In-Plant Logistics Market Size - By Service (Material Handling, Transportation Management, Inventory Management, Packaging & Labelling, Others) By Facility Size (Small Facilities, Medium Facilities, Large Facilities), By End User & Forecast, 2024 - 2032

In-Plant Logistics Market Size

In-Plant Logistics Market size was valued at USD 11.5 billion in 2023 and is estimated to register a CAGR of over 9.6% between 2024 and 2032. The growth of Industry 4.0 and the expansion of smart factories are significantly transforming the market. The industrial evolution prioritizes interconnected systems, data exchange, and automation to create highly efficient and responsive manufacturing environments. Smart factories utilize IoT, artificial intelligence (AI), and machine learning to optimize logistics processes, from material handling to production scheduling.
 

In August 2021, Volkswagen initiated a comprehensive digital transformation across its assembly plants in the United States and Mexico. This initiative is part of the company’s planned USD 1 billion investment in electric mobility and digitalization in North America, which is planned to be executed by 2025. These technologies enable real-time tracking and analysis of goods, reducing waste and enhancing supply chain transparency. Additionally, advanced robotics and autonomous systems further streamline in-plant logistics, minimizing human intervention and errors. As industries adopt Industry 4.0 principles, the demand for sophisticated in-plant logistics solutions that support seamless, automated operations and rapid responses to market changes is accelerating.   
 

Moreover, the increasing complexity of manufacturing processes is driving the demand for advanced in-plant logistics market. As products become more customized and production lines diversify, efficient management of materials and components within the plant becomes essential. These logistics must adapt to handle a wider variety of materials, manage just-in-time (JIT) delivery systems, and support flexible production schedules. This necessitates sophisticated logistics systems capable of real-time tracking, rapid reconfiguration, and seamless integration with production planning tools.
 

Integrating advanced technologies necessitates significant capital investment, a skilled workforce, and an adaptation period. Many manufacturing facilities operate on legacy systems that often conflict with new technologies, risking disruptions during the transition. Additionally, employees require training to effectively utilize and maintain these systems. The complexity of ensuring diverse technologies to work seamlessly together presents considerable challenges. Additionally, companies must address cybersecurity threats, as interconnected systems are vulnerable to cyber-attacks. Nevertheless, successfully integrating advanced technologies leads to substantial improvements in efficiency, accuracy, and overall productivity.
 

In-Plant Logistics Market Trends

Integrating IoT into in-plant logistics enables real-time tracking, monitoring, and management of assets and materials. IoT sensors and devices collect data on equipment status, inventory levels, and environmental conditions, providing actionable insights to optimize operations. This connectivity enhances transparency, facilitating better decision-making and predictive maintenance. For instance, IoT-enabled forklifts can communicate their location, load status, and maintenance needs, thereby improving utilization and reducing downtime.
 

Additionally, integrating IoT with warehouse management systems (WMS) and logistics management software further enhances the coordination and efficiency of in-plant logistics processes. As the technology matures, IoT is expected to become a standard component in modern logistics systems.
 

Further, the in-plant logistics industry is experiencing significant advancements due to automation and robotics, which are enhancing efficiency, safety, and productivity in manufacturing and distribution facilities. Companies are increasingly adopting automated solutions to streamline material handling, reduce labor costs, and improve operational accuracy.
 

For instance, in April 2024, Walmart partnered with Fox Robotics to implement robotic forklifts across its distribution centers. This collaboration involves deploying 19 robotic forklifts from Fox Robotics, following a successful 16-month pilot program at Walmart's Distribution Center. As industry leaders such as Walmart continue to invest heavily in robotics, the in-plant logistics sector is set for significant transformation and growth during the forecasted period.
 

In-Plant Logistics Market Analysis

Based on service type, the market is divided into material handling, transportation management, inventory management, packaging and labeling, and others. In 2023, the material handling segment held approximately USD 3.9 billion. Automated systems, including Automated Guided Vehicles (AGVs), robotics, and conveyor systems, are increasingly utilized to manage repetitive tasks such as material movement, sorting, and packaging. These technologies reduce human intervention, minimize errors, and expedite processes, thereby enhancing productivity.
 

Moreover, collaborative robots (Cobots) work alongside human operators to perform tasks requiring precision or heavy lifting. Advanced sensors and AI algorithms enable these systems to adapt to changing conditions, optimize routes, and manage inventory with greater accuracy. The integration of automation in material handling allows companies to reduce operational costs, improve safety by minimizing manual handling, and increase throughput. As technology advances, the decreasing cost of automation makes it more accessible to a broader range of businesses.
 

Based on the facility size, the in-plant logistics market is categorized into small, medium, and large facilities. The large facilities segment is expected to hold over USD 10.2 billion by 2032. These facilities are important in global supply chains, requiring robust in-plant logistics solutions to manage complex operations. Additionally, they integrate internal logistics with external supply chain activities, including supplier coordination, transportation, and distribution. Advanced logistics solutions enable seamless communication and data exchange among supply chain partners, enhancing overall efficiency and responsiveness.
 

For instance, in December 2023, FedEx partnered with the Indian Institute of Technology Bombay to develop advanced logistics technologies. This collaboration aims to create next-generation solutions that enhance the efficiency, reliability, and sustainability of logistics operations. As companies expand their global operations, the demand for sophisticated logistics solutions that effectively manage these integrations increases, driving growth in this segment for large facilities.
 

North America dominated the in-plant logistics market with around 32% of the revenue share in 2023. The companies are increasingly investing in automated guided vehicles (AGVs) and warehouse management systems (WMS) to streamline operations and reduce costs, significantly boosting efficiency in in-plant logistics in the region. Additionally, the shift towards Industry 4.0, characterized by smart factories and interconnected systems, drives demand for sophisticated in-plant logistics solutions. Further, real-time data analytics and predictive maintenance enhance operational efficiency and support decision-making.
 

Stringent regulations related to safety, environmental standards, and quality is driving the adoption of advanced in-plant logistics solutions. Compliance with these regulations ensures operational integrity and reduces risk. Furthermore, the European Union's market fosters economic integration and cross-border trade, thus increasing the need for efficient in-plant logistics to manage complex supply chains and inventory across multiple countries.
 

Moreover, the rapid growth of e-commerce and retail in the Asia Pacific region is significantly influencing the in-plant logistics market. With the rise of online shopping, there is an increasing demand for efficient and scalable logistics solutions to handle large volumes of goods and ensure timely delivery. Countries such as China and India, with their growing middle-class population and expanding digital marketplaces, are experiencing unprecedented demand for warehousing and distribution capabilities. This surge is driving investment in advanced warehousing solutions, such as automated sorting systems and real-time inventory management technologies.
 

Further, the UAE is investing heavily in smart technology and automation to support its ambitious Vision 2021 goals and the expansion of its logistics capabilities. The adoption of advanced material handling systems, such as robotics and AGVs, is increasing to enhance efficiency and productivity in manufacturing and warehousing operations, thus creating opportunities for the market growth.
 

In-Plant Logistics Market Share

KION Group and Jungheinrich AG are the prominent players in the market holding approximately 10% of the market share in 2023. KION is significantly investing in research and development to innovate its product offerings. The company is developing advanced automation solutions, such as automated guided vehicles (AGVs) and robotics, to enhance in-plant logistics processes. Additionally, KION is integrating digital technologies, including warehouse management systems (WMS) and IoT solutions, to optimize material handling and improve operational visibility.
 

Jungheinrich is focused on the development and implementation of advanced automation technologies, including automated storage and retrieval systems (AS/RS) and robotics, to streamline in-plant logistics operations. The company provides a comprehensive approach by offering end-to-end logistics solutions that encompass all aspects of material handling, from equipment to software and services.
 

In-Plant Logistics Market Companies

Major players operating in the in-plant logistics industry are:

• KION Group
• Toyota Material Handling
• Mitsubishi Logisnext
• Jungheinrich AG
• SSI Schafer
• Honeywell Intelligrated
• Daifuku Company Ltd.
   

In-Plant Logistics Industry News

• In June 2024, the Massachusetts Institute of Technology, in partnership with Mecalux, launched a research lab focused on high-impact applications of data-driven technologies in the logistics sector. This collaboration enables the logistics industry to develop supply chains and logistics systems that set new standards for cost-effectiveness.
   
• In March 2022, Honeywell announced a strategic partnership with OTTO Motors to enhance automated warehousing and distribution services. This collaboration enables Honeywell's customers to improve efficiency, reduce errors, and enhance safety by deploying OTTO's autonomous mobile robots (AMRs) in their facilities.
   

The in-plant logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion), and volume (000’tons) from 2021 to 2032, for the following segments:

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Market, By Service

• Material handling
• Transportation management
• Inventory management
• Packaging and labelling
• Others

Market, By Facility Size

• Small facilities
• Medium facilities
• Large facilities

Market, By End User

• Electronics
• Food & beverage
• Automotive
• Aerospace & defense
• Chemicals
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA