SAN FRANCISCO, Dec. 12, 2022 /PRNewswire/ — The global connected logistics market size is expected to reach USD 83.15 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to witness a CAGR of 13.9% in the forecast period. The term ‘connected logistics’ refers to a collection of tools, and platforms, including hardware and software, that enable real-time tracking of commodities sent by land, rail, air, and sea routes.
Key Industry Insights & Findings from the report:
- The hardware segment dominated the market in 2021. The sensors are the largest sub-segment of hardware components in terms of revenue owing to the increasing demand for asset tracking.
- The services segment is anticipated to expand at the fastest CAGR during the forecast period. The managed services sub-segment generated the highest revenue in 2021. The high rate of outsourcing business functions contributes to the increasing demand for managed services.
- The freight/transportation management software segment held the largest market share in 2021 and is also anticipated to register a promising CAGR during the forecast period. The dominance of the segment is owing to the need to reduce transportation costs and improve reliability.
- The roadways segment dominated the market in 2021. This dominance can be attributed to the growing need for reduced traffic congestion, road safety, and increasing government initiatives in infrastructure development.
- The retail and e-commerce segment is anticipated to expand at the fastest CAGR. The growth can be attributed to the increasing preference for online shopping among consumers.
- North America dominated the market in 2021 and Asia Pacific segment is anticipated to register the highest CAGR during the forecast period. The growth can be attributed to the increasing investments in megacity projects in countries such as India and China.
Read 120-page market research report for more insights, “Connected Logistics Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Transportation Mode (Roadways, Railways, Airways, Waterways), By Vertical, By Region And Segment Forecasts 2022 – 2030“, published by Grand View Research.
Connected Logistics Market Growth & Trends
To facilitate shipment, it communicates logistical and pertinent data such as tracking and traceability with every participant in the supply chain, such as manufacturers, suppliers, and customers, among others. By integrating several linked platforms, these solutions aid businesses in enhancing information flow during shipment and delivery using RFID chips. Connected logistics provides improved warehouse management using technologies such as the Internet of Things (IoT), blockchain, virtual reality, and big data, among others.
Connected logistics has enhanced the efficiency of last-mile delivery with the aid of communication devices and tracking devices. Connected logistics aid in the efficient management of supply chain security, freight traffic, and routing of the fleet by minimizing the cost of the transport. Additionally, technologies such as vibration monitoring and global positing system (GPS) aid in performance optimization and provide position tracking for each fleet vehicle. Connected logistics have significantly improved risk resilience planning.
Thus, increased demand for improved warehouse management and rising demand for efficient supply chain management among others are the factors fueling the growth of the target market. The demand for intelligent transportation solutions is anticipated to rise significantly overall, as well as in the logistics sector. It is expected that logistics 4.0 and ongoing work on autonomous logistics trucks will present lucrative opportunities for the target market’s expansion.
Logistics 4.0 uses analytics, data, the internet of things, and automated decision-making solutions to improve operational efficiency and performance. For instance, in April 2022, Daimler trucks, with its independent auxiliary Torc Robotics, started testing their autonomous trucks, which operate on four levels of autonomous driving in the U.S. Additionally, autonomous trucks are increasingly gaining traction across the logistics industry owing to rising shortage of drivers, increased safety and improved efficiency.
The increasing implementation of logistics 4.0 and ongoing efforts to develop autonomous logistics vehicles are predicted to give profitable opportunities for the target market’s growth over the forecast period. Additionally, the necessity to reduce the cost of shipping and storage services is propelling the demand for connected logistics products and solutions. The need for intelligent transportation solutions is anticipated to rise significantly. The declining cost of loT sensors and connected logistics hardware is one of the driving factors of the target market growth.
The COVID-19 pandemic led to disruptions in the global supply chains. In addition, the state and federal governments announced the lockdowns and border closures, which halted the shipment of the goods. However, the pandemic accelerated the adoption of technologies such as the internet of things (IoT), automation, and robotics, among others, in the logistics sector.
For instance, according to a report by Inmarsat, a leader in mobile satellite communications, “Owing to the pandemic, 90% of the transportation and logistics firms have adopted or are planning to adopt the deployment of Internet of Things (IoT) projects. Additionally, there has been a shift from electronic data to app-based program interfaces with cloud integration, enabling logistics companies to connect with e-commerce platforms.
Connected Logistics Market Segmentation
Grand View Research has segmented the global connected logistics market report based on component, transportation mode, vertical, and region
Connected Logistics Market – Component Outlook (Revenue, USD Million, 2017 – 2030)
- RFID Tags
- Communication Devices
- Tracking Devices
- Warehouse Management
- Fleet Management
- Freight Transportation Management
- Asset Tracking and management
- Data Management and Analytics
- Integration and Deployment
- Support & Maintenance
- Managed Services
Connected Logistics Market – Transportation Mode Outlook (Revenue, USD Million, 2017 – 2030)
Connected Logistics Market – Vertical Outlook (Revenue, USD Million, 2017 – 2030)
- Retail & E-commerce
- Aerospace & Defense
- Electronics & Semiconductors
Connected Logistics Market – Regional Outlook (Revenue, USD Million, 2017 – 2030)
- North America
- South America
- Middle East & Africa
List of Key Players in the Connected Logistics Market
- Intel Corporation
- Infosys Limited
- Cisco System Inc.
- HCL Technology Limited
- IBM Corporation
- SAP SE
- Freightgate Inc.,
- Honeywell International Inc.
- NEC Corporation
Check out more related studies published by Grand View Research:
- Retail Logistics Market – The global retail logistics market size is anticipated to reach USD 639.14 billion by 2030, registering a CAGR of 12.3% over the forecast period, according to a new report by Grand View Research, Inc. The growth is likely to be fueled by new last-mile delivery methods in the retail e-commerce market and the introduction of IoT in the supply chain. An IoT-based supply chain links multiple technological devices with the help of sensors, allowing real-time data collection on various vital factors like filing rate and temperature.
- Reverse Logistics Market – The global reverse logistics market size is expected to reach USD 1,910.3 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 12.4% from 2022 to 2028. Legislation and regulatory initiatives by several governments to adopt reverse logistics practices in order to ensure the effective disposal of product waste and eco-friendly operation is one of the key factors that drive the market. The increasing awareness regarding the benefits of reverse logistics, along with the growing awareness regarding the environment, is also driving the market. Reverse logistics is expensive and high in cost and additionally, the lack of availability of funds and lack of awareness regarding the economic benefits of reverse logistics are the major factors restraining the market growth.
- U.S. Retail Logistics Market – The U.S. retail logistics market size is estimated to reach USD 109.31 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 11.0% from 2022 to 2030. Retail logistics is a system in which a company provides logistics services to retail businesses in need of distribution and inventory management. A retail logistics company provides services, including inventory management, packaging, cross-docking, and door-to-door delivery. The rapid growth of the global e-commerce sector and the development of new technologies drive the demand for logistics services.
Browse through Grand View Research’s Automotive & Transportation Industry Research Reports.
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Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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