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

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.