Australia Logistics Automation Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Key Market Trends and Insights:

• Western Australia dominated the market in 2024 and is projected to grow at a CAGR of 14.4% over the forecast period.
• By component, the services segment is expected to register 14.2% CAGR over the forecast period.
• By end use, the healthcare and pharmaceuticals sector is expected to register 14.5% CAGR over the forecast period.

Market Size & Forecast:

• Market Size in 2024: AUD 1342.37 million
• Projected Market Size in 2034: AUD 4437.22 million
• CAGR from 2025-2034: 12.70%
• Fastest-Growing Regional Market: Western Australia

The use of IoT sensors in warehouses, fleets, and supply chains allows real time visibility into inventory, shipments and operations, adding to the Australia logistics automation market share. AI and predictive analytics are being deployed for demand forecasting, route optimization, predictive maintenance, and dynamic resource allocation.  This integration improves decision making and resilience, enabling faster response to disruption like weather, demand swings, and supply constraints.

The rapid expansion of e commerce in Australia is pushing logistics providers to automate to cope with high order volumes, tighter delivery windows, and seasonal demand spikes. In 2024, Australians spent about AUD 69 billion online, showing a 12% rise from 2023. Consumers expect fast, accurate fulfilment like same day or next day deliveries, which drives investment in robotic sortation, automated picking, and fulfilment centers near urban hubs. To stay competitive, companies must scale operations without dramatically increasing costs, so automation becomes a necessity.

Recent Developments

July 2025

Konica Minolta and Mobile Industrial Robots launched two new autonomous mobile robots (AMRs) in Australia. These AMRs enhance intralogistics by automating material transport in warehouses and manufacturing. The launch highlights growing demand for intelligent automation solutions in Australia's logistics and industrial sectors.

June 2025

The Supply Chain & Logistics Association of Australia (SCLAA) welcomed Airstack Intralogistics Pty Ltd as a national partner due to its specialization in advanced warehouse automation solutions. This partnership supports innovation and efficiency in Australia’s logistics sector via collaborative industry engagement and tech integration.

May 2025

Dematic launched its next-generation Silky Crossbelt Sorter in Australia. Designed for high-speed, gentle handling of diverse items, it enhances sorting efficiency in e-commerce and retail logistics. This innovation supports Australia's growing demand for advanced automation in distribution and fulfilment centers.

July 2023

Priority Robotics partnered with Quicktron to transform the logistics industry across Australia and New Zealand (ANZ). Combining Priority Robotics’ local expertise with Quicktron’s cutting-edge robotics solutions, the collaboration aims to deliver scalable, intelligent automation for warehouses and fulfilment centers.

Key Trends and Drivers

Sustainability & Green Logistics

Environmental concerns and regulatory pressure are pushing logistics firms to reduce emissions, driving the Australia logistics automation market development. Companies are adopting electric or hydrogen vehicles, optimizing routes to reduce fuel use, and implementing sustainable packaging and warehousing technologies. In September 2023, DHL Supply Chain introduced Australia’s first Volvo FL Electric medium‑duty electric truck to serve last‑mile delivery from its Western Sydney hub. Also, energy‐efficient automation is being integrated into facilities to lower carbon footprints.

Labor Shortages & Rising Costs

Australia’s logistics sector suffers from shortages in warehouse staff, drivers, and skilled operators. Rising wages and operational costs amplify pressure on margins. Automation technologies like AGVs, AMRs, robotic picking, and AI scheduling help reduce dependency on labor, improve throughput and consistency. Also, remote or regional operations especially struggle to attract workers, making automation more appealing in these settings. This shift not only ensures operational continuity but also enhances scalability during peak demand periods without relying heavily on temporary labor.

Government Policy, Funding & Regulatory Support

Federal and state governments are favoring the Australia logistics automation market revenue through grants, infrastructure investment, regulation, and strategies. In April 2025, the iMOVE Cooperative Research Centre provided AUD 2 million in funding for transport innovation projects, including logistics automation and intelligent systems development. The National Freight and Supply Chain Strategy and related programs encourage real‑time data sharing and smarter infrastructure. Policy frameworks around emissions, safety, and workforce training are also influencing adoption rates.

AMRs, AGVs & Robotics in Warehousing

Adoption of autonomous mobile robots (AMRs), AGVs, robotic arms, and cobots is increasing across Australian warehouses and distribution centers to automate repetitive tasks, such as picking, packing, sortation. In August 2024, London-based Ocado launched robotic warehouses in Melbourne and Sydney, automating Coles’ online grocery fulfilment with advanced picking technology. These systems offer flexibility as robots can be redeployed as demand changes. They also help in tighter spaces and reduce human error, boosting throughput and accuracy.

Digital Infrastructure & Platform Based Logistics

Australia logistics automation market players are investing in platforms for warehouse management (WMS), transport management (TMS), and supply chain control towers. Data hubs, cloud solutions, sharing platforms enable better coordination across stakeholders. Such infrastructure allows scalability, system integration, real‑time visibility, and lower overhead in monitoring and decision support. These digital platforms also support predictive analytics and AI-driven optimization, helping logistics providers anticipate demand, reduce delays, and enhance customer satisfaction.

Australia Logistics Automation Market Share

Logistics Automation Software & Services to Grow in Australia

Software is growing rapidly in the Australia logistics automation industry due to the need for integration, visibility, and smart decision-making across the supply chain. Key platforms include WMS, TMS, and supply chain control towers. These platforms enable automation hardware to function efficiently while offering real-time inventory tracking, route optimisation, and demand forecasting. Cloud-based and AI-driven software solutions are becoming essential to scale logistics automation and reduce manual errors, especially for multi-site operations in e-commerce and retail logistics.

The services segment plays a vital role in enabling successful automation adoption. Services include consulting, system design, deployment and integration, and support & maintenance. These are crucial for tailoring automation solutions to specific warehouse layouts, processes, and business goals. In December 2024, Swisslog implemented an AutoStore solution at Komatsu's spare parts warehouse in Tarneit, Victoria. Services are also critical for ensuring smooth deployment, scalability, and long-term performance of automation solutions.

Production & Procurement Logistics Automation Boom in Australia

Production logistics automation demand in Australia is growing rapidly, especially in food processing, pharmaceuticals, and advanced manufacturing. Automated systems like AGVs, conveyors, and robotic arms are being used to feed production lines and transport materials between workstations. For instance, Lactalis Australia uses AGVs in dairy production to optimise internal logistics. As Australian manufacturers adopt Industry 4.0 principles, production logistics automation is gaining momentum, aiming to improve efficiency, reduce downtime, and support just-in-time (JIT) manufacturing.

Procurement logistics deals with the movement of materials from suppliers to manufacturing or storage sites. Automated tracking systems, AI-based supplier platforms, and IoT-enabled transport management are helping firms manage inbound logistics more effectively. Companies are using integrated platforms to monitor supplier performance and optimise inbound deliveries. In February 2024, Queensland-based ProcurePro introduced an AI-enhanced procurement platform designed to streamline construction procurement processes.

Food and Beverage & Automotive Sector to Boost Logistics Automation in Australia

The food and beverage industry is adding to the Australia logistics automation industry growth to ensure freshness, traceability, and regulatory compliance. Automation systems like AGVs, refrigerated conveyors, and automated picking streamline storage and distribution of perishable goods. Automation reduces spoilage, speeds up order processing, and supports compliance with strict food safety standards, making this sector a strong growth area in Australia.

The automotive sector relies on automation for handling complex supply chains and assembly logistics. AGVs, robotic palletisers, and inventory control systems are used in manufacturing plants and warehouses. Companies like Toyota Australia and GM Holden have integrated automation for efficient parts handling and just-in-time delivery to assembly lines. In April 2022, Toyota Material Handling Australia deployed its AGVs at production/warehousing environments like Bega Cheese’s facilities to optimise material flow and reduce labour in repetitive transport roles.

Australia Logistics Automation Market Regional Analysis

Queensland & Western Australia to Witness High Logistics Automation Demand

Queensland is contributing to the Australia logistics automation market, supported by expanding urban centres like Brisbane and the state’s agricultural exports. Automation in Queensland focuses on cold chain logistics for perishables and bulk handling for mining-related supply chains. Companies, such as Toll Group are deploying AGVs and automated sorting solutions in Brisbane to enhance throughput and accuracy. Queensland’s increasing e-commerce penetration also drives demand for automated last-mile delivery solutions.

Western Australia (WA) has a strategically important logistics automation sector, mainly linked to mining, resources, and port operations around Perth and regional hubs. In June 2022, BHP initiated a project worth AUD 50 million to automate eight ship loaders at its Port Hedland facilities in Nelson Point & Finucane Islands. Automation technologies, such as automated guided vehicles, conveyors, and robotic palletising are used in mineral handling and heavy machinery logistics. WA’s vast geography makes remote and autonomous solutions appealing to reduce labour shortages and improve safety.

Competitive Landscape

Key Australia logistics automation market players are focusing on enhancing efficiency, scalability, and sustainability to meet rising demand and evolving supply chain challenges. Firstly, companies invest heavily in advanced technologies such as AMRs, AGVs, robotic picking systems, and AI-powered WMS to automate repetitive tasks and improve order accuracy. Integration of Internet of Things (IoT) and real-time data analytics enables better inventory management, route optimization, and predictive maintenance, enhancing operational visibility and decision-making.

Secondly, market players emphasize partnerships and collaborations with technology providers, startups, and logistics operators to accelerate innovation and deployment. Thirdly, sustainability initiatives are gaining traction, with firms adopting electric and hydrogen-powered vehicles, energy-efficient warehousing, and sustainable packaging to reduce carbon footprints and comply with regulatory pressures. Lastly, government grants and infrastructure investments are leveraged to expand automation capabilities across urban and regional centers.

Smartlogitecx Pty Limited

Founded in 2010 and headquartered in Melbourne, Australia, Smartlogitecx specializes in bespoke warehouse automation solutions. The firm has successfully optimized supply chain operations for major Australian retailers, improving order accuracy and throughput in fast-paced e-commerce environments.

KNAPP Australia Pty Ltd

Established in 2001, KNAPP Australia is a subsidiary of Austrian logistics technology leader KNAPP AG, with its office in Sydney. It is renowned for pioneering modular automation systems and innovative robotics in warehouses, delivering scalable solutions to enhance operational efficiency in retail, pharmaceutical, and manufacturing.

Dematic Corp.

Founded in 1819 and headquartered in Atlanta, the United States, Dematic is a global leader in supply chain automation. In Australia, it introduced gen-next sorting and automated storage technologies, including the Silky Crossbelt sorter, boosting warehouse throughput and accuracy for large-scale retailers and logistics providers.

Swisslog Holding AG

Swisslog, founded in 1900 and based in Buchs, Switzerland, excels in intelligent automation and robotics. Its Australian operations focus on automated storage and retrieval systems and integrated software solutions, enabling improved inventory management and operational agility in healthcare, retail, and manufacturing logistics.

Other players in the Australia logistics automation market are Fast Automation Pty Ltd, Cimcorp Australia, Mushiny Co., Ltd., AvLogix Pty Ltd. and others.

Key Features of the Australia Logistics Automation Market Report

• Comprehensive quantitative analysis of market size, growth, and future projections.
• In-depth segmentation by component, logistics type, end use, and region for precise insights.
• Detailed competitive landscape profiling leading logistics automation companies.
• Examination of key trends, drivers, challenges, and opportunities shaping the market.
• Analysis of government policies and investments influencing market development.
• Strategic recommendations to capitalize on emerging logistics automation trends.

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