“Global Connected Logistics Market to reach a market value of USD 91 Billion by 2031 growing at a CAGR of 14.0%”
The Global Connected Logistics Market size is expected to reach $91 billion by 2031, rising at a market growth of 14.0% CAGR during the forecast period.
Fleet management software helps companies optimize fleet operations, reduce fuel costs, and improve driver safety and compliance. Therefore, Fleet management segment acquired $2,916.99 million revenue in 2023. Freight transportation management software helps companies optimize freight transportation routes, reduce shipping costs, and improve shipment visibility. With the increasing globalization of supply chains and the growing complexity of transportation networks, the adoption of freight transportation management software is expected to continue to grow as companies seek to improve the efficiency and reliability of their freight transportation operations.
The evolving customer expectations for transparency, responsiveness, and personalized services are reshaping the logistics landscape, and connected logistics solutions are becoming increasingly essential to meet these demands. With connected logistics solutions, businesses can provide customers with real-time updates on the status of their shipments. Thus, these factors will assist in the growth of the market.
Additionally, connected logistics solutions enable the automation of manual and repetitive tasks throughout the supply chain. By integrating IoT devices, RFID tags, and sensors into warehousing, inventory management, and order fulfillment processes, companies can streamline operations, reduce human error, and improve overall efficiency. Hence, owing to these factors, there will be enhanced demand for connected logistics in the upcoming years.
However, in remote or underdeveloped areas, the absence of internet infrastructure poses a major obstacle to implementing connected logistics solutions. Limited access to high-speed internet or even basic connectivity inhibits the deployment of IoT devices, sensors, and other digital technologies essential for tracking goods, optimizing routes, and managing inventory in real time. Investments in expanding broadband infrastructure, deploying cellular networks, and deploying alternative connectivity solutions such as satellite communication can help bridge the digital divide and extend connectivity to underserved regions.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
On the basis of component, the market is divided into hardware, software, and services. The software segment garnered a 37% revenue share in the market in 2023. This can be attributed to the increasing adoption of software applications and platforms that enable real-time tracking, monitoring, and optimization of logistics operations. The software segment is expected to continue to grow as companies increasingly rely on software to manage their logistics operations.
By transportation mode, the market is segmented into roadways, railways, airways, and waterways. The roadways segment held a 45% revenue share in the market in 2023. An emerging pattern is observed among vehicle manufacturers, which is integrating connectivity features that enable correspondence with cloud-based platforms, infrastructure, and other vehicles. Vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication technologies enhance road safety and efficiency while reducing congestion and emissions. Thus, there will be enhanced demand in the segment.
On the basis of technology, the market is divided into Wi-Fi, Bluetooth, satellite, cellular, and others. In 2023, the Bluetooth segment witnessed a 23.2% revenue share in the market. Bluetooth technology has emerged as a popular logistics asset tracking and monitoring solution. Bluetooth Low Energy (BLE) beacons and tags can be attached to assets such as pallets, containers, and vehicles to enable real-time tracking and monitoring throughout the supply chain. Therefore, owing to these factors, there will be enhanced demand in the segment.
Based on vertical, the market is divided into retail & e-commerce, automotive, aerospace & defense, healthcare, energy, electronics & semiconductors, and others. The retail and e-commerce segment recorded a 26% revenue share in the market in 2023. In the competitive e-commerce landscape, providing a seamless delivery experience has become a key differentiator for retailers. Therefore, these aspects will pose lucrative growth prospects for the segment.
Free Valuable Insights: Global Connected Logistics Market size to reach USD 91 Billion by 2031
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The North America segment procured a 39% revenue share in the market in 2023. The rapid expansion of e-commerce in North America has fueled the demand for connected logistics solutions. With more consumers shopping online for a wide range of products, there's a heightened need for efficient last-mile delivery, real-time tracking, and flexible logistics services. Hence, these factors can assist in the growth of the segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 32.4 Billion |
| Market size forecast in 2031 | USD 91 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 14.0% from 2024 to 2031 |
| Number of Pages | 492 |
| Number of Tables | 840 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Technology, Transportation Mode, Vertical, Region |
| Country scope |
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| Companies Included | Intel Corporation, Infosys Limited, Cisco Systems, Inc., HCL Technologies Ltd. (HCL Enterprises), IBM Corporation, SAP SE, Orbcomm, Inc. (GI Partners L.P.), Gartner Inc., Honeywell International, Inc., NEC Corporation |
By Component
By Transportation Mode
By Technology
By Vertical
By Geography
This Market size is expected to reach $91 billion by 2031.
Rising customer expectations for transparency and responsiveness are driving the Market in coming years, however, Limited Range and Accuracy restraints the growth of the Market.
Intel Corporation, Infosys Limited, Cisco Systems, Inc., HCL Technologies Ltd. (HCL Enterprises), IBM Corporation, SAP SE, Orbcomm, Inc. (GI Partners L.P.), Gartner Inc., Honeywell International, Inc., NEC Corporation
The expected CAGR of this Market is 14.0% from 2023 to 2031.
The Wi-Fi segment is leading the Global Connected Logistics Market by Technology in 2023; thereby, achieving a market value of $29.3 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $33.4 billion by 2031.
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