How Has the Digital Logistics Market Size Evolved in Recent Years?
The digital logistics market has seen considerable growth due to a variety of factors.
• The size of the digital logistics market has expanded swiftly in the past few years. It is projected to increase, going from $24.03 billion in 2024 to $28.3 billion in 2025, boasting a compound annual growth rate (CAGR) of 17.8%. The expansion during the historical backdrop can be linked to globalization, intricacy in supply chains, the surge in e-commerce, attention to sustainability, advent of omnichannel retail, customer demand for quicker deliveries, changing market landscapes, regulatory adherence necessities, reliance on data for decision-making, and an emphasis on optimizing inventory.
What Are The Predictions for The Digital Logistics Market?
The Digital Logistics market is expected to maintain its strong growth trajectory in upcoming years.
• The digital logistics market is set to experience a significant expansion in the upcoming years, with forecasts predicting it will reach $54.14 billion by 2029, growing at a compound annual growth rate (CAGR) of 17.6%.
The anticipated growth can be linked to the surge in e-commerce trading, the emergence of autonomous vehicles, improvements in cybersecurity, a shift towards servitization, the use of digital twins for visualizing supply chains, and the facilitation of cross-border commerce. Key trends expected in the forecast period incorporate the integration of IoT within logistics, the use of automation and robotics within warehousing, the application of AI for optimizing transit routes, cloud-based logistical platforms, eco-friendly logistical practices, the use of 5g for networking within logistics, enhanced cybersecurity protocols, and the application of predictive analytics for demand forecasting.
Which Drivers Are Accelerating Growth In The Digital Logistics Market?
Forecasts suggest the rapid rise of the e-commerce sector will propel the expansion of the digital logistics market. The term 'e-commerce' not only denotes the online selling of physical goods, but can extend to any business transaction facilitated by the internet. The expanding e-commerce scene necessitates a strong and transparent logistics supply chain, with smooth operations. This is achievable through digital logistics, which offers visibility, streamlines operations, eliminates inefficiencies, and decreases costs. For example, data from the U.S. Census Bureau - a government agency in the U.S. - stated that by August 2024, U.S. retail e-commerce sales reached an estimated $291.6 billion for the second quarter of 2024, a 6.7% rise compared to the same quarter of 2023. E-commerce sales made up 16.0% of all retail sales for the period, further solidifying the consistent growth pattern of the online retail market. On a non-seasonally adjusted scale, e-commerce sales for the quarter came up to $282.3 billion, which constituted 15.2% of all sales. Thus, the rapid expansion of the e-commerce sector is expected to accelerate the development of the digital logistics market in the forthcoming years.
What Are The Core Segments Of The Global Digital Logistics Market?
The digital logistics market covered in this report is segmented –
1) By Component: Solution, Services
2) By System: Tracking And Monitoring Systems, Information Integrated Systems, Electronic Data Interchange Systems, Database Management Systems, Fleet Management Systems, Order Management Systems
3) By Deployment Mode: Cloud, On-Premises
4) By Application: Warehouse Management, Labor Management, Transportation Management
5) By End-User Industry: Government, Aerospace, Defense, Automotive, Oil And Gas, Retail, Manufacturing, Healthcare, Other End-User Industries
Subsegments:
1) By Solution: Transportation Management Systems (TMS), Warehouse Management Systems (WMS), Inventory Management Solutions, Supply Chain Visibility Solutions, Fleet Management Solutions
2) By Services: Consulting Services, Implementation Services, Support And Maintenance Services, Training And Education Services
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Which Emerging Trends Are Reshaping The Digital Logistics Market Size?
The emergence of advanced technology is a notable trend that is on the rise in the digital logistics market. A key focus for major enterprises operating in the digital logistics market is conducting research and development aimed at creating digitally advanced logistics solutions that cater to a variety of connected logistics use cases. To exemplify, XPO Logistics, an American transportation company, introduced its comprehensive digital customer service management platform, known as Assist, throughout the Iberian Peninsula in September 2022. This cutting-edge platform streamlines customer account service demands and processes and offers seamless communication tools, as well as immediate insight into customer query statuses. The incorporation of Assist has sped up responses to customer questions by reducing the amount of time customer service personnel spend on clerical duties.
Who Are the Key Players In The Digital Logistics Market?
Major companies operating in the digital logistics market include:
• Oracle Corporation
• IBM Corporation
• SAP SE
• Advantech Co Ltd.
• AT&T Inc.
• Intel Corporation
• Honeywell International Inc.
• HCLTech Ltd.
• Blue Yonder Inc.
• DigiLogistics
• Hexaware Technologies Ltd.
• Tech Mahindra Pvt. Ltd.
• Samsung SDS
• ORBCOMM Inc.
• Freightgate
• Huawei Technologies Co. Ltd.
• WebXpress
• Ramco Systems Ltd.
• Logisuite
• ICAT Logistics
• JDA Software Pvt. Ltd.
• Cloud Logistics
• Infosys Limited
• Kuehne + Nagel International AG
• UPS Supply Chain Solutions
• Accenture PLC
• Capgemini SE
• Cognizant Technology Solutions Corporation
• Deutsche Post DHL Group
• FedEx Corporation
• Kenco Logistics Services LLC
• Schneider Electric SE
• XPO Logistics Inc.
What Are The Regional Insights Into The Digital Logistics Market?
North America was the largest region in the digital logistics market in 2024. The regions covered in the digital logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
