IMARC Group has recently released a new research study titled “South Korea Logistics Automation Market Report by Component (Hardware, Software, Services), Function (Warehouse and Storage Management, Transportation Management), Enterprise Size (Small and Medium-sized Enterprises, Large Enterprises), Industry Vertical (Manufacturing, Healthcare and Pharmaceuticals, Fast-Moving Consumer Goods (FMCG), Retail and E-Commerce, 3PL, Aerospace and Defense, Oil, Gas and Energy, Chemicals, and Others), and Region 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.
South Korea Logistics Automation Market Overview
The South Korea logistics automation market size reached USD 1,564.7 Million in 2024. It is forecasted to grow to USD 3,486.3 Million by 2033, exhibiting a CAGR of 9.31% during the forecast period 2025-2033. The market growth is driven by the adoption of advanced technologies like AI, IoT, and machine learning, increased demand for efficient deliveries, and the rising use of collaborative robots.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
South Korea Logistics Automation Market Key Takeaways
- Current Market Size: USD 1,564.7 Million in 2024
- CAGR: 9.31% during 2025-2033
- Forecast Period: 2025-2033
- Increasing adoption of AI, IoT, and machine learning is accelerating market growth.
- Growing preferences for efficient and timely deliveries among consumers are boosting demand.
- Increased use of collaborative robots (cobots) enhances productivity and safety in logistics.
- Government support through financial incentives and regulatory frameworks stimulates automation investments.
- Automation is critical for customized order handling and just-in-time inventory management.
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Market Growth Factors
The South Korea logistics automation market is propelled by the rapid adoption of advanced technologies such as artificial intelligence (AI), the internet of things (IoT), and machine learning (ML). These technologies enable real-time data analysis, predictive maintenance, and smart decision-making, optimizing logistics processes. The increasing integration of these cutting-edge technologies facilitates faster, more accurate deliveries and operational efficiencies, driving the market upward.
Consumer demand for efficient and timely deliveries significantly drives the market growth. The expansion of online shopping platforms and a growing preference for expedited and reliable delivery services prompt logistics companies to automate processes. Automation solutions like automated warehouses, robotic order picking systems, and intelligent route optimization are critical in managing the rising e-commerce order volumes efficiently.
Governmental support through financial incentives, subsidies, and regulatory frameworks also plays a crucial role in encouraging investments in logistics automation. Alongside, the increasing popularity of collaborative robots (cobots) used for palletizing, packaging, and quality control facilitates higher productivity and improved safety standards. Furthermore, automation supports customization and personalization in order handling, essential for just-in-time inventory alignment, reducing storage costs and waste.
Market Segmentation
Component Insights:
- Hardware: Mobile Robots (AGV, AMR), Automated Storage and Retrieval Systems (AS/RS), Automated Sorting Systems, De-palletizing/Palletizing Systems, Conveyor Systems, Automatic Identification and Data Collection (AIDC), Order Picking
- Software: Warehouse Management Systems (WMS), Warehouse Execution Systems (WES)
- Services: Value Added Services, Maintenance
Function Insights:
- Warehouse and Storage Management
- Transportation Management
Enterprise Size Insights:
- Small and Medium-sized Enterprises
- Large Enterprises
Industry Vertical Insights:
- Manufacturing
- Healthcare and Pharmaceuticals
- Fast-Moving Consumer Goods (FMCG)
- Retail and E-Commerce
- 3PL
- Aerospace and Defense
- Oil, Gas and Energy
- Chemicals
- Others
Regional Insights:
- Seoul Capital Area
- Yeongnam (Southeastern Region)
- Honam (Southwestern Region)
- Hoseo (Central Region)
- Others
Regional Insights
The dominant region in the South Korea logistics automation market is the Seoul Capital Area. The report provides thorough regional analysis covering Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others. However, no specific market share percentages or CAGR values for these regions are provided in the source.
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