What are the benefits of logistics automation?
Logistics automation is replacing traditional logistics processes as it helps in enhancing the overall efficiency of the industry by streamlining and automating the whole process, involving various tasks such as processing freight operations, tracking, and documentation.
Logistics automation is becoming essential for retailers owing to growing retail & e-commerce sectors worldwide. Growing advancement in technology has encouraged increasing adoption of robots for various industries. Market players are trying to achieve omnichannel and online strategies. Thus, logistics automation is necessary for retailers. The logistics automation ensures the management of the inventory, tracking, reporting and forecasting, packaging, transportation of goods, and warehouse management. The constant growth in the retail & e-commerce sector is expected to create new opportunities for the global logistics automation market during the forecast period.
Continuous Growth in Retail & E-commerce Sector provide growth opportunities for Logistics Automation market
Download Sample PDF
Most common advantages of implementing logistic automation are reduced human errors as it shows clear visibility of freight rates, enhanced customer services, and improved scalability. Logistic automation became a significant part of the supply chain process for small and large businesses. The growing adoption of Industrial 4.0 across manufacturing industry is increasing the demand of logistics automation worldwide. The logistics automation is comparatively popular in Asia-Pacific and Europe. All these factors and trends are anticipated to fuel the demand for logistics automation in various geographies and offer future growth opportunities for market players operating in the global logistics automation market.
In Asia-Pacific, Rapid digitalization and developments in the economy, increasing education awareness, adequate government support, and rising incomes of the middle class are among the attributable factors that have ensured a smooth transition of these economies from the developing stage toward a developed stage. The e-commerce industry already represents 15% of total retail sales across the region. The region continues to be the fastest-growing region. Such above mentioned factors is expected to fuel the growth of logistics automation market in Asia-Pacific. APAC is also expected to be the fastest-growing region in the global logistics automation market during the forecast period.
Europe is a technologically advanced region. The e-commerce and online retail are key drivers for the upsurge in the demand for diverse types of warehouses such as parcel sorting centers, mega fulfillment centers (merchandise storage and pick-up), local parcel delivery centers, return processing centers, dot.com warehouses (fulfillment of online orders), and local delivery centers (for same-day deliveries). The global warehouse and storage market in Europe has grown annually by ~2-3% due to growth in the online retail and e-commerce sector. These factors are contributing to the high growth of the logistics automation market in this region.
Significant market initiatives have been taken by some of the leading companies in logistics automation market by getting involved in partnering with the clients, winning significant contracts, and also expanding their production capabilities. For instance, in 2019, BEUMER Group supplied a third sortation systems to Hermes that is capable of sorting up over a million parcels a day. In the same year, KNAPP and KRATZER AUTOMATION announced a strategic collaboration. The KRATZER AUTOMATION’s software would enhance KNAPP’s portfolio in the last mile area, thus creating an all-encompassing software landscape along the entire supply chain. These strategic initiatives are further expected to provide a significant opportunities for logistics automation market growth in the coming years.