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The Connected Logistics Market size is estimated to grow at a CAGR of 23.32% between 2022 and 2027 and the size of the market is forecast to increase by USD 62,287.98 million. The growth of the market depends on several factors, such as the effective management of temperature-sensitive products, the increasing need to enhance connectivity, and the increasing need to enhance visibility and control in supply chain systems.
This report extensively covers market segmentation by mode of transportation (roadways, railways, airways, and waterways), type (software services, IT services, and hardware services), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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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.
Driver
Effective management of temperature-sensitive products is a major driving factor for the growth of the connected logistics market. The global connected logistics market is set to benefit greatly from the efficient handling of temperature-sensitive products, such as food and vaccines. Inadequate supply chain systems, particularly in developing countries, contribute to significant product wastage. Insufficient temperature management and failure to adhere to regulatory guidelines in storage networks are major factors behind the wastage of temperature-sensitive items. This wastage impacts healthcare services by creating shortages of vital drugs and rendering vaccines ineffective.
Furthermore, food industry growth is negatively affected by the high rate of food wastage, which amounts to approximately 1.6 billion tons of primary food products annually, leading to significant economic losses and environmental damage. Organizations are investing in technologies like IoT-powered smart refrigerators, analytics, and cloud computing solutions to tackle these challenges. Connected logistics systems, specifically designed for perishable products, effectively manage temperature-sensitive items under varying climatic conditions. The implementation of technology, such as medical refrigerator systems, ensures the safe storage of vaccines in remote and developing regions. The ability to manage temperature-sensitive products offered by connected logistics is expected to drive the growth of the global connected logistics market in the forecast period.
Increasing adoption of IoT in SCM systems is the primary trend in the market growth. One of the significant trends in the global connected logistics market is the growing adoption of IoT in supply chain management (SCM) systems. IoT enables real-time tracking of shipments through smart connected devices, which has gained popularity in industries like manufacturing, healthcare, and transportation. Sensors and devices installed in storage facilities and containers capture and transmit real-time data to SCM teams, providing crucial information on product conditions and delivery status. To preserve perishable goods and vaccines within the required temperature ranges, IoT technology helps detect and control technical faults in cold chain storage systems, preventing damage to stored products. IoT also facilitates the tracking of refrigerated containers, known as reefers, on cargo ships.
Moreover, the worldwide proliferation of smart connected devices is expected to reach 47 billion by 2026, posing challenges in managing and maintaining data. IoT solutions aid logistics firms in capturing and analyzing large volumes of data generated by connected devices using statistical modeling techniques. Technologies such as RFID, sensors, barcodes, and GPS play a vital role in efficiently monitoring and managing physical assets in transportation and logistics. For example, RFID enables easier tracking of goods in the supply chain and facilitates inventory management. Companies like Tech Mahindra and HCL Technologies have developed IoT solutions to assist cold storage management teams in monitoring the movement of containers and carriers. These IoT advancements enhance business efficiency and value.
Technical glitches in the use of connected logistics are challenging the market growth. The glitches can disrupt business operations and hinder the seamless functioning of connected logistics systems. Human intervention in supply chain systems can also impede the effectiveness of digital logger solutions, which should ideally be automated for continuous monitoring.
Moreover, some organizations still rely on manual processes, which can lead to delays in sending real-time temperature logs crucial for tracking and monitoring devices. This manual approach decreases the efficiency of the supply chain process and may result in the loss of clients for vendors like Microsoft Corp and Oracle Corp. The prevalence of various technical glitches poses a significant threat to the growth of the global connected logistics market during the forecast period.v
The market research 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 Connected Logistics 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.
Accenture Plc: The company offers connected logistics such as one connected supply chain.
Amazon.com Inc: The company offers connected logistics such as the AWS supply chain.
The research 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 roadways segment will account for a major share of the market's growth during the forecast period. Connected logistics plays a vital role in improving the efficiency of transportation operations by enabling more effective routing, optimal asset utilization, and enhanced customer service. The advantages of these logistics are the accurate fuel cost estimates and route options, contributing to the growth of connected logistics in the roadways segment. By reducing service failures and delays, connected logistics significantly improve the road transportation sector within the global connected logistics market.
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The roadways segment was valued at USD 5,589.06 million in 2017 and continued to grow until 2021. Connected logistics aid in route planning by providing valuable information on weather conditions, traffic congestion, and potential obstacles. Cold storage, an essential element of the global supply chain, benefits from connected logistics through real-time temperature monitoring, which helps transportation managers and regulatory organizations prevent issues like product expiration. The advantages of connected logistics, such as accurate fuel cost estimates and route options, contribute to the growth of connected logistics in the roadways segment. By reducing service failures and delays, connected logistics significantly improve the road transportation sector within the global connected logistics market.
Based on type, the market has been segmented into software services, IT services, and hardware services. The software services segment will account for the largest share of this segment. The following are the primary contributing factors to the growing preference for cloud-based software services: Cloud-based solutions can be implemented more quickly than on-premise software solutions. Cloud-based IT architecture facilitates the deployment of cutting-edge IT solutions like predictive analytics, IoT-enabled applications, and M2M applications. Service-oriented architecture is favored by supply chain service providers due to its faster IT deployment and higher return on investment (ROI). On-premise software services are still preferred over cloud-based software services by businesses that have substantial IT budgets and resources and require value-added features. During the forecast period, it is anticipated that these factors will drive the segment's expansion.
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Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The region demonstrates a strong emphasis on connected logistics services, primarily driven by the widespread adoption of technology in supply chain and distribution management. The presence of robust information and communication technology infrastructure, along with excellent connectivity to global locations, contributes to the region's significant market share. Leading logistics services providers like DHL, GENCO, and Lineage Services create growth opportunities for vendors operating in the market. These factors contribute to the projected strong growth of the connected logistics market in North America during the forecast period.
The nationwide lockdowns imposed across countries in North America due to the outbreak of COVID-19 in 2020 resulted in the closure of various industries, including those that manufacture products and develop software for connected logistics. However, large-scale vaccination drives that took place in the first half of 2021, across the region led to the resumption of production operations in all the sectors, including the connected logistics sector. The widespread adoption of technology in the region increases the demand for connected logistics in the region. Therefore, the increase in technological adoption drives the demand for connected logistics services and solutions which in turn is expected to drive the growth of the connected logistics market during the forecast period.
The connected logistics 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.
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Connected Logistics Market Scope |
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Report Coverage |
Details |
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Page number |
182 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 23.32% |
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Market growth 2023-2027 |
$ 62287.98 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
22.51 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 36% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Amazon.com Inc., AT and T Inc., Cisco Systems Inc., HCL Technologies Ltd., Huawei Technologies Co. Ltd., Infosys Ltd., Intel Corp., International Business Machines Corp., Microsoft Corp., Nokia Corp., Oracle Corp., ORBCOMM Inc., PTC Inc., Qualcomm Inc., Samsung Electronics Co. Ltd., SAP SE, Siemens AG, Tata Consultancy Services Ltd., and Thales Group |
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Market dynamics |
Parent market analysis, 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 |
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Customization purview |
If our 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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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