IoT Powered Logistics Market Forecasts to 2030 – Global Analysis By Component (Hardware, Software, Services and Other Components), Application, End User and By Geography

IoT Powered Logistics Market Forecasts to 2030 – Global Analysis By Component (Hardware, Software, Services and Other Components), Application, End User and By Geography

According to Stratistics MRC, the Global IoT Powered Logistics Market is accounted for $52.8 billion in 2023 and is expected to reach $134.5 billion by 2030 growing at a CAGR of 14.3% during the forecast period. IoT-powered logistics integrates Internet of Things (IoT) technology into supply chain management, enhancing efficiency and visibility. Sensors and devices are deployed throughout the supply chain, tracking and monitoring goods in real-time. This enables precise inventory management, predictive maintenance of vehicles and equipment, and optimization of routes and delivery schedules.

According to OBERLO, the online retail market share was 19.2% in 2021, which means that every US$100 spent by consumers, US$19.20 was online.

Market Dynamics:

Driver:

Demand for supply chain visibility

IoT technology enables comprehensive visibility throughout the supply chain by leveraging a network of interconnected sensors, devices, and data analytics platforms. This visibility enables proactive decision-making, faster response to disruptions, and optimization of logistics processes. Furthermore, supply chain visibility powered by IoT enhances collaboration and communication among stakeholders and customers, significantly driving market expansion.

Restraint:

High cost

Implementing IoT technology involves various expenses, including the acquisition of hardware as well as investment in software development. Initially, the upfront capital investment required for deploying IoT infrastructure can be substantial, especially for small and medium-sized enterprises (SMEs) with limited financial resources. In addition, integrating IoT technology with existing legacy systems and processes may incur additional expenses, which is hampering this market further.

Opportunity:

Technological advancements

Continuous innovation in IoT technology, coupled with advancements in related fields, contributes to the evolution and expansion of capabilities within the logistics industry. Improved battery life and energy efficiency prolong the operational lifespan of IoT devices. Furthermore, advancements in connectivity technologies such as 5G networks and low-power wide-area networks (LPWAN) offer faster data transmission speeds and broader coverage, which thereby propel this market growth.

Threat:

Lack of expertise

Many logistics companies lack internal expertise in IoT technologies, making it challenging to develop and execute comprehensive IoT strategies. They may struggle to identify suitable IoT solutions, integrate them with existing systems, and interpret the vast amounts of data generated by IoT devices. However, there is a shortage of professionals with expertise in these domains, hindering the effective utilization of IoT in logistics.

Covid-19 Impact

The COVID-19 pandemic has brought several negative impacts to the IoT-powered logistics market, disrupting supply chains, slowing down technology adoption, and highlighting vulnerabilities in global logistics systems. Lockdowns, travel restrictions, and border closures have severely disrupted supply chains worldwide, leading to delays in manufacturing, distribution, and transportation. This disruption has affected the deployment and maintenance of IoT devices and sensors critical for logistics optimization.

The hardware segment is expected to be the largest during the forecast period

The hardware segment is estimated to hold the largest share due to its critical role in collecting, transmitting, and processing data related to logistics operations. These devices are deployed across warehouses, vehicles, containers, and other assets to monitor parameters. Additionally, these devices enable real-time tracking and tracing of goods throughout the supply chain, providing visibility and transparency to stakeholders, which is propelling this segment’s growth.

The fleet management segment is expected to have the highest CAGR during the forecast period

The fleet management segment is anticipated to have highest CAGR during the forecast period due to the management and operation of fleets of vehicles involved in transportation and logistics activities. They offer a range of functionalities, including route optimization, vehicle maintenance scheduling, fuel efficiency monitoring, and driver safety management. Furthermore, the efficiency, safety, and sustainability of their vehicle fleets led to cost savings and improved customer service, thereby driving this segment’s expansion.

Region with largest share:

North America commanded the largest market share during the extrapolated period owing to its advanced technological infrastructure, mature logistics industry, and robust economy. North American logistics firms leverage IoT technology to enhance customer experiences through real-time tracking and personalized delivery options. Moreover, the region's vast geographical expanse and extensive transportation networks further propel this region.

Region with highest CAGR:

Asia Pacific is expected to witness highest CAGR over the projection period, owing to a complex logistics landscape with varying infrastructure, regulations, and consumer behaviors. The Asia Pacific region encompasses a wide range of economies, from advanced technology hubs like Japan and South Korea to emerging markets such as India and Southeast Asian countries. In addition, government initiatives promoting digitalization, smart cities, and sustainable development further accelerate the adoption of IoT-powered logistics solutions across Asia Pacific.

Key players in the market

Some of the key players in the IoT Powered Logistics Market include NEC Corporation, Amazon Web Services, Cisco Systems Inc., Honeywell International, IBM Corporation, Intel Corporation, Kaa IoT Technologies, Microsoft Corporation, Novire Technologies, Oracle Corporation, PTC and SAP SE.

Key Developments:

In March 2024, Amazon Web Services and NVIDIA announced that the new NVIDIA Blackwell GPU platform—unveiled by NVIDIA at GTC 2024—is coming to AWS.

In March 2024, IBM introduced the Mainframe Skills Council during this week's SHARE conference in Orlando, to provide a forum where global organizations will foster a skilled, diverse, sustainable workforce for the mainframe platform.

In March 2024, Microsoft Corp. and Oracle are expanding our collaboration to meet growing customer demand for Oracle Database@Azure around the world.

Components Covered:
• Hardware
• Software
• Services
• Other Components

Applications Covered:
• Cold Chain Management
• Fleet Management
• Warehouse Automation
• Inventory Management
• Predictive Maintenance
• Other Applications

End Users Covered:
• Manufacturing
• Healthcare
• Automotive
• Retail
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements