Dublin, February 9, 2026 (GLOBE NEWSWIRE) — The “Logistics Automation – Market Share Analysis, Industry Trends and Statistics, Growth Forecast (2026-2031)” was added to ResearchAndMarkets.com offer.
The logistics automation market is expected to reach USD 90.78 billion by 2026, from USD 82.69 billion in 2025. By 2031, the market is expected to further grow to USD 144.78 billion, growing at a CAGR of 9.78% from 2026 to 2031.
This growth is driven by increased e-commerce parcel volumes, labor shortages and corporate commitments to net zero emissions, which have transformed automation into a critical part of supply chain design. Retailers are prioritizing automated order fulfillment systems as a strategy against wage inflation. Additionally, the adoption of private 5G and LTE networks within warehouses enables seamless coordination between robots and vehicles.
Environmental goals shape capital investments, with green bond financing linked to energy-efficient systems for collection, storage and transportation. Semi-automated solutions currently dominate the market, but fully automated projects are gaining ground as AI vision and safety technologies overcome certification challenges, reducing execution risks. Asia Pacific is emerging as a market leader, fueled by government subsidies and increasing adoption of 5G technology.
Global Logistics Automation Market Trends and Outlook
Rapid e-commerce parcel volumes drive infrastructure modernization
Fulfillment operators are now faced with consistently high order volumes, driving a shift toward continuous goods-to-person workflows that minimize cycle times without increasing the size of the workforce. Retailers like Kroger have expanded their automation partnerships to improve same-day delivery services. UPS improved its packaging efficiency, reducing waste by 30% while maintaining throughput goals. Urban micro-fulfillment centers are on the rise, and warehouse space in India is expected to exceed 35 million feet by 2027, fueling demand for space-efficient automation.
Growing labor shortage accelerates automation investment cycles
Labor shortages, particularly in North America and Europe, have become a strategic bottleneck. India hit a 16-year high in manufacturing growth in March 2024, driving the deployment of unmanned cargo transportation platforms by companies like the NIDO Group. Collaborative AMRs alleviate pressure on the workforce by taking on repetitive tasks, allowing human workers to focus on exceptions. Robotics-as-a-service models are gaining popularity due to their flexibility, especially in the fast-growing Asia-Pacific region.
High initial capital requirements hamper adoption by SMEs
Complete warehouse automation projects can cost more than $5 million, limiting SMB participation. A la carte subscriptions, like those offered by AutoStore, reduce upfront costs but do not eliminate construction and integration expenses. Emerging markets face financing and foreign exchange risks, leading to a shift towards rental or service-based models. Despite these challenges, capital expenditure remains a major constraint in the short term.
Sector analysis
Warehouse operations dominated the logistics automation market in 2025, with a revenue share of 59.55%, driven by the efficiency of goods-to-person systems and robotic sorting. Transportation automation is poised for significant growth, projected at a CAGR of 11.05% through 2031, as autonomous vehicles move from pilot stage to mainstream use.
Innovations continue to support warehouse leadership. AutoStore’s CarouselAI launched in 2025, offering robotic order picking solutions that are easy to retrofit. Private 5G deployments, such as those from CJ Logistics, integrate indoor and jobsite robotics, streamlining dock operations. Although cross-functional solutions could gain ground, warehouses will remain at the heart of the market.
The market report is segmented by function (warehouse and transportation automation), automation level (fully and semi-automated systems), industry (e-commerce, retail, manufacturing), and geography (North America, South America, Europe, Asia Pacific, Middle East, Africa). Projections are provided in USD.
Geographic analysis
Asia Pacific leads the global logistics automation market, accounting for 31.30% of revenue in 2025 and is expected to grow at a CAGR of 11.56% through 2031. China’s industrial robots sector leads globally, while India’s warehouse space is growing rapidly, driven by initiatives to reduce logistics costs and meet urban demand.
North America remains a vital market due to high labor costs and the benefits of automation, despite challenges with legacy systems. US FTZs promote inventory strategies, thereby boosting cross-border e-commerce. The European market mirrors that of North America, with a greater emphasis on reducing carbon emissions, which is driving investment in energy-saving technologies.
Regions like Latin America, the Middle East and Africa are in their early stages of market adoption but show potential due to favorable demographics and growth in e-commerce. As financing options improve, these areas are expected to contribute significantly to the growth of the global market.
Key Companies in the Report:
- Dematic Corp.
- Daifuku Co., Ltd.
- Honeywell International Inc.
- Jungheinrich AG
- Murata Machinery, Ltd.
- KAPP AG
- TGW Logistics Group GmbH
- Kardex Holding SA
- Mecalux, SA
- BEUMER Group GmbH & Co. KG
- SSI SCHAFER AG
- Vanderlande Industries BV
- WITRON Logistik + Informatik GmbH
- Interroll Holding AG
- GreyOrange Pte Ltd.
- Locus Robotics Corp.
- Geek + Technology Co., Ltd.
- Ocado Group PLC (Ocado Intelligent Automation)
- AutoStore Holdings Ltd.
- Exotec SAS
- Fetch Robotics Inc. (Zebra Technologies)
- Korber Supply Chain GmbH
- Cimcorp Oy
- Manhattan Associates Inc.
For more information on this report, visit https://www.researchandmarkets.com/r/fgxqcp
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