Europe Logistics Automation Market (By Type: Sales Logistics, Production Logistics; By Component; By Organization Size: Small and Medium Enterprises, Large Enterprises; By Mode of Freight Transport: Air, Road, Sea; By Application; By End-user)- Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

Europe Logistics Automation Market Size and Trends

The Europe logistics automation market size was estimated at around USD 17.03 billion in 2023 and it is projected to hit around USD 49.19 billion by 2033, growing at a CAGR of 11.19% from 2024 to 2033.

Key Pointers

• By Type, the production logistics segment captured the maximum market share of 51% 2023.
• By Component, the hardware segment generated the maximum market share of 56% in 2023.
• By Organization Size, the large enterprises segment captured the maximum market share of 66% in 2023.
• By Mode of Freight Transport, the road segment registered the maximum market share of 56% in 2023.
• By Application, the transportation management segment had the largest market share of 70% in 2023.
• By End-user, the automotive segment held the largest revenue share of 31% in 2023.

Europe Logistics Automation Market Overview

The Europe logistics automation market is experiencing significant growth propelled by advancements in technology and increasing adoption of automated solutions across various industries. With the aim of streamlining operations, reducing costs, and enhancing efficiency, businesses are increasingly investing in automation technologies such as warehouse management systems, automated guided vehicles, and robotics. Factors such as the expansion of e-commerce, rising demand for faster delivery, and the need for improved supply chain visibility are driving the demand for logistics automation solutions in the region.

Europe Logistics Automation Market Growth Factors

The growth of the Europe logistics automation market is attributed to the burgeoning e-commerce sector has intensified the need for efficient logistics operations to meet increasing consumer demands for fast and reliable delivery services. Additionally, the rising emphasis on cost reduction and operational efficiency across industries has prompted companies to adopt automation solutions to streamline their supply chain processes. Furthermore, advancements in technology, such as robotics, artificial intelligence, and machine learning, have enabled more sophisticated and agile automation systems, further driving market growth.

Europe Logistics Automation Market Trends:

• Rapid Growth of E-commerce: The exponential rise in online shopping is driving the demand for efficient logistics automation solutions to meet the increasing volume of orders and ensure swift order fulfillment.
• Adoption of Robotics and Automation Technologies: Businesses are increasingly integrating robotics, artificial intelligence, and automation technologies into their logistics operations to enhance efficiency, accuracy, and speed while reducing labor costs.
• Expansion of Last-Mile Delivery Solutions: With the focus on enhancing customer experience and meeting delivery deadlines, there's a growing adoption of last-mile delivery automation solutions such as drones and autonomous delivery vehicles.
• Integration of IoT and Big Data Analytics: The integration of Internet of Things (IoT) devices and big data analytics allows for real-time monitoring of logistics operations, predictive maintenance, and optimization of supply chain processes, leading to improved decision-making and cost savings.
• Focus on Sustainability and Green Logistics: There's a rising emphasis on sustainability in logistics operations, leading to the adoption of automation solutions that reduce carbon emissions, optimize energy usage, and promote eco-friendly practices throughout the supply chain.

Type Insights

The production logistics segment held the largest revenue share of 51% 2023. Production logistics focuses on the management of materials, parts, and components within manufacturing facilities, ensuring smooth and uninterrupted production processes. Automation technologies such as conveyor systems, automated storage and retrieval systems (AS/RS), and robotic arms are widely utilized in production logistics to streamline material handling, minimize idle time, and maximize throughput. These automation solutions not only accelerate the pace of production but also improve inventory management, reduce errors, and enhance overall productivity.

On the other hand, sales logistics encompasses the distribution, warehousing, and delivery of finished products to customers, retailers, or distribution centers. Automation plays a critical role in sales logistics by automating order fulfillment processes, inventory management, and transportation operations. Automated order picking systems, sorting systems, and warehouse management software streamline the picking, packing, and shipping processes, resulting in faster order processing, reduced labor costs, and improved accuracy.

Component Insights

The hardware segment dominated in 2023 with a 56% revenue share in the Europe logistics automation revenue. Technological advancements have dramatically propelled the revenue for logistics automation in Europe. Automated guided vehicles (AGVs), robotic arms, conveyor systems, and automated storage and retrieval systems (AS/RS) are examples of hardware components that are becoming essential for improving labor costs and operating efficiency. These technologies' ongoing advancement and widespread use have been crucial to preserving the hardware segment's leadership position.

The software segment is observed to be the fastest growing in the Europe logistics automation revenue during the forecast period. In today's fast-paced corporate world, having access to real-time data and insights is essential for making wise decisions. Businesses may monitor their operations in real-time with the help of logistics software, which offers extensive analytics features. This includes monitoring inventory levels, tracking shipment statuses, and calculating transportation expenses. Logistics companies may better serve their customers, react swiftly to shifting revenue conditions, and increase efficiency and profitability by using real-time data analytics to make proactive decisions. The adoption of logistics software is significantly influenced by the capacity to derive meaningful insights from data.

Organization Size Insights

The large enterprises segment dominated in 2023 with a 66% revenue share in the Europe logistics automation revenue. Large enterprises, with their extensive resources, infrastructure, and established market presence, often lead the adoption of logistics automation technologies to streamline operations, improve efficiency, and gain competitive advantages. These enterprises leverage their scale and financial capabilities to invest in advanced automation solutions, such as robotics, artificial intelligence, and integrated software platforms, to optimize their supply chain processes, reduce costs, and enhance customer satisfaction.

On the other hand, SMEs in Europe are increasingly recognizing the importance of logistics automation in driving business growth, enhancing operational efficiency, and remaining competitive in today's digital economy. While SMEs may have limited resources and budgets compared to their larger counterparts, they are often more agile, adaptable, and responsive to change, making them well-positioned to leverage automation technologies to their advantage. SMEs can selectively adopt automation solutions tailored to their specific needs and budget constraints, such as cloud-based logistics management systems, modular automation components, and scalable robotics solutions.

Mode of Freight Transport Insights

The road segment dominated in 2023 with a 56% revenue share in the Europe logistics automation revenue. Road transport, characterized by its flexibility, accessibility, and door-to-door delivery capabilities, is a preferred choice for transporting goods over short to medium distances within Europe's vast network of roadways. Automation technologies such as GPS tracking, fleet management systems, and route optimization software enhance the efficiency and reliability of road transport operations, enabling logistics providers to optimize delivery routes, minimize fuel consumption, and reduce transit times. Additionally, advancements in vehicle automation, such as autonomous trucks and platooning systems, hold the potential to further revolutionize road transport by increasing safety, reducing labor costs, and improving overall productivity.

The sea segment is observed to be the fastest growing in the Europe logistics automation revenue during the forecast period. Automation technologies play a crucial role in enhancing the efficiency, safety, and environmental sustainability of sea transport operations. Port automation solutions, such as automated container terminals, crane systems, and cargo handling equipment, streamline loading and unloading processes, optimize berth utilization, and minimize turnaround times for vessels.

Application Insights

The transportation management segment dominated in 2023 with a 70% revenue share in the Europe logistics automation revenue. Transportation management applications encompass a range of software solutions and technologies designed to streamline the planning, execution, and monitoring of transportation activities, including route optimization, carrier selection, freight tracking, and fleet management. By leveraging transportation management systems (TMS), logistics providers can optimize delivery routes, minimize transportation costs, and improve delivery reliability through real-time visibility and control over transportation assets and operations.

Warehouse and storage management applications are equally critical in the Europe logistics automation market, facilitating the efficient handling, storage, and retrieval of goods within warehouses, distribution centers, and fulfillment centers. Warehouse management systems (WMS) play a central role in automating and optimizing warehouse operations, including inventory management, order picking, packing, and shipping processes. By integrating barcode scanning, RFID technology, and automation equipment such as conveyors and automated guided vehicles (AGVs), WMS enables real-time inventory tracking, accurate order fulfillment, and efficient use of warehouse space, leading to improved productivity, reduced labor costs, and enhanced customer satisfaction.

End-user Insights

The automotive segment dominated with a 31% revenue share in 2023 in the Europe logistics automation revenue. The automotive industry, characterized by complex supply chains, just-in-time manufacturing, and stringent quality requirements, relies heavily on logistics automation to ensure efficient and reliable transportation of parts, components, and finished vehicles. Automation technologies such as robotic assembly lines, automated guided vehicles (AGVs), and material handling systems enable automotive manufacturers to optimize production processes, reduce lead times, and enhance manufacturing flexibility. Moreover, advanced logistics automation solutions facilitate seamless coordination and synchronization of logistics activities among suppliers, manufacturers, and distributors, enabling automotive companies to achieve operational excellence, cost savings, and competitive advantages in the global market.

The retail and e-commerce segment significantly growing in the Europe logistics automation revenue during the forecast period. Retailers and e-commerce companies face the challenge of managing complex and dynamic supply chains, fulfilling orders accurately and quickly, and meeting customer expectations for fast delivery and seamless shopping experiences. Logistics automation plays a crucial role in addressing these challenges by automating order fulfillment processes, optimizing warehouse operations, and improving last-mile delivery efficiency. Automated order picking systems, sorting systems, and robotic warehouses enable retailers and e-commerce companies to handle large volumes of orders with speed and precision, reducing order processing times and improving order accuracy.

Europe Logistics Automation Market Key Companies

• E&K Automation
• Jungheinrich
• Knapp
• SSI Schaefer
• Swisslog
• System Logistics
• TGW Logistics Group
• SAP

Europe Logistics Automation Market Segmentation:

By Type

• Sales Logistics
• Production Logistics
• Recovery Logistics

By Component

• Hardware
• Software
• Services

By Organization Size

• Small and Medium Enterprises
• Large Enterprises

By Mode of Freight Transport

• Air
• Road
• Sea

By Application

• Transportation Management
• Warehouse and Storage Management

By End-user

• Manufacturing
• Healthcare and Pharmaceuticals
• Fast Moving Consumer Goods
• Retail and E-commerce
• Automotive
• Others