PUBLISHER: KBV Research | PRODUCT CODE: 1498423
PUBLISHER: KBV Research | PRODUCT CODE: 1498423
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.
Component Outlook
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.
Transportation Mode Outlook
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.
Technology Outlook
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.
Vertical Outlook
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.
Regional Outlook
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.
List of Key Companies Profiled
Global Connected Logistics Market Report Segmentation
By Component
By Transportation Mode
By Technology
By Vertical
By Geography