Global Logistics Robot Market - Forecasts from 2022 to 2027
The global logistics robots market was valued at US$2.585 billion in 2020 and is expected to grow at a CAGR of 22.94% over the forecast period to reach a total market size of US$10.971 billion by 2027.
Logistics robots automate the storage and transportation of goods as they move through the supply chain. Logistics robots are commonly used to arrange and carry goods in warehouses and storage facilities, but they may also be utilised in other applications. Logistics robots outperform manual labour in terms of uptime, resulting in considerable productivity benefits and profitability for businesses that use logistics robots.
The increased emphasis on end-to-end automation for operational efficiency and workforce availability is expected to drive market demand. The growing demand for more personnel to manage logistics operations is fueling the expansion of e-commerce sectors and the need for more package shipments. Furthermore, a decrease in the size of the available workforce due to declining population levels in Western nations is directly influencing the demand for logistics personnel, as online shopping often requires more workers per item sold than conventional brick-and-mortar retail. Furthermore, when consumers purchase heavier goods such as white goods, building materials, and furniture, among other products, the average weight of such shipments increases, necessitating the need for robots.
Additionally, the growing popularity of autonomous warehouses is providing new opportunities. The concept of warehouses outfitted with autonomous technologies is gathering momentum. Robots control the majority of the operational process, which includes scanning, picking and placing, transportation, and other tasks. With the increasing number of autonomous warehouses, the industry is projected to develop at a rapid pace in the future years. Furthermore, logistic service providers are aggressively investing, which is likely to push the market further. For instance, in 2019, XPO Logistics, a logistics service provider located in the United States, invested USD 550 million a year to integrate industry-leading technologies throughout its operations in North America and Europe. Furthermore, the rise of the e-commerce business and the increasing relevance of real-time inventories are two additional factors driving the global market's growth.
North America is expected to dominate the market. This is due to the increased establishment of warehouses and distribution hubs around the region. Furthermore, substantial investments in the development of industry 4.0, smart factories, and automated warehousing systems are driving up sales of logistics-type robots in this region. The region's expanding E-commerce, healthcare, and retail industries will play an important role in increasing the deployment of these robots. Due to the significant presence of manufacturers in this area, Asia Pacific is expected to develop at a faster rate in the future years. Countries such as China and South Korea are putting a strong emphasis on updating existing technology in order to remain competitive in the global market. Furthermore, the Asia-Pacific region's growing e-commerce and automotive sectors are propelling the logistics robot market.
Order fulfilment in the e-commerce industry is a significant contribution to the growing deployment of logistics robots. To keep up with delivery schedules, merchants are being forced to embrace the automation process to execute repetitive activities using robotic solutions due to an increase in the number of online consumers. Furthermore, efficient integration of digital automation networks gives a real-time picture of activities. As a result, manufacturers, shipping companies, and other businesses may quickly assess the condition of their operations. This function is critical for the e-commerce sector because they are primarily concerned with meeting the needs of their customers on time. This also contributes to the market's expansion.
The logistics robot market is expanding due to its ability to execute a variety of tasks. These robots are equipped with a variety of programming software and sensors that allow them to execute many jobs in a row. This is due to the high expenses associated with acquiring and programming such robots, which slows market development. Furthermore, emerging economies, where regional businesses find it difficult to spend heavily, are pursuing research and development operations to keep up with the top robotics advances. This might lead to increased market growth constraints. Furthermore, small and medium-sized retailers cannot afford to invest in robotic solutions, so they employ workers to do repetitive jobs in warehouses and distribution centres. This is further stifling market expansion.
COVID-19's Impact on the Logistics Robots Market:
The COVID-19 pandemic has resulted in massive losses for a number of businesses throughout the world. It had a huge impact on market growth prospects till the first half of 2020. The abrupt closure of warehouses, manufacturing plants, and other facilities had a negative impact on the supply chain. However, the second half of 2020 witnessed a surge in demand for robotic arms, automated guided vehicles, and other products in facilities across China, the United States, India, Germany, and other countries across the world. As a result, the logistical supply chain has been restored, including the potential for robots in omnichannel fulfilment. Manufacturers are responding to these fast-moving applications as well. ABB, for example, bought Codian Robotics B.V. in October 2020 to expand its robotics portfolio spanning logistics, pharmaceuticals, and food andbeverage applications. Therefore, the market is expected to increase in the coming years.
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