Investments in Industry 4.0 Technologies to Aid Labor Shortages

DUBLIN, September 6, 2022 /PRNewswire/ — The “Logistics Automation Market By Component, By Application, By Organization Size, By End-Use Industry: Global Opportunity Analysis And Industry Forecast, 2020-2030” Report has been added to offering.

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The logistics automation market was valued at $49.7 billion in 2020, and it is estimated that it will reach $147.4 billion by 2030, growing at a CAGR of 11.9% from 2021 to 2030.

North America it is expected to dominate the global logistics automation market due to the growth of e-commerce and the adoption of automation solutions as a result of labor shortages in the region. Furthermore, the adoption of robots has been observed in the region, which is expected to create demand for automation solutions and in turn, is anticipated to contribute to the growth of the market.

for example in August 2021Yandex Self-Driving Group partnered with Grubhub to operate delivery robots on college campuses in the US Additionally, in 2020, Hyundai Motor Group acquired a majority stake in Boston Dynamics with the aim of promoting robotics and mobility.

Labor shortages are currently being faced all over the world, which in turn is creating the demand for warehouse automation. In addition, companies from emerging countries such as Porcelain Y Indiathey are also embracing automation in the warehouse to get ahead of labor shortages.

For example, in 2022, Cainiao Network Technology built the largest unmanned warehouse in Southeast Asia for the Thai courier service Flash Express. This unmanned warehouse can process 6,000 packages a day and can increase to 20,000 a day during peak season. Going forward, increased demand for warehouse automation from emerging countries is the factor that will create new growth opportunities for the logistics automation market during the forecast period.

Based on the size of the organization, the global logistics automation market is segregated into SMEs and large enterprises. Large companies are using automated material handling technology for various processes, such as categorizing and moving heavy items or containers within the warehouse. In addition, autonomous mobile robots are also being used to move materials from the picking area to the order packing area within the warehouse.

for example in January 2022DHL supply chain announced a $15 million investment in robotic solutions from Boston Dynamics to further automate warehousing in North America. Boston Dynamics will equip the DHL facility with ‘Stretch’, which is a robot designed to automate the unloading process at distribution centers.

Significant factors impacting the growth of the logistics automation market include increased workforce efficiency and safety, growth in e-commerce, adoption of industry 4.0 technologies, and advances in robotic technologies. Furthermore, factors such as high initial investment are expected to hamper the growth of the market.

Furthermore, the adoption of autonomous vehicles and drones and increased demand for warehouse automation from emerging economies are expected to create new growth opportunities for the logistics automation market during the forecast period.

COVID-19 impact analysis

The COVID-19 crisis has created uncertainty in the market and has led to a massive supply chain slowdown, a drop in business confidence and increased panic among customers. The governments of different regions have announced the total closure and the temporary closure of industries, which negatively affects the production and sales in general.

The impact of the COVID-19 pandemic has resulted in changes in the workforce, temporary restrictions on the movement of goods, and the adoption of automation solutions. The pandemic has caused supply chain disruptions that have caused temporary restrictions on the movement of goods. In 2019, online purchases increased 20% and then 30% during the lockdown.

The rise of online sales forced companies to restructure their warehouse to handle e-commerce logistics. At the same time, companies have also had to safeguard the health and safety of their employees working throughout the supply chain. To meet the demand for e-commerce and adapt to the new situation, several logistics companies have introduced changes in their workforce and opted for logistics automation.

However, with the lifting of lockdown restrictions, a number of logistics companies have started to invest in Industry 4.0 technologies to address the issue of labor shortages and meet the growing demand from the e-commerce sector. Companies are adopting autonomous robots to automate tasks within the warehouse and drones for last-mile delivery.

Key market players

Key market segments

By organization size

By end-use industry

per component

per application

By region

  • North America

  • U.S

  • Canada

  • Mexico

  • Europe

  • Germany

  • United Kingdom

  • France

  • Italy

  • The rest of Europe

  • Pacific Asia

  • Porcelain

  • Japan

  • India

  • South Korea

  • Rest of Asia Pacific


  • Latin America

  • middle East

  • Africa

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