Germany Logistic Automation Market Overview, 2029

Germany's logistics automation market is a dynamic and continuously evolving sector, propelled by the country's strong manufacturing base, technological expertise, and dedication to efficiency. The market has been around since the mid-twentieth century, with early automation initiatives centred on material handling and conveyor systems. However, the market has grown to encompass advanced technologies like robotics, artificial intelligence (AI), and the Internet of Things (IoT). The Automated Guided Vehicle (AGV) was developed in the 1950s and was a significant innovation in the German logistics automation business. These self-navigating and transporting vehicles have become commonplace in modern warehouses and distribution centres. RFID technology emerged in the early 2000s, improving supply chain transparency and traceability. More recently, the market has been affected by the rise of e-commerce, which has increased demand for faster, more flexible, and more precise order fulfilment solutions. The German logistics automation market is subject to a number of rules and compliances, including the Machinery Directive (2006/42/EC), which establishes machinery safety standards, and the General Data Protection Regulation (GDPR), which oversees personal data collection and processing. Furthermore, the market is influenced by international standards such as ISO 9001 for quality management and ISO 14001 for environmental management. The COVID-19 pandemic has significantly impacted the German logistics automation business. The crisis has spurred the adoption of automation technologies, as businesses attempt to eliminate human contact, enhance resilience, and fulfil rising e-commerce demand.

According to the research report "Germany Logistics Automation Market Overview, 2029," published by Bonafide Research, the Germany's logistics automation market is expected to reach a market size of more than USD 4,350 Million by 2029. Siemens, Bosch Rexroth, and Dematic are among the leading domestic participants in the German logistics automation sector. Siemens provides a wide range of automation solutions, including as programmable logic controllers (PLCs), motion control systems, and industrial software. Bosch Rexroth is a renowned provider of drive and control technologies, whereas Dematic focusses on automated material handling solutions. Other prominent players are Jungheinrich, Still, and Knapp. Collaborations and partnerships are prevalent in the German logistics automation sector, as companies look to capitalise on each other's capabilities and produce novel solutions. For example, in 2019, Siemens and Geek+, a Chinese robotics company, announced a collaboration to provide AI-powered logistics solutions. In 2020, Dematic and AutoStore, a Norwegian provider of automated storage and retrieval systems, established a strategic agreement to provide joint solutions to the market. Various industry events and activities help to develop the German logistics automation sector. The Hannover Messe, held annually in Hannover, is one of the world's major industrial shows, showcasing the most recent advances in logistics automation. The LogiMAT trade fair, held in Stuttgart, is another significant event in the logistics business. Furthermore, the German Logistics Association (BVL) and the VDMA support the market through research, education, and advocacy. Germany exports more logistics automation technologies than it imports. The country's strong manufacturing base and technological skills position it as a key provider of automation equipment to other countries.

Logistics, an essential component of supply chain management, is classified into numerous types based on the unique activities they perform. Among these forms, Production Logistics dominates the German logistics automation market. This is primarily owing to Germany's robust manufacturing base and its commitment to Industry 4.0 efforts. The use of modern automation technology into manufacturing processes allows firms to gain more efficiency, flexibility, and quality control. Furthermore, the focus on smart factories and IoT has resulted in major investments in production logistics automation. Domestic companies such as Siemens and Bosch Rexroth are at the forefront of this movement, providing comprehensive solutions tailored to the specific requirements of industrial logistics. Efficient sales logistics can help a company gain a competitive advantage by ensuring that products are delivered to clients swiftly and precisely. With the development of e-commerce and rising customer expectations for quick and dependable delivery, sales logistics have become a significant differentiator for organisations. Companies that thrive at sales logistics may strengthen customer connections, shorten order-to-cash processes, and ultimately increase sales and profits. Recovery Logistics is concerned with the reverse flow of commodities, which includes returns, repairs, and recycling. It is critical for managing product life cycles and decreasing waste. Recovery logistics helps to ensure sustainability and customer happiness by efficiently managing returned or damaged products. Procurement Logistics is responsible for acquiring and managing raw materials and components required for production. Effective procurement logistics ensures that high-quality materials are purchased at the best price and delivered on time.

Organisations of various sizes, including Large Enterprises and Small and Medium-Sized Enterprises (SMEs), are implementing automated solutions to improve operational efficiency in the German logistics automation industry. Large enterprises are at the forefront of the use of advanced automation technologies in Germany's logistics automation sector. A variety of things contribute to this leadership style. For starters, major corporations have the financial resources to invest in cutting-edge automation technologies, which frequently come with substantial upfront expenditures. Second, large firms' complex and high-volume logistics operations require advanced automation to remain efficient and competitive. Large businesses collaborate with known domestic suppliers such as Siemens, Bosch Rexroth, and Dematic, which provide comprehensive and customisable solutions adapted to their individual requirements. Small and medium-sized enterprises (SMEs) confront particular problems, such as limited resources and a need for flexible, scalable solutions. Small and medium-sized enterprises (SMEs) frequently prioritise automation solutions that provide immediate returns on investment and are easily integrated into existing operations. Domestic providers such as Jungheinrich, Still, and Knapp serve SMEs by offering modular and cost-effective automation systems. These vendors focus on providing user-friendly technologies that can be scaled up as the business grows, allowing SMEs to benefit from automation without making large upfront investments. Domestic providers, including as Siemens and Bosch Rexroth, play an important part in this movement by providing innovative and customisable solutions that address the specific needs of large organisations.

The adoption of automated solutions is transforming several functions in the German logistics automation market, including inventory and storage management and transportation logistics. Inventory and Storage Management is currently leading the way in Germany's logistics automation market in terms of adoption. This is caused by a variety of circumstances. To begin, the rise of e-commerce has considerably raised the demand for rapid and accurate order fulfilment, making automated inventory management critical to achieving customer expectations. Second, the high cost of real estate and labour in Germany has compelled businesses to optimise warehouse operations through automation, lowering operational costs and increasing space utilisation. Furthermore, technology breakthroughs in robotics, artificial intelligence, and the Internet of Things have made automated inventory management solutions more accessible and efficient. Domestic vendors, such as Dematic and SSI Schaefer, are at the forefront of this movement, providing new solutions to meet the market's diversified needs. Transportation logistics deals with the movement of commodities from one site to another, including both inbound and outbound transportation. Automation in transportation logistics encompasses automated loading and unloading systems, fleet management software, and real-time tracking solutions. Domestic vendors such as Jungheinrich, Still, and KION Group provide modern technologies that expedite shipping procedures, save prices, and shorten delivery times.



In the German logistics automation industry, many components play critical roles in improving operational efficiency. These components are Hardware, Software, Transportation Management Systems (TMS), and Services. Software is currently at the forefront of innovation and adoption in the German logistics automation business. This is caused by a variety of circumstances. For starters, the growing complexity of logistics operations need advanced software solutions for optimal process management and optimisation. Second, the rise of digital transformation and Industry 4.0 efforts has highlighted the value of data-driven decision-making and real-time visibility, which software solutions provide. Domestic suppliers such as SAP, Inform, and proALPHA provide advanced software solutions that enable real-time visibility, control, and optimisation of logistics processes. Hardware refers to the actual equipment used in logistics automation, including automated guided vehicles (AGVs), robotic arms, conveyor systems, and automated storage and retrieval systems (AS/RS). Domestic providers such as Siemens, Bosch Rexroth, and Dematic provide a wide range of modern hardware solutions for many sectors and applications. Transportation Management Systems (TMS) are intended to improve the planning, execution, and monitoring of transportation activities. TMS solutions assist in managing routes, timetables, and fleets, resulting in faster deliveries and lower costs. Domestic companies such as PTV Group and Transporeon provide modern TMS solutions that meet the complicated requirements of transportation logistics. Services include consultancy, deployment and integration, support and maintenance, and other value-added services (VAS).

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Logistic Automation market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Activity
• On-farm Sales
• By Logistics Type
• Production Logistics
• Sales Logistics
• Recovery Logistics
• Procurement Logistics

By End User
• Retail and E-Commerce
• Manufacturing
• Healthcare and Pharmaceuticals
• Food and Beverage
• Automotive
• Logistics and Transportation
• Others (chemicals, aerospace)

By Organization Size
• Large Enterprises
• Small and Medium-Sized Enterprises (SMEs)

By Function
• Inventory and Storage Management
• Transportation Logistics

By Component
• Hardware (AMRs, AGVs, AS/RS, Automated Sorting and Conveyor Systems, De-Palletizing/Palletizing Systems, AIDC, Order Picking Systems)
• Software(Warehouse Management System (WMS), Transportation Management System (TMS))
• Services (VAS, Maintenance, Consulting, Deployment and Integration, Support and Maintenance)

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Logistic Automation industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.