Logistics automation refers to the use of computer software or automated machines to streamline logistics operations. This typically means operating in a warehouse or distribution center, with enterprise resource planning systems and supply chain planning systems handling a broader range of tasks. Logistics automation systems can strongly complement the services of these more complicated computer systems. If the focus is on one node in a larger logistics network, the systems can be adapted exactly to their needs. Additionally, the logistics automation industry is developing significantly due to technological advancements and the growing need for efficient and organized supply chain operations.
According to the recent report released by Allied Market Research, the global logistics automation market is predicted to grow at a considerable CAGR of 11.9% from 2021 to 2030.
Robotics is gradually being used to improve logistics processes-
One of the key drivers of the logistics automation market is the rising demand for robotic logistics. Due to the growing difficulty of warehousing and the need for efficient and flexible operations, companies have invested in automated storage and retrieval systems (AS/RS) to automate stores and different regions of the site. Robotic help is used to quickly and successfully move items from one region to another. They eliminate the need for physical work by automating dangerous, tedious, and time-consuming tasks that are part of many processes, including material handling and warehousing, so the market is growing.
Increased efficiency to boost the logistics automation market growth-
Increasing efficiency is key to the growth of the logistics automation market. By automating various logistics processes such as inventory management, order fulfillment, and transportation, companies can increase their productivity. Automation reduces errors, avoids delays, controls resource allocation, and enhances overall productivity. Increased efficiency, faster order processing, accelerated delivery times, and increased customer satisfaction. These benefits increase the demand for logistics automation solutions and boost the growth of the market.
Recent trends in the logistics automation industry-
1. Adoption of robotics and autonomous vehicles:
Robotics and autonomous vehicles are more often used in the logistics sector. Robots are used in warehouses and distribution centers for tasks consisting of picking, packing, and sorting. Autonomous vehicles are used for last-mile delivery and transportation, enhancing effectiveness and reducing costs.
2. Artificial intelligence (AI) and machine learning (ML) integration:
AI and ML technologies are integrated into logistics automation systems to boost operations. These technologies enable predictive analytics, demand forecasting, route planning, and real-time decision-making to increase effectiveness, remove errors, and improve customer service.
3. Warehouse automation:
Warehouse automation operations are gaining traction to increase efficiency and lower labor costs. This includes the use of automated storage and retrieval systems (AS/RS), conveyor systems, robotic order-picking systems, and warehouse management systems (WMS) to accelerate the process and increase productivity.
4. Internet of Things (IoT) and sensor technology:
IoT and sensor technology are used to track and trace goods during the supply chain. It enables real-time visibility and transparency, allowing companies to optimize inventory management, improve asset utilization, and increase overall supply chain efficiency.
5. Cloud-based logistics solutions:
Cloud-based logistics solutions are becoming more common as they offer flexibility, scalability, and real-time access to information. These solutions allow seamless partnership, data sharing, and integration between specific supply chain stakeholders, improving visibility, efficiency, and decision-making.
Moreover, the future of automation in the Indian logistics industry appears encouraging. The rise of e-commerce in India has increased the demand for logistics automation. According to IBEF, India’s e-commerce market is expected to witness a value of $111.0 billion by 2024 and $200.0 billion by 2026. With 140 million online buyers in 2020, India had the third largest number of online shoppers after China and the United States. The increase in the usage of smartphones and the internet is a key factor in industry growth. The Digital India program has considerably increased the number of internet connections to 830 million in 2021. This growth has been fueled by various alternative policies. The government of India has allowed 100% FDI (foreign direct investment) in B2B e-commerce. In addition, 100% FDI is allowed in the automated route in the e-commerce market model.
For example, the top e-commerce industry Amazon, which is investing $5 billion in the Indian market, is investing in automated warehouses throughout India. Amazon is one of the first companies in India to test and implement robotics in its warehouses. Its Kiva robot participates in the packaging and picking in large warehouses. In addition, in June 2022, Amazon announced the first autonomous mobile robot, which aims to reduce warehouse workers and workload. An autonomous robot called Porteus navigates Amazon’s facilities using advanced security, perception, and navigation technology developed by Amazon. Moreover, with increasing investment in the FMCG sector in India, the demand for warehouse automation market is growing rapidly.
Key developments by frontrunners:
Leading players in the industry have made considerable investments in new product launches, and manufacturing goods and plants to strengthen their foothold in the industry. For instance, In March 2023, Dematic offered the latest automation technologies to KION and the new logistics facility. The KION Group is likely to use this facility to supply spare parts across Europe. The goal is to make customer deliveries more efficient. Dematic plans to introduce the very dynamic Dematic Multishuttle with 110,000 warehouses and 150 shuttles for automated storage and retrieval.
On the other hand, in March 2023, Swisslog’s CarryPickmobile robotic storage and retrieval system was released. The new, updated CarryPickmobile robot platform offers much faster operating speed. The mobile robots also use a revolutionary lifting table that allows the shelf to be rotated or held in place as it rotates, enabling faster and more adaptive storage and picking processes in goods-to-person solutions.
To conclude, the logistics automation market has grown rapidly as companies recognize the benefits of automation by improving operational efficiency, reducing costs, and increasing customer satisfaction. Furthermore, with new technological developments and increasing demand for enhanced supply chain operations, the logistics automation market is expected to boom in the coming years.
Author’s Bio: – Harshada Dive is an engineer by qualification. She has previous experience working as a customer service associate. As an associate content writer, she loves to experiment with trending topics and develop her unique writing skills. When she’s not writing, Harshada enjoys gardening and listening to motivational podcasts.
