Global Connected Logistics Market Size By Component (Hardware, Software), By Transportation Mode (Roadways, Railways), By Vertical (Retail & E-commerce, Automotive), By Geographic Scope And Forecast

Connected Logistics Market Size And Forecast

Connected Logistics Market size was valued at USD 33.51 Billion in 2021 and is projected to reach USD 415.98 Billion by 2030, growing at a CAGR of 32.30% from 2023 to 2030.

The Connected Logistics market is driven by the increasing adoption of IoT technology in logistics operations that enables real-time tracking and monitoring of shipments, thus improving supply chain visibility and efficiency. Additionally, rising demand for end-to-end transparency and visibility in logistics processes, driven by customer expectations, requires the integration of connected technologies. The growing demand to reduce costs, optimize logistics operations, and enhance overall productivity drives companies to adopt connected logistics solutions. The Global Connected Logistics Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Connected Logistics Market Definition

Connected Logistics, also known as “Digital Logistics” or “Smart Logistics,” are applications of advanced technologies and interconnected devices to enhance and optimize various aspects of the supply chain management and logistics process. The systems seamlessly integrate sensors, IoT devices, cloud computing, data analytics, and artificial intelligence to create an interconnected intelligent logistics ecosystem.

In a connected logistics system, vehicles, assets, shipments, and warehouses are equipped with IoT sensors, which collect real-time data on location, humidity, and other relevant parameters. This data is analyzed and transmitted through cloud-based platforms, enabling logistics providers to track goods in transit, gain insights, and predict potential disruptions.

The key benefits of connected logistics include enhanced operational efficiency, improved supply chain visibility, reduced transportation costs, increased customer satisfaction, and optimized inventory management. By leveraging cutting-edge technologies, connected logistics empowers businesses to respond swiftly to changing conditions, make data-driven decisions, and streamline logistics operations for a more agile and competitive supply chain.

Global Connected Logistics Market Overview

The rapid adoption of IoT devices and sensor technology has revolutionized logistics. IoT-enabled devices, such as GPS trackers, RFID tags, and temperature sensors, allow real-time monitoring and tracking of assets, shipments, and vehicles. This visibility enhances supply chain efficiency, reduces delays, and minimizes the risk of lost or damaged goods. For instance, IoT connections are anticipated to increase to 292 million in 2030 from 100 million in 2020 in the transportation industry alone as linked devices collect more data, thereby fostering growth with analytics solutions, according to a report by LM Ericsson in 2021.

The increasing demand for end-to-end visibility across the supply chain is a crucial driver for the market. Customers and businesses alike expect real-time shipment updates from the point of origin to the final destination. Connected logistics solutions provide transparency, allowing stakeholders to monitor inventory levels, track shipments, and anticipate potential disruptions.

With the vast amount of data generated by connected logistics systems, advanced data analytics, and machine learning algorithms play a crucial role. By analyzing historical data and real-time information, businesses can gain useful insights into their supply chain performance to identify patterns and make data-driven decisions. Predictive analytics helps businesses to optimize routes, reduce delays, enable proactive planning, and prevent potential supply chain bottlenecks.

Connected logistics solutions offer opportunities for cost optimization throughout the supply chain by reducing lead times, efficiently managing inventory levels, and optimizing transportation routes; businesses can reduce their operational costs and achieve better profitability. Additionally, predictive maintenance of assets and vehicles helps prevent costly breakdowns and downtime. The exponential growth of e-commerce has further increased the importance of efficient logistics operations. Connected logistics enable faster and more reliable last-mile delivery, which is crucial in meeting online shoppers’ expectations for timely and convenient deliveries.

Global Connected Logistics Market Segmentation Analysis

The Global Connected Logistics Market is segmented based on Component, Transportation Mode, Vertical, And Geography.

Connected Logistics Market, By Component

• Hardware
• Software
• Services

Based on Components, the market is differentiated into Hardware, Software, and Services. The Hardware segment contributed the highest share in 2022. Hardware plays a crucial role in creating an interconnected and intelligent logistics ecosystem. These hardware components are integrated with IoT technology and sensors to collect, transmit, and process data, providing real-time insights into various aspects of the supply chain. The various hardware used in connected logistics systems are communication devices, RFID tags, tracking devices, sensors, and others. The services segment is anticipated to witness lucrative growth during the forecast period owing to the increased demand for integration & deployment, consulting, support & maintenance, and managed services.

Connected Logistics Market, By Transportation Mode

• Roadways
• Railways
• Airways
• Waterways

Based on Transportation Mode, the Global Connected Logistics Market has been differentiated into Roadways, Railways, Airways, and Waterways. The roadways segment contributed the largest share in 2022 due to the increasing demand for the road-based transportation of retail goods for long distances, especially last-mile delivery. Road transport also allows a larger carrying capacity, making it a preferred choice for logistics. The governments are also undertaking active measures to promote road transport, contributing to the segment’s growth.

Connected Logistics Market, By Vertical

• Retail & E-commerce
• Automotive
• Aerospace & Defense
• Healthcare
• Energy
• Electronics & Semiconductors
• Others

Based on Vertical, the market is differentiated into Retail & E-commerce, Automotive, Aerospace & Defense, Healthcare, Energy, Electronics & Semiconductors, and Others. The retail and e-commerce segment contributed the highest share in 2022. Connected logistics play a crucial role in the retail and e-commerce industry, providing real-time tracking of shipments and inventory and enhancing supply chain visibility. This technology reduces stockouts, optimizes inventory management, and streamlines fulfillment processes, ensuring timely and efficient customer deliveries. With data-driven insights, retail, and e-commerce companies can make informed decisions, improve customer satisfaction, and gain a competitive edge in the fast-paced retail and e-commerce landscape.

Connected Logistics Market, By Geography

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

Based on regional analysis, the Global Connected Logistics Market is classified into Europe, North America, Asia Pacific, Latin America, and Middle East & Africa. North America held the largest share in 2022. The presence of a highly developed infrastructure for rail and road connectivity is a crucial factor driving the market growth in the region. The region also has a higher adoption of modern technologies, which is attributed to be a key factor in implementing this technology. The Asia Pacific segment is anticipated to grow lucratively due to the increasing investments in megacity projects and advancements in the transportation industry.

Key Players

The “Global Connected Logistics Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as HCL Technology Limited, Intel Corporation, Infosys Limited, Cisco System Inc., IBM Corporation, SAP SE, ORBOCMM, Freightgate Inc., Honeywell International Inc., and NEC Corporation, among others.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis.

Key Developments

• In February 2022, Oracle and RHI Magnesita signed a deal wherein RHI selected Oracle’s fusion cloud transportation management system.
• In September 2020, SAP SE launched SAP Logistics Business Network, with new capabilities to increase logistics network collaboration, visibility, and reach. The software enhances coverage for additional modes of transport through its new and existing partners.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in the Global Connected Logistics Market. We cover the major impacting factors responsible for driving the industry growth in the given region.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. Porter’s five forces model can be used to assess the competitive landscape in the Global Connected Logistics Market, gauge the attractiveness of a certain sector, and assess investment possibilities.

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