Connected Logistics Market Size and Share Analysis - Global Trends, Development and Demand Forecast to 2030

Connected Logistics Market Size & Share

The global connected logistics market is valued at USD 32.4 billion in 2023, and it will grow at a rate of 14.1% between 2024 and 2030, to reach USD 81.1 billion in 2030.

These technologies share information on various aspects of goods transportation with distribution chain associates, thereby making the logistical process more client-centric. Such an approach uses a network of unified communication systems, internet of things (IoT), and cloud channels to advance the efficiency of logistics operations. The market growth is leading to an increase in the number of interconnected logistics systems characterized by strong interoperability, safety features, and easy availability.

Freight carrier companies use this system to advance their knowledge of activities such as order management, financial transactions, deliveries, warehousing capacity, transportation status, and additional value-added services. The industry’s expansion is propelled by the increasing pace of technological improvements in the logistics space and a rising purchaser preference for online shopping.

Moreover, the need to decrease the price of shipping and storage is driving the need for connected logistics solutions. Further, driven by consumers' desire for faster and convenient deliveries, the requirement for smart transportation solutions is projected to surge significantly. Further, the increasing acceptance of Logistics 4.0 and the ongoing efforts for advancing autonomous trucks will offer profitable opportunities in the industry. The reducing price of IoT sensors and other connected logistics tools is another key driver for the market.

The market encounters numerous challenges, which include a lack of standardization in services and operational models and higher purchaser expectations. Nevertheless, service providers are gradually embracing superior technologies for want of greater integration, heightened operational performance, real-time reporting, increased visibility, and better communication.

The potential of connected transportation is vast, especially with the adoption of modern technologies, such as automotive telematics, which is centered on cellular IoT connectivity. This technology fortifies fleet management by offering access to information from multiple onboard sensors. IoT establishes connections between individuals and devices connected to a network, thereby bolstering security, disaster readiness, and route optimization.

In order to effectively gain visibility into transportation status, logistics entities require IoT solutions specifically designed for location and route management, to enable the real-time tracking of vehicle and product positions.

According to a 2022 report by LM Ericsson, IoT connections in the transportation sector will number 292 million by 2030, compared to 100 million in 2020. This growth is attributed to the increasing need for data collection by connected devices, which, in turn, allows companies to enhance their overall operational efficiency and customer experience.

Development of Smart Vehicles Is Biggest Trend in Market

A key trend in the market is intelligent vehicles, such as connected and autonomous trucks and those with electric propulsion. Road transportation holds a significant share in countries’ GHG emissions, which is why electrification is being promoted vehemently. Moreover, self-driving trucks are being envisioned as a solution to traffic jams, high road accident death rate, and delivery delays. Since these vehicles are already integrated with a multitude of sensors, gaining data from them to smoothen logistical operations becomes easy.

In the same way, in the world of marine transport, smart shipping containers are trending. The data the sensors integrated into them share not only helps shippers and customer know the ETA of the goods but also their condition. For instance, pharmaceuticals, food, and certain chemicals are highly temperature-sensitive; thus, any malfunction in the temperature control inside a smart container can be promptly informed to the shipping crew, for instant rectification.

Connected Logistics Market Report Coverage

Report Attribute	Details
Market Size in 2023	USD 32.4 Billion
Revenue Forecast in 2030	USD 81.1 Billion
Growth Rate	14.1% CAGR
Historical Years	2017-2023
Forecast Years	2024-2030
Report Scope	Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

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Hardware Category Is Leading Market

On the basis of component, the hardware category is leading the industry. The hardware further includes tracking devices, RFID tags, communication devices, and sensors.

The sensors category is expected to hold a substantial industry share, because of the growing need to monitor assets. Moreover, IoT-based sensors help in keeping the temperature of perishable items stable and decrease waste, while enhancing supply chain visibility.

During the projection period, the services category is projected to grow the fastest. The category’s expansion is mainly because of the augmenting need for managed services among logistics companies using computer technologies to enhance operations. To these end users, market players offer consulting, support & maintenance, and system integration & deployment services. Consulting services provide advisory to shippers through dedicated experts.

Roadways Dominate Logistics Market with Accelerating Growth Trajectory

The market is currently dominated by the roadways category, within the transportation mode segment, which is also expected to enjoy the highest compound annual growth rate throughout the forecast duration.

This dominance is attributed to the rising demand for road transport for ferrying goods over lengthy distances, with a specific concentration on last-mile deliveries. Additionally, road transport is preferred in logistics because of its significant carrying capacity and route flexibility. The worldwide initiatives by governments to boost road transportation, especially by electrifying it, are also playing a substantial role in propelling the development of this category.

Railways Category Is Projected To Grow at a Significant Pace

The railways category is also projected to advance at a significant CAGR during the projection period. This mode of transportation has the basic benefit of decreased frictional resistance, due to which a more-substantial load can be put on wagons. Furthermore, the government initiatives to endorse rail freight transportation are projected to contribute to the category’s growth.

For example, the U.S. Department of Transportation has launched the Rail Program, targeting to surge freight rail routes twofold. India’s Dedicated Freight Corridor initiative is a similar program that aims to build over 8,000 km of fully electrified railway lines dedicated to freight traffic. Of the proposed routes, the EDFC is completely operational, the WDFC is partly operational, while four others are either under development or planned. Moreover, the government is building over 100 cargo terminals along major rail lines under the Gati Shakti Mission.

North America Is Dominating Market

The dominating position in the worldwide industry is held by the North American region, mainly powered by its deep-rooted rail and road infrastructure. Further, the strong R&D ecosystem allows for the rapid adoption of advanced technologies. The continent's status as the top revenue contributor is further helped by the substantial existence of major market players. The U.S. is projected to endure its dominance throughout the projection period, credited to the ongoing technical improvements, increasing investments in technological advancements, and booming e-commerce sector.

The Asia-Pacific region is projected to attain the most-rapid CAGR in the projection period. The region is going through smoother economic development compared to other regions, thus positioning itself as a central hub for logistical activities. Moreover, the market here is driven by the improvements in transportation technologies and the augmenting expenditure on smart city projects. The prosperous e-commerce and manufacturing sectors in the region also contribute significantly to the development of the industry, with China and India the key shareholders.

Key Companies Offering Connected Logistics Solutions

• Intel Corporation
• Infosys Limited
• Cisco Systems Inc.
• HCL Technology Limited
• IBM Corporation
• SAP SE
• ORBOCMM
• Freightgate Inc.,
• Honeywell International Inc.
• NEC Corporation
• Robert Bosch GmbH
• AT&T Inc.
• Accenture plc
• Eurotech S.p.A.
• Amazon.com Inc.