PUBLISHER: The Business Research Company | PRODUCT CODE: 1425399
PUBLISHER: The Business Research Company | PRODUCT CODE: 1425399
Digital Logistics Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on digital logistics market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for digital logistics? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The digital logistics market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Digital logistics involves the automation and digitization of processes related to the transfer of products. This digital approach enhances data transparency for all suppliers and partners involved in every stage of supply chain management and operations management, creating new opportunities for companies to reduce operating costs, eliminate productivity losses, and improve order fulfillment accuracy.
The main product types of digital logistics include tracking and monitoring systems, information integrated systems, electronic data interchange systems, database management systems, fleet management systems, and order management systems. Tracking and monitoring systems, for instance, enable real-time monitoring of someone or something using GPS trackers to broadcast locations to a device. These systems facilitate tracking movements and locations of vehicle assets on the road or at remote worksites. Digital logistics components include solutions and services deployed through modes like cloud and on-premises. They find application in various industries such as government, aerospace, defense, automotive, oil and gas, retail, manufacturing, healthcare, and others, addressing functions like warehouse management, labor management, and transportation management.
The digital logistics market research report is one of a series of new reports from The Business Research Company that provides digital logistics market statistics, including digital logistics industry global market size, regional shares, competitors with a digital logistics market share, detailed digital logistics market segments, market trends and opportunities, and any further data you may need to thrive in the digital logistics industry. This digital logistics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The digital logistics market size has grown rapidly in recent years. It will grow from $20.62 billion in 2023 to $24.53 billion in 2024 at a compound annual growth rate (CAGR) of 19.0%. The growth observed in the historical period can be attributed to factors such as globalization and supply chain complexity, the boom in e-commerce, a heightened focus on sustainability, the rise of omnichannel retail, customer expectations for faster delivery, dynamic market conditions, regulatory compliance requirements, data-driven decision-making, and an increased emphasis on inventory optimization.
The digital logistics market size is expected to see rapid growth in the next few years. It will grow to $46.09 billion in 2028 at a compound annual growth rate (CAGR) of 17.1%. The anticipated growth in the forecast period can be attributed to the rapid expansion of e-commerce volumes, the growth of autonomous vehicles, heightened cybersecurity measures, a shift towards servitization, the adoption of digital twins for supply chain visualization, and initiatives for cross-border trade facilitation. Major trends in the forecast period encompass the widespread adoption of IoT in logistics, the integration of automation and robotics in warehousing, the utilization of artificial intelligence (AI) for route optimization, the implementation of cloud-based logistics platforms, the promotion of sustainable logistics practices, the deployment of 5G connectivity for logistics networks, cybersecurity measures, and the use of predictive analytics for demand forecasting.
The digital logistics market is expected to experience substantial growth driven by the exponential expansion of the e-commerce industry. E-commerce, characterized by the online sale of tangible goods and facilitated by the internet, necessitates a robust and efficient logistics supply chain. Digital logistics plays a crucial role in this context by providing transparency, operational ease, and the removal of inefficiencies, ultimately reducing costs. The demand for streamlined logistics operations is evident in the US, where e-commerce sales reached $870 billion in 2021, marking a significant increase of 14.2% from 2020 and 50.5% from 2019. As e-commerce continues to grow and account for a larger share of retail sales, the digital logistics market is poised to benefit from the increasing need for advanced logistics solutions.
The growth of the digital logistics market is further propelled by the increasing adoption of artificial intelligence (AI). AI, a branch of computer science focused on creating smart machines capable of human-like tasks, is being leveraged in digital logistics to optimize route planning, enhance predictive analytics for demand forecasting, and automate decision-making processes. This integration results in improved efficiency and cost savings across the supply chain. Notably, 35% of businesses worldwide used AI in 2022, reflecting a 4% increase from the previous year. The rising adoption of AI is playing a pivotal role in reshaping the landscape of digital logistics and driving its growth.
A prominent trend in the digital logistics market is the focus on technological advancements. Major companies operating in this space are investing in research and development to design technologically advanced solutions that cater to different use cases in connected logistics. These solutions provide a competitive edge in the market, and companies like XPO Logistics are introducing innovative platforms such as Assist to enhance customer service management. Assist streamlines customer account service requests, offering efficient communication tools and instant visibility into the status of customer inquiries. The integration of such advanced platforms has resulted in quicker responses to customer queries, showcasing the role of technological advancements in reshaping digital logistics operations.
To gain a competitive edge, major companies in the digital logistics market are increasingly focusing on introducing cutting-edge solutions. Platforms like ClickargoSG, launched by GUUD, exemplify this trend. ClickargoSG is a digital logistics platform designed to promote digitalization and streamline the supply chain process. The platform offers features such as real-time tracking, digital documentation, and automated customs clearance, aiming to enhance the efficiency and transparency of logistics operations. The introduction of such innovative solutions reflects a strategic approach by companies to meet the evolving needs of the logistics industry and stay ahead in a competitive market.
In June 2022, DB Schenker, a leading Germany-based supply chain management and logistics solutions company, successfully acquired Bitergo, a German IT company. The financial details of the transaction were not disclosed. This strategic acquisition is designed to enhance DB Schenker's service portfolio, advance its digital strategy, and facilitate expansion into cloud-based products, particularly catering to small and medium-sized clients. Bitergo, the acquired company, is a Germany-based firm known for providing comprehensive software solutions aimed at digitizing shipping operations. The acquisition reflects DB Schenker's commitment to leveraging technology to optimize its logistics services and strengthen its position in the evolving landscape of supply chain management.
Major companies operating in the digital logistics market report are Oracle Corporation, IBM Corporation, SAP SE, Advantech Co Ltd., AT&T Inc., Intel Corporation, Honeywell International Inc., HCLTech Ltd., Blue Yonder Inc., DigiLogistics, Hexaware Technologies Ltd., Tech Mahindra Pvt. Ltd., Samsung SDS, ORBCOMM Inc., Freightgate, Huawei Technologies Co. Ltd., WebXpress, Ramco Systems Ltd., Logisuite, ICAT Logistics, JDA Software Pvt. Ltd., Cloud Logistics, DigiLogistics Technology Ltd., Infosys Limited, Kuehne + Nagel International AG, UPS Supply Chain Solutions, Accenture PLC, Capgemini SE, Cognizant Technology Solutions Corporation, Deutsche Post DHL Group, FedEx Corporation, Kenco Logistics Services LLC, Schneider Electric SE, XPO Logistics Inc.
North America was the largest region in the digital logistics market in 2023. The regions covered in the digital logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the digital logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The digital logistics market consists of revenues earned by entities by providing digital logistics solutions and services such as convergence of logistics and technology, cloud-based collaborative solutions, real-time order visibility, automated approvals, and digital billings. The market value includes the value of related goods sold by the service provider or included within the service offering. The digital logistics market also includes sales of software and systems that are used to provide digital logistics services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.