United Kingdom Logistics Automation Market Insights Forecasts to 2033

• The U.K. Logistics Automation Market Size was valued at USD 1,305.4 Million in 2023.
• The Market Size is Growing at a CAGR of 15.81% from 2023 to 2033
• The UK Logistics Automation Market Size is Expected to Reach USD 5,667.2 Million by 2033

The U.K. Logistics Automation Market Size is Anticipated to Reach USD 5,667.2 Million by 2033, growing at a CAGR of 15.81% from 2023 to 2033.

Market Overview

The term "logistics automation" describes the application of technology to improve accuracy and efficiency in logistics operations by streamlining and optimizing different supply chain components. Autonomous drones for delivery, automated guided vehicles (AGVs) for material handling, robotic arms, and predictive analytics software for automated storage and retrieval systems (AS/RS) are just a few examples of the hardware and software components that are taken into account in the scope. Conveyor belts, inventory management, demand forecasting, and other machinery that can perform operations like sorting, picking, packing, and shipping are also included. Additionally, one of the main drivers of the market's expansion is the UK's growing preference for online shopping and the growing need for quick delivery times. Fulfillment facilities for last-mile and expedited deliveries have proliferated in the UK due to high consumer expectations. From mechanized assistance to operator-free machinery, these fulfillment centers are gradually implementing automation. Over time, as robotics and automated vehicles advance, their uses in warehousing and logistics will expand dramatically, opening up new growth prospects for the UK industry.

Report Coverage

This research report categorizes the market for the UK logistics automation market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom logistics automation market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the U.K. logistics automation market.  

Driving Factors

The UK logistics automation market is expanding as a result of a rising interest in using AI technology for enhanced decision-making by 25% of transport and logistics professionals in the UK and the increasing utilization of basic data analytics by 50% of them to improve fundamental operations. The growing need for intelligent systems and automated procedures in the UK logistics industry is shown by this move towards more sophisticated technological solutions. Additionally, the rise of e-commerce in the UK has greatly accelerated logistic automation. Because more people are shopping online, there is a greater demand for efficient and scalable warehouse operations to handle the growing number of orders. Furthermore, in the UK, high customer demands have resulted in a boom in fulfillment centers for speedy and last-mile deliveries. These fulfillment centers in the UK are gradually implementing automation, moving from mechanized assistance to equipment that does not require an operator. Over the course of the projected period, the UK market will have chances for growth as automated vehicle and robotics technologies advance and find extensive applications in logistics and warehousing.

Restraining Factors

The market is constrained by a number of challenges, such as inadequate infrastructure, expensive upfront expenditures and investments, regulatory worries, and geopolitical issues. Additionally, significant financial outlays are necessary for the installation of automation equipment, software, and solutions. Managing this expense is a challenge for many businesses. Furthermore, these automation technologies will be beyond the financial means of medium-sized businesses.

Market Segmentation

The UK logistics automation market share is classified into function and organization size.

• The inventory & storage management segment is expected to hold the greatest market share through the forecast period.    

The U.K. logistics automation market is segmented by function into inventory & storage management and transportation logistics. Among these, the inventory & storage management segment is expected to hold the greatest market share through the forecast period. The increasing quantity of products in inventories and the growing complexity of inventory management are contributing to this segment's large market share. Growing numbers of smart warehouses and the quick increase of storage space for logistics firms are also contributing to the market's expansion.

• The large enterprises segment is anticipated to hold a significant share of the United Kingdom Logistics automation market during the forecast period.

Based on the organization size, the UK logistics automation market is divided into large enterprises and small & medium enterprises. Among these, the large enterprises segment is anticipated to hold a significant share of the United Kingdom logistics automation market during the forecast period. Massive warehouses and logistics operations require efficiency, which is why large corporations are choosing logistics automation solutions. Additionally contributing to this segment's strong market share are its high spending potential and the availability of human resources for testing new technology.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the U.K. logistics automation market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• DHL
• DPD
• GXO Logistics
• Wincanton
• Kuehne + Nagel
• 6 River Systems
• Guidance Automation
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In March 2024, to strengthen its warehouse automation capabilities, Wincanton purchased Invar Group Limited, a company based in the UK. Wincanton can now take advantage of Invar's exclusive Invar Warehousing Software (IWS), which easily connects with warehouse automation such as robots, due to the acquisition.

Market Segment

This study forecasts revenue at the UK, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United Kingdom Logistics Automation Market based on the below-mentioned segments:

United Kingdom Logistics Automation Market, By Function

• Inventory & Storage Management
• Transportation Logistics

United Kingdom Logistics Automation Market, By Organization Size

• Large Enterprises
• Small & Medium Enterprises