Europe Logistics Automation Market Size, Share, Growth, Report 2026 to 2035

Revenue, 2025

USD 21.35 Billion

Forecast, 2035

USD 61.78 Billion

CAGR, 2026 – 2035

CAGR of 11.21%

Report Coverage

Europe

Europe Logistics Automation Market Size and Growth 2026 to 2035

The Europe logistics automation market size is expected to be worth around USD 61.78 billion by 2035, from USD 21.35 billion in 2025, growing at a CAGR of 11.21% during the forecast period from 2026 to 2035. The growing emphasis on purchasing goods from online platforms is expected to boost the growth of the Europe logistics automation market.

Europe Logistics Automation Market Key Takeaways

• By type, the production logistics segment held the dominant position in the industry.
• By type, the sales logistics segment is expected to rise with a notable CAGR during the forecast period.
• By component, the hardware segment dominated the market.
• By component, the software segment is expected to grow with the highest CAGR during the forecast period.
• By organisation size, the large enterprises segment led the industry.
• By organisation size, the SMEs segment is expected to rise with a considerable CAGR during the forecast period.
• By mode of freight transport, the road segment led the market.
• By mode of freight transport, the sea segment is expected to grow with the highest CAGR during the forecast period.
• By application, the transportation management segment dominated the market.
• By application, the warehouse and storage segment is expected to rise with a considerable CAGR during the forecast period.
• By end-user, the automotive segment held the largest share of the industry.
• By end-user, the retail and e-commerce segment is expected to expand with a significant CAGR during the forecast period.

Market Overview

The Europe logistics automation market has been growing at a rapid pace due to several government initiatives aimed at developing the road infrastructure, along with technological advancements in the warehouses. There are several components delivered in this sector, comprising hardware, software and services. These components find application in several sectors, including transport management, warehouse management,labour management and others. The end-users of these automation solutions such as manufacturing, healthcare and pharmaceuticals, fast-moving consumer goods, retail and e-commerce, automotive and some others. This market is expected to rise significantly with the growth of the overall manufacturing sector in the European region.

What is the role of AI in the Europe Logistics Automation Market?

AI has played a crucial role in the Europe logistics automation market. The integration of AI in the logistics automation solutions helps in automating complex operations, analysing a large amount of data for deriving predictive insights, and enhancing customer experience. Moreover, AI robots are used for operating several tasks in the logistics sector, such as sorting, picking, and packing.

• In November 2025, HiFlow launched an AI-powered logistics suite. This new solution is designed for enhancing automation in the logistics sector.

Report Scope of Europe Logistics Automation Market

Trends in the Europe Logistics Automation Market

• Partnerships

Numerous logistics companies are partnering with robot manufacturers to deploy collaborative robots in logistics warehouses.

• Product Launches

Market players are launching various types of automation solutions to cater to the needs of the logistics sector.

• Opening of New Warehouses

The logistics operators are investing rapidly in opening warehouses across the European region.

Future Outlook in the Europe Logistics Automation Market

• Surging Popularity of Automation-as-a-Service (AaaS)

The rising popularity of automation as a service in the EU region is expected to create growth opportunities for the market players in the future.

• Rapid Expansion of Drone Industry

The rapid growth in the drone manufacturing sector is likely to reshape the industry in the coming days.

Segmentation Analysis

Country Level Analysis

• Germany dominated the Europe logistics market in 2025.
• Austria is expected to grow with a significant CAGR during the forecast period.
• The UK is expected to rise with a notable CAGR during the forecast period.
• France held a considerable share of the industry.

By Country Insights

Latest Updates of Key Players in the Europe Logistics Automation Market

Recent Breakthroughs in Europe Logistics Automation Market:

• In March 2025, CEVA Logistics implemented advanced warehouse automation solutions for KIKO Milanos European distribution network, earning industry recognition for improving order accuracy, speed, and operational efficiency through robotics and intelligent logistics systems.
• In February 2025, DHL Group launched a new innovation center in Germany focused on robotics, AI, IoT, and sustainable automation technologies. The facility aims to accelerate the development and deployment of next-generation automated logistics solutions across Europe.

Segment Covered in the Report

By Type

• Sales Logistics
• Production Logistics
• Recovery Logistics

By Component

• Hardware
• Software
• Services

By Organisation Size

• Small and Medium Enterprises
• Large Enterprises

By Mode of Freight Transport

• Air
• Road
• Sea

By Application

• Transportation Management
• Warehouse and Storage Management

By End-User

• Manufacturing
• Automotive
• Healthcare and Pharmaceuticals
• Fast Moving Consumer Goods
• Retail and E-commerce
• Others

By Country

• Western Europe
• Germany
• Italy
• France
• Netherlands
• Spain
• Portugal
• Belgium
• Ireland
• UK
• Iceland
• Switzerland
• Poland
• Rest of Western Europe
• Eastern Europe
• Austria
• Russia & Belarus
• Türkiye
• Albania
• Rest of Eastern Europe