In-Plant Logistics Market Size, Share & Analysis

Updated on : Sep 12, 2024

In-plant Logistics Market Size & Growth

[254 Pages Report] The In-Plant Logistics Market Size is estimated to be worth USD 12.3 Billion in 2023 and is projected to reach USD 19.5 Billion by 2028 at a CAGR of 9.7% during the forecast period.

The integration of cutting-edge technologies, including automation, robotics, and real-time tracking systems, is reshaping the landscape by providing unprecedented levels of precision and control in material flow. As businesses strive to stay competitive in a rapidly evolving market, the imperative for cost optimization and the need to navigate complexities in supply chain management are propelling the growth of the in-plant logistics market share, making it a pivotal component in the evolution of modern manufacturing and distribution operations.

In-Plant Logistics Market Forecast to 2028

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In-plant Logistics Market Trends

Driver: Rising demand for in-plant logistics solutions in various industries

The in-plant logistics industry growth is experiencing a surge in demand across various industries, emerging as a pivotal driver for the sector's. The increasing reliance on efficient and streamlined supply chain processes within manufacturing plants is a key factor propelling the demand for in-plant logistics solutions. Industries such as automotive, electronics, pharmaceuticals, and consumer goods are recognizing the significance of optimizing their internal logistics to enhance productivity and reduce operational costs. As businesses strive for leaner and more agile operations, the demand for in-plant logistics solutions has intensified, fostering a dynamic market landscape. Moreover, the rising complexity of modern production processes and the need for real-time inventory management have further fueled the adoption of in-plant logistics solutions. Manufacturers are seeking advanced technologies and tailored logistics strategies to seamlessly integrate material handling, inventory control, and distribution within their facilities. This growing awareness of the operational benefits associated with in-plant logistics solutions is steering industries towards investing in these services. As a result, the market is witnessing a positive trajectory, driven by the compelling need for enhanced efficiency and precision in internal logistics operations across diverse industrial sectors.

Restraint: High cost related to deployment and maintenance of In-plant logistics system

The in-plant logistics market faces a significant restraint in the form of the high costs associated with the deployment and maintenance of sophisticated logistics systems. The initial investment required for implementing advanced technologies such as automation, robotics, and state-of-the-art warehouse management systems can be substantial. Companies often encounter challenges in allocating budgets for these upfront expenses, especially for small and medium-sized enterprises (SMEs), which may have more limited financial resources. The high deployment costs act as a deterrent for some businesses, hindering their ability to adopt modern in-plant logistics solutions and benefit from the operational efficiencies these technologies can offer. In addition to the initial deployment costs, the ongoing expenses related to system maintenance and upgrades contribute to the overall financial burden for organizations utilizing in-plant logistics solutions. As technology continues to evolve rapidly, companies may face the need for frequent updates and enhancements to remain competitive and keep pace with industry standards.

Opportunity: Integration of emerging technologies such as AI, Industry 4.0, and IoT with In-plant logistics system

The integration of emerging technologies, including Artificial Intelligence (AI), Industry 4.0, and the Internet of Things (IoT), presents a significant opportunity for the in-plant logistics market. These cutting-edge technologies offer the potential to revolutionize how internal logistics operations are managed and optimized within manufacturing facilities. AI enables predictive analytics and machine learning algorithms that can enhance demand forecasting, route optimization, and overall decision-making processes. By harnessing AI capabilities, in-plant logistics systems can become more adaptive and responsive, leading to improved efficiency and reduced operational costs. Industry 4.0, characterized by the digitization and interconnectivity of manufacturing processes, opens up new possibilities for in-plant logistics. The seamless integration of sensors and smart devices through IoT enables real-time monitoring and data-driven insights into the movement of goods within a facility.

Challenge: Production and revenue losses attributed to unwanted equipment downtime

The malfunction or breakdown of in-plant logistics systems can greatly affect companies' overall earnings. Such issues lead to delays in the entire production process, causing production losses and a decrease in plant performance. In industries with high capital investments, such as automotive, metals & heavy machinery, and food & beverages, downtimes can result in an average cost of USD 22,000 per minute for the company.. Unplanned downtime, whether due to equipment failures, logistical bottlenecks, or inefficiencies, can disrupt the entire production process, leading to delays, increased costs, and revenue loss. The repercussions of such interruptions extend beyond the immediate financial impact, affecting customer satisfaction, contractual obligations, and the overall competitiveness of businesses. In response to this challenge, in-plant logistics providers need to focus on implementing preventive maintenance strategies, adopting predictive analytics, and leveraging advanced technologies to minimize the risk of equipment failures and optimize the reliability of logistics systems. Addressing the issue of unwanted downtime is crucial for the in-plant logistics market to enhance its value proposition and ensure the seamless functioning of internal logistics operations within manufacturing facilities.

In-Plant Logistics Market Ecosystem

In-plant Logistics Market: Key Trends

Daifuku Co., Ltd. (Japan), JBT (US), KION GROUP AG (Germany), KUKA AG (Germany), and Toyota Industries Corporation (Japan) are the top players in the in-plant logistics market. These in-plant logistics companies boast in-plant logistics trends with a comprehensive product portfolio and solid geographic footprint.

Robots to grow at the highest CAGR during 2023-2028.

The increasing demand for automation, coupled with advancements in robotic technologies, is driving industries to deploy robots for a myriad of in-plant logistics tasks. From automated guided vehicles (AGVs) facilitating the movement of materials to robotic arms handling intricate assembly processes, robots offer unprecedented levels of efficiency, precision, and adaptability. The evolution of collaborative robots, or cobots, that can work alongside human operators further contributes to the versatility of robotic solutions within manufacturing facilities. As industries increasingly prioritize lean and agile operations, the versatile applications of robots in optimizing material flow, minimizing errors, and improving overall productivity position them at the forefront of growth in the in-plant logistics market, marking a paradigm shift in the way industries approach internal logistics and production processes.

Semiconductor and electronics industries grow at the highest CAGR during the forecast period.

As the demand for semiconductor products and electronic components continues to surge globally, there is a heightened emphasis on optimizing internal logistics for efficient material handling, inventory management, and streamlined production workflows. The integration of advanced in-plant logistics solutions, including automated guided vehicles (AGVs), conveyor systems, and real-time tracking technologies, addresses the intricate requirements of these industries. Precision and speed are critical in semiconductor and electronics manufacturing, making advanced logistics technologies indispensable for minimizing lead times and ensuring the swift and accurate movement of sensitive components. As the Semiconductor and electronics industries evolve to meet the demands of a rapidly changing market, the adoption of innovative in-plant logistics solutions is expected to propel them to the forefront of growth in this dynamic market segment.

Asia Pacific is expected to grow at the highest CAGR in the in-plant logistics market during the forecast period.

Asia Pacific is a powerhouse in manufacturing and production. This has led to increased investments in advanced technologies and automation, aimed at improving operational efficiency. Across diverse industries such as automotive, electronics, and consumer goods, there is a proactive embrace of innovative in-plant logistics solutions. This is driven by the need to meet growing production demands and effectively navigate the complexities of modern supply chain management. The proactive adoption of cutting-edge logistics solutions solidifies its position as a significant contributor to the growth and evolution of the in-plant logistics market. As industries in the region continue to expand and prioritize productivity enhancement, Asia Pacific is poised to take the lead in driving innovation and shaping the trajectory of the in-plant logistics industry.

In-Plant Logistics Market Statistics by Region

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Top Companies In-plant Logistics - Key Market Players

The major companies in the in-plant logistics companies include

• Daifuku Co., Ltd. (Japan),
• JBT (US),
• KION GROUP AG (Germany),
• KUKA AG (Germany), and
• Toyota Industries Corporation (Japan). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the in-plant logistics market.

In-Plant Logistics Market Report Scope

In-plant Logistics Market Highlights

In this report, the overall in-plant logistics market has been segmented based on product, location, industry and region.

Recent Developments

• In May 2023, the BEUMER GROUP acquired Hendrik Group Inc., one of the leading companies for air-supported belt conveyors. With this acquisition, BEUMER GROUP could expand its portfolio in the field of bulk material transport.
• In March 2023, KUKA introduced an upgraded version of its KMP 600-S diffDrive, extending the company's range of mobile platforms. The KUKA KMP 600-S diffDrive mobile platform presents an advanced automated guided vehicle system, offering high-speed capabilities for production intralogistics. With a maximum payload capacity of 600 kg, it is perfectly suited for the demanding industrial production environment.
• In September 2022, Toyota Material Handling Japan, a sector under Toyota Industries Corporation, introduced an autonomous lift truck equipped with AI-based technology. This technology enables the lift truck to autonomously identify the location and positioning of trucks and loads, generating automated travel routes for efficient loading operations.. This makes it possible to automate loading operations even in situations where the truck's stopping location and load position are not fixed, in addition to conventional fixed-position loading.

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