The Logistics Headlines, New Delhi, 13th April : In India, the logistics industry summarizes of segments, today we shall explore these sectors in details and highlight the opportunities, challenges they contain, along with key players involved. Let us start with warehousing segment, especially warehousing capacities, use of robotic systems and electric vehicles. These three have niche value in logistics segment.
Warehouse industry is pivotal for meeting product demand and supply over the logistics sector. In the current trend, demand for warehousing is highly concentrated for manufacturing and pharmaceutical segment wherein storage of raw and finished products is of the most priority. The Indian warehousing industry is forecasted to accelerate at 10% CAGR for 2016-2022.
Indian Warehousing Sector Opportunities and Key Players
Both organized and unorganized sectors have a hand in warehousing structure, which is further categorized in government, private, bonded, public and cooperative ownerships. Segmentation of warehouses is mainly for cold stores, industries, agriculture, ICDs/CFSs, all these itself account for 50% share respectively. In India, demand for warehouses basically emerges from top 7 cities, including Mumbai, Bengalaru, Kolkata, Chennai, Pune, and NCR.
While a lot of opportunities lay on warehousing sector, it has its own set of challenges. Some of the major players in this sector are DHL, Central Warehousing Corporation, Adani Agri Logistics Limited (AALL), and Container Corporation of India Ltd. (CONCOR), M.J. Logistic Services Ltd.,APL Logistics, Aegis Logistics Limited, Indo Arya Logistics, Gati Ltd., and Transport Corporation of India (TCI).
Function and Need of Robotics Systems in Logistics Technology
As much as warehouses are important, so are logistics robots significant in production market. The market for shuttle retrieval systems and automated storage, industrial robotic manipulator, mobile robot platforms, and gantry robots is experiencing a strong growth. These technologies are applied in logistics sector and may reach a value of $22.4 billion by 2021 end, while the global shipment of logistics robot unit shall jump to 620,000 annually by 2021 from 40,000 seen in 2016.
Some of the robotic technologies to mention are: collaborative robots, automated guided vehicle, Cartesian robots, autonomous mobile robot, localization, laser guided vehicle, omni-channel retailing, material handling robots, palletizing robots, packaging robots, robotized item picking, pallet shuttle system, obstacle avoidance, vision guided vehicle, self-driving vehicle and navigation autonomy.
Market Issues and Challenges for the Logistics Robot Market
With robotic solutions in India’s logistics industry, the supply chain operations have begun to transform and optimize in warehouse and haulage activities. However, some of the issues in logistics robots market are related to shortage of workforces at low cost, space optimization and scalability, growth in third-party logistics, lack of intra-logistics for Internet of Things, need of error-free fulfilment of orders, and accidents or unaccounted loses.
Along with mentioned market issues come challenges of skill gaps of trained human workforce, highly complex supply chain systems, slow pace of robotizing logistics technology, high initial cost of implantation in robotic infrastructure, and others. Few of the eco-system players in the industry are from e-commerce business, robot manufacturers themselves, software vendors, system integrators, and third party logistics service providers.
Electric Logistics Vehicle Market Scenario in India
With robotics in logistics, we cannot now fail to discuss about Indian transportation system in logistics. Today, the Indian transport sector is one of the largest contributors to the country’s GDP, making a share of about 5.5 percent in the same and serving billions of citizens every day. Due to high population and demand of transportation, the sector has encountered problems of inadequate parking infrastructure, traffic congestion, safety concerns, but most prominently- pollution issues.
This has given rise in the need of electric vehicles not only in public transport sector but also that related with logistics.
Electric vehicles (EVs) are automobiles powered by electricity leaving zero carbon emission. It is energy efficient, and helps in reducing pollution caused by logistics transportation. As per FAME (Faster Adoption and Manufacturing of Electric Vehicles) and National Electric Mobility Mission Plan (NEMMP), the country aims to reach a capacity of 6 to 7 million electric vehicles on road by the end of 2020.
India had announced Rs. 95 crore incentive schemes back in 2010 for increasing production of electric vehicles and hybrid electric vehicles. The latter will assist in saving Rs. 60,000 crore per year for the nation’s oil import by the end of 2020, which will enable cost benefits for India’s logistics and transportation segment.