Published Date : 22 May 2024
The global connected logistics market size surpassed USD 26.32 billion in 2023 and is estimated to cross around USD 72.94 billion by 2032, poised to grow at a CAGR of 11.99% from 2023 to 2032. The rising availability of connected logistics solutions employed with a high level of accessibility features, security, and interoperability is expected to drive the growth of the connected logistics market.
A connected logistics market makes it easier to improve and establish connections among all partners included in the logistics network by enabling hub operators to keep an eye on outbound and inbound traffic. Increased productivity and more transparency are the results of this. Connected logistics may also be explained as a group of networked appliances that logistics service suppliers implement to get a good understanding of shipping, financial transactions, order processing, and other logistical activities such as transportation, warehousing, and value-added services.
The increasing emergence of IoT-connected devices, the increasing need for operational efficiency, and the decreasing cost of sensors are anticipated to drive the growth of the market. In addition, the demand to lower down the cost related to shipment and warehousing services and the increasing market for intelligent transportation solutions is further expected to enhance the growth of the connected logistics market during the forecast period.
Improving fleet performance fuels market growth
The efficiency of a company’s fleet in terms of customer satisfaction, fuel efficiency, and cost-effectiveness is calculated by fleet performance. There are several approaches to accelerate fleet performance, such as data analysis, predictive analytics, and the use of telematics through connected logistics. Fleets may determine when assistance or repairs are made using predictive and telematics analytics and track the condition of their vehicles. Using data analysis helps businesses to minimize expenses by optimizing scheduling and routes.
Internet of Things (IoT)- powered devices positively impact the procedure by recognizing possible complications with the delivery routes and other factors that could assist in significant disturbance. These are the major factors driving factors of connected logistics that are anticipated to accelerate the growth of the connected logistics market.
However, a lack of logistics standardization may restrain the growth of the market. Insufficient logistics standardization could create several challenges in government policies, culture, infrastructure, and business customs. In addition, to maintain a high level of global competition, the countries need to minimize their logistics prices through logistic standardization. This generates a lack of enforcement and promotion in various countries. This effort includes the implementation and development of both international and domestic standards related to transportation, storage, packaging, tools, and logistics equipment. Hence, the lack of connected logistics standardization maximizes the cost related to the complete supply chain procedure, which is responsible for restraining the growth and demand for the market.
| Report Coverage | Details |
| Market Revenue in 2023 | USD 26.32 Billion |
| Projected Forecast Revenue by 2032 | USD 72.94 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 11.99% |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Recent Innovation in Connected Logistics by TMS and Samsara
Recent Innovation in Connected Logistics by Amdocs
Asia Pacific is expected to grow fastest during the forecast period. The growing investment in megacity projects, increasing transportation technological advancements, and increasing growth and investment in e-commerce and manufacturing sectors are anticipated to drive the growth of the connected logistics market in Asia Pacific. India, China, Japan, and South Korea are the major countries in the Asia Pacific.
In China, connected logistics companies have recognized the latest digital solutions and technological innovation as major to changing the supply chain. To offer cross-border trading platforms and growing e-commerce platforms, the digital platform is the future of China. China’s logistics industry is continuously growing in technological advancements, and the sector is developing by adopting new digitized supply solutions and tools. Supply chain companies are improving with technologies such as artificial intelligence, data analytics, and cloud-based systems.
China has become a top priority and strategic imperative for logistics companies. Connected logistics companies are in the process of deploying and developing AI technologies, including AI-based drive algorithms made to deliver significant reductions and greater efficiency in annual operating costs in China. Alibaba is the leading company in China’s connected logistics market. Alibaba invested billions of yuan in logistics support under the Cainao standard. In addition, blockchain is the leading technology in decentralized leadership and is transforming China's connected logistics sector. These are the major factors anticipated to enhance the market growth in China.
North America dominated the connected logistics market in 2023. The increasing presence of a developed infrastructure with road and rail connectivity, rising major players contributing to investments, increasing growth of the e-commerce industry, rising working country, and development of new technologies are expected to accelerate the market growth in North America.
The U.S. and Canada are the major countries in North America. The U.S. market is contributing essential growth as the logistics and transportation industry integrates digital transformation to address evolving demands, optimize supply chain management, and enhance the operational efficiency of a connected economy. The U.S. market is experiencing robust growth enhanced by the need for data-driven decision-making, real-time monitoring, and end-to-end visibility in logistics. In addition, in the U.S., connected logistics services have been rapidly integrated across several industry verticals, such as e-commerce, healthcare, manufacturing, and retail. These are the major factors that are anticipated to enhance the growth of the connected logistics market in North America.
Technological advancements in connected logistics
The future of connected logistics appears to be bright due to the advanced technologies, including big data analytics, artificial intelligence (AI), and the Internet of Things (IoT). These innovations are considered to revolutionize the transparency and efficiency of supply chain operations, streamline coordination and predictive analytics, and enable real-time monitoring through various stakeholders. With the adoption of these technologies, businesses can achieve optimized decision-making processes, enhanced customer satisfaction, and improved inventory management.
In addition, connected logistics is witnessing considerable growth as industries prioritize the adoption of data-driven solutions and smart devices to improve their operational processes and supply chain management. These future opportunities may accelerate the growth of the connected logistics market.
Segments Covered in the Report
By Component
By Application
By Transportation Mode
By Vertical
Buy this Research Report@ https://www.precedenceresearch.com/checkout/2589
You can place an order or ask any questions, please feel free to contact at sales@precedenceresearch.com | +1 650 460 3308
