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The blockchain technology market in the transportation and logistics industry is estimated to increase by USD 2.23 billion, growing at a CAGR of 39.78% between 2022 and 2027. The growth of the market depends on several factors, including the growing use of blockchain technology for trucking, the booming e-commerce industry, and the growing number of cargo thefts.
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The growing use of blockchain technology for trucking is notably driving market growth, although factors such as the high cost of implementing and maintaining blockchain technology may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Driver
The growing use of blockchain technology for trucking is notably driving growth. Trucking is one of the largest industries in the world. The growing number of infrastructure projects rise in demand from the logistics sector, and the increasing demand for an efficient supply chain to transport goods are boosting the demand for trucks.
Blockchain technology stores information in incorruptible blocks across a shared digital network. This can revolutionize the trucking and logistics industries, as the technology can help trucking companies track shipments, manage fleets, and complete transactions. It can also help trucking companies maintain records of all trucks in their fleet, besides keeping a specific record of maintenance provided or damages incurred throughout the life of the trucks. In addition, the blockchain will also increase the efficiency of business operations in the trucking industry by reducing the need for checking business transactions and enhancing visibility by ensuring that capacity planning is operating smoothly. This will lead to an increase in the adoption of blockchain technology in the transportation and logistics industry, thereby leading to growth during the forecast period.
Key Trend
The rise in strategic alliances is a major trend in the market. The increasing demand for blockchain technology from the transportation and logistics industry is encouraging companies to form strategic alliances to improve their market reach and customer base. Furthermore, intense competition in the market is expected to compel established companies to increase their market presence through strategic alliances during the forecast period.
companies offering blockchain technology are investing extensively in joint ventures and acquisitions to capture a major share of the global blockchain technology market in the transportation and logistics industry and expand their presence in new regions. Through this technology, forwarders, shippers, truckers, carriers, and customs agencies can collaborate efficiently for a single version of the truth and an immutable audit trail with low latency. Such factors will lead to an increase in the adoption of blockchain technology in the focused industry, thereby helping the market to grow during the forecast period.
Key Challenge
The high cost of implementing and maintaining blockchain technology is the primary challenge impeding growth. With the adoption of blockchain technology, the transportation and logistics industry is expected to have long-term benefits per productivity, security, and efficiency during the forecast period. However, the initial implementation of the technology is capital-intensive. This is because the software that is required to run the blockchain technology is typically developed for a specific firm, and hence, it is expensive to purchase or develop in-house. The implementing cost is very high, as enterprises in the transportation and logistics industry have to incur expenses for implementing servers and nodes to hold the exponentially increasing amount of data that will be added to the blockchain.
A blockchain database is designed in a way to store data indefinitely, so the recurring payment model does not work. As every transaction is stored in the ledger, the amount of data will increase rapidly in the blockchain, depending on the frequency and number of transactions. Therefore, enterprises in the transportation and logistics industry, that are planning to implement the blockchain, need to carefully analyze the high cost of implementation associated with it. Also, the number of individual processing nodes in the blockchain in an enterprise increases from time to time as the network grows. This will further add to the cost of implementing the blockchain, thereby affecting the growth of the market during the forecast period.
Key Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Capgemini Service SAS - The company operates under multiple segments including strategy and transformation and applications and technology among others with a high focus on applications and technology. The company under this segment offers a local technology services model, working closely with its clients' teams. The company's key offerings include blockchain technology in the transportation and logistics industry.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the land segment will be significant during the forecast period. The land mode segment of the global market includes transportation and logistics through railways and roadways. Rail transportation is one of the major influencing factors for trade operations within a country. It is mostly used for bulk/neo-bulk cargoes such as coal, ores, cement, petroleum, naphtha, salt, bitumen, grains, and polymers to be transported across long distances. Additionally, it provides more reliable service than other modes of transportation.
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The land segment showed a gradual increase in the market share of USD 79.24 million in 2017 and continued until 2021. In road transportation, trucking is the best way to carry goods, as it is a necessary step in the transportation of goods from the place of arrival to the destination, even if logistics companies implement another mode, such as sea, air, etc. Transportation by road has the advantage of door-to-door service when compared with the other modes, which means that the receiver does not need to collect goods from any other place. Additionally, road transportation is a cost-efficient method for short and medium distances when compared with other modes of transportation. Therefore, the land segment is expected to grow, leading to the growth of the market in focus during the forecast period.
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North America is projected to hold a share of 37% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America is expected to grow during the forecast period due to the increase in the adoption of the technology among enterprises for securely exchanging the bill of lading information, as well as for settling freight, repair, and lease costs. Enterprises are adopting the technology in the supply chain to create more visibility of information for their customers and users, which, in turn, leads to the improvement of the efficiency of the enterprise. Blockchain technology will enable a secure sharing of information among trading partners and enhance end-to-end transparency by digitizing the supply chain.
The implementation in the pharmaceutical supply chain is a new trend in the North American market. As a result, many pharmaceutical companies are now outsourcing their logistics operations to companies to reduce the overall cost and increase the distribution network. The growth in this market is increasing, which is posing a challenge for warehousing and logistics companies in adjusting to the greater capacity and inventory costs. Therefore, the increase in the production of new drugs among local and major companies is expected to result in the entry of new companies into the market, which, in turn, will benefit logistics service providers. Therefore, these factors will lead to increased adoption in the region during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The Market is experiencing rapid growth driven by its ability to revolutionize supply chain processes and enhance operational efficiency. Major corporations, regulatory bodies, and governments are exploring the potential of blockchain to streamline cross-border payments, remittances, and supply chain management. The technology offers secure and transparent transactions, reducing market concentration and mitigating risks associated with fraudulent products and counterfeiters. With features like distributed ledger and encryption, blockchain ensures data decentralization and data usage control, crucial in sectors like healthcare and retail. Scalability and transaction speeds are improving, making blockchain increasingly viable for international transactions. However, regulatory constraints and compatibility issues remain challenges, necessitating regulatory acceptance and standardization across the industry. As multinational corporations and software solution companies continue to invest in blockchain, the market is poised for significant expansion in the coming years.
Blockchain Technology Market In Transportation And Logistics Industry Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 39.78% |
Market growth 2023-2027 |
USD 2,230.89 million |
Market structure |
Fragmented |
YoY growth (%) |
37.72 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Japan, Germany, and Switzerland |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Amazon.com Inc., Amcon Soft, Arateg, Capgemini Service SAS, Cargoledger , Deloitte Touche Tohmatsu Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., Koopman Logistics Group BV, Microsoft Corp., modum.io AG, OpenLedger, Oracle Corp., PixelPlex, SAP SE, Slync Inc., Sweetbridge Ltd., Tencent Holdings Ltd., and Wipro Ltd. |
Market dynamics |
Parent market analysis, market growth and trends, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Transportation
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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