The global connected logistics market size was valued at US$ 31,654.55 million in 2023, and anticipated to grow at a CAGR of 13.9 % over the forecast period. Connected logistics has changed the way logistical operations are carried out so that they are more focused on the needs of the customer by sharing data, information, and facts with supply chain partners. Connected logistics uses a network of interconnected communication systems, cloud platforms, and Internet of Things (IoT) technology to boost the productivity of logistical operations.
Furthermore, it is often described as a collection of interconnected devices that logistics service providers utilise to get a better understanding of order processing, financial transactions, shipping, and other logistical activities including warehousing, transportation, and other value-added logistics services. The growing popularity of online shopping among consumers and the development of technology are some of the factors propelling the market’s expansion. The demand for these solutions is being driven by the expanding availability of connected logistics systems with strong interoperability, security, and accessibility characteristics.
Sample PDF: https://analyticsmarketresearch.com/sample-request/connected-logistics-market/39832/
Additionally, the need for connected logistics goods and solutions is being driven by the need to lower the cost of shipping and storage services. Intelligent transportation systems are expected to grow to be considerably more necessary. The target market is expected to benefit financially from improved adoption of logistics 4.0 and continued efforts to enhance autonomous logistics vehicles during the projected period. One of the key reasons influencing the expansion of the intended market is the decreasing cost of loT sensors and connected logistics hardware. The market’s expansion is, however, considerably constrained by the logistics industry’s growing security and safety concerns.
Covid-19 Impact
The global economy was impacted by the COVID-19 epidemic. National lockdowns were announced by governments all around the globe in order to prevent the infection’s spread. The production facilities were either completely shut down or operated at a reduced capacity in order to maintain social distance and to guarantee worker safety. The supply chain was disrupted across industrial verticals due to a lack of manpower and raw materials, and trade in the majority of industries ceased. The pandemic had an effect on several industries, including logistics.
The adoption of technology like the internet of things (IoT), automation, and robotics in the logistics industry has been hastened by the pandemic, though. Tracking cargo and vehicles demands these technologies. A move from electronic data to app-based interfaces with cloud integration has also occurred, making it possible for logistics companies to link with e-commerce platforms. For instance, 90% of respondents in a survey by Inmarsat, a pioneer in mobile satellite communications, stated that the Covid-19 outbreak had expedited the adoption of the Internet of Things (IoT). In terms of growth rate, the market had a modest downturn in 2020. However, as the use of technology increased in importance following the epidemic, the market began to grow.
Component Insights
By component, the global connected logistics market is classified into hardware, software, and services. In 2022, the hardware segment dominated the market, and throughout the forecast period, it is anticipated to grow at the highest CAGR. The sensors category is expected to gain a sizable market share due to the growing desire to track assets. Moreover, IoT-based connected sensor technology helps to maintain temperature stability, cut down on food waste, and increase supply chain visibility.
Transportation Mode Insights
In terms of transportation mode, the global connected logistics market is segmented into roadways, railways, airways, and waterways. The roadways segment held the major market share in 2022 and is projected to grow at a higher CAGR through the forecast period. The demand for road-based transportation to convey retail items over large distances, especially for last-mile delivery, can be attributed to the segment’s growth. In addition, this transportation method also has a high carrying capacity, which makes it a popular option for logistics. The increased efforts being made by governments all over the world to promote road travel are also driving the market sector to grow.
Industry Vertical Insights
In terms of industry verticals, the retail and e-commerce segment dominated the market in 2022. Connected logistics solutions are used by the retail industry to fulfil the rising business demands. IoT solutions help connected logistics increase reliability, which is in line with the interests of the retail and e-commerce sectors.
Regional Insights
In terms of region, North America dominated the market in 2022. The presence of a highly developed infrastructure in terms of rail and road connectivity can be attributed to the growth of the region. Also, the presence of major companies in the sector enables the region to dominate the global market in terms of revenue contribution during the forecast period. The ability to quickly implement technologies is made feasible by modern infrastructure. The United States is expected to continue to hold a dominant position over the anticipated time due to the development of new technologies, expanding working capital, and the explosive growth of the e-commerce sector.
Furthermore, during the course of the forecast, Asia Pacific is anticipated to grow at the fastest CAGR. In terms of investment and growth, the Asia Pacific is anticipated to have a faster rate of economic growth than other regions and to become the centre of all logistical activity. Furthermore, over the course of the projected period, regional growth is anticipated to be fuelled by increased transportation technological breakthroughs and expanding investment in megacity initiatives. The connected logistics market is bolstering significantly due to the region’s booming manufacturing and e-commerce sectors.
Key Companies Insights
Some of the major companies studied under the market scope are as follows: Intel Corporation, Infosys Limited, Cisco System Inc, HCL Technology Limited, IBM Corporation, SAP SE, ORBOCMM, Freightgate Inc, Honeywell International Inc, NEC Corporation and Others. The existence of several companies on a global and regional scale creates intense rivalry for major players operating in the ecosystem. These players also use a variety of strategies, including merger and acquisition, the introduction of new products, geographic expansion, R&D for increasing their product portfolio, and others.
In 2022, C.H. Robinson and Waymo entered into a new strategic partnership to look into connected logistics solutions using autonomous driving vehicles.
Segments
By Component
- Hardware
o RFID Tags
o Sensors
o Communication Devices
o Tracking Devices
o Others
- Software
o Warehouse Management
o Fleet Management
o Freight transportation management
o Asset Tracking and management
o Data Management and Analytics
o Others
- Services
o Consulting
o Integration and Deployment
o Support & Maintenance
o Managed Services
By Transport Mode
- Roadways
- Railways
- Airways
- Waterways
By Industry Vertical
- Retail & E-commerce
- Automotive
- Aerospace & Defense
- Healthcare
- Energy
- Electronics & Semiconductors
- Others
Global Connected Logistics Market: Regional Analysis
All the regional segmentation has been studied based on recent and future trends, and the market is forecasted throughout the prediction period. The countries covered in the regional analysis of the Global Connected Logistics market report are U.S., Canada, and Mexico in North America, Germany, France, U.K., Russia, Italy, Spain, Turkey, Netherlands, Switzerland, Belgium, and Rest of Europe in Europe, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, China, Japan, India, South Korea, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), and Argentina, Brazil, and Rest of South America as part of South America.
Global Connected Logistics Market: Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of various marketspaces. The key players in the markets are identified through secondary research, and their market contributions in different applications across regions and globally were determined through primary and secondary research. This entire process included the study of the annual and financial reports of the top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to arrive at the final quantitative and qualitative data. This data has been consolidated, and detailed inputs and analysis from Analytics Market Research added before being presented in this report.
Frequently Asked Questions
• What is the market size and growth projections?
• What is the market size and growth projection for each of the market segments and sub-segments across Countries & Regions?
• What are the top performing segments, and countries / regions of each of the markets?
• What is the market size and growth rate across key countries / regions?
• How big is the global & regional market in terms of revenue and volume?
• How far market will grow in forecast period in terms of revenue and volume?
• What factors will influence demand and supply trends across each markets during the forecast period?
• What are the technology trends shaping various markets?
• Which country / region has more opportunities?
• What is the COVID-19 impact on the market and how long will it take to recover?
• Who are the key competitors of market Players?
• What are the market share (%) of Key Players?
• What are the Merger & Acquisition, New Product Launch, Recent Development within each of the Markets?
• What are PEST analysis, Ecosystem Analysis, Porter’s Five Forecast Analysis, Ansoff Matrix, and SWOT Analysis among other analyses for diverse markets?
