Connected Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Connected Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Connected Logistics Market is expected to register a CAGR of 17.5% during the forecast period (2021 - 2026). Connected Logistics help businesses become more customer-centric and efficient by increasing transparency in the business process.

Key Highlights

• Increasing adoption of IoT and sensor-based technologies like RFID in various domains, including the Supply Chain Management (SCM) system, will drive the connected logistics market in the forecast period.
• Advancement in future technologies like Big Data and Advanced analytics will act as a catalyst for the adoption of Logistics 4.0. The data collected from smart and connected supply chains and logistics can be converted into actionable insights using AI systems, which will help businesses forecast demand accurately and thus improving capacity planning.
• Also, the growing demand for cloud-based solutions, RFID, and internet ubiquity across the globe are some more factors driving the market. The introduction of new applications and cloud-based solutions for the transportation and management of products, including tracking of goods and movement of planes, trucks, and ships which carry them. Further, the macroeconomic factors driving the market are the changing lifestyle of consumers, emerging economies, and the rapid rate of smart cities in developing countries such as China, Brazil, and India.
• In the United States, due to the COVID-19 outbreak, the government has shut down all the logistic operations in the country, which is heavily impacting the industry. The leaders of the Connected Logistics market have stated that, due to this outbreak, the American government has shown more flexibility towards telework and online assistance. These factors are expected to drive the market in the forecast period further.

Key Market TrendsIncreasing use of IoT and future technologies in different industries will drive the adoption of Connected Logistics

• According to CISCO, global internet traffic from non-PC devices was approximately 71% of total IP traffic in 2020. Also, Machine-To-Machine (M2M) connections will be half of the total connected devices and connections in the world by 2023. Moreover, there will be 14.7 billion M2M connections by 2023.​
• Verizon recently conducted a survey concluding that more than one-third of fleet managers who do not use fleet tracking solutions (fleet tracking solutions are mobile asset tracking solutions primarily fitted to trucks and other vehicles) say they would expect an increase in productivity if they implemented the technology.
• The survey also indicates that over 53% of companies that use asset tracking solutions reported actual productivity increases – with most of the respondents reported positive growth in productivity (53% respondents) and compliance (52% respondents).
• Companies such as Walmart are using IoT, machine learning, and Big Data to transform their retail operations and improve their customer experience in more than one way. The company was one of the early adopters of RFID tags to track their inventories.​

Asia Pacific Region to Exhibit Maximum Growth

• The Asia Pacific region is expected to show robust growth in terms of revenue in the forecast period, significantly in developing economies like India and China. Improvements in technology, increasing sensors, and automation are certain factors expected to steer the market growth.
• For instance, China is the world’s largest E-Commerce market, with over 50% of global E-Commerce transactions coming from China. According to Dezan Shira & Associates, the number of digital buyers in China surpassed 634 million in 2020. Further, China’s E-Commerce market is predicted to be larger than those of the U.S., U.K., Japan, Germany, and France combined. The growth of the E-commerce industry in recent years in China is attributed to the developments in the internet infrastructure and the establishment of global logistics networks.
• Singapore began transforming logistics to reinforce its place in APAC’s logistics industry by integrating the technologies with the existing processes. The Singapore government has already started transforming logistics as part of its USD 4.5 billion Industry Transformation Programme. The primary objective of the program is to drive excellence in logistics operations and to be leaders in innovation while also building a strong core of local logistics talent and making Singapore attractive to inward investment. This scheme is named the Logistics Industry Transformation Map (ITM) and follows similar plans for Singapore’s food and beverage and precision engineering sectors.

Competitive Landscape

The competitive landscape of the global connected logistics market is moderately fragmented due to the presence of many existing and emerging players in the market. The technological developments in the logistics industry are expected to fuel the rise in investments and product innovations. The competitors are proactively addressing the challenges by crafting strategies that can have the best overall effect on the market’s progress. The opportunities for growth in the market have ample scope for development in the forecast period.

• March 2021 - Oracle introduced new updates to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) offering, which connects shippers’ supply networks with an integrated suite of cloud business applications.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Bosch Service Solutions GmbH
Cisco Systems, Inc
AT&T Inc.
IBM Corporation
Intel Corporation
SAP SE
Oracle Corporation
Freightgate Inc.
Orbcomm Inc.
HCL Technologies Limited
Honeywell International Inc.
Microsoft Corporation
Siemens AG

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