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Logistics Tech
Overview
Logistics is a central focus of the supply chain, dedicated to the fluid movement, storage, and procurement of goods within the supply chain. The Logistic Tech covers a landscape where software, hardware, and digital innovation are combined to automate tasks, improve efficiency, and mitigate logistic-related challenges. In particular, rising customer expectations, fueled by the rise of ecommerce, have also increased the urgency for companies to fine-tune their logistics capabilities.
In response to these challenges, the industry has seen the adoption of technologies like AI, IoT, digital twins, and sensors to predict and simulate future outcomes. These advancements enable companies to optimize their logistics operations, improve efficiency, and reduce costs. Additionally, real-time tracking technologies have enabled better coordination and scheduling, minimizing delays and risks in logistics operations.
Industry Updates
Market Sizing
The US Logistics Tech market could reach USD 12.5 billion–16.8 billion by 2028
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Use cases
Logistics technology is used commonly across various industries, with the consumer discretionary and industrial sectors being the most prominent. This specifically includes the leisure products and household durables subsegments for consumer discretionary as well as air freight and logistics under industrials.
The adoption levels for warehouse operations are relatively high as autonomous mobile robotics (AMR) systems enabled enterprises to automate large parts of their picking processes, improving productivity and reducing the need for manual labor. Moreover, procurement management solutions have been commonly used to help enterprises automate procurement processes and communicate with suppliers on quantity, price, and dates.
We have identified key logistics technology use cases below:
Market Mapping
Warehouse automation and automated fulfillment solutions represent the most commonly targeted segments within Logistics Tech, with the most incumbents and disruptors. Both segments are relatively mature, comprising many expansion-stage disruptors like Geek+, Exotec, Locus Robotics, GreyOrange, and Attabotics. Meanwhile, many of the leading incumbents, including Ocado Group, AutoStore, and Zebra Technologies, as well as several expansion-stage disruptors, such as Shiphero and Tompkins Robotics, operate across both segments.
The third-party fulfillment solutions segment has relatively fewer incumbents and disruptors. However, major players like expansion-stage disruptors Flexport and Shipbob, as well as leading incumbents like Amazon, operate within the segment.
Procurement management seems to be less mature, with fewer expansion-stage disruptors and incumbents. Moreover, the segment also has a relatively higher number of go-to-market and minimum viable product-stage companies than others.
Warehouse automation
Procurement management
Automated fulfillment solutions
Third-party fulfillment solutions
The Disruptors
The Logistics Tech market is led by disruptors serving several segments. These include listed companies like Symbotic and established startups like third-party fulfillment solutions provider Flexport, which raised over USD 2 billion in funding. From a segmental perspective, the warehouse automation segment has the most disruptors, and is also one of the most attractive segments for investors, with more than USD 3.5 billion in funding led by expansion-stage startups such as Geek+ and Excotec (as of May 2024).
Meanwhile, with the exclusion of Flexport, the third-party fulfillment solutions and procurement management segments (characterized by a relatively limited startup presence) have attracted relatively less funding than the other two segments (as of May 2024).
Funding History
Competitive Analysis
Incumbents
The Logistics Technology industry is dominated by incumbents that specialize in warehouse automation and automated fulfillment services. Many players leverage technologies such as automated storage/retrieval systems (AR/RS) and autonomous mobile robots (AMR) for use cases across both segments. This is in contrast to disruptors, which typically specialize in a given segment.
Furthermore, while hardware (specifically robotics) remains a large part of incumbent offerings, many players such as Ocado and Autostore have also launched software platforms to enable users to automate warehouse operations such as putaway and replenishment, intelligent order batching, and inventory management. Notably, many of these platforms are integrated with traditional warehouse management systems (WMS) to enable interoperability between related systems.
Apart from automated fulfillment and warehouse automation, companies that have extensive experience in traditional shipping and freight logistics have expanded their offerings to include high-tech third-party fulfillment solutions for ecommerce. For example, Amazon has leveraged technology developed by its subsidiary Amazon Robotics, an AMR system provider, to integrate the company’s scalable solutions into its online retail business and global network of fulfillment centers.
Notable Investors
