Intralogistics Market

Intralogistics Market Outlook (2022 to 2032)

The global intralogistics market is predicted to expand at a high-value CAGR of 14.8% to climb from a market valuation of US$ 18.94 billion in 2022 to US$ 75.36 billion by the end of 2032.

Deployment of intralogistics accounted for around 1% share of the global logistics market at the end of 2021.

Report Attributes	Details
Intralogistics Market Size (2021A)	US$ 16.46 Billion
Estimated Market Value (2022E)	US$ 18.94 Billion
Forecasted Market Value (2032F)	US$ 75.36 Billion
Global Market Growth Rate (2022 to 2032)	14.8% CAGR
North America Market Share (2021)	~24.9%
North America Market Value (2022)	US$ 4.71 Billion
Europe Market Share (2022)	~34.2%
Europe Market Value (2022)	US$ 6.47 Billion
China Market Share (2022)	~9.9%
China Market Value (2022)	US$ 1.87 Billion
Market Share of Top 3 Countries	~38.6%
Key Companies Profiled	Daifuku Co., Ltd.; Interroll; Jungheinrich AG; KION Group; Korber AG; Krones AG; KUKA Group; Material Handling Systems; Murata Machineries Ltd.; Toyota Industries Corporation

Demand Analysis of Intralogistics (2017 to 2021) Vs. Market Forecasts (2022 to 2032)

Several industries are shifting their focus to withstand this digital world and make a comprehensive global contribution. Progressive globalization has become the need of the hour for businesses wanting to expand their reach.

Globalization is categorized based on in-process integration and the internationalization of markets, along with the emerging effect on society. Increasing exports and imports through the involvement of intralogistics and the inclusion of emerging nations have boosted world trade and economic growth.

The fourth industrial revolution provides a chance of achieving the threshold potential to improve productivity, transparency, and efficiency. Companies can expand on their technological position by achieving vital connections between the hardware, software, and services offered by intralogistics solution providers.

The widespread application of intralogistics, including airport, warehousing, automotive, hospitality, and logistics has made public sector companies adopt the technology for their operations. The development of airports and their logistics services, and government food storage facilities, are prime examples of increasing public-private partnerships related to intralogistics.

• Short Term (2022 Q2 to 2025): Augmenting utilization and integration of intralogistics in the manufacturing industry to positively impact market growth.
• Medium Term (2025 to 2028): The U.S and China are anticipated to witness high intralogistics demand on the back of increasing digitalization.
• Long Term (2028 to 2032): Automation of intralogistics, such as upgrading the services and software components of intralogistics, will boost demand in the long run.

Over the 2017 to 2021 historical period, the global intralogistics market registered a CAGR of 14.3%, and according to Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit high growth at 14.8% CAGR between 2022 and 2032.

Market share analysis of intralogistics based on region and application. Under the application segment, retail & e-Commerce leads with a 25.6% market share in 2022.

Why is the Demand for Intralogistics Rising So Fast?

“Surging Utilization of Automated Storage & Retrieval Systems in Manufacturing Processes”

AS/RS or ASRS, also known as automated storage and retrieval systems, are composed of different systems that can be controlled with the help of a computer. It is an automatic process that allows for the retrieval and placement of loads from fixed storage locations to achieve speed, precision, and accuracy.

AS/RS has many distinct features and makes it an appropriate choice to be used in the manufacturing sector. This system provides many features such as buffer storage can be managed, unused space can be used for proper purposes, reduction in labor costs, and an increase in the efficiency of order picking.

AS/RS increases labor productivity by nearly 80% and saves around 85% of unused floor space. It can increase output efficiency up to 99%. Also, there is large migration of user-generated data. It is considered a vital tool that will increase the operational efficiency of manufacturing sectors. All these factors will enhance the growth of the market over the coming years.

“e-Commerce Industry Fueling High Demand for Intralogistics”

e-Commerce is a booming industry that has the potential to help intralogistics solutions grow. e-Commerce has showcased significant growth globally as demand is driven by increasing connected customers. This industry is booming as its offers products at an affordable price.

• According to the research, the e-Commerce sector in India rose by 7%-8% in 2020.

The intralogistics market has experienced great turbulence over the past few years due to changing end-use markets, including massive B2C volumes in courier, e-Commerce, and express with added penetration of related technology and automation.

Prominent trends in the e-Commerce sector that are shaping the business of intralogistics are zero-defect objectives, seasonal peaks, reduced delivery time, bidirectional flows of commodities, flexible delivery slots, and an increased variety of parcel sizes & weights. As e-Commerce gains new heights, the intralogistics market will also grow in tandem.

How is the Intralogistics Market Being Held Back to a Certain Extent?

“Higher Installation Costs Can Dampen Market Prospects”

The emergence of intralogistics as a vital infrastructure entity for advanced global trade and the fast-paced adoption of digitization across sectors makes this industry the potential target of cybercrimes.

The installation of intralogistics in any sector is a challenging job. The complexity of the process is high and so are the associated costs. The set-up cost involves the designing, planning, and installation of intralogistics. The cost of automated guided vehicles, robots, AS/RS, and sorting systems is higher than expected.

The installation of such superior technological equipment, along with software, hardware, and the rest of the services, leads to high costs, which limits the adaptation of intralogistics to some extent.

Key players should shift their focus such that they overcome all the above challenges. Minimization in the costs of intralogistics will be beneficial not only for the market but also for end users.

Country-wise Insights

Will Industrialization in China Drive Higher Demand for Intralogistics?

China is well known as the manufacturing hub of the world and is poised to rule the market over the decade. This is due to large manufacturing cluster establishments across the country, which are looking forward with optimism to implementing intralogistics.

The manufacturing industry in China generates revenue worth trillions of dollars. Automobiles, manufacturing, agriculture, e-Commerce, and other industries are rising rapidly in China. All these industries can improve their operational efficiency with the implementation of intralogistics.

China is determined to dethrone the U.S. from the position of the crown of intralogistics by the end of the decade. Implementation of digital technologies and a stable government are the key factors that will support the growth of the intralogistics market in China.

Why is the U.S. Intralogistics Market Expected to Be Highly Lucrative?

The U.S. intralogistics market experienced impressive growth at a CACR of 13.2% during the historical period of 2017 to 2011.

The U.S. has a history of early adoption of technology, along with digitalization of the supply chain and mobilization of high technologies such as intralogistics solutions and 5G.

The U.S. is one of the leading countries in many sectors such as automobiles, agriculture, industrial manufacturing, and others. All these industries have an extensive application of intralogistics. A Majority of companies such as Toyota Industries Corporation, MHS, and Daifuku Co., Ltd have a preponderant presence in the country and generate a substantial amount of their revenue in the United States.

Owing to the high growth of these industries in the U.S, intralogistics has grown rapidly to reach a market valuation of US$ 3.84 billion in 2022.

Category-wise Insights

Why is the Software Component of Intralogistics Most Widely Used?

Software is a crucial component of intralogistics systems. A variety of software integration solutions are now available in modern intralogistics systems. The software performs the task of collecting and analyzing the data to provide strategic solutions. This is done by the accurate optimization, analysis, and automation of resources, information, and goods.

The real-time control of visualization of complicated material flow processes is making intralogistics a popular option across industries. Intralogistics software now comes with various features such as warehouse control systems, material flow control software, material flow control software, picking by light system control software, and others.

The software component will provide lucrative opportunities for intralogistics providers and create an absolute dollar opportunity of US$ 8.24 billion over the forecast period.

How are Intralogistics Providers Faring in the Logistics and Automotive Sectors?

Logistics is an industry that involves the movement of things from one place to another. Kuehne + Nagel, DSV, DHL Supply Chain, and Global Forwarding are some of the top logistics companies in the world. Intralogistics becomes an important factor for managing and optimizing the material arrangement and flow of information.

The automobile industry also demands the utilization of intralogistics. The market is providing automated solutions for the transportation of vehicles. Automobile customers are now preferring customized solutions. Autonomous Mobile Robots (AMRs) are also in high demand and they make use of intralogistics.

Increasing penetration of developing and developed countries in the logistics and automobile end-use sectors is paving the way for the growth of intralogistics as a market. The automotive intralogistics market is expected to expand rapidly at a CAGR of 15.1% during the forecast period, mainly due to booming technological advancements in the sector.

Competitive Landscape

Prominent intralogistics suppliers are Daifuku Co., Ltd, Interroll, Jungheinrich AG, KION Group, Korber AG, Krones AG, KUKA Group, Material Handling Systems, Murata Machineries Ltd., and Toyota Industries Corporation

Leading intralogistics companies are employing sustainable technologies and optimization systems for diverse end users. Key manufacturers are focusing on developing and upgrading new software and service designs to address problems in terms of material arrangement and storage. Eminent market players are considering acquisitions and mergers as the bellwethers for growth in this market.

• In 2020, Interrol introduced the high-performance MX 025H Crossbelt Sorter, which has the capability of handling around 20,000 conveyed goods per hour.
• Recently, Telus started offering customized solutions, which range from journey management, smart building solution, contact tracing, etc., making it an established brand for better and connected work solutions.

Fact.MR has provided detailed information about the price points of key manufacturers of intralogistics products positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Intralogistics Industry Research

• By Component :

  • Hardware
    • Automated Storage and Retrieval Systems (AS/RS)
      • Unit-Load
        • Fixed-aisle Cranes
        • Moveable-aisle Cranes
      • Mini-Load
        • AS/RS Cranes
        • AS/RS Shuttles
    • Automated Guided Vehicles (AGVs)
    • Conveyor Systems
      • Horizontal Carousels
      • Vertical Carousels
    • Vertical Lift Modules (VLMs)
    • Sorting Systems
    • Industrial Robots
    • Others
  • Software
  • Services

• By End Use :

  • Logistics
  • Food & Beverages
  • Retail & e-Commerce
  • Airports
  • Automotive
  • Chemicals
  • Industrial Manufacturing
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA