PUBLISHER: KBV Research | PRODUCT CODE: 1548625
PUBLISHER: KBV Research | PRODUCT CODE: 1548625
The Global Digital Logistics Market size is expected to reach $92.3 billion by 2031, rising at a market growth of 17.2% CAGR during the forecast period.
Europe's supply chains are often complex, involving multiple countries and diverse logistics networks. These logistics solutions help manage this complexity by providing real-time visibility, enhancing coordination, and optimizing cross-border operations. Consequently, the European region would acquire nearly 30% of the total market share by 2031.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in July, 2024, Blue Yonder Group, Inc. announced the partnership with Avon, a logistics technology firm to integrate AI into its supply chain, enhancing agility and sustainability. We're excited to support Avon's digital transformation, reflecting our shared values of inclusion, women empowerment, and equity. This partnership ensures Avon stays adaptable and competitive in a dynamic market. Moreover, in January, 2024, Softlink Global teamed up with Coimbatore Marine College, a maritime education and training company to integrate advanced industry tools and practices into their logistics education. This collaboration marks a major shift, emphasizing the need for academic programs to align with the evolving demands of the logistics sector.
Market Growth Factors
Modern digital solutions provide detailed tracking information, allowing customers to see exactly where their goods are at any moment. In addition, by having access to real-time data, organizations can quickly detect and respond to disruptions or issues, such as delays, damage, or theft. Thus, increased demand for transparency and visibility drives the market's growth.
Managing intricate supply chains across borders presents a challenge for businesses operating in multiple countries and regions. The logistics solutions help organizations navigate these complex regulatory environments by providing tools for documentation, reporting, and adherence to local laws and regulations. In conclusion, rising globalization and supply chain complexity propel the market's growth.
Market Restraining Factors
Implementing these logistics systems requires significant upfront capital for software, hardware, and infrastructure. Implementing these logistics systems requires significant upfront capital for software, hardware, and infrastructure. In conclusion, high implementation costs are hampering the market's growth.
Deployment Mode Outlook
Based on deployment mode, the market is divided into on-premises and cloud. The on-premises segment attained 36% revenue share in the market in 2023. Some logistics companies prioritize having direct control over their data, especially when handling sensitive information like customer details, trade secrets, or proprietary logistics strategies.
Solutions Outlook
On the basis of solutions, the market is segmented into tracking & monitoring, data & analytics, fleet management systems, electronic data interchange (EDI) systems, and others. In 2023, the data & analytics segment attained 26% revenue share in the market. Data and analytics empower logistics companies to make informed decisions by providing insights into various aspects of their operations.
Application Outlook
By application, the market is divided into transport, warehouse, and labor management. The warehouse management segment procured 32% revenue share in the market in 2023. Warehouse management systems (WMS) often integrate with other logistics tools such as transport management systems (TMS), order management systems (OMS), and enterprise resource planning (ERP) systems.
End User Outlook
Based on end user, the market is divided into manufacturing, retail & consumer goods, healthcare, energy & utilities, automotive, and others. In 2023, the retail & consumer goods segment procured 21% revenue share in the market. The rapid expansion of e-commerce has transformed the retail landscape, increasing demand for efficient, fast, and reliable logistics solutions.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 36% revenue share in the market in 2023. North America has well-developed infrastructure, including extensive transportation networks (roads, railways, ports, and airports) and advanced warehousing facilities.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Digital Logistics Market Report Segmentation
By Deployment Mode
By Solutions
By Application
By End User
By Geography