Logistics Robots Market

Logistics Robots Market Outlook

The logistics robots market is expected to expand its roots with a strong CAGR of 16.5% during the forecast period. The market is expected to hold a share of USD 8.28 billion in 2023, while it is anticipated to cross a value of USD 38.13 billion by 2033.

The research report on the logistics robots market explains that the 21st century is likely to witness life-transforming technologies. Logistics robots are one of those examples that increases the productivity of any business that deals with shipping, transportation, and in-house goods movement. The addition of artificial intelligence and machine learning, along with robotics, is expected to benefit product-based enterprises. Furthermore, companies going back to normalcy with the symbiosis of humans and robots are saving time and capital for the same.

As the E-commerce market expands its space, technological solutions like E-logistics, storage, and transportation robots are also gaining traction. The adoption of logistics robots cuts down warehouse labor expenditure and helps businesses function efficiently. The restoration of industrial growth, along with the elements of the fourth industrial revolution, is making it easy for warehouses to function efficiently.

Small and medium-sized businesses that absorb a significant amount of the logistics robots market implement automated guided vehicles (AGVs) in storage spaces. These robots help in reducing logistical costs while streamlining the supply chain. Institute of supply management survey, 2021, explains that the manufacturing output is gradually coming back to the pre-pandemic levels. This is pushing the demand for innovation and technology like logistics robots that strengthen supply management.

The growth of the logistics robots market can be witnessed in the e-commerce giants like Walmart and Amazon. Other than that, rapidly proliferating Asian economies like India and China are also experiencing growth. For instance, Alibaba invested USD 15 billion for the enhancement of their logistical operation through robot adoption. The lower human touch increases the quality and supports the error-less movement. Expanding industry 4.0 is likely to have a positive impact on the logistics robot market.

The logistics robots market outlook states that advanced business projects like agricultural businesses and new products add up in the e-commerce sector. These products, with their own logistics and transportation department, are also adopting smart robotic technology for the easy mobility of goods and products.

The goods-to-person with order picking to the smooth internal goods movements through electrified monorails is fueling the demand for logistics robots. Advanced transportation through robotic drones is propelling the benefits of online product delivery and lower costs. Rising demand for a platform that minimizes operational time and adds new dimensions to the market is expanding the logistics robots market size.

Attributes	Details
Logistics Robots Market CAGR (2023 to 2033)	16.5%
Logistics Robots Market Size (2023)	USD 8.28 billion
Logistics Robots Market Size (2033)	USD 38.13 billion

How is the Future Outlook (2023 to 2033) for Logistics Robots Market in Comparison to the Historical Pattern (2017 to 2022)? 

• Short-term Growth: From 2017 to 2022, the global Logistics Robots market registered a comparatively higher CAGR of 23.4%. The market boomed in this short period due to the shortage of manpower in the warehouses. The pandemic pushed the idea of contactless machinery. Furthermore, advanced logistics robotics with services like receipt reading and dispatch, order picking, and storage robots that move horizontally and vertically to store aisles and insert.
• Mid-term Growth: The logistics robots market is likely to thrive at a strong growth rate with the restoration of manufacturing and production units. Along with this, the market has also flourished with highly functional warehouses due to the e-commerce expansion. Highly penetrative automation across the verticals is thriving the demand for unique and efficient solutions like logistics robots. The market is likely to grow steadily between 2023 and 2028.
• Long-term Growth: The integration of artificial intelligence and machine learning into robotic systems is increasing their capabilities. This also eases the operational hassle techniques. With the expanding e-commerce sites, the market is likely to flourish during the forecast period. Asian open markets building their infrastructure for the global market system is another growth-driving factor. Thus, the logistics robots market is anticipated to thrive at a strong CAGR of 16.5% between 2023 and 2033.

What Factors Drive and Restrict the Logistics Robots Market?

Robotic technology is mainly adopted for two factors: reduced cost and faster operations. These objectives are also prominent in transportation and logistical operations. FMI describes the primary factors and restraints of the logistics robots market in detail

Drivers

• Logistics robots deliver dual-tasking as it completes all the shifting, moving, and other tasks by themselves and leaves plenty of time for the operator to work on a different task. Thus, the robot saves time and provides opportunities.
• Higher efficiency experienced through vehicle-to-vehicle transmission sets the vehicle speed and sensor intensity. This provides stability to the warehouses and provides smooth operability, increasing overall productivity.
• Expanding industries such as pharmaceuticals and automotive are applying logistics robots for different levels of operations as it benefits these sectors. These robots integrating mega machines deliver high productivity.
• With its presence in in-house operations, logistics robots help the warehouses in loading trucks, move heavy goods, checking the receipt, and read the bar codes.

These are the factors that are expected to garner logistics robotics market growth.

Restraints

• Small and medium-sized businesses are skeptical about the implementation of these robots as it requires high investment and maintenance costs.
• Data theft concerns among end-users and stakeholders are also limiting the demand for logistics robots.

Logistics Robots Market Country-wise Insights 

How North America is a Significant Logistics Robots Market?

Booming eCommerce Industry along with the Strict Logistical Norms around Specific Industries are boosting Regional Growth

The North American logistics robots market is expected to hold a significant space in 2023.

The growth is attributed to the growing construction activities along with the rapidly expanding e-commerce businesses. The growth in sectors like automotive and pharmaceutical are pushing companies to adopt the latest technology to enhance their productivity. Stringent norms around manufacturing, production, and logistical operation promote the use of logistics operations. These norms are especially applicable to the production and manufacturing of hazardous substances and gases. Furthermore, the presence of e-commerce giants like Walmart and Amazon is expanding the logistics robots market.

Rising cases of accidents in warehouses and storage units are anticipated to fuel the growth of this region.

What makes Asia Pacific (APAC) a Leading Logistics Robots Market?

Higher Population and Rapidly Building Infrastructure is Fueling Regional Growth

The Asia Pacific region, with its emerging economies like China and India, is penetrating each technologically advanced market. The application of logistics robot systems has increased in the region with the increase in small and medium-sized businesses. Furthermore, China is one of the significant consumers of the market owing to its aging population. China also plans on replacing its labors with robots for higher accuracy and reduced cost. The higher robot density in China is proof of the success of the logistics robots market in the region.

What is Driving the European Logistics Robots Market?

Higher Application in Automotive and Construction Sector are likely to Transform the Market Dynamics

With the wider verticals, logistics robots are being used at a higher rate in automotive manufacturing. This is due to the presence of automotive giants in the region. Companies like Audi, BMW, and Volkswagen are automating their production facilities. Companies also integrate technology with artificial intelligence so that it can function with a human touch while being accurate. The expanding packaging and transportation industry in the region is also likely to contribute to market growth.

Lastly, the emergence of industry 5.0 and industrial automation is likely to draw a new picture of modern industries. The elements like AI, robotics, and cloud storage are anticipated to act like boosters.

Category-wise Insights

Segment	Top Sub-segment
Top Industry	eCommerce
Top Application	Palletizing

Higher Internet and Smartphone Penetration is likely to propel the Growth of eCommerce Segment

Based on industry, the eCommerce segment gains the most traction as it has the highest consumption. The growth is attributed to the higher smartphone and internet access that delivers easy shopping options with discounted prices and higher availability. Furthermore, advanced eCommerce robotic technology such as drones, rovers, and other robots are increasing the demand in the e-commerce industry. The other segments, like healthcare and automotive, are also significant industries that are increasing the use of robotic technology in their production process.

Extending Ways of Transportation with the Application of Robots are increasing its Traction

By application vertical, the transportation segment holds a significant share. The growth of this segment is directly affected by the increasing accidents, jams, and expanding packaging sector. The option of pick and place, along with the rising labor cost, is fueling the market growth. Furthermore, the addition of new transportation channels along with industrial automation garners the growth of the logistics robots market.

Competition Scenario

The key players focus on adding new elements and features to the robots so that they become multi-working prospects. The players also integrated artificial intelligence, machine learning, and cloud storage. The use of sensory technology according to the industrial requirement is likely to fuel the demand for logistics robots while expanding the sales channels.

Market Developments

• KUKA AG has introduced its new robot named LBR iisy Cobot, which is highly versatile, has intuitive operability, and supports production areas. The robot is also easy to install, configure, and program.
• ABB ltd. has launched its new application cells, functional modules, and smart systems. Modern robots are also flexible with different volumes and industries.

Key Players

• ABB Ltd (Switzerland)
• KUKA AG (Germany)
• Toyota Industries Corporation
• Fanuc Corporation
• Yaskawa Electric Corporation
• Kion Group Ag
• Toshiba Corporation
• Krones AG
• Kawasaki Heavy Industries Ltd. (Japan)
• Omron Corporation (Japan)

Key Segments

By Type:

• Automated Guided Vehicles
• Autonomous Mobile Robots
• Robot Arms
• Others (UAVs)

By Application:

• Palletizing & De-palletizing
• Pick & Place
• Transportation
• Others (Shipment & Delivery)

By Industry Verticals:

• E-commerce
• Healthcare
• Retail
• Food & Beverages
• Automotive
• Others (Consumer Electronics)

By Region:

• North America
• Latin America
• Europe
• Asia Pacific (APAC)
• Middle East & Africa (MEA)

Frequently Asked Questions

What is the estimated market size of Logistics Robots in 2023?

A CAGR of 16.5% is projected for the industry through 2033.

What is the current market valuation?

By 2023, the industry is expected to reach USD 8.28 billion in revenue.

What is the expected Logistics Robots Market size in 2033?

A market of USD 38.13 billion is expected to be achieved by 2033.

What barriers are limiting the market?

Data breaches and high investments limit the growth of the market.

How has the market evolved?

Integration of AI technologies and ML into logistic robots to boost the market.