At 11.0% CAGR, North America Logistics Automation Market is Projected to be Worth US$ 28,794.65 Million by 2030, says Business Market Insights

According to Business Market Insights' research, the North America logistics automation market was valued at US$ 12,454.02 million in 2022 and is expected to reach US$ 28,794.65 million by 2030, registering a CAGR of 11.0% from 2022 to 2030. Adoption of industrial 4.0 across the manufacturing industry and utilization of robotics in warehouses are among the critical factors attributed to the North America logistics automation market expansion.

The manufacturing sector is increasing globally; the manufacturing Purchasing Managers' Index (PMI) registered 49% in September 2023, 1.4% higher than the 47.6% recorded in August 2023. The overall economy expanded weakly after nine months of contraction following 30 months of expansion. This signifies a robust recovery of the manufacturing sector across the developed countries, growing industrial advancement in the developing economies, and escalating commodity prices in the global market. The expansion of the manufacturing industry due to the adoption of technologically advanced solutions results in the enhancement of plant productivity and competitive advantage and maintains the edge with the customers. The manufacturers of various products face huge competition with other market players because of quality, costs, service, and time taken for the overall process. Manufacturers are constantly focusing on enormous challenges related to maintaining a balance between the demand and supply of the product globally. Therefore, the manufacturing industries are inclined to focus on their core competencies of manufacturing and outsource the rest to other stakeholders in the value chain. The increasing demand for efficient supply chain systems across the manufacturing sector appeared to be imminent as logistics automation providers focus on all aspects of supply chain management, warehouse management, and transportation management by providing an advanced solution for efficiently managing goods from the production line to the consumer.

The increasing implementation of Industry 4.0 has led to an extensive digital overhaul across the manufacturing sector. This, in turn, has boosted the integration of logistics automation components across industries to harness the power of sophisticated digital technologies. Logistics automation companies offer a competitive edge to their clients by restructuring various supply chain processes. The increasing development of digital technologies such as cloud computing, advanced software, and big data, which logistics automation providers deliver, can improve visibility, operations, transparency, and productivity across the overall supply chain. Additionally, technologies such as automation, the Internet of Things (IoT), and robotics are also gaining more prominence. Thus, owing to the above parameters the industry 4.0 in manufacturing industry is propelling the North America logistics automation market growth.

On the contrary, high cost of implementation of logistics automation hampers the growth of North America logistics automation market.

Based on component, the North America logistics automation market is segmented into hardware, software, and services. The hardware segment held 69.9% share of the North America logistics automation market in 2022, amassing US$ 8,703.82 million. It is projected to garner US$ 19,258.77 million by 2030 to expand at 10.4% CAGR during 2022-2030.

In terms of mode of freight transport, the North America logistics automation market is segmented into land, water, and air. The land segment held 58.6% share of the North America logistics automation market in 2022, amassing US$ 7,300.45 million. It is estimated to garner US$ 15,694.76 million by 2030 to expand at 10.0% CAGR during 2022-2030.

By application, the North America logistics automation market is bifurcated into warehouse management and transportation management. The warehouse management segment held 86.4% share of North America logistics automation market in 2022, amassing US$ 10,759.54 million. It is predicted to garner US$ 24,553.43 million by 2030 to expand at 10.9% CAGR during 2022-2030.

In terms of end-user industry, the North America logistics automation market is segmented into manufacturing, retail and e-commerce, oil and gas, food and beverages, automotive, healthcare and pharmaceutical, and others. The manufacturing segment held 22.6% share of the North America logistics automation market in 2022, amassing US$ 2,816.87 million. It is estimated to garner US$ 7,001.10 million by 2030 to expand at 12.1% CAGR during 2022-2030.

Based on country, the North America logistics automation market is categorized into the US, Canada, and Mexico. The US held 79.3% share of North America logistics automation market in 2022, amassing US$ 9,877.28 million. It is projected to garner US$ 23,648.24 million by 2030 to expand at 11.5% CAGR during 2022-2030.

Key players operating in the North America logistics automation market are BEUMER Group GmbH & co KG, Daifuku Co Ltd, Dematic Corp, Honeywell Intonational Inc, KNAPP AG, Mecalux SA, Swisslog Holding AG, TGW Logistics Group GmbH, and Toshiba Infrastructure Systems and Solutions Corp, among others.

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