Automation of transport and logistics companies

2025: Chinese authorities approve strategy to digitalize logistics until 2030

On May 26, 2025, China presented a plan to accelerate the digitalization of supply chains and develop intelligent logistics. The Ministry of Trade of the People's Republic of China and a number of other departments, including the National Development and Reform Commission, took part in the development of the document. Read more here

2024: Global Logistics Automation Systems Market Growth to $78.2 Billion

In 2024, costs in the global logistics automation systems market reached $78.2 billion. Approximately 40% of the total expenses fell on the North American region. Such data are provided in the Fortune Business Insights review, which TAdviser reviewed in early May 2025.

By logistics automation, the authors of the study mean the use of advanced technologies to simplify and improve the efficiency of various processes related to supply chain management, storage and delivery of goods. We are talking about hardware and software solutions. These can be, for example, autonomous unmanned aerial vehicles for delivery, self-driving vehicles, robotic manipulators, next-generation conveyor belts, etc. Software includes tools for predictive analytics, real-time delivery tracking, invoicing, task monitoring, employee productivity monitoring, and more.

One of the market drivers was the COVID-19 pandemic, which provoked a surge in e-commerce. As more consumers shop online, companies need effective solutions to simplify warehouse operations. Marketplaces operators are increasingly using robots to perform all kinds of tasks - from sorting to packaging, which reduces the burden on employees. Drones and mobile robots are able to autonomously collect various information, increasing performance and reducing labor costs. In particular, such devices are used in warehouses for counting goods, which greatly simplifies the inventory and minimizes human errors. At the same time, logistics operations are accelerated.

Artificial intelligence plays an important role in the development of the industry. Thus, generative AI simplifies route planning: it can form the most effective transportation schemes, analyzing current traffic conditions, historical data and other parameters. AI is also able to generate dynamic routes that change in real time, taking into account various factors. AI agents can optimize inventory management by autonomously adjusting their volumes based on demand. By analyzing huge amounts of information from various sources, AI is able to predict market changes, including consumer preferences. AI algorithms help to generate all kinds of reports, which increases the efficiency of enterprises and improves the quality of service - from individual delivery schedules and personalized routing to dynamic pricing and creation of return policies.

Analysts segment the market into retail and e-commerce, healthcare and pharmaceuticals, food and beverage, aerospace and defense, power and utilities, automotive, etc. In 2024, the lion's share of revenue was provided by the first of the listed areas - about 27%. In addition, the automotive sector makes a significant contribution. From a geographical point of view, North America leads, where costs amounted to $31.03 billion. Significant players on a global scale include:

• Daifuku;
• Honeywell International№
• TGW Logistics Group;
• Toyota Industries;
• Kuka AG;
• SSI Schaefer Group;
• Jungheinrich AG;
• Kion Group AG;
• Murata Machinery;
• Knapp;
• ABB;
• Dematic;
• Beumer Group;
• Witron Logistik;
• One Network Enterprises;
• Toshiba.

Fortune Business Insights analysts believe that in the future, the CAGR in the market under consideration will be 13.4%. As a result, by 2032, costs could increase to $212.81 billion.^[1]

2019: PwC study

PwC^[2]conclude that five transportlogistic key factors will have the main impact on the industry. Among them: digitalization; changes in the international; to trade changes in the main processes due to the introduction of the new one; software changing the dynamics of domestic markets; changes in the main processes due to the introduction of new techniques.

Summary of Factors, Key Trends, and Time to Market

At the same time, each of the factors of transformation of the transport and logistics industry will be accompanied by the development of new solutions. In this diagram, they are presented together with an assessment of the implementation and maturity level:

Digitalization

Digitalization will not just be, but is already the factor that has the most powerful impact on transport and logistics. New technologies translate the usual production, administrative and commercial processes into a digital environment, which allows you to create new business models. The level of adaptation of companies to new solutions, their business opportunities and the impact on consumers is demonstrated in this PwC study scheme:

According to a survey of heads of transport and logistics companies, 54% of them expect an increase in revenue due to digitalization. The main drivers of the process, expectations of market players, problems and options for overcoming them are shown here:

Changes in international trade

In the medium term, according to the authors of the study, the main impact on transport and logistics will be provided by an increase in the volume of railway traffic from China to the EU countries. This determines the emergence of new investment projects and the development of new routes. Of course, those who carry out transportation by commercial vehicles will have to adapt to these changes:

The incentive for transport companies should be investment in the Belt and Road project. It is assumed that it will lead to the modernization of railways, reducing transportation costs and the development of new types of services:

Changes in the main processes due to the introduction of new software

The development of basic technologies and software solutions will have an increasing impact on the transport and logistics industry, providing business with new advantages. In different prospects, the leading ones will be: intelligent transport systems; Business Process Robotization (RPA) preventive maintenance, surveillance, and drone control ; blockchain solutions; solutions based on artificial intelligence.

According to PwC, the adaptation of transport and logistics to changes in the main business processes in connection with the introduction of new software looks like this:

The introduction of advanced technologies and programs will give companies the opportunity to reduce costs, increase the level of customer service and, in general, better understand their market. The development prospects and impact of each technology can be viewed in these slides:

ERP and CRM systems

The task of increasing the efficiency of transport enterprises can and should be solved by optimizing the main cost items - such as fuel and fuel costs, spare parts, scheduled and unscheduled repairs, insurance, etc. Modern technologies offer many tools that, one way or another, contribute to the improvement of individual performance indicators. However, without a single enterprise management system, the point use of individual IT tools for a fleet of vehicles - for example, gps-monitoring systems, fuel control, etc. - will not have a comprehensive effect on improving the performance of the entire company.

In order to obtain up-to-date information about the company's activities, coordinate, monitor and systematically reduce costs, a centralized management and operational decision-making tool is needed. This tool is an ERP (Enterprise Resource Planning) system that covers the key business processes of the organization and allows you to manage all components of the business in a single information field. An integral process of any transportation company is the process of interaction with customers. And an integral block of automation in the overall infrastructure of the enterprise is the CRM system, which allows you to automate planning and management processes (for example, flights) and the interaction of various departments in the sale of services in order to ultimately increase the level of customer service.

The main value of ERP systems lies in their ability to "link" the components of the business into a single whole by creating a transparent information space. It forms all the management information necessary for the management and employees of the company: financial data on the state of accounts payable and receivable, cash flow, current income and expenses, the number and status of orders, the location of goods and vehicles, travel documentation and analytical indicators obtained as a result of its processing. Often, ERP systems of transport and logistics enterprises are integrated with specialized CRM modules (Customer Relationship Management). However, in terms of functionality, such modules are inferior to full-fledged CRM systems. Therefore, for those companies that want to automate all blocks of customer relations, it makes sense to think about a fully functional independent CRM system that can easily be integrated with the already selected ERP. Integration of several key IT solutions can create a comprehensive logistics system that addresses high-complexity challenges.

When choosing ERP and CRM systems, it is also worth considering its so-called "integration capabilities" - the ability of the system to work and exchange data with third-party applications. For example, when integrated with GPS monitoring systems, the ERP system can transmit plan data from the waybill; in the opposite direction, the actual route data is transmitted. Integration with the SMS center will allow you to send notifications to employees about the readiness of the flight or about the need to transfer passengers and crew, and integration with the company's website will help you find out where customers or their agents can leave a request for a flight, transfer or catering.

The most obvious results of the implementation of the information system are the reduction of material costs. Reduction of fuel consumption is achieved through timely planning and monitoring. Its savings can reach significant values ​ ​ - about 20-25%. And planning the purchase of spare parts for a specific need can reduce inventory and storage costs.

It is much more difficult to assess the economic effect of creating a comprehensive solution as a single centralized management and decision-making tool, because it depends on a variety of specific characteristics and indicators of a particular enterprise. However, ERP and CRM will allow the company to raise the management process to a qualitatively higher level and make informed decisions every day that contribute to business development.

Read also

• TMS - Transportation Management System, CTMS
• Logistics Information System (classifications and methods)
• Review: IT in Trade and Logistics
• Vehicle Safety and Control Systems
• Satellite Communications and Navigation
• Products, Projects and Integrators in the Transport Industry
• Electronic bills of LER (Automation of document flow in cargo transportation)

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