Summary
The domestic logistics IoT market is expected to grow to about 150 billion yen in 2030, due to the rapid growth of automated warehouses and logistics robotics. In addition to the reduction of distribution costs and unmanned operation, the environmental effect is expected to be a reduction in emissions, waste, and resources.
In addition to major domestic material handling companies (forklifts, other logistics equipment, etc.), general electronics manufacturers and electronic components are actively developing related technologies and systems.
SMEs are also expected to benefit from the expansion of the logistics IoT market. Market development through subsidies, cost reductions and productivity improvements through expansion of service content and logistics automation are expected.
Contents
What is logistics IoT: Domestic logistics IoT and DX initiatives
Leading company with logistics IoT related technology
Benefits for small businesses
Subsidies for small businesses
1) What is logistics IoT
Efforts for domestic logistics IoT and DX
In the domestic logistics industry, the field of IoT is rapidly expanding, especially in the inventory management of delivery and warehouses.
By improving the efficiency of inventory management and transportation in warehouses using IoT, we are trying to solve the labor shortage and effectively use resources and energy. Demonstration tests of delivery services using drones and self-driving cars are also attracting attention, and the domestic logistics robotics market is expected to reach approximately 150 billion yen in 2030, an eightfold increase from 2020.
Chart 1: Logistics robotics market forecast (unit: million yen)
Source: Yano Keizai
Economic Impact
Cost ReductionIoT devices can improve tracking of inventory levels, supply chain activities, and logistics performance, leading to significant reductions in operating costs. Real-time data enables better decision-making, reduces out-of-stocks and minimizes the burden of time-sensitive shipping operations.
Improve production efficiency Logistics processes can be streamlined through better route planning, optimized warehouse management, and improved vehicle utilization. Load optimization and energy efficient transport contribute to financial savings and optimal resource allocation.
Improve service levelsTimely delivery, product traceability, and enhanced customer support lead to improved customer satisfaction.
Environmental Impact
Reduce emissions Enables better route planning, leading to reduced vehicle mileage and lower emissions. This can contribute to more environmentally friendly and sustainable logistics.
Resource Conservation It is possible to optimize the use of resources in the logistics process. By improving energy management, reducing waste and maximizing reusable materials, logistics companies can operate in a more environmentally friendly manner.
Sustainable operations IoT-enabled data can help monitor environmental footprints, etc., setting goals, tracking progress, and revising to improve sustainability enable the implementation of measures;
Typical logistics IoT-related products and services are as follows.
Automated warehouseA warehouse designed to automate the stocking, retrieval, and delivery of products using a computer-controlled mechanical system. The system uses shelves and trays to manage the stock of product, and a crane or robotic arm controlled by a computer system picks up the product and moves it to a tray or container that is used for shipping. Automated warehouses can maximize the use of warehouse space, improve product pick-up and delivery speeds, and also minimize human error. Automated warehouses are already used in a wide range of industries, including retail, manufacturing and pharmaceuticals.
Logistics robotsUnlike automated warehouses, logistics is not fully automated, but rather, in order to automate things like warehousing, picking, transporting and sorting, etc., with the help of some people, both It is based on the concept of collaboration between Logistics robots are suitable for BtoC logistics, which requires flexibility, and have a lower hurdle to introduction than automated warehouses. It can solve many problems such as shortage of human resources in the logistics industry, improvement of work efficiency and accuracy. In addition, it has excellent scalability and flexibility according to the environment, and can be used while recovering capital investment over the long term.
Other related servicesThere are a wide range of initiatives that use the latest technologies such as GPS, sensor data, machine learning, and AI. Improve the speed and accuracy of logistics with route optimization, real-time tracking of goods, predictive maintenance, inventory management, delivery, etc. It also leverages blockchain to increase transparency and security, and integrates e-commerce platforms and logistics systems to achieve seamless management. In addition, digital platforms and smart contracts can be used to streamline cross-border logistics and customs operations, and improve the customer experience through real-time order tracking and personalized delivery. With these technologies, smart logistics can increase efficiency and sustainability, and improve customer satisfaction.
Figure 2: Comparison of automated warehouses and logistics robots Source: Logizard Zero
2) Leading company with logistics IoT related technology
In Japan, there are leading companies with many logistics IoT related technologies.
[Daifuku (6383)] Leading company of logistics equipment manufacturer. Focus on expanding market share outside Japan and the US
Our strengths lie in our solid market position and product portfolio, as well as the potential for growth opportunities. The company is a long-established company that has established a high reputation and market position in the material handling industry. Its diverse product portfolio serves a wide range of industries and applications, contributing to its strong performance and profit growth in recent years. With operations in more than 20 countries, Daifuku exhibits a strong supply chain and global presence. However, it is highly dependent on some major markets such as Asia and North America, and has a limited presence in emerging markets such as Africa and South America. Daifuku sees further growth opportunities due to increased demand for automation and material handling solutions in various industries, and a surge in demand for warehouse automation and material handling systems due to the expansion of the e-commerce market. . In addition, expanding into emerging markets such as Africa and South America, expanding capabilities through strategic partnerships and acquisitions, and increasing market share are also potential business opportunities. Daifuku faces threats such as intense competition from other companies in the same industry, an unstable market environment, economic recession, fluctuations in raw material prices that affect manufacturing costs, and changes in government regulations and tariffs that affect global supply chains. there is
[Toyota Industries (6201)] Continuing Aggressive Expansion of Material Handling Business
The company is a global leader in the automotive and material handling industries, with strong brand recognition and reputation. In 2017, the company's subsidiary Toyota L&F acquired Vanderlande Industries Holding BV of the Netherlands, a leading global provider of automated material handling solutions such as baggage handling systems for airports and sorting systems for parcels and mail. The acquisition has enabled Toyota L&F to expand its product and service offerings in the material handling and logistics fields and strengthen its global presence. Growing demand for automation and material handling solutions in various industries is creating great opportunities for Toyota L&F, driven by the e-commerce boom and rising productivity needs.It faces intense competition from industry incumbents such as Jungheinrich, Hyster Yale and Kion Group, as well as volatile market conditions and economic recession affecting material handling demand.
[Inaba Denki Sangyo (9934)] Supports a wide range of products, from single item sales to system proposals and contract manufacturing, such as robots and control devices
The company boasts strong brand reputation, diversified product portfolio and extensive experience in providing customized solutions. Regarding AGV/AMR, we handle products from Nidec-Shimpo, Daihen, Sharp, etc., and we can customize them according to usage conditions. However, the company's revenue is highly dependent on the domestic market, and a greater focus on global presence and eco-friendly and sustainable products could lead to greater growth.
3) Benefits for SMEs
Overall, the growing trend of DX and automation in the transportation industry is a great opportunity to expand business and increase market share. In particular, SMEs in the logistics, machinery, and IT sectors help their customers streamline operations, reduce costs, and increase productivity by providing innovative and sustainable solutions to their challenges. can lead to social contribution. This will allow us to further expand our customer base and increase our earnings.
Secondly, SMEs can leverage the latest technologies such as artificial intelligence, machine learning and IoT to develop innovative automation solutions that meet the individual needs of their customers. By differentiating ourselves from our competitors and providing high-quality and highly reliable solutions, we can build a strong reputation and lead to further revenue growth.
Thirdly, SMEs can further expand their capabilities and reach by working with large companies and strategic partners. In addition, you will be able to access new markets, customers, and advanced technologies that you would not be able to reach on your own, and benefit from their expertise and resources.
Finally, as sustainability awareness increases in the logistics industry, SMEs may gain a competitive edge in the market by investing in developing sustainable automation solutions that help the environment. is a big business opportunity
4) Subsidies for SMEs
Manufacturing Subsidies for the automation of logistics, including the manufacturing industry is a subsidy that supports capital investment for service development, prototype development, and production process improvement in order to improve productivity. "Manufacturing Subsidy" is an abbreviation, and the official name is "Manufacturing, Commerce and Service Productivity Improvement Promotion Subsidy". Logistics businesses (distribution centers, warehousing, transportation) are also covered. There are two types of subsidies, the general type and the global expansion type, and the upper limit is 7.5 million yen to 12.5 million yen, and the upper limit is 30 million yen. The subsidy rate is 1/2 for small businesses and 2/3 for others, for both general type and global expansion type. Expenses to be covered include machinery and equipment, system construction costs, technology introduction costs, specialist costs, transportation costs, cloud service usage costs, raw material costs, outsourcing costs, costs related to intellectual property rights, overseas travel costs, etc.
The other is Business restructuring subsidy is.
Specifically, it must be an investment that aims to expand the scale through new field development, business format conversion, business/industry conversion, business restructuring, or expansion of scale through these efforts.
For example, the content of business restructuring includes introducing the latest robotics material handling to enter the e-commerce logistics for a warehouse company that has been storing general cargo. Specifically, instead of general material handling such as pallet racks and nesteners, we will introduce automatic transportation mechanisms such as AGV and AMR, and GTP (Goods to person = cargo will be automatically moved to warehouse workers). robots/mechanisms), etc.
・For SMEs, the subsidy amount ranges from 1 million yen to 60 million yen, and the subsidy rate is 2/3.・There is also a special quota for small and medium-sized businesses that grow into medium-sized companies, with subsidies ranging from over 60 million yen to 100 million yen, with a subsidy rate of 2/3.・For medium-sized companies, the regular amount of subsidy is between 1 million yen and 80 million yen, and the subsidy rate is 1/2 (over 40 million yen is 1/3).
Source: https://www.logi-ya.jp/300/
インゴ ティートベール（Director of ESG Research and Solutions）
京都生まれ、ドイツ育ち。大学院卒業後、SMBC日興証券に入社し、M&AやIPO関連業務に従事。その後、モルガン・スタンレーに移り株式調査部で証券アナリストを務める。アディダスで経営企画・財務分析のマネージャーを務めた後、当社に参画。当社のESGソリューションを牽引。
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