In-Plant Logistics Market Expansion: Expected to Grow from USD 12.3 Billion in 2023 to USD 19.5 Billion by 2028


Posted June 25, 2024 by avinashgogawale14

With a 9.7% compound annual growth rate, the In-Plant Logistics Market is expected to reach USD 19.5 billion by 2028 from USD 12.3 billion in 2023.
 
The In-Plant Logistics Market, valued at USD 12.3 billion in 2023, is projected to reach USD 19.5 billion by 2028, growing at a robust CAGR of 9.7% during the forecast period. This growth is driven by the increasing demand for efficient internal logistics solutions within manufacturing facilities to optimize production processes and reduce operational costs. Advancements in automation, IoT, and AI technologies are enhancing the capabilities of in-plant logistics systems, making them more efficient and reliable. The rise in smart manufacturing and Industry 4.0 initiatives further accelerates the market growth as industries seek to improve material handling, inventory management, and overall supply chain efficiency. As companies prioritize streamlined operations and cost savings, the adoption of in-plant logistics solutions is expected to surge, driving substantial market expansion over the next five years.

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As companies strive to enhance operational efficiency and achieve cost-effectiveness in manufacturing, the demand for sophisticated in-plant logistics solutions has surged. These solutions streamline material handling, reduce downtime, and optimize workflow within manufacturing facilities. By leveraging advanced technologies such as automated guided vehicles (AGVs), real-time tracking systems, and integrated warehouse management software, manufacturers can ensure just-in-time delivery of materials and components, minimize waste, and improve overall productivity. This focus on in-plant logistics not only reduces operational costs but also enhances the agility and responsiveness of manufacturing processes, enabling companies to better meet market demands and maintain a competitive edge.

The major players in the In-Plant Logistics Market with a significant global presence are Daifuku Co., Ltd. (Japan), JBT (US), KION GROUP AG (Germany), KUKA AG (Germany), and Toyota Industries Corporation (Japan). Companies in the market are dedicating resources to research and development with the aim of improving the effectiveness, adaptability, and scalability of their in-plant logistics solutions to meet the varied needs of industries globally. Furthermore, they are actively seeking partnerships and collaborations with local distributors, integrators, and technology providers in specific regions to solidify their international presence.

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Daifuku Co., Ltd. excels in consulting, designing, manufacturing, planning, and engineering material handling equipment, along with providing comprehensive installation and after-sales services for logistics systems. The company operates through five business divisions—Daifuku, Daifuku North America, Automotive Business, Clean Factomation, Contec, and Others—and six segments: Intralogistics Business, Auto Wash Business, Cleanroom Business, Airport Business, and Electronics Business. Daifuku serves a diverse range of industries including factory and distribution automation, e-factory automation, automotive factory automation, airport technologies, clean rooms, lifestyle products, and electronics. Under its Intralogistics business, Daifuku offers the ASRS line of products, specializing in automated storage systems, transport, sorting, and picking systems. These solutions cater to various industries such as e-commerce, retail, wholesale, transportation and warehousing, food, pharmaceutical, and chemical sectors, highlighting Daifuku's pivotal role in enhancing in-plant logistics efficiency and effectiveness across the manufacturing landscape.

John Bean Technologies (JBT) stands as a prominent technology solutions provider for the food processing and air transportation industries. Operating under two main segments—JBT FoodTech and JBT AeroTech—the company offers a diverse product portfolio, including freezing solutions, protein processing, in-container processing, fruit processing solutions, ground support equipment, gate equipment, airport services, military equipment, automated guided vehicles (AGVs), and financing solutions. Specifically, JBT addresses the in-plant logistics market through its JBT FoodTech segment. With over 25 years of experience in this sector, JBT has developed a comprehensive range of products and solutions. The company has demonstrated consistent growth, particularly in offering AGVs, which serve as efficient automated solutions, enhancing operational efficiency for its customers across various industries.

KION GROUP AG is a premier manufacturer of industrial trucks, automated material handling (AMH) solutions, and related services, operating through three segments: Industrial Trucks and Services, Supply Chain Solutions, and Corporate Services. In November 2016, KION GROUP AG acquired Dematic, a global leader in intelligent intralogistics and materials handling solutions, to bolster its advanced material handling offerings. The company's products and services are marketed under various brands, including Linde, STILL, Baoli, Egemin Automation, Fenwick, OM STILL, Dematic, and Voltas. KION GROUP AG provides in-plant logistics solutions through its Industrial Trucks and Services and Supply Chain Solutions segments. The Industrial Trucks & Services segment focuses on the sale of forklift trucks, warehouse technology, and related services, enhancing operational efficiency and productivity for a wide range of industries.

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KUKA AG is a leader in developing robots and automated production systems, offering a comprehensive range of products and services across multiple industries. The company operates through five main segments: Robotics, Systems, Swisslog, Swisslog Healthcare, and China. The Robotics segment is dedicated to designing, developing, producing, selling, and servicing industrial robots, as well as creating products for service robotics and healthcare applications. The Swisslog segment specializes in automation solutions tailored for the e-commerce, retail, warehouse logistics, and healthcare sectors. Within this segment, the Warehouse Distribution Solutions (WDS) division focuses on industry-specific automation for distribution centers and warehouses, providing consulting, software solutions, general contracting, implementation, and lifetime support services. KUKA AG's innovative approach ensures cutting-edge solutions that enhance efficiency and productivity in various fields, including medical, research, engineering, and industrial use.

Toyota Industries Corporation is renowned for manufacturing and selling automobiles and industrial machines, operating through three key segments: Automobile, Materials Handling Equipment, and Textile Machinery. The Materials Handling Equipment segment, represented by the robust brands TOYOTA and RAYMOND, delivers top-tier materials handling solutions to a global clientele. In 2017, the acquisition of Netherlands-based Vanderlande Industries Holding B.V. and North America-based Bastian Solutions LLC led to the formation of the Toyota Advanced Logistics Group (TALG). Bastian Solutions, a significant player in the ASRS market, operates under the Toyota Advanced Logistics segment, offering comprehensive system integration solutions for material handling. Their product portfolio includes mobile robots, automated storage and retrieval systems (ASRS), automated guided vehicles (AGVs), goods-to-person technology, sortation systems, and conveyors. As an integrator of high-speed ASRS, Bastian Solutions provides solutions with high throughput and precise sequencing, enhancing operational efficiency for various industries.

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Last Updated June 25, 2024