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The logistics services software market size is projected to increase by USD 3.76 billion, at a CAGR of 9.64% between 2023 and 2028. Market growth hinges on various factors, notably the uptick in third-party logistics (3PL) and the advent of fifth-party logistics (5PL), which are transforming supply chain management through enhanced efficiency and scalability. Additionally, heightened private equity (PE) investments in logistics are fueling innovation and expansion within the industry. The burgeoning e-commerce sector also plays a pivotal role, driving demand for advanced logistics solutions to meet the increasing volume and complexity of online orders. These elements collectively dictate the trajectory of market expansion, reflecting the evolving dynamics and technological advancements within the logistics industry.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including, E2open Parent Holdings Inc., Fishbowl, Honeywell International Inc., International Business Machines Corp., Koch Industries Inc., Koerber AG, Magaya Corp., Manhattan Associates Inc., Oracle Corp., Panasonic Holdings Corporation, Ramco Systems Ltd., Royal 4 Systems, SAP SE, Siemens AG, SPEC India, Trimble Inc., WiseTech Global Ltd., and Accenture Plc . Additionally, Descartes Systems Group Inc. company offers products such as Accenture Freight and Logistics Software, which provide technology platforms to assist airlines and ocean transportation.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share by the retail and e-commerce segment will be significant during the forecast period. Retailers and e-commerce organizations struggle with high volumes of merchandise and face the challenge of maintaining optimal inventory levels. It provides inventory management features such as demand forecasting, inventory tracking, and automated replenishment.
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The retail and e-commerce segment showed a gradual increase in the market share of USD 1.35 billion in 2018. Furthermore, by optimizing inventory, businesses can avoid out-of-stocks, minimize excess inventory, and improve efficiency throughout the supply chain. Timely and cost-effective product delivery is an important aspect of the retail and e-commerce industry. Additionally, it helps retailers and e-commerce companies meet customer expectations by providing real-time visibility, automated processes, and improved logistics operations. Hence, such factors are expected to fuel the growth of the retail and e-commerce segment of the global market during the forecast period.
On-premise solutions are mainly used because they offer better system security as compared to public cloud solutions. The on-premises model allows the hardware and software to be managed on the premises of the organization, giving the organization control over the system and data. Various market players such as SAP, Oracle, and Infor offer on-premise logistics services and software solutions for warehousing and transportation management. Software solutions for on-premises are often used by large global businesses and e-commerce service providers because they allow control and ownership over hardware and software performance, as well as data generated and stored in the software. Thus, such factors are expected to propel the growth of the on-premise segment of the market during the forecast period
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North America is estimated to contribute 31% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The region shows heavy fleet movement across a variety of industries including retail, oil and gas, and construction. In addition, the growth of cross-border trade between the US and Canada and between the US and Mexico has also raised fleet movement. Further, the rising adoption of the fleet management system will encourage buyers to integrate logistics services software to efficiently manage operations.
Moreover, increased trading activity in the US is also having a positive impact on market growth. Government initiatives such as the "America First" campaign and corporate tax reduction should attract more manufacturing industries to the US, which leads to increased manufacturing activity. Therefore, the demand for transportation and storage systems and services, including road logistics, is expected to grow during the forecast period. Road logistics encompasses the transportation of goods by road, involving the efficient management of fleets, routing, and last-mile delivery. With the anticipated rise in manufacturing activity and trade volume, road logistics plays a crucial role in ensuring timely and cost-effective transportation of goods across the country. Advances in technology and logistics software further enhance the efficiency and reliability of road logistics operations, aligning with the increasing demands of the market driven by governmental and economic initiatives.
The market offers numerous benefits including cost savings and time savings through digital technology and AI integration. It streamlines labor management and supply chain operations, catering to cell phones and the e-commerce sector. WMS Software Solutions enhance inventory management for the retail sector, while Transport Management Systems optimize logistics for disaster relief efforts. Cloud-based solutions foster operational effectiveness and facilitate collaboration with business partners. With a focus on ROI and warehouse management, these software solutions drive efficiency in labor management and overall logistics operations. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Rising private equity (PE) investments is one of the key factors driving the expansion of the market. In the logistics industry, Private Equity (PE) investments play a crucial role in acquiring assets, particularly for asset-based business models. These investments offer benefits in terms of cost and time savings, particularly aiding in labour management. Companies in this sector require significant capital investment, making PE investments an ideal avenue for growth and leveraging synergies through joint ventures (JVs) and strategic partnerships. Notably, firms like Morgan Stanley, Warburg Pincus, and LOGOS India have announced plans to invest approximately USD 200 million in Indian cities like Bengaluru, Chennai, and Pune.
Furthermore, logistics software integrates digital technology such as AI, cloud computing, and blockchain to enhance operational effectiveness and ROI. This includes warehouse management systems (WMS) for inventory management and transport management systems (TMS) for real-time tracking. Project logistics, involving the complex coordination of shipments for large-scale industrial projects or specialized cargo, also benefits significantly from these advancements. With growing private equity (PE) investments globally and increasing digitalization in sectors like e-commerce and retail, the market for logistics software and project logistics solutions is poised for significant growth in the forecast period. These technologies streamline processes, improve transparency, and optimize resource allocation, thereby meeting the evolving demands of modern supply chain management across diverse industries.
Integration of AI digital technology is the primary trend shaping the market. Operational inefficiencies are a major concern for companies operating in the market across the world. Therefore, end-users are implementing solutions for transportation management, outsourcing inventory management, and warehouse management. To capitalize on the growing adoption market players are introducing software solutions that have advanced technologies, such as AI. The use of AI in supply chain management solutions transforms warehousing operations, such as the collection and analysis of information and the processing of inventory.
In addition, to align with market trends and analysis, AI in the supply chain is used to predict demand, plan demand, and supply forecasts, optimize warehouse management stock, and ensure accuracy in shipping to reduce lead time and transportation expenses. The use of efficient and proactive solutions that have advanced technologies saves manual effort, time, and cost. Therefore, the integration of technologically advanced solutions in supply chain management, including retail logistics, will positively impact the growth of the market during the forecast period. Retail logistics specifically focuses on the efficient management of goods from suppliers to consumers, leveraging AI-driven insights to streamline inventory management, improve order fulfillment accuracy, and enhance customer satisfaction. This strategic application of AI enhances operational efficiency across the retail supply chain, contributing to overall market expansion in the coming years.
High deployment costs of on-premise are one of the major challenges that affect the expansion of the market. These solution costs are rising due to software licensing, installation, maintenance, hardware, customization, and training costs. Leading market players offer on-premises software solutions for logistics services that are more customizable than cloud-based software solutions for logistics services.
Moreover, software solutions for on-premises logistics services require trained IT staff with relevant skills to manage and dedicated staff to operate. The availability of open-source solutions such as Sellsy and Odoo is a challenge for market growth. Hence, the high deployment costs of on-premise software are expected to impede the growth of the global market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and trends 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.
Epicor Software Corp.: The company offers logistic service software to plan and execute the movement of goods anywhere in the world with the agility and resiliency to respond rapidly to changes.
Market analysis and report of 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.
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Third Party Logistics Software Market: Third Party Logistics Software Market by Deployment and Geography - Forecast and Analysis
Connected Logistics Market: Connected Logistics Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Germany, UK, China, India - Size and Forecast
Warehouse Management Systems Market: Warehouse Management Systems Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Germany, UK, France - Size and Forecast
The market is transforming with cloud-based software solutions that offer flexibility in time and place management. Businesses now leverage digital solutions like Business logistics software for routing and scheduling information, ensuring delivery accuracy and efficient doorstep deliveries. Innovative technologies such as IoT, AI technology, and blockchain-enabled digital container logistics are reshaping industry practices. A Forbes Insights poll indicates logistics managers are driving business model transformations using these technologies. The market spans diverse industries including Government and defense, Food and Groceries, and Telecommunication and IT. Enhanced supply chain predictive analytics and data-driven solutions improve cargo handling, warehouse stock management, and freight transportation, mitigating risks like traffic congestion and red tape. The integration of TMS software and unified software solutions strengthens the logistics department across various industry verticals.
Market Scope |
|
Report Coverage |
Details |
Page number |
185 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.64% |
Market Growth 2024-2028 |
USD 3.76 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.18 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 31% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Descartes Systems Group Inc., E2open Parent Holdings Inc., Epicor Software Corp., Fishbowl, Honeywell International Inc., International Business Machines Corp., Koch Industries Inc., Koerber AG, Magaya Corp., Manhattan Associates Inc., Oracle Corp., Panasonic Holdings Corporation, Ramco Systems Ltd., Royal 4 Systems, SAP SE, Siemens AG, SPEC India, Trimble Inc., WiseTech Global Ltd., and Accenture Plc |
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 the forecast period. |
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 End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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