Robotics in Logistics Market Growth Fueled by E-commerce Demand and Automation Trends | Valuates Reports

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Sep 11, 2025, 12:59 ET

BANGALORE, India, Sept. 11, 2025 /PRNewswire/ -- What is the market size of Robotics in logistics?

The global market for Robotics in Logistics was valued at USD 9809 Million in the year 2024 and is projected to reach a revised size of USD 28330 Million by 2031, growing at a CAGR of 16.6% during the forecast period.

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Why Is the Robotics in Logistics Market Growing So Rapidly?

The robotics in logistics market continues to evolve as companies seek innovative solutions to improve throughput, accuracy, and cost-efficiency across their supply chains. Robotics offers a compelling advantage by automating repetitive tasks, enhancing worker safety, and enabling round-the-clock operations. The market benefits from increasing demand for flexible and scalable fulfillment solutions, particularly in response to the explosive growth of e-commerce. Logistics providers now view robotics not as a luxury but as a necessity to maintain competitive edge and meet customer expectations. As technology advances and deployment costs decrease, robotic systems are becoming more accessible to mid-sized and smaller logistics firms, further expanding market penetration and adoption.

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TRENDS INFLUENCING THE GROWTH OF THE ROBOTICS IN LOGISTICS MARKET:

Picking robots are transforming the logistics landscape by streamlining warehouse operations and increasing the accuracy and speed of item retrieval. These robots are designed to identify, grab, and move individual items, eliminating the inconsistencies and fatigue associated with manual picking. By reducing dependency on human labor for repetitive tasks, picking robots contribute to continuous operations, even during labor shortages or peak demand periods. Their integration helps optimize warehouse space, reduce picking errors, and support same-day or next-day delivery promises. With the growth of e-commerce and demand for rapid order fulfillment, companies increasingly rely on picking robots to boost operational efficiency. This trend directly benefits logistics service providers by enhancing throughput and reducing overall cost-to-serve metrics.

Automated Guided Vehicles (AGVs) significantly impact the logistics industry by automating material transport and reducing reliance on manual movement across warehouses and distribution centers. AGVs help move heavy pallets, containers, and packages between fixed points with precision and safety, reducing workplace injuries and delays. Their integration allows for scalable operations, adapting to fluctuating workloads without significant labor increases. AGVs are often used in conjunction with warehouse management systems to optimize routing and minimize idle time. This synergy improves order accuracy, inventory tracking, and operational transparency. As logistics operations grow in complexity, AGVs provide a dependable solution for maintaining flow consistency and ensuring timely deliveries, thus accelerating adoption within the logistics ecosystem.

Outdoor logistics operations increasingly incorporate robotic solutions to improve delivery speed, manage last-mile complexities, and handle harsh environmental conditions. Robots used in outdoor settings are engineered to navigate public roads, sidewalks, and industrial yards, ensuring seamless transportation of goods between hubs and consumers. These systems help reduce delivery times, minimize human error, and extend service availability beyond conventional working hours. In areas with traffic congestion or limited labor availability, outdoor robots offer an effective alternative by performing scheduled or on-demand delivery tasks. Their application in postal services, e-commerce fulfillment, and urban mobility helps logistics firms optimize resource usage. This expansion into outdoor environments unlocks new business models and reshapes customer service expectations.

The integration of robotics enhances supply chain visibility by automating tracking, scanning, and real-time data capture at various logistics touchpoints. Robots equipped with sensors and IoT capabilities provide continuous updates on the movement and condition of goods. This allows for accurate inventory monitoring, optimized stock replenishment, and quicker response to disruptions. Logistics companies benefit from this transparency by improving delivery accuracy and customer satisfaction. Automated systems also support better decision-making by generating actionable insights into bottlenecks and inefficiencies. This increased level of visibility enables proactive planning and smoother coordination across global and regional supply chains, making robotic solutions essential tools for data-driven logistics management.

Robotics in logistics contributes significantly to cost optimization by reducing labor expenses, minimizing errors, and maximizing space utilization. Automated systems operate with consistent performance, lowering operational disruptions and the cost of rework due to inaccuracies. Robots also help reduce waste by ensuring more accurate inventory handling and reducing product damage during movement. Additionally, efficient use of warehouse space through robotic sorting and stacking allows businesses to store more goods without expanding physical infrastructure. Over time, the initial investment in robotics pays off through decreased overhead costs and improved profit margins. These savings enable logistics firms to offer more competitive pricing, fueling further demand and market expansion.

Scalability is a critical factor in logistics, especially during periods of peak demand or rapid business expansion. Robotics allows logistics operations to scale up quickly without the complications of hiring, training, or managing large human teams. By programming additional robots or upgrading existing automation systems, logistics firms can handle larger volumes and diversify their service offerings. This agility helps maintain service levels during seasonal spikes, promotional campaigns, or unexpected demand surges. Scalability also ensures consistent quality and performance, irrespective of volume fluctuations. As a result, businesses can pursue growth strategies with confidence, knowing that robotic systems can accommodate evolving operational requirements without compromising efficiency or accuracy.

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What Are the Key Categories in the Robotics in Logistics Market?

Picking Robots
AGVs

Where Robotics in Logistics is Transforming Operations the Fastest?

Warehouse
Outdoor

Who Are the Key Players Powering Robotics in Logistics Worldwide

KuKa Ag
Daifuku
Knapp AG
Dematic
Grenzebach
Bastian
CIM Corp
Amazon Robotics
Vanderlande
Vecna
Hitachi
Hi-Tech Robotic Systemz
Adept Technology
Grey Orange
IAM Robotics
Fetch Robotics

Global Robotics in Logistics: Regional Market Share Insights

In North America, the robotics in logistics market sees rapid growth driven by advanced automation infrastructure, labor shortages, and demand from large-scale e-commerce firms.

Europe follows closely, emphasizing sustainable logistics and efficiency improvements through robotic integration.

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