Companies can gain efficiency, profitability, and competitive advantages from digital logistics by streamlining their supply chains and offering cost-effective solutions for their customers. The main applications of digital logistics are in the administration of resources, labor, distribution, and transportation.
The market worth of digital logistics in 2021 was USD 18.10 billion and will be worth USD 77.52 billion by 2030, growing at a 17.54% CAGR during 2021-2030.
The market for digital logistics is growing as digital technologies and systems like radio frequency identification, electronic data interchange, and others become more widely used. The next wave of cloud services is significantly driving the growth of the digital logistics business.
Market Overview
Industrial logistics primarily focuses on analyzing, planning, and ongoing improvement of material and information flows in industrial businesses. In recent years, the movement toward digitalization has provided a variety of fresh choices for ensuring long-term competitive advantages through the methodical enhancement of logistics performance and progressive decrease in logistical costs. According to the fourth industrial revolution (Industry 4.0), industrial enterprises’ production and logistics processes would improve and become more cost-effective with the systematic integration of digitalization technologies. This will lead to long term growth and the sustainable assurance of competitive advantages.
A major force behind the growth of the market of digital logistics is the demand for affordable supply chains and logistics solutions across various industrial verticals. The growing trend toward digitization and the rising demand for fleet and warehouse management systems are propelling market expansion. Other factors influencing the growth of the digital logistics market include the e-commerce sector’s increased penetration, better delivery capabilities made possible by drones, and digital trucks for transporting shipments. These technologies and tools for data analytics are evolving and are being quickly adopted by logistics companies. Increasing collaboration among many internal and external stakeholders through digital logistics reduces the data silo effect and creates significant industrial growth possibilities.
Restraining Factors
The biggest barrier to the broad adoption of digital logistics is the need for more governance. A logistics Internet of Things standard must be developed due to the significant level of industry fragmentation. In order to achieve and maintain viability and profitability, shipping and logistics companies worldwide are concentrating on increasing the efficiency of the supply chain. The need to make governance as uniform as possible must be balanced because having one authority for each area would lead to clarity.
Market Segmentation
On the basis of the solution, in 2021, the tracking and monitoring system segment held a considerable position in the market, with the largest share of 35% owing to lower operating costs. Fleet managers can use GPS tracking software to identify individuals who are misusing vehicles or traveling unproductive routes. It will not only solve on-the-road issues but also give a precise reading of the reported driving hours. Monitoring systems are in charge of managing a business’s technological infrastructure in order to monitor its performance and operation and to spot and notify users of any problems.
On the basis of industry verticals, the I.T. and Telecom segments ruled the entire market in 2021. Businesses will embrace MEC techniques due to the commercial deployment of the 5G delivery system, which offers clients ultra-low latency and exceptionally high bandwidth for efficient data transfer and analysis. Additionally, companies that make I.T. hardware and software are creating new low-power solutions for IoT networks and systems, which will increase sales and provide new revenue streams.
Regional Insights
Due to high-growth economies like China, India, and the Philippines, the Asia Pacific region held the largest position in the market, with a share of 47% in 2021. Low entry cost and risk, cost-effective expansion, access to the latest technology, and dynamic and innovative software features are only a few advantages of a logistic data system. The logistics industry is now contributing more to India’s economic growth. The industry has experienced tremendous expansion due to the government’s increased projected spending, improved infrastructure, and improved access to international markets.
Key Players Analysis
- SAP (Germany)
- Cloud Logistics (U.S.)
- ORBCOMM (U.S.)
- Oracle (U.S.)
- Intel (U.S.)
- Infosys (India)
- HCL Technologies (India)
- Honeywell (U.S.)
- IBM (U.S.)
- Impinj (U.S.)
- AT&T(US)
- Advantech (Taiwan)
- Freightgate (U.S.)
- Magaya(US)
- Ramco Systems (India)
- Blue Yonder (U.S.)
- Digilogistics (China)
- Logisuite (U.S.)
- Intersec (France)
- Tech Mahindra (India)
- WebXptress (India)
- Hexaware(India)
- Eurotech S.P.An (Italy)
- ICAT Logistics (U.S.)
- Samsung SDS (South Korea)
- Softlink (India)
