In-Plant Logistics Market Size, Share, Statistics and Industry Growth Analysis Report by Product (Robots, ASRS, Conveyors & Sortation Systems, Cranes, AGVs, WMS, RTLS), Location (Receiving & Delivery Docks, Assembly/Production Lines, Storage Facilities, Packaging Workstations), Industry - Global Forecast to 2028
[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 market 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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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
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Report Metric |
Details |
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Estimated Market Size in 2023 |
USD 12.3 Billion |
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Projected Market Size in 2028 |
USD 19.5 Billion |
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Growth Rate |
CAGR of 9.7% |
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Market size available for years |
2020—2028 |
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Base year |
2022 |
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Forecast period |
2023—2028 |
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Forecast Units |
USD Millions/USD Billions and Million Units |
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Segments Covered |
Product, Location, and Industry |
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Geographic regions covered |
North America, Asia Pacific, Europe, and Rest of the World |
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Companies covered |
Daifuku Co., Ltd. (Japan), JBT (US), KION GROUP AG (Germany), KUKA AG (Germany), and Toyota Industries Corporation (Japan). A total of 25 players are covered. |
In-plant Logistics Market Highlights
In this report, the overall in-plant logistics market has been segmented based on product, location, industry and region.
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Segment |
Subsegment |
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By Product |
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By Location |
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By Industry |
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By Region |
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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.
Frequently Asked Questions (FAQs):
What is the current size of the global in-plant logistics market?
The in-plant logistics market 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.
Who are the global in-plant logistics market winners?
Companies such as Daifuku Co., Ltd. (Japan), JBT (US), KION GROUP AG (Germany), KUKA AG (Germany), and Toyota Industries Corporation (Japan) fall under the winners’ category.
Which region is expected to hold the highest share of the in-plant logistics market?
Asia Pacific is expected to hold the highest share of the in-plant logistics market due to its robust industrial infrastructure, technological innovation, and strong presence of key in-plant logistics solutions providers, driving the adoption of advanced in-plant logistics systems across various sectors, including manufacturing, automobile, and healthcare.
What are the major drivers and opportunities related to the in-plant logistics market?
Rising demand for in-plant logistics solutions in various industries and Integration of emerging technologies such as AI, Industry4.0, and IoT with In-plant logistics systems are some of the major drivers and opportunities for the in-plant logistics market.
What are the major strategies adopted by in-plant logistics companies?
The agitator companies have adopted product launches, acquisitions, expansions, and contracts to strengthen their position in the in-plant logistics market.
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The study involves four major activities that estimate the size of the in-plant logistics market. Exhaustive secondary research was conducted to collect information related to the market. Following this was validating these findings, assumptions, and sizing with the industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the overall size of the in-plant logistics market. Subsequently, market breakdown and data triangulation procedures were used to determine the extent of different segments and subsegments of the market.
Secondary Research
Secondary sources in this research study include corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers, certified publications, articles from recognized authors; directories; and databases. The secondary data were collected and analyzed to estimate the overall market size, further validated by primary research.
Primary Research
In the primary research process, numerous sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information about this report. The primary sources from the supply side included various industry experts such as Chief X Officers (CXOs), Vice Presidents (VPs), and Directors from business development, marketing, product development/innovation teams, and related key executives from in-plant logistics providers, such as Daifuku Co., Ltd. (Japan), JBT (US), KION GROUP AG (Germany), KUKA AG (Germany), and Toyota Industries Corporation (Japan); research organizations, distributors, professional and managed service providers, industry associations, and key opinion leaders. Approximately 25% of the primary interviews were conducted with the demand side and 75% with the supply side. These data were collected mainly through questionnaires, emails, and telephonic interviews, accounting for 80% of the primary interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the market engineering process, both top-down and bottom-up approaches were implemented, along with several data triangulation methods, to estimate and validate the size of the market and other dependent submarkets listed in this report.
- The key players in the industry and markets were identified through extensive secondary research.
- Both the supply chain of the industry and the market size, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- Market Size Estimation Methodology-Bottom-up Approach and Top-down Approach
Data Triangulation
After estimating the overall market size, the total market was split into several segments. The market breakdown and data triangulation procedures were employed wherever applicable to complete the overall market engineering process and gauge exact statistics for all segments. The data were triangulated by studying various factors and trends from both the demand and supply sides. The market was also validated using both top-down and bottom-up approaches.
Market Definition
In-plant logistics refers to the management and coordination of material flow, storage, and distribution within a manufacturing or production facility. It involves optimizing the movement of raw materials, components, and finished products within the confines of the plant, aiming to enhance efficiency and reduce operational costs. This specialized branch of logistics focuses on streamlining processes such as inventory management, order fulfillment, and transportation within the facility to ensure a smooth and timely production cycle. In-plant logistics plays a crucial role in minimizing lead times, preventing bottlenecks, and maximizing the utilization of resources within the manufacturing environment.
The key objectives of in-plant logistics include minimizing idle time for both labor and equipment, optimizing storage space, and ensuring that the right materials are available at the right place and time for the production process. This involves the use of advanced technologies, such as warehouse management systems (WMS) and automated guided vehicles (AGVs), to facilitate efficient material handling and tracking. By focusing on the internal movements of goods within a facility, in-plant logistics contributes to overall supply chain effectiveness, enhancing the competitiveness of the manufacturing operation in terms of cost, speed, and responsiveness to market demands. We are considering only the products used for logistics activities related to manufacturing plant plants for production and storage.
Stakeholders
- Integrators of material handling systems
- Warehousing companies
- Government bodies, venture capitalists, and private equity firms
- Original device manufacturers (ODMs)
- Original equipment manufacturers (OEMs)
- Manufacturers of automated material handling equipment
- Research organizations, forums, alliances, and associations
- Software and service providers
The main objectives of this study are as follows:
- To describe and forecast the in-plant logistics market, by product, location, and industry, in terms of value
- To forecast the market size, in terms of value, for four main regions, namely, North America, Europe, Asia Pacific, and Rest of the World (RoW)
- To provide information on the services involved in in-plant logistics system
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
- To analyze the probable impact of the recession on the market in the future
- To provide a comprehensive overview of the value chain of the in-plant logistics ecosystem
- To analyze competitive developments, such as product launches, acquisitions, collaborations, agreements, and partnerships, in the in-plant logistics market
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To strategically profile key players and comprehensively analyze their market positions in terms of ranking and core competencies2, and provide a detailed competitive landscape of the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Country-wise Information:
- Analysis for additional countries (up to five)
Company Information:
- Detailed analysis and profiling of different market players (up to five)
Growth opportunities and latent adjacency in In-Plant Logistics Market