Logistics Robot Market

Logistics Robot Market Outlook

According to Fairfield Market Research, the global logistics robot market is expected to be worth US$12,739.1 Mn by 2025 from US$807.2 Mn in 2017, registering a CAGR of 23.7% during the forecast period 2021-2025.

Global Logistics Robot Market Explores Unprecedented Opportunity amid E-commerce Revolution

Logistics robots are used for automating the process of storage and movement of goods in warehouses and storage facilities. These robots can perform repeated movements over sustained periods with ease, ensuing operational efficiency. They assist workers with the inventory picking process and deliver critical improvements in speed, control, accuracy, and productivity whilst complying with worker safety norms. These factors have increased the scope of the global logistics robot market in supply chain and warehouse operations. One of the biggest challenges facing the logistics industry is the availability of labor. The problem is compounded with soaring e-commerce sector. Thus, solutions offered by the global logistics robot market bridge the gap between the two, creating a seamless function.

The increase in the number of logistics and warehousing companies across the globe have led to an exponential demand of logistics robots for efficient operation. Companies are also increasing their budgets for adopting advanced robotic systems to improve their supply chain or warehouse operation and efficiency. Such developments are likely to complement the expansion of logistics robot market. For instance, XPO Logistics is focused on adopting effective technology to optimize the operational efficiency of its warehouses. The company is spending more than US$500 Mn annually on technology innovation for warehouse operation. DHL International will also follow suit by investing US$300 Mn in emerging technologies in the U.S., and Canadian distribution centers. 

AI to Machine Learning Emerge as Key Technologies in Global Logistics Robot Market

Artificial Intelligence (AI), computer vision, cloud computing, and machine learning are some of the technologies being integrated in development of logistics robots. Report finds that AI is expected to offer demand predictions, modify orders, and re-route products in transit. Furthermore, users can adjust orders according to these predictions and have the in-demand goods delivered to local warehouses as needed. Computer vision technology used in warehousing will allow recognition and organization of items. In the future, this type of technology will help perform quality control and eliminate the need for human supervision. For instance, Israeli automation start-up Musashi AI, a joint venture between SixAI Ltd., and Musashi Seimitsu, has developed autonomous forklifts, visual quality control inspectors, and an AI-based fleet management platform for logistics robots. The company has utilized edge computing, advanced optics, and AI for real-time mapping, swarm navigation, and collision detection and control. Such developments will continue to shape the logistics robot market.

Critical Need for Factory Automation During COVID-19 Pandemic to Propel Global Logistics Robot Market Growth 

The COVID-19 pandemic led to rapid decline of brick-and-mortar retail establishments and accelerated e-commerce, creating a massive logistical challenge for warehouse and distribution center operators. Companies such as Locus Robotics, and 6 River Systems, as well as Outrider, become integral provider logistics robots to several warehousing and logistics companies who were looking to improve productivity and reduce reliance on physical labor during the pandemic. The COVID-19 pandemic affected the market severely in the first half of 2020 because of the temporary closure of manufacturing plants and warehouses across the globe. In the second half of 2020, various companies experienced the urgent need to automate their factories. 

Global Logistics Robot Market Finds a Significant Opportunity with Government and Venture Capital Funding

Governments across several countries are investing heavily in robotics. The U.S. government has invested more than US$96 Mn through university grants for research and development. In 2012, the U.S. Federal Government approved grants worth US$50 million for more than 30 university groups. In April 2015, the Chinese Government announced plans to develop a $200 million robotics research center in collaboration with Russia. Additionally, many start-up companies have been backed by venture capital investors to develop next-generation robots using the research from university studies.

Rethink Robotics, a provider of logistics robots, is one such start-up which has managed to raise US$113 Mn in capital investment to develop and advance its logistics robot called “Baxter”. Similarly, Fetch Robotics raised around US$23 Mn. Big technology giants such as Google and Amazon have also started funding for the development of robotics technology. In 2013, Amazon spent US$775 Mn to buy Kiva, a start-up robotics company with a focus on warehouse logistics. Google LLC has acquired eight start-up robotics companies. These are all indicative of exceptional growth opportunities in the global logistics robot market in the coming five years.

Automated Guided Vehicles (AGV) Maintain a Dominant Share in Global Logistics Robot Market

Global automated guided vehicle (AGV) systems dominates the market, accounted for 42.6% market share in 2020. AGV systems are fully autonomous robots that move and transport items in production, warehouse, and distribution centers without manual intervention or permanent conveying systems. The use of AGV enables just-in-time delivery of raw material, electronic control of assembled parts, and tracking of shipped goods. Furthermore, it helps to store, distribute, and transport material without human intervention, thereby ruling out the possibilities of injuries to workers or damage to products. This leads to reducing labor costs for a long-term perspective in warehouses in many ways. For instance, by replacing a human worker with an AGV, a company pays a one-time expense for the equipment—the initial investment—contrary to various ongoing costs relevant to labor. These economic benefits are expected to bode well for the segment in the global logistics robot market.

E-commerce Sector to Account for the Highest Share in Logistics Robot Market

Deployment of logistics robots is increased by retail companies due to e-commerce revolution. The advancement in internet penetration, which is encouraging online shopping is expected to support the growth of the e-commerce sector. This will directly lead to incredible adoption of logistics robots as companies will want to bring in quality in packaging, storage, distribution, and ensure timely deliveries to gain a competitive edge. E-commerce sector is expected to create US$2,751.5 Mn an incremental opportunity during 2021-2025 globally.

For instance, Liberty Hardware, a consumer goods company based in the U.S has experienced a spike in e-commerce sales from 2019. Along with increased order volume, the company’s lead times shrank from 48 hours to 24 hours to same-day shipment. To meet the requirements, the company has deployed 16 logistics robots, “Chucks”, developed by 6 River System in January 2021. With this deployment, the company has doubled order pick rate. Also, Liberty Hardware has improved training speed, doubled their pick rates and their employee turnover rate decreased from 25% to 3%. In the light of these trends, e-commerce will hold a lion’s share in the global logistics robot market during the forecast period.

Rampant E-commerce Expansion Accelerates Asia Pacific’s Logistics Robot Market Growth

Asia Pacific is expected to surge at the fastest pace, growing by 26.2% over the forecast period. The growth is due to the expansion of the e-commerce sector. The rising number of the online customer is enforcing retail companies to adopt automation technologies for faster and efficient operations. The number of online customers across Asia Pacific, especially in India, China is increasing rapidly in last 4-5 years. In addition, the coronavirus outbreak and subsequent lockdown have led to a major shift in the shopping behavior of people. During COVID-19, the preference of consumers for online shopping is changed drastically which leads to increase demand for logistics robots. Shortage of workforce and rise in the labor cost and wages, especially in low populated countries such as Japan and Canada further boost the logistics robot market growth in the coming years. 

Global Logistics Robot Market: Competitive Landscape

Global logistics robot market is fragmented as it comprises of many small-medium size and start-up companies. In 2020, Amazon Robotics (formerly Kiva Systems) has accounted for 8.7% market share while 6 River Systems has accounted for 2.5% market share in 2020. Geek+ and GreyOrange have accounted for 3.5% and 2.6% market share in 2020 respectively.

The companies operating in the market are focusing on new product launch for gaining a competitive edge. For instance, in August 2021, Mobile Industrial Robots (MiR), a provider of autonomous mobile robots (AMRs), has launched two robots “MiR600 and MiR1350 robots” for transporting pallets and other heavy items around manufacturing facilities, warehouses, and logistics centers. The robots are designed to safely, and efficiently perform material handling tasks in challenging industrial environments.

On the other hand, the big companies are entering the global logistics robot market through acquisition of smaller player operating in logistics robotic area.

• In March 2012, Amazon acquired Kiva System
  
  
• In September 2019, Shopify acquired 6 River Systems
  
  
• In October 2019, Teradyne acquired AutoGuide Mobile Robots
  
  
• In July 2021, Zebra Technologies acquired Fetch Robotics

The Global Logistics Robot Market is Segmented as Below:

By Type Coverage

• Automated Guided Vehicle (AGV)
• Autonomous Mobile Robots (AMR)
• Robot Arms

By Application Coverage

• Pick and Place
• Sorting
• Transportation
• Others

By Industry Coverage

• E-commerce
• Retail
• Manufacturing
• Consumer Goods
• Others

By Geographical Coverage

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Rest of Middle East & Africa

Leading Companies

• Amazon Robotics (formerly Kiva Systems)
• Locus Robotics
• Fetch Robotics
• inVia Robotics, Inc.
• 6 River Systems
• IAM Robotics
• Geek+
• ForwardX Robotics
• GreyOrange
• Rethink Robotics GmbH

Inside This Report You Will Find:

1. Executive Summary
2. Market Overview
3. Shipment Analysis, 2017 - 2025
4. Price Trend Analysis
5. Global Logistics Robot Market Outlook, 2017 - 2025
6. North America Logistics Robot Market Outlook, 2017 - 2025
7. Europe Logistics Robot Market Outlook, 2017 - 2025
8. Asia Pacific Logistics Robot Market Outlook, 2017 - 2025
9. Latin America Logistics Robot Market Outlook, 2017 - 2025
10. Middle East & Africa Logistics Robot Market Outlook, 2017 - 2025
11. Competitive Landscape
12. Appendix

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