"Catapult Your Business to Fore, Gain Competitive Advantage "
The global Logistics robots market size stood at USD 4.70 billion in 2019 and is projected to reach USD 14.95 billion by 2027, exhibiting a CAGR of 15.7% during the forecast period.
The growing demand for e-commerce fulfillment services and complex supply chain operations is a major factor responsible for the emergence of robotics systems for Logistics solutions. Today, the retailers, distribution centers, and warehouse owners are switching from manual processes to automation for material handling. The major interest is to ensure real-time delivery and achieve efficiency and productivity in the operational process. However, until now, these robots lacked the intelligence to identify and handle tens of thousands of constantly changing products in a typical dynamic warehouse operation. While technological advancement resulted in overcoming such barriers. This technology includes AI and machine learning, better sensors and response capability, and warehouse management software. The evolution of such upgradation in robots is creating a potential impact on market demand. Furthermore, warehouse operations are labor-intensive. The high cost of labors for performing various tasks is compelling warehouse owners to integrate automated Logistics solutions. This is further promoting the Logistics robots market growth.
Request a Free sample to learn more about this report.
Growing Trends towards Autonomous Warehouses is Anticipated to Swell the Market
The growing trend of warehouses equipped with autonomous solutions is gaining traction. The operational workflow including scanning, pick and place, transportation, and others are mostly managed by these industrial robots. The market is expected to grow at a significant rate in the coming years with the rising autonomous warehouses. Also, Logistics service providers are aggressively pouring investments which are further expected to drive the market. For instance, an American based Logistics service provider company named XPO Logistics invests USD 550 million a year to integrate industry-leading innovations across its operations in North America and Europe. Furthermore, the growing e-commerce industry, the importance of real-time inventory, rising labor costs, and others are some of the contributing factors anticipated to boost the market.
Rise in E-commerce Industry is expected to Propel Growth
The order fulfillment in the e-commerce sector is a major contributor to the rise in Logistics robot deployment. The growing number of online customers is enforcing retailers to adopt the automation process to perform tedious, tasks through robotic solutions to map up with the delivery timelines. Also, the effective integration of digital automation networks provides a real-time overview of the operations. Owing to this, manufacturers, Logistics, and other companies can easily gauge the status of the operations. This functioning is vital for the e-commerce sector as they majorly focus on fulfilling the customer's demand on time. This is also adding impetus to the growth of the market.
High Setup Costs Involved at Initial Stage can Hinder Growth
The market for Logistics robots is fueling owing to its ability to perform various applications. Having said that, these robots are streamlined with various programming software and sensors which perform different tasks in a row. This involves high costs associated with procuring and programming such robots resulting in slowing down the market. Additionally, the developing economies wherein regional players operate find it difficult to pour heavy investments in conducting research & development activities to meet up the leading innovations. This could further lead to restricting the market growth. Moreover, small and medium scale retailers are unable to invest in robotic solutions and hire laborers for performing repetitive tasks at warehouses and distribution centers. This is further inhibiting market demand. Furthermore, the breakdown of the COVID-19 pandemic is affecting the growth of the Logistics market to a greater extent. The immediate shutdown of manufacturing plants, warehouses, distribution centers, and others has created an adverse impact on the overall supply chain systems. Also, this adverse impact would hamper the revenue generation for the facility owners.
To know how our report can help streamline your business, Speak to Analyst
Automated Guided Vehicles Segment is Anticipated to Show Higher Growth Rate
Based on type, the market is segmented into automated guided vehicles, autonomous mobile robots, robot arms, and others.
The automated guided vehicles segment is expected to grow at a significant rate in the forecast period owing to its functionality of moving freely around warehouses and factories. Also, AGVs do not require expensive external infrastructure for navigation. Furthermore, technological advancement is a major contributor to boosting the AGVs market. It can execute an optimal path in real-time or can follow a pre-programmed path. Moreover, the goods are labeled with barcodes and RFIDs, which enables AGVs to identify the product and place it to their desired destination.
Autonomous mobile robots, robot arms, and UAVs are expected to grow at a significant rate in the coming years owing to its functionality of performing repetitive tasks at a low cost. Also, these robots' arms can carry high payload capacity objects with precision. Furthermore, autonomous mobile robots are integrated with sensors, manipulators, etc. to efficiently move goods across the warehouses and distribution centers.
Transportation Segment to Grow Rapidly in Forecast Period
Based on application, the market is segmented into palletizing & de-palletizing, pick & place, transportation, and others.
The transportation segment is anticipated to flourish in the forecast period owing to growing various industries including e-commerce, retail, healthcare, etc. The rising deployment of AGVs for moving bulky goods across warehouse facilities is also supplementing the future growth in the transportation segment. Also, palletizing and de-palletizing is one of the considerable application performed by AGVs. Owing to the higher growth in the AGVs market, the transportation segment is anticipated to book high growth.
Pick & place segment is expected to show considerable growth in the coming years with the increasing sales of autonomous mobile robots, robotic arms, etc. The major usage of these robots is to perform repetitive tasks of picking and placing cartons, containers, etc.
E-commerce Segment to show Exponential Growth in Coming Years
The industry segment is further drilled into e-commerce, healthcare, retail, food & beverages, automotive, and others.
The rising business of e-commerce players including Amazon, Snap deal, Flipchart, Alibaba, etc. is one of the major factors contributing to the growth of the market. Furthermore, the rising trends of online shopping and quick deliveries are boosting the e-commerce industry. Moreover, these key players are revolutionizing the delivery activity by launching delivery drones and robots. For instance, in June 2019, Amazon debuted a new delivery drone which will start shipping packages to its customers. This drone can cover a distance of around 15 miles and can deliver in less than 30 minutes. Owing to this, the e-commerce industry is expected to drive the Logistics robots market.
Healthcare, retail, food & beverage, and automotive industry are expected to grow at a considerable rate in the forecast period owing to rising disposable income, rising customers demand real-time delivery, growing consumption of FMCG products, etc.
North America Logistics Robots Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Geographically, the market is segmented across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
North America holds the highest share in the market in 2019 owing to the rising construction of warehouses and distribution centers across this region. Also, high investments for the development of industry 4.0, smart factories, and automated warehouse systems
are increasing the sales of Logistics robots in this region. Furthermore, growing e-commerce, healthcare, and retail industry play a vital role in enhancing the deployments of this market.
Asia Pacific is anticipated to grow at a higher rate in the coming years owing to the considerable presence of manufacturers operating in this segment. Countries including China and South Korea are rigorously emphasizing on upgrading existing technologies to stay competitive in the global market. Furthermore, rising e-commerce, automotive industry in Asia Pacific region is driving the Logistics robot market.
Europe, Middle East, and Africa and Latin America are expected to grow at a considerable rate owing to the rising e-commerce industry, growing retail industry, growing construction of warehouses and distribution centers, etc.
Vecna Robotics is Adopting Various Marketing Strategy to Avail New Sales
Vecna Robotics is focusing on fastening the supply chain ecosystem by offering robotic warehouse systems to revolutionize the Logistics industry. Also, the company is adapting various marketing strategies to fasten its sales. For instance, Vecna Robotics installed a permanent display of their robotic vehicles at the innovation Centre located in Illinois, United States named DHL Americas Innovation Center. This would showcase their product to the senior supply chain and industry professionals.
Key players are Focusing on Expanding its Business Across the Globe
Key suppliers are adopting various marketing strategies including mergers & acquisitions, new product launch, collaboration, joint ventures, and others to increase their global footprint. Also, they are aligning with startup companies to integrate innovative technologies into their existing product lines.
The Logistics robots market report provides detailed information regarding various insights into the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2020 to 2027 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.
An Infographic Representation of Logistics Robots Market
To get information on various segments, share your queries with us
ATTRIBUTE | DETAILS |
Study Period | 2016-2027 |
Base Year | 2019 |
Forecast Period | 2020-2027 |
Historical Period | 2016-2018 |
Unit | Value (USD billion) |
Segmentation | By Type
|
By Application
| |
By Industry
| |
By Region
|
As per Fortune Business Insights, the market was worth USD 4.70 billion in 2019
By 2027, the market size is expected to reach USD 14.95 billion.
The market is projected to grow at a CAGR of 15.7% during the forecast period (2020-2027).
Within Type, the Automated Guided Vehicles segment is expected to lead the market share during the forecast period.
Rapid technological developments such as IoT, artificial intelligence are the key factors driving the market.
ABB, TOYOTA INDUSTRIES CORPORATION, and Kawasaki Heavy Industries Ltd. are the top companies in the global market.
Asia Pacific is expected to hold the highest CAGR in the market
The Transportation application holds the major market share.