Global Logistics Robot Market Poised for Remarkable Growth, Anticipated to Reach US$12.7 Billion by 2025
The global logistics robot market is on an upward trajectory, fueled by the transformative impact of e-commerce and automation technologies. According to a recent report by Fairfield Market Research, the market is expected to witness explosive growth, with an estimated worth of US$12,739.1 million by 2025, compared to US$807.2 million in 2017, representing a staggering compound annual growth rate (CAGR) of 23.7% during the forecast period from 2021 to 2025.
Revolutionizing Supply Chains with Logistics Robots
Logistics robots are becoming indispensable in streamlining the storage and movement of goods within warehouses and storage facilities. Their ability to execute repetitive tasks with precision not only enhances operational efficiency but also contributes to improved speed, control, accuracy, and productivity, all while adhering to stringent worker safety standards. This pivotal role in bridging the labor gap, exacerbated by the booming e-commerce sector, positions the global logistics robot market as a key player in the supply chain and warehouse operations landscape.
Embracing Advanced Technology for Growth
Artificial Intelligence (AI), computer vision, cloud computing, and machine learning are at the forefront of technological advancements in logistics robots. AI, in particular, is expected to revolutionize demand predictions, order modifications, and product rerouting during transit. Computer vision technology enables the recognition and organization of items, paving the way for quality control without human intervention.
Companies like Musashi AI, with their autonomous forklifts and AI-based fleet management platform, are pushing the boundaries of logistics robotics. These technological innovations are poised to reshape the logistics robot market in the coming years.
COVID-19 Pandemic Spurs Demand for Automation
The COVID-19 pandemic underscored the critical need for automation in warehouse and distribution center operations. With the shift towards e-commerce, logistics companies turned to providers like Locus Robotics and 6 River Systems for essential logistics robots to boost productivity and reduce reliance on physical labor. The pandemic initially disrupted the market in the first half of 2020 but subsequently led to a surge in demand for factory automation in the latter half of the year.
Government and Venture Capital Funding Fuel Growth
Governments worldwide are heavily investing in robotics, with the U.S. government alone dedicating over US$96 million to research and development through university grants. Venture capital investors are also keenly supporting startups focused on next-generation robots. Rethink Robotics, Fetch Robotics, and the backing of technology giants like Google and Amazon all indicate substantial growth prospects in the global logistics robot market.
Automated Guided Vehicles (AGV) Dominate
Automated guided vehicle (AGV) systems hold a dominant market share, accounting for 42.6% in 2020. These fully autonomous robots operate seamlessly in production, warehouse, and distribution centers, ensuring just-in-time delivery, precise control of assembled parts, and secure tracking of shipped goods. The economic benefits, such as reduced labor costs and increased efficiency, position AGVs as a driving force in the logistics robot market.
E-commerce Sector Leads the Way
The relentless growth of the e-commerce sector is propelling the deployment of logistics robots. With the surge in online shopping driven by increased internet penetration, companies are turning to logistics robots to elevate their packaging, storage, distribution, and delivery capabilities. E-commerce is expected to create a substantial incremental opportunity of US$2,751.5 million globally between 2021 and 2025.
Asia Pacific Emerges as a Key Growth Hub
Asia Pacific is set to experience the fastest growth in the logistics robot market, projected to expand by 26.2% during the forecast period. The surge is attributed to the e-commerce boom and the rising number of online customers in countries like India and China. The pandemic further accelerated the adoption of logistics robots in response to labor shortages and rising labor costs.
Competitive Landscape
The global logistics robot market is characterized by a multitude of small to medium-sized companies and startups. In 2020, Amazon Robotics and 6 River Systems accounted for significant market shares. Companies are actively focusing on new product launches to maintain a competitive edge. For instance, Mobile Industrial Robots (MiR) recently introduced the MiR600 and MiR1350 robots designed for efficient material handling tasks in industrial environments.
The global logistics robot market is poised for unprecedented growth, driven by the convergence of technology, automation, and the ever-expanding e-commerce landscape. As logistics companies seek to enhance efficiency and adapt to changing consumer preferences, logistics robots are primed to play a pivotal role in shaping the future of supply chain and warehouse operations.
Global Logistics Robot Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2025 – [2023 UPDATE Available – Forecast 2023-2030*] (By Type Coverage, Application Coverage, Industry Coverage, By Geography, Leading Companies) https://www.fairfieldmarketresearch.com/report/logistics-robot-market
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