What Has Been the Progress and Growth of the Connected Logistics Market in Recent Years?
The connected logistics market has seen considerable growth due to a variety of factors.
• In the past few years, the size of the connected logistics market has experienced a swift expansion. Expected to increase from $28.33 billion in 2024 to $32.45 billion in 2025, the compound annual growth rate (CAGR) is projected to be 14.5%.
This significant rise during the historic period is often linked to factors like globalization, the advent of IoT, the need for real-time visibility, improvements in cloud computing, and the assimilation of big data analytics.
What Can Be Expected from the Connected Logistics Market Size?
The connected logistics market is expected to maintain its strong growth trajectory in upcoming years.
• The forecast suggests a swift expansion in the size of the connected logistics market in the coming years, with the market value projected to reach $55.1 billion in 2029, growing at a compound annual growth rate (CAGR) of 14.2%.
The predicted growth during the forecast period can be credited to factors such as blockchain technology adoption, the surge in autonomous vehicles, shifts towards sustainability, the emergence of predictive analytics, and the development of smart cities. The period also expects to see trends like strengthened cybersecurity initiatives, the evolution of edge computing, rising incorporation of robotics and automation, the unfolding of 5G networks, and the advent of digital twins.
What Are the Critical Driver Fuelling The Connected Logistics Market's Growth?
The expansion of IoT connectivity is predicted to spur on the growth of the connected logistics market. The Internet of Things (IoT) includes a network of interrelated devices capable of transmitting and receiving data via the internet. This notion is fueled by the increasing need for interconnectedness, efficiency, and automation in various sectors and everyday tasks. IoT devices used in logistics offer real-time tracking of shipments, optimization of route planning, vehicle condition monitoring, improvements in inventory management, and streamlining of supply chain operations, resulting in heightened efficiency, lowered costs, and amplified customer satisfaction. Ericsson, a telecommunications firm based in Sweden, reported in November 2022 that the projected number of global IoT connections is 15.7 billion in 2023. Additionally, this figure is anticipated to soar to nearly 38.9 billion by 2029, growing at a rate of 16%. Consequently, the enlarging reach of IoT devices in logistics is propelling connected logistics market growth.
How Is The Connected Logistics Market segmented?
The connected logistics market covered in this report is segmented –
1) By Component: Hardware, Solutions, Services
2) By Transportation: Roadways, Railways, Airways, Maritime
3) By Application: Inventory Tracking, Optimized Warehousing, Real-Time Fleet Management, Predictive Maintenance, Cargo Integrity Monitoring, End-To-End Delivery Tracking, Other Applications
4) By End-Use Industries: Automotive, Healthcare And Pharmaceuticals, Oil And Gas, Food And Beverage, Aerospace And Defense, Manufacturing, Information Technology (IT) And Telecommunication, Retail And E-Commerce, Other End-Use Industries
Subsegments:
1) By Hardware: Sensors, RFID Tags, GPS Devices, Communication Devices, Others (Drones, Cameras)
2) By Solutions: Fleet Management Software, Warehouse Management Systems (WMS), Supply Chain Visibility Platforms, Route Optimization Software, Inventory Management Solutions, Predictive Maintenance Solutions, Others
3) By Services: Integration Services, Consulting Services, Managed Services, Maintenance And Support Services, Data Analytics Services, Training And Support Services
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What Trends Are Shaping The Connected Logistics Market?
The principal entities functioning in the field of connected logistics are concentrating efforts on the creation of sophisticated technology like cloud-based services to boost worldwide supply chain effectiveness. Their emphasis is on the utilization of flexible, reachable, and centralized systems for the accommodation, processing, and evaluation of data, enabling the possibility for immediate decision-making and teamwork throughout the supply chain. To illustrate, in December of 2023, Fujitsu Limited, a firm specializing in information and communication technology equipment and services based in Japan, introduced a cloud-based standardization and visualization service for data in logistics for shipping companies, logistics businesses, and vendors in the supply chain. These trailblazing tools serve to drive sustainability, resolve issues such as a lack of drivers, cut carbon emissions, and ensure adherence to industry standards. This service incorporates automated data alteration to meet logistic information norm guidelines, features to join, adapt, and retain a range of logistics data, and tools for visualization and evaluation via logistic KPIs. The objective of this novel service is to encourage collaboration between companies, streamline the supply chain, and address problems like the scarcity of drivers and the reduction of energy usage via shared vehicle use.
Who Are the Key Players In The Connected Logistics Market?
Major companies operating in the connected logistics market are:
• Microsoft Corporation
• AT&T Inc.
• DHL International GmbH
• Robert Bosch GmbH
• FedEx Corporation
• Huawei Technologies
• Amazon Web Services
• Siemens
• Intel Corporation
• Accenture
• International Business Machines Corporation
• Cisco System Inc.
• Oracle Corporation
• Honeywell International Inc.
• SAP SE
• TATA Consulting Services Ltd.
• NEC Corporation
• Nippon Express Co. Ltd.
• Infosys Limited
• HCL Technology Limited
• Xpo Logistics Inc.
• Hexagon AB
• Senko Group Holdings Co.Ltd.
• Yusen Logistics Co. Ltd.
• Trimble
• Orbcomm
• Eurotech Group
• Freightgate Inc.
What Is The Most Dominant Region In The Connected Logistics Market?
North America was the largest region in the connected logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the connected logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
