Connected Logistics Market Size, Share & Industry Analysis, By Component (Hardware, Solutions, Services), By Transportation Mode (Roadway, Railway, Airway, Seaway), By Vertical (Manufacturing, Automotive, Food and Beverages, Consumer Goods and Retail, Oil & Gas, Travel and Hospitality, Healthcare and Pharmaceuticals, and Others) and Regional Forecast, 2019-2026

The global connected logistics market size was valued at USD 14.49 billion in 2018 and is projected to reach USD 82.14 billion by 2026, growing at a CAGR of 24.7% during the forecast period. The North America dominated the connected logistics market with a share of 32.50% in 2018.

Connected logistics is a set of platforms or software and hardware that helps gain real-time information regarding the goods that are shipped through various modes of transportation, including roadways, railways, airways, and seaways. It shares relevant data and logistical information with all supply chain partners to smoothen the transportation process. These solutions help companies in improving operational efficiency, real-time access, and enhances productivity by integrating multiple connected platforms. It assists in cargo traffic management & routing, and supply chain security management. It also helps in risk resilience planning, tracking each fleet vehicle’s location and performance optimization.

MARKET TRENDS

The increasing availability of connected logistics solutions equipped with a high level of interoperability, security and accessibility features, is fuelling the demand for these solutions. Additionally, the need to lower down the cost associated with warehousing services and shipment are driving the growth of the market. The expanded market for intelligent transportation solutions is anticipated to accelerate the growth of the market.

The emergence of logistic 4.0 and the ongoing research and development of autonomous logistics trucks is expected to create lucrative opportunities for the growth of the market during the forecast period. Additionally, the decreasing cost of IoT sensors fuels market growth. However, rising security and safety issues in the logistics industry is one of the factors hampering the growth of the market. 

MARKET DRIVERS

Growing Adoption of IoT-Enabled Connected Devices to Aid the Market Growth

The increasing cost of fuels and related environmental issues such as carbon emission and pollution are encouraging the shift from traditional transportation methods towards IoT- enabled connected logistics solutions. They leverage sensors, cloud technology, and IoT connectivity to remotely manage, monitor, and control the supply chain operations. The adoption of IoT has improved the efficiency of the supply chain platform for the logistics and transportation industry. It provides complete visibility and faster detection of network issues that helps in effective and timely decision-making. Also, enhanced supply chain visibility leads to long-term cost savings. Thus, the demand for IoT-enabled solutions is expanding across various industrial verticals, including manufacturing, transportation, and automotive.

Emergence of High-Tech Vehicles to Drive the Growth of the Market

 Autonomous trucks and vehicles possess numerous benefits across various industries that are struggling with the demand for shorter delivery times. Thus, the growing need for these vehicles across industries such as food and beverages, healthcare and pharmaceuticals, and manufacturing, for the movement of goods is fuelling the demand for connected logistics technologies. The growing mobility demand has emphasized challenges such as volatile oil prices, massive investment, and dealing with emissions. Hence, key players are involved in developing high tech vehicles that are capable of meeting the future needs of the economy as well as society. The high tech vehicles used in supply chain and logistics helps in improving both the efficiency and safety of transportation, combined with enhanced environmental sustainability. Furthermore, the increasing availability of connected drones is driving this demand to the growing number of high tech vehicles.    

MARKET RESTRAINT

Lack of Logistics Standardization

 Logistics standardization could pose various challenges owing to marked differences in business customs, infrastructure, culture, and government policies. Additionally, to sustain a high level of global competitiveness, the countries need to reduce their logistics costs through logistics standardization comparable to global standards like the European Union (EU) standards and ISO standards. For instance, as compared to the U.S. and Europe Union nations, the extent of logistics standardization in both China and Korea is limited.  This owed to the lack of promotional and enforcements made by the Chinese and Korean governments as well as the absence of regional organizations that can actively initiate and unify multi-national logistics standardization efforts. These efforts include the development and implementation of both domestic and international standards associated with logistics equipment, tools, packaging, storage, transportation, loading/unloading, and ICT that are compatible with widely used international logistics standards such as ISO standards. Thus, lack of logistics standardization increases the cost associated with the complete supply chain process, which hinders the growth of the connected logistics market.

SEGMENTATION

By Component Analysis

Solutions Segment is Expected to Augment the Connected Logistics Market During the Forecast Period

Based on the component, the market is classified into hardware, solutions, and services. Among these, the solutions segment held the largest market share in 2018 and is expected to continue during the forecast period. This increasing growth of the market is mainly owing to the growing need for mobility and effective supply chain management.

The solutions segment is further divided into warehouse management, freight management, fleet management, asset tracking and management, device management, connectivity management, and others. Among these, asset tracking and management segment held the largest market share in 2018 owing to the increasing adoption of asset tracking solutions for GPS positioning and real-time asset management.

The hardware segment is further broken into the gateway, RFID tags, and sensor node. Among these, the sensor node segment held the largest market share in 2018, owing to the growing need to monitor the location and speed of shipping objects. Additionally, IoT-based connected sensing technology helps in maintaining temperature stability and minimizing the wastage of perishable products, thereby enhancing supply chain visibility.

The service segment of the market is expected to be the fastest-growing segment during the forecast period. Along with the solutions, the key players are also engaged in providing professional and managed services. Among these, professional services hold the largest market share owing to the growing demand for digital & analytics and R&D services among the organizations to gain a competitive edge.

By Transportation Mode Analysis

The Roadways Segment has Accounted for the Largest Market Share

Based on the transportation mode, the market is segmented into roadways, railways, airways, and maritime. Among these, the roadways segment held the largest market share in 2018 and is expected to continue during the forecast period. The growing need to organize and manage the flow of goods related to purchasing, production, warehousing, distribution, reuse and exchange of products, as well as the provision of added-value services is uplifting the demand in roadway segment. Additionally, the rising need to track real-time location to solve the transportation problem is fueling the demand.

Seaways segment is expected to be the fastest-growing segment in the global smart transportation market owing to the growing need for ocean freight solutions for the transport of chilled and frozen cargo from one location to another.

By Vertical Analysis

Manufacturing Segment Accounts for the Largest Market Share

By vertical, the market has been diversified into manufacturing, automotive, food and beverages, consumer goods and retail, oil & gas, travel and hospitality, healthcare and pharmaceuticals, and others. The manufacturing segment held the largest share in 2018 owing to the growing need to improve the tracking of pallets and packages during transport.

The consumer goods and retail sector exhibited the highest CAGR during the forecast period owing to the increasing adoption for time-sensitive shipping and temperature-controlled road freight.

REGIONAL ANALYSIS

The report covers and analyze the market across five major regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. These regions are further categorized into their respective countries.

North America is projected to augment the market during the forecast period. In 2018, North America generated a revenue of USD 4.71 billion and is expected to reach up to USD 23.97 billion by 2026. This lucrative growth in North America is mainly due to the adoption of connected logistics solutions that leverage advanced technologies including machine learning, IoT, cloud computing, big data, data analytics, deep learning, and artificial intelligence (AI). Industries in this region are implementing connected logistics technologies for enhancing operational efficiency and supply chain management. In North America, the US holds the largest market share owing to the presence of a large number of prominent players.

Europe holds the second-largest market share and is expected to grow at a remarkable CAGR during the forecast period. The demand is increasing in Europe owing to the rapidly growing logistics industry. Additionally, increasing government and private sector investments in the transportation sector is fuelling market growth across the region.

Asia Pacific is positioned to be the fastest-growing region in the global connected logistics market in terms of CAGR. The solutions providers of in this region are working to develop IoT-enabled solutions for effective supply chain management, thereby driving the market growth. 

The Middle East and Africa are anticipated to witness a steady market growth rate. Increasing demand for more energy and cost-efficient solutions and inclination towards reducing operational expenses will aid the growth of the market across the region.

KEY INDUSTRY PLAYERS

Key Players such as HCL Technologies Limited, Zebra Technologies Corp. and Cisco Systems, Inc. to Strengthen their Market Position Backed by Heavy Investments and Developments in Connected Logistics Market

HCL Technologies Limited offers a variety of connected logistics solutions, including iMRO, Digital Crew, Digital Airport, Logitrack, Smart Warehouse, Smart Postbox, SalesWorkx, Single View of Customer, and iHMS. HCL Logitrack, a real-time supply chain visibility solution, assists in real-time track & trace and shipment health monitoring. It also engages in providing various types of services including digital & analytics services, application services, infrastructure management services, engineering and R&D services.

Zebra Technologies Corp. offers various types of hardware, software, and services for inventory and materials management, multi-modal and voice-directed picking, put-away and replenishment, packing and staging, and reverse logistics. Zebra’s mobile warehouse inventory solutions manage the organization’s inventory in real-time, keeping an accurate count and tracking of goods. The company also delivers strategic planning and consulting services to the organization to select appropriate warehouse solutions according to current and future needs.

Cisco Systems, Inc. has been actively providing solutions for different transportation modes, including maritime, mass transit, aviation, rails, and roadways. For connected maritime, the company is offering an array of solutions including Cisco IE 2000 and 3000 Series Switches, Cisco 819 Integrated Services Router, Cisco Aironet 3500 Series Access Points, Cisco Video Surveillance 6000 Series IP Cameras, Catalyst 3850 Series Switches, and Cisco Connected Mobile Experiences. It offers connected maritime solutions that help in improving operational efficiency through cargo tracking and monitoring.

List of Key Companies Profiled:

• AT&T Intellectual Property


• Robert Bosch GmbH


• Cisco Systems, Inc.


• Freightgate Inc.


• HCL Technologies Limited


• Honeywell International Inc


• IBM Corporation


• Infosys Limited


• Intel Corporation


• NEC Corporation


• One Network Enterprises


• ORBCOMM


• SAP SE


• SIGFOX


• Zebra Technologies Corp.

KEY INDUSTRY DEVELOPMENT:

• January 2020 – Trimble signed an agreement to acquire Kuebix, one of the leading transportation management system (TMS) providers, to bring together its network of the private fleet and commercial carrier to customers. This acquisition will augment the former's comprehensive transportation technology portfolio.


• December 2018 – Intel Corporation introduced the Intel Connected Logistics Platform, a cost-effective IoT solution, to enable users to monitor the asset's location and condition in any environment throughout the supply chain.

REPORT COVERAGE

The report offers an elaborative analysis of numerous factors affecting the global connected logistics market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as component, transportation mode, and verticals. It strategically analyzes several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players in the industry.

Report Scope & Segmentation