Digital Transformation Spending in Logistics

Digital Transformation Spending in Logistics

Global Digital Transformation Spending in Logistics Market to Reach US$120.6 Billion by 2030

The global market for Digital Transformation Spending in Logistics estimated at US$62.8 Billion in the year 2023, is expected to reach US$120.6 Billion by 2030, growing at a CAGR of 9.8% over the analysis period 2023-2030. Digital Transformation Hardware, one of the segments analyzed in the report, is expected to record a 9.2% CAGR and reach US$54.8 Billion by the end of the analysis period. Growth in the Digital Transformation Software segment is estimated at 9.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$16.5 Billion While China is Forecast to Grow at 10.9% CAGR

The Digital Transformation Spending in Logistics market in the U.S. is estimated at US$16.5 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$20.6 Billion by the year 2030 trailing a CAGR of 10.9% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.5% and 9.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.6% CAGR.

Global Digital Transformation Spending in Logistics Market - Key Trends & Drivers Summarized

Digital transformation spending in logistics has surged in recent years, driven by the need to enhance operational efficiency, improve customer service, and remain competitive in a rapidly evolving market. The logistics sector, traditionally characterized by manual processes and paper-based systems, is increasingly adopting digital technologies such as Internet of Things (IoT), artificial intelligence (AI), blockchain, and advanced analytics. These technologies enable real-time tracking of shipments, predictive maintenance of vehicles, optimization of delivery routes, and enhanced supply chain visibility. Companies are investing heavily in digital platforms and infrastructure to automate and streamline their operations, reduce costs, and respond more agilely to market demands.

One of the most significant trends in digital transformation spending in logistics is the integration of IoT and AI. IoT devices, such as sensors and GPS trackers, provide real-time data on the location, condition, and status of goods in transit. This data is then analyzed using AI and machine learning algorithms to predict potential delays, optimize routes, and improve inventory management. Blockchain technology is also gaining traction in the logistics industry for its ability to provide transparent and immutable records of transactions, enhancing trust and collaboration among supply chain partners. Additionally, robotics and automation are being deployed in warehouses and distribution centers to speed up order processing and improve accuracy, further driving investments in digital transformation.

The growth in the digital transformation spending in the logistics market is driven by several factors. The increasing demand for faster and more reliable delivery services, fueled by the rise of e-commerce, is a primary driver. Customers now expect real-time updates and quicker delivery times, prompting logistics companies to invest in digital solutions that enhance their service capabilities. Technological advancements, particularly in AI, IoT, and blockchain, are providing new tools for logistics companies to optimize their operations and improve efficiency. The need for greater supply chain transparency and security is also pushing companies towards digital transformation. Additionally, the COVID-19 pandemic has accelerated the adoption of digital technologies in logistics, as companies seek to mitigate disruptions and build more resilient supply chains. These factors, combined with the ongoing innovation in digital technologies and increasing competition in the logistics sector, are expected to drive continued growth in digital transformation spending in the coming years.

Select Competitors (Total 104 Featured) -

• Cisco Systems, Inc.
• AT&T, Inc.
• Accenture PLC
• Atos SE
• Cognizant Technology Solutions U.S. Corporation
• Advantech Co., Ltd.
• Daifuku Co., Ltd.
• 3GTMS, Inc.
• BluJay Solutions
• Addverb Technologies Pvt Limited
• Cloud Logistics Inc.
• E2open, LLC.
• Deutsche Post DHL Group
• Agility Public Warehousing Company KSCP
• Blue Yonder Group, Inc.

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