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Digital Logistics Market Size, Share & Industry Analysis, By Solution (Tracking and Monitoring System, Data Management and Analytics, Electronic Data Interchange System, Fleet Management System, and Others), By Application (Transport Management, Warehouse Management, Labor Management, and Others), By Deployment Mode (On-Premises and Cloud), By End-user (Manufacturing, Retail and Consumer Goods, Healthcare, Energy and Utilities, Automotive, and Others), and Regional Forecast, 2024 – 2032

Last Updated: May 13, 2024 | Format: PDF | Report ID: FBI109139

 

KEY MARKET INSIGHTS

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The global digital logistics market size was valued at USD 28.13 billion in 2023. The market is projected to grow from USD 32.44 billion in 2024 to USD 120.33 billion by 2032, exhibiting a CAGR of 17.8% during the forecast period.


Digital logistics is a process of making logistics more efficient with the help of various digital technologies. In other words, it refers to the use of advanced technology and communications that help reduce operational costs, enhance overall efficiency, improve supply chains, and provide customers with customer-focused solutions. Digital logistics solutions provide several features, such as the adoption of data-driven logistics plans, improved collaboration with different supply chain partners, and increased performance of shipment delivery.


The market’s growth can be credited to the proliferation of internet and the increase in online shopping among consumers. The increasing trend in intelligent automation and generative AI also contributes to this growth. As the usage of automation in logistics increases, there is an estimated surge in cloud computing technologies, fostering a growing potential for the digital logistics market share. This growth is owed to rising need for digitalization and data analysis and technological developments.


In addition, the demand in this market is increasing as organizations are starting to invest in new logistics technologies following the pandemic. According to a survey carried out by an industry expert in 2020, 56% of supply chain logistics companies plan to invest more in forecasting due to the effects of the COVID-19 pandemic.


IMPACT OF GENERATIVE AI


Advanced Capabilities of Generative AI for the Digitalization of Logistics Fueled Market Growth


Generative AI is a useful tool for logistics companies as it improves their operations and increases customer satisfaction. It can automate traditional work while empowering businesses to run on a predictive and progressive model. Generative AI can contribute to transformation of the logistics in several applications, such as warehouse management, labor management, transport management, and others.


Generative AI allows logistics teams to enhance real time communications that are powered by AI driven chatbots and virtual assistants. Advanced technology addresses labor-intensive tasks such as the production of reports and forecasts and creates high standards for professional productivity. Companies need to make quicker and more accurate decisions as supply chain challenges and disruptions become increasingly frequent. In December 2023, Blue Yonder, a provider of supply chain solutions, launched Blue Yonder Orchestrator. It is a generative AI solution that enables firms to fasten supply chain orchestration and enhance intelligent decision-making.


Digital Logistics Market Trends


Rising Usage of Internet of Things (IoT) and Real-Time Tracking in Logistics to Propel Market Growth


Internet of Things (IoT) is transforming the way logistics companies operate. The IoT devices and sensors are incorporated into vehicles, cargo compartments, or infrastructure to provide precise information on every aspect, from vehicle location conditions to temperature. This real-time monitoring capability enhances visibility, reduces operational risks, and improves decision-making.


Additionally, the use of the IoT in logistics enables the integration of different types of assets into a supply chain, and, subsequently, an analysis of data generated through these connections. This improves the efficiency of warehouse logistics, delivery management, and fleet management between organizations. According to industry analysts, by 2024, more than 50% of all IT spending will be invested toward digital transformation.


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Digital Logistics Market Growth Factors


Increasing Online Shopping and Proliferation of Internet Users to Aid Market Growth


The exponential growth of the e-commerce sector over the past decade has been driven by the increase in online shopping and the proliferation of internet users. Optimizing supply chain operations, increasing visibility, and responding to rising consumer needs in the e-commerce sector enables companies to take advantage of digitization solutions. Thus, this market is growing rapidly to optimize delivery systems and increase company profit margins.


Moreover, the e-commerce industry is driven by transparency, cost, convenience, and speed. To meet this need, new business models and solutions have been developed such as digitization of logistics operations, automation of material handling systems, warehouse management systems, and others. This has led to faster and more varied fulfillment services, in particular last-mile delivery alternatives and smooth return processes. According to an industry analyst, by 2025, a quarter of all global sales will be made online.


RESTRAINING FACTORS


Complex Integration and High Capital Expenditure to Hinder Market Expansion


Large capital expenditure in the form of automation equipment, software, and solutions, all of which involve significant costs, is required for the digitization of logistics operations. The cost of replacing the old procedures is excessively high. It is expensive to acquire and integrate technology, as continuing maintenance and upgrades require additional capital. The complexity of integration may require significant resources, specialized expertise, and dedicated sources. Thus, these factors are hindering the digital logistics market growth.


Digital Logistics Market Segmentation Analysis


By Solution Analysis


Adoption of Real-time Tracking Tools Increased Demand for the Product in Tracking and Monitoring Systems


Based on solution, the market is segmented into tracking and monitoring system, data management and analytics, electronic data interchange system, fleet management system, and others. 


In terms of market share, the tracking and monitoring system segment dominated the market in 2023. This segment has been transformed by the adoption of real-time tracking tools, which have added more transparency, efficiency, and reliability. The use of advanced technologies such as RFID, GPS, and IoT devices to monitor the movement and condition of goods is referred to as real-time tracking in logistics. Moreover, the margin of error has significantly decreased since companies have been adopting timely inventory and lean logistics practices.


By Application Analysis


Transport Management Segment Led Market in 2023, Driven by Digitalization Trends


Based on application, the market is segmented into transport management, warehouse management, labor management, and others. 


In terms of market share, the transport management segment dominated the market in 2023. To optimize supply chain operations, digitalization of transport management is essential in this market as it brings together technology, data analysis, and automation. As it directly affects efficiency, costs, and speed, enterprises are able to improve their overall supply chain performance. Transportation needs have increased as a result of globalization and e-commerce, making digital logistics solutions essential to effective management and timely delivery.


The labor management segment is estimated to grow at the highest CAGR during the projected timeframe. To make information more easily available, labor management vendors are adopting web and mobile user interfaces as well as user-configurable dashboards. Therefore, the gamification functionality builds on it and displays current performance levels for individual users. Gamification, a trend in labor management, provides real-time insight into user performance by sharing information with users to enable them to alter their performance throughout the labor process.


By Deployment Mode Analysis


Ease of Accessibility and Controllability Offered by On-Premise Digital Logistics Solutions Bolstered Its Demand in 2023


Based on deployment mode, the market is segmented into on-premises and cloud.


In terms of market share, the on-premise dominated the market in 2023. The use of on-premises deployment has been increased by an on-premises strategy that allows users to monitor their site through desktops or other systems. When a program is installed on company premises, on-premises digital logistics solutions give users complete control or administrative access to their logistics processes.


The cloud segment is anticipated to register the highest CAGR during the forecast period. A cloud-based logistics management model increases the enterprise's backup capacity. The use of cloud platforms brings flexibility and stability to a business. The growth of the segment can be accredited to an increase in e-commerce and different order fulfillment methods. Due to the increasing adoption of SaaS and cloud solutions in digital logistics, organizations are switching from on-premises systems to cloud delivery models.


By End-user Analysis


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Manufacturing Segment Takes Lead in Market Share, Fueled by Digital Logistics Integration


On the basis of end-user, the market is studied across retail and consumer goods, energy and utilities, manufacturing, healthcare, automotive, and others. 


In terms of market share in 2023, the manufacturing segment led the market. Digital logistics is an important part of modern production to ensure the proper arrival time of raw materials, which helps businesses forecast inventory levels properly. The data derived from such insights informs a business on its production, purchase, and sales decisions.


Healthcare is expected to grow at the highest CAGR significantly during the forecast period. The adoption of digital logistics in healthcare is expected to boost demand for medicines and medical devices.  Digitized logistics solutions make it easier to track equipment and supplies to increase productivity, improve communication between departments, maintain compliance, or reduce the time taken for inventory checks by healthcare professionals. The healthcare sector can look forward to an even more efficient and patient-centric future as technology continues to evolve.


REGIONAL INSIGHTS


Geographically, the market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific.


North America Digital Logistics Market Size, 2023 (USD Billion)

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North America held a substantial market share in 2023. Large IT companies that are early users of digital technologies in the logistics sector can be considered as a major contributor to this region's growth. In North America, there are large and highly skilled workforces capable of developing and implementing such solutions. Numerous academic institutions and research facilities situated in North America occupy prominent positions in the realm of automation R&D. This fosters an ongoing influx of skilled individuals who actively contribute to pioneering advancements within the market.


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Asia Pacific is projected to register the highest rate during the estimated timeframe. The growth of the region is driven by higher planned government spending, improved infrastructure, and greater access to global markets.


The Middle East & Africa is expected to register the second-highest growth rate in the market during the forecast period. The development of cloud computing technologies that support automation and digital transformation is driving this growth, contributing to the expansion of the market in the region.


List of Key Companies in Digital Logistics Market


Partnerships, Mergers & Acquisitions, and Product Development Strategies Used by the Market Players to Widen Their Customer Base


Major industry players operating in the market are providing digitally enhanced logistics solutions to provide business flexibility and growth. These companies prioritize acquiring small and local firms to expand their business reach. Moreover, mergers, acquisitions, leading investments, and strategic partnerships contribute to an increase product demand.


List of Key Companies Profiled:  



  • Cognizant (U.S.)

  • Softlink (India)

  • Blue Yonder Group, Inc. (U.S.)

  • SAP SE (Germany)

  • DigiLogistics Technology Limited (China)

  • ShipBob, Inc. (U.S.)

  • Advantech Co., Ltd. (Taiwan)

  • DiLX (Netherlands)

  • Bristlecone (U.S.)

  • Siemens AG (Germany)


KEY INDUSTRY DEVELOPMENTS:



  • October 2023: UPS announced that it had signed an agreement with PayPal to acquire Happy Returns. Happy Returns is a reverse logistics company that allows continuous, no box and label returns for consumers and merchants. This acquisition aims to extend the digital logistics solution.

  • August 2023: Blue Yonder and Seedcom, digitally upgraded the warehouse capabilities of its logistics subsidiary, Seedcom Logistics. To transform its warehouse environment, the company has completed the successful implementation of the Blue Yonder Warehouse Management System (WMS).

  • May 2023: Agraga, a digital logistics startup, raised USD 8.51 million in a Series A round. The company intends to improve the time taken for delivery on its platform and address issues affecting many intermediaries.

  • March 2022: Autosled, a modern automotive digital logistics marketplace, announced the completion of its Series A funding round. As the company continues its mission of revolutionizing the automotive transport market, Autosled confirmed the closing of a USD 5.0 million Series A round.

  • March 2021: DiLX and Nijhof Wassink, the supply chain service provider, have developed FlowNxt. This platform consolidates data from feed manufacturers and transporters and provides a central overview of all important data in one place.


REPORT COVERAGE


An Infographic Representation of Digital Logistics Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, and leading end-users of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.


REPORT SCOPE & SEGMENTATION










































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Growth Rate



CAGR of 17.8% from 2024 to 2032



Unit



Value (USD Billion)



Segmentation



By Solution



  • Tracking and Monitoring System

  • Data Management and Analytics

  • Electronic Data Interchange System

  • Fleet Management System

  • Others (Information Integrated Systems)


By Application



  • Transport Management

  • Warehouse Management

  • Labor Management

  • Others (Reporting and Analysis)


By Deployment Mode



  • On-Premises

  • Cloud


By End-user



  • Manufacturing

  • Retail and Consumer Goods

  • Healthcare

  • Energy and Utilities

  • Automotive

  • Others (Aerospace and Defense)


By Region



  • North America  (By Solution, Application, Deployment Mode, End-user, and Country)

    • U.S. (By End-user)

    • Canada (By End-user)

    • Mexico (By End-user)



  • South America  (By Solution, Application, Deployment Mode, End-user, and Country)

    • Brazil (By End-user)

    • Argentina (By End-user)

    • Rest of South America



  • Europe  (By Solution, Application, Deployment Mode, End-user, and Country)

    • U.K. (By End-user)

    • Germany (By End-user)

    • France (By End-user)

    • Italy (By End-user)

    • Spain (By End-user)

    • Russia (By End-user)

    • Benelux (By End-user)

    • Nordics (By End-user)

    • Rest of Europe



  • Middle East & Africa  (By Solution, Application, Deployment Mode, End-user, and Country)

    • Turkey (By End-user)

    • Israel (By End-user)

    • GCC (By End-user)

    • North Africa (By End-user)

    • South Africa (By End-user)

    • Rest of the Middle East & Africa



  • Asia Pacific  (By Solution, Application, Deployment Mode, End-user, and Country)

    • China (By End-user)

    • Japan (By End-user)

    • India (By End-user)

    • South Korea (By End-user)

    • ASEAN (By End-user)

    • Oceania (By End-user)

    • Rest of Asia Pacific








Frequently Asked Questions

According to Fortune Business Insights, the market is projected to reach USD 120.33 billion by 2032.

In 2023, the market value stood at USD 28.13 billion.

The market is projected to grow at a CAGR of 17.8% over 2024 – 2032.

In 2023, the manufacturing segment led the market.

Increasing online shopping and proliferation of internet users to aid market growth

Cognizant, Softlink, Blue Yonder Group, Inc., SAP SE, DigiLogistics Technology Limited, ShipBob, Inc., Advantech Co., Ltd., DiLX, Bristlecone, and Siemens AG are the top players in the global market.

In 2023, North America recorded the largest market share.

Asia Pacific is expected to exhibit the highest growth rate during the forecast period.

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