Over the past five years, UK logistics automation spend has seen strong and accelerating growth, driven by e‑commerce expansion, labour shortages, and technology maturation:
Market Growth (2018–2023)
- In 2023, the UK logistics automation market reached £480–560 million in 2018–2019
- That implies a roughly 15–16% compound annual growth rate over these years, equating to an increase from about £500 m to nearly £1 bn in five years.
Robotics Segment (2018–2024)
- In 2024, the UK logistics robotics sector generated £240–320 m in 2018–2019.
- Projected to grow to 1.55 bn by 2030 at a 17% compound annual growth rate, reinforcing robust ongoing investment.
Warehouse Automation (2018–2024)
- UK warehouse automation revenue rose to £960 m in 2024, from around 320–400 m in 2018–2019.
- That segment is growing fastest at 21% compound annual growth rate through to 2030.
Broader Automation Outlook
- Broader “logistics automation” (including hardware, software, services across the supply chain) reached 1.05 billion in 2023.
- With 15.8% compound annual growth rate forecast through 2033, the market is expected to total £4.6 bn by then.
Why the Surge?
- E‑commerce boom spiked during COVID–19 (2020–21) and continues to fuel automation across picking, sorting, packaging, and micro‑fulfilment.
- Labour shortages and rising wages—compounded by Brexit—have made automation economically essential.
- SMEs increasingly adopt modular and scalable solutions, accelerating cumulative spend as automation platforms mature and costs fall.
In GBP Terms: A Snapshot
Year |
Approx. Market Size (GBP) |
Segment Focus |
2018 |
£400–600 million |
Early-stage robotics & warehouse systems |
2020 |
£600–700 million |
COVID‑driven acceleration |
2023 |
~£1 billion |
System-wide logistics automation |
2024 |
~£960 million |
Warehouse & robotics |
2025+ (forecast) |
£1.5–2 billion by ~2027 |
Continued hardware/software uptake |
This represents a more-than-doubling in spend over five years, with compounded annual growth rates between 15–21% depending on the segment.
What It Means For The Industry
- Major integrators (e.g., Ocado, Tesco, GXO, DHL) are spearheading large-scale hardware deployments.
- SMEs increasingly adopt scalable, tiered automation—from basic AS/RS and AGVs to AI‑powered systems.
- There's strong momentum into services (integration, software, maintenance)—which are now growing faster than hardware.
In summary, the UK logistics equipment automation has seen rapid growth in GBP terms, doubling from approximately £500 m to £1 bn+ between 2018 and 2023. With investment continuing at 16–21% compound annual growth rate, expect the market to cross £1.5 bn by 2027, driven by e‑commerce, cost pressures, and technology maturation.
If you are considering incorporating automation into your operation, LPC can guide you to the most appropriate systems, conceptualise the requirements and provide budget costs against the schemes. Get in touch with us today.