In-depth insights into digital logistics market

0
20
Digital logistics market

Digital logistics is the automation and digitization of operations involved in the movement of commodities. Digital logistics enables businesses to easily design and implement their supply chains and logistics to keep up with changing customer demand and behavior. It also automates repetitive tasks, allowing logistic think tanks to focus on their core competencies. There is always a chance to digitize and automate a typical logistical procedure that uses paper and pen and repeats manual labor. In order to fully utilize digital logistics for supply chain management, machine learning, artificial intelligence, the Internet of Things, cloud computing, and blockchain are used.

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

Demand for affordable supply chain and logistics solutions across various industry verticals is one of the main drivers of the global digital logistics market. Additionally, the market is expanding due to the growing trend of digitalization and the rising demand for fleet and warehouse management systems.

Market Dynamics

Drivers

As a new platform for the logistics sector, digital logistics has evolved. The significance of logistics in numerous sectors and businesses worldwide has influenced the growth of these services on the digital front. Using web-based solutions for data integration, tracking, payments, and other purposes in logistics may present a promising potential for generating income. The demand for fleet management and warehouse management has grown concurrently, which may serve as a growth engine for the ICT industry for digital logistics.

Restraints

The biggest barrier to the widespread adoption of digital logistics is a lack of 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 effectiveness of the supply chain. 

Opportunities

Due to the benefits these apps provide, including quality services, high data volume, quick delivery, and security, many businesses and industries worldwide have implemented digital logistics. Additionally, growing home delivery and burgeoning e-commerce sectors offer the digital logistics sector tremendous growth prospects.

Good IT infrastructure and privacy policies are among the market restrictions that may be removed by enhancing the infrastructure and security regulations, which will support market expansion.

Market Segmentation

By System, the tracking and monitoring segment ruled the overall market with the largest share of 35% in 2021 due to the declining 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.

By Industry, the IT and telecom industryled the market with the maximum share in 2021. Businesses will use MEC techniques as a result of 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 IT hardware and software are creating new low-power solutions for IoT networks and systems, which will increase sales and provide new revenue streams. For instance, AT&T Inc. has started providing MEC-based products, services, and solutions to its clients depending on their demands and specifications.

Regional Insights

Due to the existence of high-growth economies like China, India, and the Philippines, the Asia Pacific region had the greatest market share of approximately 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 data logistic system. The logistics industry is now contributing more to India’s economic growth. A strong logistics industry is anticipated to significantly aid India’s efforts through programs like the government-sponsored “Make in India” initiative.

Key Players 

  • SAP (Germany)
  • ORBCOMM (U.S)
  • Oracle (U.S.)
  • Cloud Logistics (U.S.)
  • IBM (U.S.)
  • AT&T(US)
  • Intel (U.S.)
  • Infosys (India)
  • HCL Technologies (India)
  • Freightgate (U.S.)
  • Blue Yonder (U.S.)
  • Ramco Systems (India)
  • Impinj (U.S.)
  • Honeywell (US)
  • Advantech (Taiwan)
  • Digilogistics (China)
  • Magaya(US)
  • Logisuite (U.S.)
  • ICAT Logistics (U.S.)
  • Techmahindra (India)
  • Softlink (India)
  • Hexaware(India)
  • Intersec (France)
  • WebXptress (India)
  • Samsung SDS (South Korea)
  • Eurotech S.P.An (Italy)

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. The demand for data management systems and real-time tracking and monitoring systems in logistics is fostering the growth of the digital logistics market. Additionally, the expansion of the e-commerce sector and its associated consumer logistics market is anticipated to fuel growth in the digital logistics market.