Growth drivers of the global logistics robot market

The requirement for automation along with the development of user demand makes the global logistics robot market expected to reach 12.7 billion USD by 2025.

According to a report by Fairfield, a market research unit in the UK, the global logistics robot market is expected to reach US$12.7 billion by 2025 with a compound annual growth rate (CAGR) of 23.7% in period 2021-2025.

The expansion in demand and the number of consumers is considered to be the main driving force of the market. Consumers increasingly demand convenience, ease, and speed in transporting goods and services.

To ensure efficient order fulfillment, retailers are turning to automation and robotic solutions to save time and track orders in real-time.

This helps to increase the demand for logistics robots, driving the growth of the market globally.

In addition, other market drivers come from the advantages of using logistics robots such as increasing efficiency, reducing costs, and saving time. Some companies are using robots in toxic and dangerous work environments.

At the same time, logistics robots also automate the processes of storing and moving goods throughout the supply chain. This speeds up shipping, reduces manual errors, and ensures worker safety.

Also according to the Fairfield report, North America is the region with the highest share of the global logistics robot market and is expected to maintain its lead over the forecast period.

In North America, logistics companies are aggressively adopting technology and robotics into logistics process automation. As labor costs escalate, the potential to use robots to reduce costs is driving the growth of the logistics robot market.

In addition to North America, Asia-Pacific is expected to have a fast growth rate in the use of logistics robots. This is explained by the reluctance to expand and grow in automation.

In particular, China is forecasted to be the country with the highest compound growth rate in the use of robots in logistics to increase competition.