Friday 21st January 2022

Spiralling AGV sales shaping future of intralogistics market

The global intralogistics market is expected to surge at a compound annual growth rate (CAGR) of 15.5% from 2020 to 2030. According to a study by Fact.MR, the market burgeoned at a spritely rate of 14.3% over the last five years owing to globally “transcendent demand for increased productivity & efficiency across industries”.

Moreover, commencement of Industry 4.0 has comprehensively compelled industry verticals to go digital with their supply chain networks.

Demand for intralogistics is projected to increase markedly with cutting-edge technologies such as IIoT (Industrial Internet of Things) and 5G adoption by manufacturing industries in order to boost productivity, thereby improving the use of technology, labour, and equipment harmoniously.

Furthermore, smart supply chain use of technology is on the rise. Companies are investing heavily in warehouse management software to craft a shrewd supply chain. These software ensure on-time delivery capability, thereby providing a competitive edge to companies.

In addition, COVID-19 exhibited massive opportunity for the manufacturing as well as services industry to go digital with their supply chain operations. The market is poised to consolidate over the coming years with increase in e-Commerce shopping by consumers.

Market study findings

  • The global Intralogistics market is anticipated to add 4.2x value to its market by 2030.
  • The hardware segment is expected to expand at an impressive CAGR of 15% over the forecast period.
  • Automated guided vehicles (AGVs) are projected to achieve growth of 15.3% CAGR, while industrial robots are projected to add 4.8x value over the forecast period.
  • East Asia is set to unshackle its manufacturing prowess with a superlative growth of around 29% CAGR, owing to widespread implementation of intralogistic solutions to boost competitiveness in manufacturing clusters.
  • By industry vertical, the retail & e-Commerce industry is poised to impart courteous opportunity for the intralogistics market by virtue of increasing use of e-Commerce platforms by consumers, and with providers digitising supply chains to ensure the timely delivery of products to customers.

“Earmarked acquisitions and mergers are prime bellwethers of growth in the market,” says a report analyst Shubham Patidar, research consultant, industrial goods and automotive at Fact.MR.

Targeted M&As by key players

Shubham Patidar

Key players such as Toyota Industries Corporation and Kion Group are hinging their importance on enhancing connectivity, with a wide market outreach through targeted acquisitions to capture substantial market presence.

  • For instance, in 2019, Toyota Industries and Tompkins Robotics, a provider of autonomous mobile robots (AMRs), signed a strategic partnership with Bastian Solutions. Bastian Solutions is a company that was acquired by Toyota Industries Corporation
  • Similarly, Kion Group, in 2020, acquired U.K.-based software company Digital Applications International Limited (DAI), which has expertise in logistics automation solutions, for its subsidiary Dematic. This move is considered to fuel the group’s growth, considering the significance of automation and the shrewdness of DAI.

These insights are based on a report on Intralogistics Market by Fact.MR.

The author is Shubham Patidar, research consultant, industrial goods and automotive at Fact.MR.

About the author

Shubham Patidar is an experienced research consultant at Fact.MR, a research and consulting firm. Fact.MR is headquartered in Dublin, and has offices in UAE and India. These insights are based on a report on  Intralogistics Market by Fact.MR

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