Logistics Automation is changing due to artificial intelligence

 The introduction of artificial intelligence (AI) into logistics automation amplifies AI’s impact. AI reduces errors in common semi-skilled tasks such as sorting and categorizing products. Autonomous mobile robots (AMRs), for instance, improve package delivery, including the last mile of delivery which is typically the most expensive. AI helps AMRs with route planning and feature recognition, such as people, obstacles, delivery portals, and doorways.

Integrating logistics automation into any environment comes with challenges. It can be as simple as replacing a repetitive process with a powered conveyor or as complex as introducing a collaborative, autonomous robot into the workplace. When AI is added to this automation and integration process, the challenges become more complex, but the benefits also increase.

The effectiveness of individual automation elements increases as the solutions become more connected and more aware of all the other stages in the process. Putting AI closer to where the data is generated, and actions are taken, is referred to as edge AI. The adoption of edge AI is already redefining logistics automation.

Edge AI is developing rapidly, and its use is not restricted to logistics automation. The benefits of putting AI at the network edge have to be balanced with the availability of resources, such as power, the environmental operating conditions, the physical location, and the space available.

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The Global Logistics Automation Market size is projected to reach USD 133.21 Billion from USD 52.59 Billion in 2020, exhibiting a growth rate of 12.4% through 2028. The market growth is driven by the immense growth in the e-commerce platforms, increased focus on the reduction of human resources, growing adoption of automated operation, and inclination of warehouse management & logistics providers towards cutting-down on the overall OPEX (operating expenses).

Increased integration of automation in logistics to reduce the involvement of human manual efforts to save both time and money and curbing uncertainty in the successful accomplishment of operations is the key factor stimulating the growth of the logistics automation market over the forecast period.

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Key players operating in the global logistics automation market are Murata Machinery, Toshiba Logistics, Vitronic, Wisetech Global, ULMA Handling Systems, Swisslog Holding AG, Deutsche Post DHL Group, FedEx Corp., United Parcel Service, Inc., and DSV Air & Sea Inc., among others.

Further key findings from the report suggest

  • Based on end-use, the manufacturing industries are anticipated to contribute a revenue close to USD 34.82 Billion and a growth rate of 13% over the forecast timeline.
  • The e-Commerce segment is estimated to experience exponential growth of nearly 17.3% through 2028.
  • Based on automation type, the hardware-centric segment accounted for 37.6% of the logistics automation market share in 2020 and is set to grow at 16.0% through 2028.
  • The software-centric automation segment is estimated to contribute a revenue share of approximately USD 61.84 Billion by 2028. Software-centric automation employs all the operational works that do not require any machine for the purpose of product handling. Cataloging, inventory management, tracking of the product delivery, resource management, and others are entitled to this product type for automation enhancement. 
  • On the basis of the component of logistics, the material handling & transportation segment is estimated to witness a growth rate of 15.3% over the analysis period.
  • Based on logistics model type, the first party logistics segment accounted for 15.3%, and the third party logistics segment held 45.6% of the global market share in 2020.
  • The second party logistics model is forecast to account for 23.5% of the market revenue share by 2028 due to extensive adoption by firms for handling operational management. 
  • In the regional landscape, North America accounted for the largest market share of 35.1% in 2020, followed by the APAC region, accounting for 26.2% of the logistics automation market share in the same year.
  • The APAC region is forecast to exhibit a notable growth rate of 17% with a revenue generation of nearly USD 43.83 Billion by 2028 on account of major growth in the consumer base in the retail and e-Commerce sector along with the presence of a large number of manufacturing industries in the region.
  • Europe is forecast to account for 22% of the logistics automation market share, exhibiting a CAGR of 11% over the projected timeframe.

For the purpose of this report, Reports and Data has segmented the Global Logistics Automation Market on the basis of end-user, automation type, components of logistics, logistics model, and region:

End-User Outlook (Revenue: USD Billion; 2020-2028)

  • Manufacturing Industries
  • Retails
  • eCommerce
  • Oil & Gas Industries
  • Food & Beverages
  • Government Utilities
  • Healthcare Market
  • IT Industries
  • Others

Automation Type Outlook (Revenue: USD Billion; 2020-2028)

  • Hardware Centric
  • Software Centric

Components of Logistics Outlook (Revenue: USD Billion; 2020-2028)

  • Warehouse Management
  • Material Handling & Transportation

Logistics Model Outlook (Revenue: USD Billion; 2020-2028)

  • First Party Logistic Model
  • Second Party Logistic Model
  • Third Party Logistic Model
  • Fourth Party Logistic Model
  • Fifth Party Logistic Model

Regional Bifurcation of the Logistics Automation Market Includes:

·       North America (U.S., Canada, Mexico)

·       Europe (U.K., Italy, Germany, France, Rest of Europe)

·       Asia Pacific (India, Japan, China, South Korea, Australia, Rest of APAC)

·       Latin America (Chile, Brazil, Argentina, Rest of Latin America)

·       Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of MEA)

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