Connected Logistics Market by Offering (Hardware, Services, Software), Transport Mode (Airways, Railways, Roadways), Vertical - Global Forecast 2024-2030

Connected Logistics Market by Offering (Hardware, Services, Software), Transport Mode (Airways, Railways, Roadways), Vertical - Global Forecast 2024-2030

The Connected Logistics Market size was estimated at USD 32.67 billion in 2023 and expected to reach USD 37.22 billion in 2024, at a CAGR 15.96% to reach USD 92.14 billion by 2030.

The connected logistics market incorporates cutting-edge technologies such as artificial intelligence (AI), the Internet of Things (IoT), and advanced logistics and supply chain operations analytics. This integration facilitates real-time monitoring, efficient management, and intelligent decision-making in logistics processes, thereby enhancing operational efficiency, transparency, and customer satisfaction. Connected logistics has applications across various sectors, including manufacturing, retail, food and beverages, pharmaceuticals, and automotive. It is utilized in fleet management, warehouse management, freight brokerage, and inventory control. The end-users of this market are third-party logistics providers, warehouse operators, and transportation firms striving to improve logistics operations and improve supply chain visibility. The market scope of connected logistics includes an extensive range of intelligent systems and solutions such as asset tracking, real-time traffic management, smart roads, and automated freight and cargo management systems. These technologies are widely adopted across global markets, with particular expansion noted in emerging economies due to increased industrial growth and a surge in e-commerce activities. Factors that influence the development of the connected logistics market include the need for real-time data analysis in supply chain operations, the proliferation of IoT devices, advancements in AI and machine learning, expansion of the logistic industry due to rapid E-commerce growth, and improving cross-border trade facilitations. Additionally, the rise in demand for quick delivery services and heightened visibility in logistics processes further propel market growth. However, the market faces limitations and challenges, such as high initial investment and implementation costs and data security and privacy concerns. On the other hand, the latest potential opportunities in connected logistics include growing potential for sustainable supply chain practices, application of predictive analytics for proactive logistics management, and integration of blockchain technology for advanced data security and transparency.

Regional Insights

The connected logistics market in North America is experiencing robust growth due to high levels of automation and a well-established IT infrastructure supporting the integration of connected logistics across the supply chain. The United States leads the market with significant investments in smart transportation and digital freight brokerage solutions. Canada shows a growing interest in sustainable and efficient logistics operations as Canadian consumers display a heightened awareness of environmental impacts, influencing purchasing behaviors to favor companies with a greener supply chain. In South America, the connected logistics market is progressing with growing awareness about the benefits of digital supply chain optimizations. Countries such as Brazil and Argentina are pioneering the adoption of connected logistics solutions, primarily to tackle the complexity of managing extensive logistic networks. In APAC, Countries such as China, Japan, South Korea, and India are at the forefront, with government programs helping the development of smart cities and intelligent transportation systems. China's connected logistics market is one of the largest due to its manufacturing powerhouse status. In Japan, technological innovation is highly prioritized, with the country holding several patents in robotics and automated systems for logistics. India's connected logistics sector is burgeoning, with significant growth potential due to its large consumer base, increasing internet penetration improvements in infrastructure, and the rise of e-commerce, which are catalysts for advanced logistics systems. Europe's connected logistics market demonstrates significant growth with stringent regulations for reducing carbon emissions and promoting energy efficiency in logistics operations. The European Union's encouragement of digitalization across industries, including logistics, is a major growth driver. Countries such as Germany and the Netherlands, with their strong automotive and manufacturing sectors, have become prominent adopters of connected logistics. In the Middle East, the focus on building state-of-the-art logistics hubs, smart ports, and free zones has been instrumental in the growth of connected logistics. Africa's connected logistics market is in the nascent stages but is anticipated to grow with the continent's increasing mobile connectivity and internet penetration. With significant infrastructure developments and the expansion of the retail sector, the demand for sophisticated logistics solutions is rising.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Connected Logistics Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Expansion of the logistic industry due to rapid E-commerce growth
Proliferation of IoT devices, advancements in AI and machine learning
Improving cross-border trade facilitations

Market Restraints

High initial investment and implementation costs

Market Opportunities

Growing potential for sustainable supply chain practices
Integration of blockchain technology for advanced data security and transparency

Market Challenges

Concerns associated with data security and privacy

Market Segmentation Analysis

Offering: Rising usage of asset tracking & management software in connected logistics
Transport Mode: Increasing preference for roadways in connected logistics
Vertical: Growing adoption of connected logistics across automotive sector for seamless integration between manufacturers, suppliers, and distributors

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Connected Logistics Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Connected Logistics Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Maersk and Nissan forge long-term partnership, unveiling grand opening of Wuhan Warehousing and Distribution facility

A.P. Møller – Mærsk A/S partnered with Nissan Motor Co., Ltd. to deliver comprehensive, resilient, and competitive logistics solutions. This collaboration underlines Maersk's commitment to enhancing service offerings across the whole supply chain, particularly for essential clients.

Overhaul Announces Shipment Connect App to Optimize Logistics Operations

Overhaul unveiled Shipment Connect, a revolutionary application designed to provide unparalleled visibility and control over the logistics and shipment process for retailers and manufacturers. Shipment Connect enables the instant creation of digital shipments, integrating IoT devices with cargo and eliminating arduous paperwork, all without the need for expensive integrations.

Tata Motors to acquire 27% stake in logistics startup Freight Tiger for INR 150 crore

Tata Motors Ltd acquired a 26.79% interest in the innovative digital logistics platform Freight Tiger for INR 150 crore. This strategic move includes investing an additional INR 100 crore over two years. The collaboration is set to bolster Tata Motors' connected vehicle offerings, such as their Fleet Edge platform, by integrating with Freight.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Connected Logistics Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Connected Logistics Market, highlighting leading vendors and their innovative profiles. These include AT&T Inc., Cisco System Inc., Cisco Systems, Inc., Freightgate Inc., HCL Technology Limited, Honeywell International Inc., IBM Corporation, Infosys Limited, Intel Corporation, NEC Technologies, Nippon Express Co., Ltd., One Network Enterprises, Inc., Oracle Corporation, ORBOCMM Inc., Robert Bosch GmbH, SAP SE, Senko Co., Ltd., Siemens AG, SIFFOX, The EuroTech Group PLC, XPO, Inc., YUSEN LOGISTICS CO., LTD., and Zebra Technology Corp..

Market Segmentation & Coverage

This research report categorizes the Connected Logistics Market to forecast the revenues and analyze trends in each of the following sub-markets:

Offering
Hardware
Gateways
RFID Tags
Sensors
Services
Consulting
Integration & Deployment
Managed Services
Support & Maintenance
Software
Asset Tracking & Management
Data Management & Analytics
Fleet Management
Freight Transportation Management
Warehouse Management
Transport Mode
Airways
Railways
Roadways
Waterways
Vertical
Aerospace & Defense
Automotive
Electronics & Semiconductors
Energy
Healthcare
Retail & E-commerce
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year