Digitization in Logistics Supply Chain Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Component (Solutions and Services); Organization Size (SMEs and Large Enterprise); Industries (Automotive, BFSI, Manufacturing, IT & Telecom, Healthcare, Oil & Gas)
The digitization in logistics supply chain market was valued at US$ 11,794.24 million in 2019 and is projected to reach US$ 23,607.06 million by 2027; it is expected to grow at a CAGR of 8.5% from 2020 to 2027.
The key stakeholders in the digitization in logistics supply chain market are technology solution providers, technology service providers, logistics service providers, and end-user industries. The technology solution providers include connected device or other hardware manufacturers and software developers. The technology service providers refer to the consultants or technology consulting service providers, integrators or implementation service providers, and others. A few of the prominent technology solution providers include Accenture Plc., IBM Corporation, SAP SE, and Capgemini. On the other hand, the technology service providers include The Supply Chain Consulting Group Ltd., REPL Group Worldwide Ltd., and Brain & Company Inc.
Developing countries in the world are experiencing rapid industrialization, which mainly results in the rise in number of manufacturing facilities. Various multinational companies have their manufacturing plants in several developing countries. The expansion of multinational companies to these countries generates substantial demand for strong internet capabilities to streamline numerous operations. The logistics and supply chain are among the key industries in any country, and due to the fast maturation of digital technologies in these industries, the demand for the same is escalating in developing countries. This supports the growth of the Internet of Things (IoT) in developing countries. IoT-enabled processes boost task efficiency and reduce accidents. In addition, the IoT enables real-time monitoring, tracking, and tracing for both international and domestic transit, thereby offering higher levels of visibility to the service providers and customers into logistics.
Impact of COVID-19 Pandemic on Digitization in Logistics Supply Chain Market
The COVID-19 virus outbreak has been affecting every business globally since December 2019. The continuous growth in the number of virus-infected patients has governments to put a bar on transportation of humans and goods. The manufacturing sector has witnessed severe losses due to the temporary shutdown of factories and low production volumes, which has had a negative impact on the logistics sector. Additionally, the social or physical distancing measures imposed by governments have led the logistics service providers to limit their operations. However, the logistics and supply-chain industry players are focusing on digital technologies to curb the negative effect of the pandemic on the logistics operations based on traditional logistics concepts. This is boosting the digitization in logistics supply chain market. Nonetheless, the lower volumes of production are limiting the full-fledged usage of the fleets, which is creating tremors on the logistics service providers' business, thereby leading to slower growth of digitization in logistics supply chain market.
The global digitization in logistics supply chain market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. It also provides the overview and forecast for the digitization in logistics supply chain market based on all the segments concerning five primary regions-such as North America, Europe, Asia-Pacific, Middle East and Africa, and South America. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the digitization in logistics supply chain market.
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Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
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