USD 47.98 billion
Digital Transformation Spending in Logistics Market Size, Share, Growth Analysis, By Component(Hardware, Software, Services), By Devices(RFID Readers, Real-Time location System (RTLS), Barcode Scanners, Printers), By Deployment Mode(Cloud Based, and On Premise), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45D2055 |
Region:
Global |
Published Date: February, 2024
Pages:
211
|Tables:
93
|Figures:
76
Digital Transformation Spending in Logistics Market Insights
Digital Transformation Spending in Logistics Market size was valued at USD 47.98 billion in 2019 and is poised to grow from USD 52.2 billion in 2023 to USD 102.5 billion by 2031, growing at a CAGR of 8.8% in the forecast period (2024-2031).
The market growth is attributable to increasing spending on digital transformation in logistics. Speed and time are crucial elements that contribute to enhanced efficiency as a result of the growing digitalization of many industries, and they are now even more crucial for the logistics sector. Technology has ushered in a logistical revolution marked by quicker and more effective operations.
The development of artificial intelligence and the Internet of Thought has accelerated the growth of digital transformation spending in the logistics sector for a number of significant organizations. The market's primary driver is the growing digitalization of business. For a number of large firms, the increase in digital transformation spending in the logistics sector has been driven by the development of artificial intelligence and the Internet of Thought. The increased digitalization of business is the main force driving the market.
Digital logistics refers to the automation and digitalization of processes related to the movement of commodities. Every routine logistical task that uses paper and a pen and requires repetitive manual labour can be digitally and automatically automated. Digital logistics comes into play in this situation. In 2019, according to NITI Aayog, the Indian government prioritised IoT, AI, and Big Data to transform the nation's supply chain and logistics industry. The government invested 100 crores of Indian Rupees in this sector, which is boosting the need for digital logistics across the nation.
US Digital Transformation Spending in Logistics Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Software
Fastest Growth
Software
Growth Rate
8.8% CAGR
Global Digital Transformation Spending In Logistics Market ($ Bn)
Country Share for North America Region (%)
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Digital Transformation Spending in Logistics Market Segmental Analysis
Global Digital Transformation Spending in Logistics Market is segmented by Component, Devices, Deployment mode, and region. Based on Components, the market can be segmented into Hardware, Software, and Services. Based on Devices, the market is segmented into RFID Readers and RFID Tags , Real-time location system (RTLS), Barcode Scanners, Printers, and Stickers, Global positioning system (GPS), and Others. Based on Deployment Mode, the market is segmented into Cloud Based, and On Premise. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Digital Transformation Spending in Logistics Market Analysis by Solutions
The software segment dominated the global digital transformation spending in logistics market and is anticipated to maintain its dominance throughout the forecast period. After the pandemic, the e-commerce sector's global sales share increased from 16% to 19%, according to UNCTAD. Advanced logistics software, which can handle customer requests, process orders, find necessary products, handle sales, and move the product to the shipment location where it will be shipped within the set time, significantly controls the industry. This significant growth demonstrates the advantages logistics software solutions provide for a logistics business which is anticipated to propel the demand for integrated software solutions in the logistic sector over the forecast period.
The GPS devices segment is expected to grow significantly over the forecast period. This is attributable to cellphones becoming more commonplace and there are more cars with GPS systems. Moreover, GPS is employed in civil applications like shipping, road transportation, heavy vehicle guidance, financial services, surveying, and mapping. Using vehicle tracking technologies reduces expenses and fuel usage while enabling improved fleet management throughout the way. Future GPS system demand and segment growth are anticipated to be fueled by the expansion of the logistics market.
Global Digital Transformation Spending In Logistics Market By Solutions
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Digital Transformation Spending in Logistics Market Regional Insights
North America dominated the global market in 2021 and is expected to maintain its dominance throughout the forecast period, with the US alone accounting for the highest share in the regional market. The existence of a significant population of patients with mental illnesses, numerous activities featuring meditation workshops, and the quick growth of yoga studios in the area are all credited with the rise of the regional market. A major segment of the population in the region, particularly in emerging countries is expected to have more disposable income in the next years, which will lead to a rise in the number of people spending on mental health development.
Significant I.T. companies are present, and quick technological advancements like digitalization in countries like the US and Canada are accelerating the growth of the industry as a whole. The developed economies of the concerned nations will enable them to make significant investments in cutting-edge digital logistics services and solutions. The cost of digital transformation in the logistics industry is anticipated to reach $13.2 billion in the US by 2020, according to the transport and logistics news.
Global Digital Transformation Spending In Logistics Market By Region
- Largest
- Fastest
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Digital Transformation Spending in Logistics Market Dynamics
Digital Transformation Spending in Logistics Market Drivers
Increasing demand for digitization is expected to drive market growth
- The major factor anticipated to accelerate the growth of the global digital transformation investment in the logistics industry is the rise in demand for the digitalization of business operations and the pressure on service providers to lower costs. Also, increased digitalization adoption across a variety of industries, including logistics, and the revolutionary benefits for businesses with improved customer awareness, creative business models, and higher efficiency would significantly contribute to the market's development. Also, the logistics sector invests in digital transformation to improve the speed, efficiency, and timing of logistic services. This will boost customer satisfaction, which is anticipated to drive expansion over the projected period.
Digital Transformation Spending in Logistics Market Restraints
Lack of network infrastructure
- High maintenance costs and the need for significant investment are the major market factors that are anticipated to restrain the expansion of the global digital transportation spending in logistics market during this forecast period.
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Digital Transformation Spending in Logistics Market Competitive Landscape
The major players in the market are Digital Logistics Group, Hexaware Technologies, S2K Warehouse Management, IBM, PartnerTech, Oracle. Mindtree, Tech Mahindra, SAP, 4Flow AG, and others.
SMEs are utilizing cloud services due to intense rivalry and the lack of multiple resources present in large enterprises. On the other hand, large enterprises are extremely cost sensitive, which drives them to increase their use of cloud-based software. In October 2018, Oracle Block chain Applications Cloud was introduced, a set of services to improve the supply chain transparency. It is intended to facilitate the tracking of goods along the supply chain using a distributed ledger, boosting the dependability of business transactions and accelerating the delivery procedure. Digital logistics solutions are given in a personalised manner based on business requirements owing to cloud-based services, which increases client satisfaction.
Digital Transformation Spending in Logistics Market Top Player’s Company Profiles
- IBM Corporation
- SAP SE
- Oracle Corporation
- Cognizant Technology Solutions Corporation
- Amazon Web Services, Inc.
- Accenture PLC
- Huawei Technologies Co., Ltd.
- Microsoft Corporation
- Cisco Systems, Inc.
- HCL Technologies Limited
- Infosys Limited
- DHL International GmbH
- FedEx Corporation
- United Parcel Service, Inc.
- Deutsche Post AG (DHL eCommerce Solutions)
- Kuehne + Nagel International AG
- XPO Logistics, Inc.
- Sinotrans Limited
- SF Express Co., Ltd.
- CEVA Logistics
Digital Transformation Spending in Logistics Market Recent Developments
- In July 2022, Accenture finalized the acquisition of Trancom ITS, a recognized provider of Japanese logistics technology services, including its operational technology and digital engineering skills. The acquisition will increase Accenture's capacity for digital engineering, logistics, and manufacturing, enabling it to provide the kind of hyper-automation solutions that Japanese logistics and manufacturing firms are increasingly requesting.
- In July 2022, digital logistics firm in Egypt called Khazenly raised $2.5 million in seed funding. The funds will be used for Khazenly's global expansion and the development of its goods and services. Arzan Venture capital and Shorooq Partners jointly managed the investment effort.
Digital Transformation Spending in Logistics Key Market Trends
- In recent years, self-driving cars have become more prevalent in highly regulated environments like warehouses and yards, which has increased their relevance in the logistics industry. On the other side, self-driving cars, used in public and shared areas like city streets and highways, may be the sector's next major advancement, helping to streamline logistical processes and enhance safety.
- Back-office activities and logistical procedures are going digital in order to improve end-to-end transparency. As a result, outdated technologies like AS400 green screens are being replaced by ones like Big Data, Block chain, Artificial Intelligence, Machine Learning, Natural Language Processing, and Cloud Computing.
Digital Transformation Spending in Logistics Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global digital transformation spending in logistics market analysis, speed & time are the crucial elements resulting in greater efficiency and have become even more crucial for the logistics sector as a result of the increasing digitalization of several industries. Technology has caused a shift in logistics, resulting in quicker, leaner, and more effective operations. These improvements are being accepted more quickly than ever owing to the development of automation services.
| Report Metric | Details |
|---|---|
| Market size value in Logistics | USD 47.98 billion |
| Market size value in 2031 | USD 102.5 billion |
| Growth Rate | 8.8% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 Digital Transformation Spending in 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 Digital Transformation Spending in 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 Digital Transformation Spending in 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 Digital Transformation Spending in 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 Digital Transformation Spending in Logistics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Digital Transformation Spending in 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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