USD 30.32 billion
Connected Logistics Market Size, Share, Growth Analysis, By Component(Hardware, Software, Services), By Transport Mode(Roadways, Railways, Software, Services), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45F2087 |
Region:
Global |
Published Date: April, 2024
Pages:
197
|Tables:
64
|Figures:
77
Connected Logistics Market Insights
Global Connected Logistics Market size was valued at USD 30.32 billion in 2022 and is poised to grow from USD 34.97 billion in 2023 to USD 109.53 billion by 2031, at a CAGR of 15.34% during the forecast period (2024-2031).
The market is growing due to accelerated e-commerce growth, heightened reverse logistics processes and a greater number of trade-related deals. Additionally, it is expected that the market will grow due to the emergence of technology-based logistics services and more utilization of interconnected IoT devices across different industries. Nevertheless, inadequate infrastructure, increased logistics costs, and lack of control over logistical services impede market expansion. In addition, the advent of last-mile deliveries, automation of logistics, and cost & lead time reductions using multi-modal systems are a few more aspects that are projected to support market expansion. The need to reduce shipping and storage costs is driving demand for connected logistics and solutions. The need for smart transportation solutions is expected to grow exponentially. The reduction of loT sensors and associated logistics hardware is one of the factors driving the connected logistics market growth. However, growing safety and security concerns in the logistics sector restrict the market expansion to some extent.
Connected logistics faces many challenges such as competitive market, increasing customer demand and lack of standardization in logistics. However, the connected logistics industry is increasingly adopting the latest technologies due to the need for better integration, system efficiencies face-to-face, real-time reporting, greater visibility and improved connectivity.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
15.34% CAGR
Global Connected Logistics Market ($ Bn)
Country Share for North America Region (%)
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Connected Logistics Market Segmental Analysis
Global Connected Logistics Market is segmented on the basis of component, transport mode, vertical outlook and region. By component, the market is segmented into hardware, software, services. By transport mode, market is segmented into roadways, railways, software, services. By vertical outlook, the market is segmented into retail & e-commerce, automotive, aerospace & defense, healthcare, energy, electronics & semiconductors, others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Connected Logistics Market Analysis by End Use
Manufacturing earned the largest connected logistics market share and continues to dominate the market. Global logistics manufacturing is characterized by advanced automation, AI technologies and integrating the Internet of Things (IoT), which have increased supply chain visibility, efficiency gains and cost cuts. At the same time, manufacturing has taken the lead in this market due to its complicated production processes as well as the need for leaner operations; hence it is crucial to optimize logistics for every sector. The manufacturing segments play a massive function inside the linked logistics marketplace, because it relies closely on efficient and streamlined supply chains. Connected logistics solutions allow manufacturers to display the movement of raw substances and finished products in real-time, making an allowance for specific inventory control, optimized manufacturing schedules, and reduced lead instances.
Healthcare is expected to be the fastest growing segment in the connected logistics market owing to rising need for efficient supply chains for sensitive medical supplies, pharmaceuticals and vaccines. Connected logistics solutions permit healthcare organizations and distributors to screen environmental factors including temperature, humidity, and light exposure in real-time, making sure that products are transported correctly and meet regulatory compliance. The healthcare phase requires a specialized approach to logistics, as it includes the transportation of touchy and often time-essential products like pharmaceuticals, vaccines, scientific gadgets, and blood merchandise. The advancement in personalized medicine, telehealth and global health emergencies like pandemics has put more pressure on timely temperature-controlled deliveries. Furthermore, regulatory compliance as well as the expansion of healthcare infrastructure across the globe are among other drivers of demand for advanced logistics services to ensure patient safety and care continuity.
Connected Logistics Market Analysis by Mode of Transport
The railways segment is dominating the market. This type of transportation has the intrinsic advantage of reducing abrasion resistance and enabling more significant loads to be attached to wagons or vehicles. Furthermore, the increasing government initiatives to promote rail transportation are expected to contribute to the development of this sector. For example, the U.S. Department of Transportation launched a rail system. The government aims to double the number of freight railways under this scheme.
Airways are expected to be the fastest-growing segment in the connected logistics industry due to the increasing demand for rapid, international shipping driven by e-commerce growth and globalized supply chains. Since high-value and time-sensitive products such as electronics and medications require fast delivery, they are largely transported by air. Furthermore, air freight technology improvements have facilitated better cargo handling; increased fuel efficiency has resulted in higher capacities at lower costs, thereby making airlines a preferred means of fast logistics for enterprises.
Global Connected Logistics Market By Mode of Transport (%)
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Connected Logistics Market Regional Insights
North America leads the connected logistics market, with significant revenue from segments such as retail, e-commerce and automotive. The industry benefits from established technology infrastructure, widespread adoption of IoT and a robust regulatory framework to support data protection. The North American focus on advanced logistics technology, coupled with increasing e-commerce activity, has accelerated the adoption of integrated logistics solutions. Furthermore, logistics a supplied with the leading technology companies in the US. plays an important role in the connected logistics markets of the region.
Asia Pacific, on the other hand, is growing rapidly with rapid expansion of the e-commerce and manufacturing in countries such as China, India and Japan. The rise of the Internet, smartphone adoption and investment in smart infrastructure is driving growth in connected logistics. Additionally, governments in the region are supporting the digital transformation of the logistics sector, including the creation of smart cities initiatives and logistics parks. These factors coupled with the growing customer base and improving logistics position Asia-Pacific as an important driver of future growth in the connected logistics industry.
Global Connected Logistics Market By Geography
- Largest
- Fastest
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Connected Logistics Market Dynamics
Connected Logistics Market Drivers
Increasing Demand for Real-time Analytics and Visibility
- One of the main factors of the connected logistics industry is the growing need for real-time tracking and visibility. Connected logistics solutions provide the actual-time tracking competencies through IoT devices, GPS, and the data analytics, presenting stop-to-cease visibility for various stakeholders. This demand is mainly high in industries including the retail and e-trade, wherein customers expect timely updates on shipment reputation. As global supply chains become increasingly complex, companies need real-time insights into shipments and inventory.
Increasing Adoption of IoT and Advanced Technologies
- The adoption of advanced technologies such as IoT devices, sensors, AI and blockchain are transforming the logistics industry, and enhancing connected logistics solutions. IoT devices help monitor environmental conditions, such as temperature and humidity, to transport vital substances (such as chemicals and corrosives). They ensure AI further enhances logistics through predictive analytics to enable demand forecasting, route optimization and capacity planning. Additionally, blockchain technology ensures data transparency, security, and traceability, which is essential for supply chain integrity.
Connected Logistics Market Restraints
High Initial Costs and Implementation Challenges
- Implementing mobility solutions frequently requires the giant in advance costs, along with IoT device integration, software integration, and networking infrastructure purchases. Many agencies additionally face challenges in training their personnel to conform with and keep these superior structures, which can lead to gradual adoption and restrict market growth. These prices have been constrained to small and medium-sized corporations (SMEs) that don't have the sources to put money into such technologies. Furthermore, the issue of integrating these structures into current logistics regulations and structures poses additional challenges.
Data Protection and Privacy Issues
- Supply chain networks are often vulnerable needs such as delivery points, customer information and business data processing, making it attractive targets for cyber-attacks, GDPR in Europe and other data privacy concerns. Legal requirements add compliance burdens for the logistics companies operating in connected environments. This limitation affects market growth, as companies are reluctant to adopt integrated logistics solutions without adequate security measures.
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Connected Logistics Market Competitive Landscape
The connected logistics market is highly competitive, with key players from a variety of industries including logistics, technology, and telecommunications working to capture market share. The primary competition is through IoT, real-time analytics, big data analytics, and cloud computing innovations focused on expanding the global footprint, increasing technology integration, and building strategic partnerships to deliver of the improvement of their service delivery. This competitive landscape has been marked by mergers and acquisitions, alliances and collaborations as firms work towards achieving a strategic partnership in the integrated logistics sector.
Connected Logistics Market Top Player’s Company Profiles
- SAP SE (Germany)
- Intel Corporation (United States)
- Huawei Technologies Co., Ltd. (China)
- Siemens AG (Germany)
- Amazon Web Services, Inc. (United States)
- Microsoft Corporation (United States)
- Google LLC (United States)
- Accenture PLC (Ireland)
- DHL International GmbH (Germany)
- FedEx Corporation (United States)
- UPS (United Parcel Service, Inc.) (United States)
- Deutsche Post AG (Germany)
- Honeywell International Inc. (United States)
- General Electric Company (United States)
- Zebra Technologies Corporation (United States)
- Cognizant Technology Solutions Corporation (United States)
- JDA Software Group, Inc. (United States)
- Qualcomm Technologies, Inc. (United States)
- ABB Ltd. (Switzerland)
Connected Logistics Market Recent Developments
- July 2024 - FleetX emphasizes the importance of a unified platform in the wake of the digital transformation of freight transportation. A single platform has been developed that combines IoT-powered real-time visibility with advanced travel management software.
- February 2024 - Infosys announced a strategic partnership with Pacific International Lines (PIL), Singapore's leading shipping company in Asia, Africa, the Middle East, Latin America.
- January 2024 - Accenture and Mujin partnered to form "Accenture Alpha Automation," a business focused on manufacturing and logistics. Through data-driven solutions, Accenture Alpha Automation helps manufacturing logistics businesses streamline their business processes by integrating business data with performance data.
Connected Logistics Key Market Trends
- Increasing Adoption of Cloud-based Logistics Solutions: The shift to cloud-based solutions is a major connected logistics market trend. Cloud technology offers flexibility, scalability, and lower infrastructure costs, making it an attractive option for carriers. Cloud-based logistics platforms enable real-time access to data and facilitate communication between stakeholders. Additionally, these solutions greatly support data processing and analysis, improving decision-making by management. The rise of cloud computing in connected logistics is helping companies manage complex global supply chains, improve efficiency and reduce operating costs.
- Increasing Focus on Sustainability and Green Logistics: Sustainability has become a major focus for companies across industries, and logistics is no exception. Companies are increasingly using data from connected devices to measure and improve their environmental footprint. These attributes align with customer expectations for sustainable practices and help companies meet regulatory requirements, increasing the adoption of logistics solutions with built-in sustainability.
Connected Logistics Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global connected logistics market is experiencing considerable changes attributed to technological progress and shifting customer tastes. Automation and artificial intelligence have been introduced to ensure precision and effectiveness in storage facilities, while e-commerce growth has prompted firms to make their processes more efficient as well as synchronize several distribution points at once. Regional dynamics reveal North America's dominance because of its robust infrastructure and Europe's fast growth fueled by way of technological adoption and strategic investments. Despite challenges along with the inconsistent governance and excessive compliance charges, the market's general trajectory is upward, with key players innovating to fulfill the increasing needs for speed, efficiency, and sustainability in logistics.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 30.32 billion |
| Market size value in 2031 | USD 109.53 billion |
| Growth Rate | 15.34% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Connected Logistics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Connected Logistics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Connected Logistics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Connected Logistics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Connected Logistics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Connected Logistics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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