Dublin, Feb. 09, 2026 (GLOBE NEWSWIRE) — The “Logistics Automation – Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)” has been added to ResearchAndMarkets.com’s offering.
The logistics automation market is projected to reach USD 90.78 billion by 2026, expanding from USD 82.69 billion in 2025. Looking ahead to 2031, the market is expected to further grow to USD 144.78 billion, at a CAGR of 9.78% from 2026 to 2031.
Driving this growth are rising e-commerce parcel volumes, labor shortages, and corporate commitments to net-zero emissions, which have transformed automation into a critical element of supply chain design. Retailers prioritize automated order-fulfillment systems as a strategy against wage inflation. Moreover, the adoption of 5G and private LTE networks within warehouses enables seamless coordination among robots and vehicles.
Environmental objectives are shaping capital investments, with green-bond financing linked to energy-efficient systems for picking, storage, and transport. Semi-automated solutions currently dominate the market, but fully automated projects are gaining traction as AI vision and safety technologies overcome certification challenges, reducing execution risks. Asia-Pacific is emerging as a market leader, fueled by government subsidies and increased 5G technology adoption.
Global Logistics Automation Market Trends and Insights
Rapid E-Commerce Parcel Volumes Drive Infrastructure Modernization
Fulfillment operators now encounter consistently high order volumes, prompting a shift towards continuous, goods-to-person workflows that minimize cycle times without increasing workforce size. Retailers like Kroger have expanded automation partnerships to enhance same-day delivery services. UPS has improved packaging efficiency, reducing waste by 30% while maintaining throughput targets. Urban micro-fulfillment hubs are on the rise, with India’s warehouse space expected to surpass 35 million ft by 2027, fueling demand for space-efficient automation.
Rising Labor Shortages Accelerate Automation Investment Cycles
Labor shortages, especially in North America and Europe, have become a strategic bottleneck. India hit a 16-year high in manufacturing growth in March 2024, driving the rollout of unmanned goods-movement platforms by companies like NIDO Group. Collaborative AMRs are alleviating workforce pressure by taking on repetitive tasks, allowing human workers to focus on exceptions. Robotics-as-a-service models are gaining popularity for their flexibility, particularly in the fast-growing Asia-Pacific region.
High Upfront Capital Requirements Constrain SME Adoption
Comprehensive warehouse automation projects can cost over USD 5 million, limiting SME participation. Pay-per-pick subscriptions, like those offered by AutoStore, reduce initial costs but don’t eliminate construction and integration expenses. Emerging markets struggle with financing and currency risks, leading to a shift toward rental or service-based models. Despite these challenges, capital expenditure remains a key constraint in the short term.
Segment Analysis
Warehouse operations dominated the logistics automation market in 2025, with a 59.55% revenue share, driven by the efficiency of goods-to-person systems and robotic sortation. Transportation automation is poised for significant growth, projected at an 11.05% CAGR to 2031, as autonomous vehicles transition from pilots to mainstream usage.
Innovations continue to support warehouse leadership. AutoStore’s CarouselAI launched in 2025, offering retrofit-friendly robotic picking solutions. Private 5G deployments, such as those at CJ Logistics, integrate indoor and yard robotics, streamlining dock operations. While cross-functional solutions may gain ground, warehouses will remain central to the market.
The market report is segmented by Function (Warehouse and Transportation Automation), Automation Level (Fully and Semi-Automated Systems), Industry (E-Commerce, Retail, Manufacturing), and Geography (North America, South America, Europe, Asia-Pacific, Middle East, Africa). Projections are provided in USD.
Geography Analysis
Asia-Pacific is leading the global logistics automation market, accounting for 31.30% of revenue in 2025 and projected to grow at an 11.56% CAGR to 2031. China’s industrial-robot sector leads globally, while India’s warehouse space is rapidly expanding, driven by initiatives to reduce logistics costs and meet urban demand.
North America remains a vital market due to high labor costs and the benefits of automation, despite challenges with legacy systems. U.S. Foreign Trade Zones promote inventory strategies, boosting cross-border e-commerce. Europe’s market mirrors North America, with a stronger emphasis on carbon reduction driving investments in energy-efficient technologies.
Regions like Latin America, the Middle East, and Africa are in nascent stages of market adoption but show potential due to favorable demographics and e-commerce growth. As financing options improve, these areas are expected to contribute significantly to global market growth.
Key Companies in the Report:
- Dematic Corp. (KION Group AG)
- Daifuku Co., Ltd.
- Honeywell International Inc.
- Jungheinrich AG
- Murata Machinery, Ltd.
- KNAPP AG
- TGW Logistics Group GmbH
- Kardex Holding AG
- Mecalux, S.A.
- BEUMER Group GmbH & Co. KG
- SSI SCHAFER AG
- Vanderlande Industries B.V.
- WITRON Logistik + Informatik GmbH
- Interroll Holding AG
- GreyOrange Pte Ltd.
- Locus Robotics Corp.
- Geek+ Technology Co., Ltd.
- Ocado Group PLC (Ocado Intelligent Automation)
- AutoStore Holdings Ltd.
- Exotec SAS
- Fetch Robotics Inc. (Zebra Technologies)
- Korber Supply Chain GmbH
- Cimcorp Oy
- Manhattan Associates Inc.
For more information about this report visit https://www.researchandmarkets.com/r/fgxqcp
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- Logistics Automation Market Logistics Automation Market Growth Rate By Region
