Global In Plant Logistics Market Size Likely to Grow At a CAGR of 9.4% By 2034

In Plant Logistics Market Size

As per the current market research conducted by the CMI Team, the global In Plant Logistics Market size is expected to record a CAGR of 9.4% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 15,717.2 Million. By 2033, the valuation is anticipated to reach USD 35,024.8 Million.

In Plant Logistics Market Growth Factors

• Increasing Demand for Efficiency and Cost Optimization: In-plant logistics services play a crucial role in optimizing operations within manufacturing facilities. The market is driven by a strong demand for improved efficiency, reduced operational costs, and minimized downtime. Companies are increasingly focusing on streamlining their supply chain processes to achieve faster production cycles and better inventory management, thereby enhancing overall operational efficiency and competitiveness.

• Rise in Adoption of Automation and Robotics: There is a noticeable trend towards automation and robotics in material handling and warehouse management within manufacturing plants. This trend is propelled by the need for higher throughput rates, improved accuracy, and significant reductions in labor costs. Automated guided vehicles (AGVs), robotic arms, and automated storage and retrieval systems (ASRS) are increasingly integrated into logistics operations to optimize inventory control and enhance operational efficiency.

• Emphasis on Lean Manufacturing Practices: The adoption of lean manufacturing principles is becoming increasingly prevalent among manufacturing plants worldwide. In-plant logistics plays a critical role in supporting lean practices by ensuring smooth production flows, minimizing waste, and facilitating just-in-time (JIT) delivery of materials and components.

• Integration of IoT and Data Analytics: The integration of Internet of Things (IoT) devices and advanced data analytics tools is transforming in-plant logistics operations. IoT sensors provide real-time insights into inventory levels, equipment performance, and environmental conditions within manufacturing facilities. Data analytics enable predictive maintenance, demand forecasting, and optimization of logistics processes, thereby enhancing operational visibility, efficiency, and decision-making capabilities across the supply chain.

• Focus on Sustainability and Environmental Compliance: Sustainability has emerged as a key driver in the In-Plant Logistics market. Manufacturing plants are increasingly adopting sustainable logistics practices to minimize their environmental footprint and comply with stringent regulations. Green logistics solutions, such as energy-efficient warehouse designs, the use of eco-friendly packaging materials, and optimized transportation routes, are gaining traction.

• Expansion of Manufacturing Facilities Globally: The global expansion of manufacturing facilities, particularly in emerging economies, is fueling the demand for efficient in-plant logistics solutions. Rapid industrialization and infrastructure development in regions like Asia Pacific and Latin America are driving investments in manufacturing capacities.

In Plant Logistics Market: Partnership and Acquisitions

• In 2022, Toyota Material Handling Japan, a sector of Toyota Industries Corporation, launched an autonomous lift truck featuring AI-based technology. This innovation allows the lift truck to autonomously identify truck and load positions, generating efficient travel routes for loading operations and adapting to variable conditions beyond traditional fixed-position loading scenarios.

• In 2024, KUKA AG enhanced its KMP 600-S diffDrive platform, a robust automated guided vehicle (AGV) solution designed for industrial settings. With an IP 54 rating, it offers durability and reliability, capable of operating effectively in demanding conditions such as water spray and dust exposure.

Report Scope

In Plant Logistics Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the In Plant Logistics Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Disruptions in Supply Chain Operations: COVID-19 led to widespread disruptions in supply chains, affecting in-plant logistics operations due to restrictions on movement, labor shortages, and disruptions in transportation networks. Companies faced challenges in sourcing raw materials and distributing finished goods.

• Shift towards Resilient and Agile Supply Chains: The pandemic highlighted the importance of resilient and agile supply chains. Companies reassessed their logistics strategies to build flexibility, implement contingency plans, and diversify sourcing to mitigate future disruptions and ensure continuity of operations.

• Adoption of Digital Technologies: Increased adoption of digital technologies such as IoT, data analytics, and automation to enhance visibility, optimize inventory management, and improve operational efficiency in in-plant logistics. These technologies enable real-time monitoring and predictive maintenance to minimize downtime.

• Focus on Employee Safety and Well-being: Implementation of stringent health and safety protocols to protect workers, including social distancing measures, enhanced sanitation practices, and remote monitoring solutions. Ensuring employee safety is critical for maintaining workforce continuity and operational stability.

• Supply Chain Diversification: Companies are diversifying their supplier base and sourcing strategies to reduce dependency on single suppliers or regions, ensuring continuity of supply and minimizing future risks. This strategy involves assessing supplier resilience and establishing alternate sourcing options.

• Resurgence of Manufacturing Activities: With the easing of restrictions and economic recovery, manufacturing activities are resuming, driving demand for in-plant logistics services to support increased production levels and meet pent-up demand. Logistics providers are ramping up capacity and optimizing workflows to meet accelerated production schedules.

• Strategic Partnerships and Collaborations: Collaborations between logistics service providers and technology firms to innovate and develop solutions that enhance supply chain resilience, optimize operations, and address emerging market demands post-pandemic. These partnerships foster innovation in logistics management and accelerate digital transformation initiatives.

In conclusion, the COVID-19 pandemic has had a mixed impact on the In Plant Logistics Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the In Plant Logistics Market:

• DHL Supply Chain
• Kuehne + Nagel International AG
• DB Schenker
• XPO Logistics Inc.
• Ryder System Inc.
• Penske Logistics
• CEVA Logistics
• FedEx Supply Chain
• Geodis
• DSV Panalpina
• H. Robinson Worldwide Inc.
• Nippon Express Co. Ltd.
• DACHSER SE
• Yusen Logistics Co. Ltd.
• Agility Logistics
• Others

The In Plant Logistics Market is segmented as follows:

By Product

• Robots
• Automated Storage and Retrieval Systems (ASRS)
• Conveyors & Sortation Systems
• Cranes
• Automated Guided Vehicles (AGVs)
• Warehouse Management Systems (WMS)
• Real-time Location Systems (RTLS)
• Others

By Technology

• Automation and Robotics
• IoT and Data Analytics
• Blockchain
• Others

By Location

• Receiving & Delivery Docks
• Assembly/Production Lines
• Storage Facilities
• Packaging Workstations
• Others

By Industry Vertical

• Automobiles
• Retail & Consumer Goods
• Food & Beverages
• Metals & Heavy Machinery
• Electronics
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America