The growing adoption of automated guided vehicles, autonomous mobile robots, robotic arms, automated storage and retrieval systems, conveyor systems, predictive analytics software, and autonomous delivery technologies is transforming logistics operations. Digital technologies are helping organizations manage supply chain activities more efficiently while responding to changing demand and operational disruptions.

According to Fortune Business Insights, the global logistics automation market size was valued at USD 88.09 billion in 2025. The market is projected to grow from USD 99.43 billion in 2026 to USD 260.75 billion by 2034, exhibiting a CAGR of 12.80% during the forecast period. North America dominated the market with a share of 39.60% in 2025. Logistics automation refers to the use of advanced technologies to optimize and streamline supply chain activities, improve accuracy, and increase efficiency across logistics operations. The market covers hardware, software, and services used for activities such as material handling, sorting, picking, packing, shipping, inventory management, and transportation.

Market Drivers & Restraints:

Digital transformation across logistics companies is a major factor driving logistics automation market growth. Logistics companies are increasingly modernizing outdated systems and adopting cloud technologies, Internet of Things, data analytics, machine learning, and artificial intelligence to improve operational processes and customer experiences. Digital transformation enables businesses to use data-driven insights for forecasting demand fluctuations, allocating resources, and responding to unexpected disruptions. Machine learning and artificial intelligence also support dynamic route optimization by enabling adjustments based on traffic, weather conditions, and other unforeseen events.

At the same time, several factors may restrict market growth. Lack of appropriate infrastructure, high initial investments and implementation costs, regulatory concerns, and geopolitical issues can create challenges for market participants. Infrastructure limitations are particularly significant in regions where investment in upgrades remains insufficient. Small and mid-sized companies may also face difficulties in investing in automation technologies because of budget constraints. Regulatory and compliance requirements, trade disputes, sanctions, tariff measures, and geopolitical uncertainty can further affect logistics operations and investment decisions.

Market Competitive Landscape:

The logistics automation market is fragmented and includes several established players. Companies are focusing on acquisitions, strategic collaborations, and partnerships to strengthen product portfolios, expand technology capabilities, improve customer experiences, and enhance their positions in the global market. The increasing relevance of sustainability goals, e-commerce, and new-age technologies is also contributing to competition across the industry.

Top Companies In The Market

• Daifuku Co., Ltd. (Japan)

• Honeywell International Inc. (U.S.)

• TGW Logistics Group (Austria)

• Toyota Industries Corporation (Japan)

• KUKA AG (Germany)

• SSI SCHAEFER Group (Germany)

• Jungheinrich AG (Germany)

• KION Group AG (Germany)

• Murata Machinery, Ltd (Japan)

• Knapp (Austria)

• ABB (Switzerland)

• Dematic (U.S.)

Recent developments highlighted by Fortune Business Insights include Toyota Industries Corporation's introduction of a new Toyota Automated Logistics Group in May 2024, Dematic's partnership with Groupe Robert in February 2024 for an automated cold storage facility, and Honeywell's January 2024 partnership with Hai Robotics for high-density and flexible storage and retrieval solutions.

Market Segments:

By Component (Hardware, Software, and Services)

By Logistics Type (Sales Logistics, Production Logistics, Recovery Logistics, and Procurement Logistics)

By Application (Transport Management, Warehouse Management, Labor Management, and Others)

By Enterprise Type (SMEs and Large Enterprises)

By Industry (Retail & E-Commerce, Healthcare & Pharma, Food & Beverages, Aerospace & Defense, Energy & Utility, Automotive, and Others)

Explore the full research report with detailed insights and TOC: https://www.fortunebusinessinsights.com/logistics-automation-market-105991 

Market Regional Insights:

North America dominated the global market with a 39.60% share in 2025, recording a market size of USD 34.86 billion. The regional market is projected to reach USD 38.99 billion in 2026. The U.S. is among the largest and most advanced markets for automated logistics solutions, with retail, food and beverages, and healthcare representing important sources of demand.

Asia Pacific generated USD 22.78 billion in 2025 and is expected to reach USD 26.20 billion in 2026. Rapid e-commerce expansion and demand for advanced logistics solutions are supporting regional growth. China, India, and Japan are important country markets in the region.

Europe represented USD 16.69 billion in 2025 and is projected to reach USD 18.77 billion in 2026. Digital transformation, Industry 4.0, Internet of Things, cloud services, and Big Data are contributing to logistics automation adoption. The U.K., Germany, and France are among the key markets in the region.

Future Market Scope:

The future of the logistics automation market is closely associated with the rapid adoption of advanced technologies and the continued expansion of e-commerce. Generative artificial intelligence is emerging as an important technology for optimizing routes, managing disruptions, analyzing customer behavior, and developing customized logistics solutions. Internet of Things technologies can provide real-time visibility into the status, location, and condition of goods, while autonomous vehicles, drones, robotics, and automation are supporting faster and more dependable logistics operations.

Dynamic power transfer technologies are also creating opportunities by enabling automated guided vehicles and autonomous mobile robots to receive uninterrupted power while moving. Robotics is increasingly being developed for picking, packing, sorting, and transportation activities. Artificial intelligence and machine learning are being integrated into logistics operations to streamline processes and improve decision-making.

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