Market Research Report
Digital Transformation Spending in Logistics
|Digital Transformation Spending in Logistics|
Published: July 1, 2022
Global Industry Analysts, Inc.
Content info: 483 Pages
Delivery time: 1-2 business days
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Global Digital Transformation Spending in Logistics to Reach $75.5 Billion by 2026
COVID-19 is emerging to be the biggest driver of digital transformation. Over 60% of companies in North America, Europe and Asia expect to witness a higher velocity of change in digital transformation during the years 2020 through 2023. Digital transformation is now visible in all industrial sectors. With companies across all industries including logistics going online launching digital initiatives, investments in automation is rising. The COVID-19 has been a wake-up call for companies to make substantial and realistic plans to leverage emerging technologies and concepts like robotics, IIoT and smart factory for pushing productivity, reducing overall costs and gaining an edge over competitors. Industry 4.0-led automation is a savior for manufacturers, especially for companies operating in countries known for high labor costs. The concept paves way for highly dynamic processes through automated assemblies, and warehouses. Amid the COVID-19 crisis, the global market for Digital Transformation Spending in Logistics estimated at US$52.2 Billion in the year 2022, is projected to reach a revised size of US$75.5 Billion by 2026, growing at a CAGR of 8.8% over the analysis period. Hardware, one of the segments analyzed in the report, is projected to grow at a 8.2% CAGR to reach US$38.3 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Software segment is readjusted to a revised 8.9% CAGR for the next 7-year period.
The U.S. is Estimated at $15.1 Billion in 2022, While China is Forecast to Reach $13.7 Billion by 2026
Digital Transformation Spending in Logistics in the U.S. is estimated at US$15.1 Billion in the year 2022. The country currently accounts for a 28.98% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$13.7 Billion in the year 2026 trailing a CAGR of 10% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.7% and 8.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.8% CAGR while Rest of European market (as defined in the study) will reach US$15.1 Billion by the end of the analysis period. The push towards digital transformation in these markets in pushing up investments in connected devices, radio frequency identification (RFID) and Internet of Things (IoT) for enhanced real-time visibility into the supply chain. Foray of third-party logistics providers (3PLs) in the logistics and freight management industry is changing market dynamics, providing shippers with the opportunity to find the most suitable partner for their business. The future holds even more opportunities for transportation & logistics companies to improve their efficiency and profits. IoT and vehicle-to-vehicle communication holds promise for enabling "vehicle trains" or "vehicle platoons".
Services Segment to Reach $22.1 Billion by 2026
In the global Services segment, USA, Canada, Japan, China and Europe will drive the 9.9% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$8.1 Billion will reach a projected size of US$15.7 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$2.5 Billion by the year 2026.
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