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Logistics Automation Market To Reach $148.76Bn By 2033

Logistics Automation Market To Reach $148.76 Billion By 2033

December 2025 | Report Format: Electronic (PDF)

Logistics Automation Market Growth & Trends

The global logistics automation market size is expected to reach USD 148.76 billion by 2033, registering a CAGR of 16.8% from 2026 to 2033, according to a new report by Grand View Research, Inc. Logistics operations are critical factors in the smooth functioning of the supply chain of any business, especially low-margin, high-volume businesses. The logistics sector is witnessing a continuous increase in investments with a significant emphasis on the automation of several logistics functions. Automation enhances efficiency and aids in integrating supply chains; thus, automation is increasingly being adopted across sectors. The growing tendency of the logistics industry toward adopting automation solutions is one of the significant factors driving the growth of the logistics automation industry.

According to a DHL report published in 2018, 80% of warehouses do not have any automation support and are still operated manually, while 15% of the total warehouses are just mechanized, which means the warehouses use sorters, conveyors, picker solutions, and other machined equipment which are not necessarily automated. The report states that only 5% of total warehouses are automated. The trend displays a remarkable opportunity for the growth of the market in the coming years as companies are increasingly adopting automation in their warehouses, including autonomous robots, automated sorting systems, conveyor systems, etc. Technological developments such as communication technologies, sensors, tracking devices, computer vision, artificial intelligence, and machine learning are aiding the growth of the target market.

The e-commerce boom is resulting in increasing adoption of automation solutions owing to the enormous volumes of shipments. The e-commerce shipment volume is growing exponentially by the year, and hence the warehouses require automation solutions to meet the short delivery timelines. The e-commerce fulfillment centers are implementing automated sorting and conveyor systems and highly benefit from inventory management and order management software. Moreover, the major labor challenges faced by the logistics industry across the globe are driving the demand for logistics automation solutions.

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Logistics Automation Market Report Highlights

Based on component, the market is segmented into hardware, software, and services. The hardware segment's market share was 66.3% in 2025 and is expected to grow at a CAGR of 16.5% through the forecast period.
Based on transportation mode, the market is segmented into inventory & storage management and transportation management. The transportation management segment dominated the market in 2025, with a market share of 61.4%.
Based on logistics type, the market is segmented into sales logistics, production logistics, recovery logistics, and procurement logistics. Among these, the sales logistics segment dominated the market in 2025, with a market share of 35.7%.
Based on organization size, the market is segmented into small & medium enterprises (SMEs) and large enterprises. The large enterprises' segment dominated the market in 2025, with a market share of 63.0%.
Based on software applications, the market is segmented into inventory management, yard management, order management, labor management, vendor management, shipping management, customer support, and others.
Based on vertical, the market is segmented into retail & e-commerce, automotive, healthcare, electronics & semiconductors, and others. The retail and e-commerce segment dominated the market in 2025, with a market share of 29.4%.
North America logistics automation market accounted for a 35.4% share of the overall market in 2025. The Asia-Pacific is expected to grow at the fastest CAGR of 17.3% over the forecast period.

Logistics Automation Market Segmentation

Grand View Research has segmented the global logistics automation market report based on component, function, logistics type, organization size, software application, vertical, and region:

Logistics Automation Component Outlook (Revenue, USD Million, 2021 - 2033)

Hardware
- Autonomous Robots (AGV, AMR)
- Automated Storage and Retrieval Systems (AS/RS)
- Automated Sorting Systems
- De-palletizing/Palletizing Systems
- Conveyor Systems
- Automatic Identification and Data Collection (AIDC)
Software
- Warehouse Management System
- Transportation Management System
Services
- Consulting
- Deployment & Integration
- Support & Maintenance