The global logistics robots market size is projected to reach USD 17.82 billion by 2028, exhibiting a CAGR of 16.4% during the forecast period. According to a report by Fortune Business Insights™, titled “Logistics Robots Market, 2021-2028”, the market value was estimated to stand at USD 5.38 billion in 2020 and is expected to touch USD 6.17 billion in 2021.
Increasing Adoption of Smart Warehousing Tools to Boost the Market
Managing warehouse operations can be a tedious task and companies are eagerly adopting smart technologies, mainly artificial intelligence and robotics, to optimize warehousing activities. For example, in May 2021, Locus Robotics deployed autonomous mobile robots, equipped with dashboards and reporting capabilities, for Taylored Services, a warehousing company. After the robots were rolled out, the company reported immediate productivity gains and improved client satisfaction.
Logistics robots are proving to be especially useful for e-commerce companies, which extensively utilize warehousing services. In October 2018, for instance, Alibaba-owned Cainiao inaugurated a warehouse with 700 robots operating in it in China. Similarly, in June 2018, Google invested USD 500 million in China-based JD to leverage its expertise in automated supply chain and logistics. Thus, warehousing management powered by robotics and AI will significantly augment the outlook of this market.
By type, the market’s segments include automated guided vehicles, autonomous mobile robots, robot arms, and others. Based on application, the market is divided into palletizing &de-palletizing, pick & place, transportation, and others. In terms of industry, the market is distributed into e-commerce, healthcare, retail, food & beverages, automotive, and others. Geographically, the market has been categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
Promising Emergence of Robot Startups in the Logistics Industry to Fuel the Market
As robots continue to penetrate the logistics industry. Several startups have emerged to provide inventive robotic solutions for warehouse management and manufacturing operations. For example, Copal, a Netherlands-based startup, offers robots that can be programmed to move the load, palletize it. Deliver it straight to storage, thus enhancing productivity and efficiency of the manufacturing process. On the other hand, Germany-based Sawyer is a startup that has developed collaborative robots (co-bots) that stands with human workers in the assembly line and performs fully automated repeat tasks. Meanwhile, Netherlands-headquartered Smart Robotics has engineered logistics robots that are designed to execute precise picking and placing movements. The proliferation of such specialized entities in robotics is fostering the sustained growth of this Logistics Robots Market.
Growing Acceptance of Smart Factories to Propel the North America Market
North America is anticipated to have a commanding hold on the logistics robots market share. During the forecast period on account of the growing adoption and willing acceptance of smart factories. Furthermore, the rapidly rising number of distribution centers across the US and Canada will also contribute to the expansion of this market.
Asia Pacific, where the market size stood at USD 1.78 billion. The demand for logistics robots will be driven by the advancements in auto manufacturing in the region. Coupled with the escalating growth of the e-commerce industry in India and China.
Portfolio Enhancement to be Top Priority for Key Players
Leading competitors in the market for logistics robots are zealously exploring avenues to speedily diversify and expand their portfolios. For this, companies are entering into acquisition agreements and collaborating with different entities, in a bid to develop new products, boost R&D, establish a presence in emerging markets, and bolster their position in the international market.
- October 2020: ABB announced the takeover of Codian Robotics, a specialist in delta robots, which are mainly used for high-precision pick & place operations. Codian’s automation line includes robots for hygiene-sensitive industries such as food & beverage and pharmaceuticals.