Connected Logistics Market Size, Share, Growth, And Forecast 2032

Connected Logistics Market Size

Zion Market Research has published a report on the global Connected Logistics Market, estimating its value at USD 47.23 Billion in 2023, with projections indicating that it will reach USD 159.78 Billion by 2032. The market is expected to expand at a compound annual growth rate (CAGR) of 14.5% over the forecast period 2024-2032.

The report explores the factors fueling market growth, the hitches that could hamper this expansion, and the opportunities that may arise in the Connected Logistics Market industry. Additionally, it offers a detailed analysis of how these elements will affect market demand dynamics and market performance throughout the forecast period.

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Connected Logistics Market: Overview

Connected logistics are a collection of networked devices that Internet of Things solution providers can employ to improve the operational efficiency of a variety of logistics jobs. Monitoring, warehouse management, transportation fleet management tracking, as well as linked logistics processes such as dispatching, financial transactions, order processing, and shipping are all covered by these systems. Connected logistics is advantageous as it establishes communication among all parties that are even without direct connectivity.

COVID-19 Impact Analysis

The worldwide pandemic and lockdown have resulted in negative impact on the connected logistics market due to shutdown of businesses and supply chains. Although, assistance from the government in terms of flexibility with respect to telework and online assistance and changing lifestyle and choices of consumers is expected to drive the market further in forecasted period.

Connected Logistics Market: Growth Factors

The market for connected logistics is expected to grow tremendously in the forecasted period attributable to the increasing adoption of IoT and sensor-based technologies such as RFID in different domains, including the Supply Chain Management system. Also, the rising demand for cloud-based solutions and internet ubiquity around the world is driving the market, which help in management of products by tracking goods and movement of planes, trucks and ships which carry them. Moreover, changing lifestyles, emerging economies, and the rapid rate of smart cities are boosting the market. 

The growing need for reduction in stock and ease in product handling is anticipated to augment the market over the forecasted years. Companies from numerous sectors are focusing on opting for various connected logistics services to utilize their inventory in a proficient manner to provide just-in-time delivery services. As a result, the demand for connected logistics services and platforms for proficient management of operations at distribution centers has increased. Rising adoption of automated sortation systems in logistics sector is anticipated to augment the market growth over the forecast period.

Connected Logistics Market: Segmentation

Transportation segment has been bifurcated into roadways, seaways, airways and railways where roadways has held the largest share in 2020 and is expected to dominate the market even in coming years. Although seaways and airways are expected to grow extremely owing to rising open-economy and global purchase.

On the basis of vertical segment, further, sub-segments include Food & Beverages, Pharmaceutical & Healthcare, Chemical, Aerospace & Defense, Telecom & IT, Retail, Energy & Gas and Others. In 2020, Pharmaceutical and Healthcare witnessed high surge due to the outbreak of Covid-19. In coming years, retail and consumer goods market is expected to exhibit the highest CAGR owing to changing lifestyle and time-sensitive shipping.

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Connected Logistics Market: Report Scope

Connected Logistics Market: Regional Analysis

With the largest share, North America was a leading regional market for connected logistics market in 2023 followed by Europe. The growth of this region is mainly attributed to increasing demand for transportation and retail industry verticals. Asia Pacific is expected to grow with the highest CAGR during the analysis period. This is due to the adoption of Internet of Things (IoT) in various industrial and business operations is expected to open new avenues for the connected logistics market over the coming years.

Europe holds a second largest market share and is expected to grow at a remarkable CAGR during the forecast period. Moreover, increasing government and private sector investment in the transport sector is fueling the market.

Asia Pacific is positioned to be the fastest-growing region in the global connected logistic market in terms of CAGR. This surge is due to the increasing adoption IoT and sensor-based technologies such as RFID in different domains in the region. Retailers are using automated solutions in their distribution facilities to provide on-time delivery of products. Additionally, the adoption of the Internet of Things (IoT) in various industrial and business operations is expected to open new avenues for the connected logistics market over the coming years.

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Connected Logistics Market: Competitive Players

Competitors are proactively responding to the issues by devising tactics that will have the greatest overall impact on market growth. In the foreseeable term, the market's growth potential is plentiful. Companies are also focusing on launching new products to enhance their product offerings and gain a competitive advantage in the market.

For instance, in February 2019, Huawei released the Smart Logistics Solution during MWC 2019, aiming to help enterprises improve efficiency in fields such as transportation, distribution, and warehousing, and facilitate agile advance in the logistics industry.

The global Connected Logistics market profiles key players such as:

• IBM
• AT&T Inc
• Eurotech S.P.A
• ORBCOMM
• Infosys
• Cisco Systems
• Intel Corporation
• Zebra Technologies
• SAP
• secure
• GT Nexus
• HCL Technologies ltd
• Robert Bosch GmbH

The global Connected logistics market is segmented as follows:

By Software

• Streaming Analytics
• Network Management
• Security
• Data Management
• Warehouse IoT
• Asset Management
• Warehouse Control System
• Others

By Vertical

• Food & Beverages
• Pharmaceutical & Healthcare
• Chemical
• Aerospace & Defense
• Telecom & IT
• Retail
• Energy & Gas
• Others

By Transportation Mode

• Seaway
• Airway
• Railway
• Roadway

By Service

• Consulting service
• Professional service
• Integration & Deployment
• Support & Maintenance
• Managed Services

By Platform

• Device Management
• Application Management
• Connectivity Management

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa