Digital Logistics Market is projected to grow from USD 28.22 Billion in 2024 to USD 85.4 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.84% during the forecast period (2024 - 2032). Additionally, the market size for Digital Logistics was valued at USD 24.1 billion in 2023.
Increased demand for e-commerce & online purchases and development in technology are the key market drivers enhancing the growth of market.
Figure 1:Digital Logistics Market Size, 2024-2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for digital logistics is being driven by the rising e-commerce industry. The drastic growth of the e-commerce industry over the past few years has been fueled by the increase in online shopping and the rise in the number of Internet users. The growth in e-commerce activities needs logistics providers in order to operate rapidly and more efficiently to process small individual orders. Online customers anticipate order accuracy, free returns, and same-day or same-hour delivery. E-commerce industries are exploring solutions to minimize order delivery operational costs and time.
The e-commerce industry fuels the demand for transparency, convenience, affordability and speed in delivery and also compelling frictionless returns. In order to provide these needs, it is important to make new business models and solutions by digitalizing the logistics operations, warehouse management system, automating material handling system and distribution management system. This has led to faster and varied accomplishment services, mainly in regard to last-mile delivery options and seamless returns processes. The emergence of Artificial Intelligence and Machine Learning based solutions has minimized the logistic cost by 20% with error-free enhancement of resources. The IoT has changed logistic operations by allowing real-time data collection and analysis, allowing proactive decision-making & improvement in processes. Big data analytics has assisted companies in gaining valuable insights, recognizing patterns, and making data-driven decisions in order to improve routes, forecast demands, and manage inventory efficiently.
The increasing product innovations in logistics are drastically fueling the growth rate of the market. in consideration of the covid-19 pandemic, logistic companies have noticed the significance of technological innovation and multichannel offerings. The clients demand new digital solutions and tools which facilitate accessibility, immediacy and self-service as an outcome of the pandemic leading to significant growth in e-commerce. Thus, driving the Digital Logistics market revenue.
However, logistic operations digitalization needs high capital investments involving the installation of automation equipment, software and solutions which requires heavy expenses. The slow adoption is owing to the integration of complexities of various IoT platforms, a large number of APIs and numerous protocols. All these factors are anticipated to restrain the market growth of digital logistics globally.
The global Digital Logistics market segmentation, based on deployment, includes Cloud and On-Premises. The cloud segment dominates the market, accounting for the largest market revenue as cloud-based solutions and applications are being leveraged by several organizations throughout the world. it offers flexibility, the ability to scale applications and simple management capabilities. The growing adoption of cloud services in SMEs is because of strong competition and the unavailability of several resources present in large enterprises. Digital Logistics solutions are integrated in a customized manner as per the requirement of the business, leading to better satisfaction of customers owing to the cloud-based services.
Figure 1: Global Digital Logistics Market, by Deployment, 2022 & 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
The global Digital Logistics market segmentation, based on systems, includes Tracking and monitoring systems, Fleet Management Systems, Information Integrated Systems, Database Management Systems and Others. The tracking and monitoring system segment dominates the market due to lowering the cost of doing business. Fleet management can use GPS tracking software in order to see who is taking inefficient routes. This will not only address on-the-road concerns but also offers an exact readout of the hours claimed by the drivers. The monitoring system controls the technology of the company in order to analyze its operation and performance and also detect and alert about potential faults.
By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Digital Logistics market area dominates the market due to the availability of large IT industries and fast advancement in technology. Increased utilization of digital systems and technologies, inclusive of radio frequency identification, electronic data exchange and others. The US is the largest contributor to the growth of digital Logistics market in the North American region.
Further, the prime countries studied in the market report are The US, Canada, the UK, German, France, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil.
Figure 2: GLOBAL DIGITAL LOGISTICS MARKET SHARE BY REGION 2022 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Digital Logistics market accounts for the second-largest market share as the number of people becoming familiar with digital Logistics because of the trend of cloud services in this region. Further, the German Digital Logistics market held the largest market share, and the UK Digital Logistics market was the rapid-growing market in European region.
The Asia-Pacific Digital Logistics Market is expected to grow at the rapid CAGR from 2023 to 2032. This is due to the presence rapidlyof developing countries and the adoption of digital technologies in this region. Moreover, China’s Digital Logistics market held the largest market share, and the Indian Digital Logistics market was the rapid-growing market in Asia-Pacific region.
Leading market players are investing hugely in research and development in order to expand their product lines, which will help the Digital Logistics market grow even more. Market players are also undertaking a variety of strategic activities to spread their global footprint, with important market developments including new product launches, mergers and acquisitions, contractual agreements, higher investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Digital Logistics industry must offer cost-effective items.
Manufacturing locally to reduce the operational costs is one of the key business tactics used by the manufacturers in the global Digital Logistics industry to benefit the clients and increase the market sector. In recent years, the Digital Logistics industry has offered some of the most significant advantages to various industries. Major players in the Digital Logistics market, including IBM Corporation, Bosch Inc., Infosys, Tech Mahindra, Oracle Corporation, HCL Technologies, International Business Machines Corporation, Huawei Technologies Co. Ltd., Hexaware Technologies, Samsung Group, JDA Software Group Inc., Advantech Co., and others, are trying to increase market demand by investing in the research and development operations.
Bosch, headquartered in Gerlingen, Germany, founded in the year 1886, is a German multinational technology and engineering company. It is a leading supplier of services and technology globally. The company operates in four businesses; mobility (Hardware and software), industrial technology (inclusive of drive and control), consumer goods (inclusive of power tools and household appliances) and energy and building technology. In April 2022, the company and Amazon Web Services came together in order to advance digital Logistics. Bosch will design and operate the Logistic platform, gaining control over the core, and AWS will help with its extensive cloud experiences and resources. This digital platform will gain easy access to the data and other services. This will also allow businesses in the transportation and benefits section to create a basis for their own cost and resource-intensive IT initiatives.
IBM Corporation, founded in the year 1911, and headquartered in Armonk, New York, is a multinational technology company. The company is known for its software and hardware products, inclusive of servers, computers, networking equipment, and storage systems. The company also offers technology, consulting and business services like cloud computing, artificial intelligence, and data analytics. The R&D efforts of the company have helped various technological innovations. In May 2022, the signing of a Strategic Collaboration Agreement was announced by the company with Amazon Web Services Inc. with the aim to offer a broad range of its software catalog as Software-as-a-Service (SaaS) on AWS. This partnership between AWS and IBM will help with supply chain digitalization.
In June 2023, Honeywell released its new Honeywell Digital Prime solution, a process control change and system modifications tracking cloud-based digital twin. This is an affordable way of testing for frequent tests that culminate in less reactive maintenance and highly exact outcomes.
Infosys, a Bangalore-based multinational corporation that specializes in outsourcing consulting services and emerging technologies in order to help clients manage digital transformation, announced on September 2023 that it had partnered with The Economist Group’s Economist Impact to develop Value Chain Navigator (VCN). Scope 3 encompasses all indirect emissions resulting from the activities of an organization’s value chain, ranging from those that occur upstream to downstream. These encompass, for example, purchased goods and services, employee travel distances or commuting patterns, waste disposal, use phase emissions from sold products such as energy used by customers when operating devices, transportation/distribution investments, etc., as well as additional leased assets/franchises.
ElAraby Group – one of Egypt’s largest electronics manufacturers- August 2023 publicly declared that its next stage of digitization will be implemented jointly with international technology provider –SAP SE. A pact has been signed by this Egyptian family-owned conglomerate to implement RISE with SAP, facilitating full cloud migration, including key flagship cloud offerings like Customer Experience (CX), SAP Signavio, and Business Technology Platform (BTP) Digital Supply Chain, thereby strengthening its customer-centric orientation approach through ensuring more resilient supply chains.
Maersk also intends to become a world leader in decarbonized logistics and speed up its digital transformation by working with Microsoft, which aims to backstop Maersk’s ambitions. Maersk will develop cutting-edge solutions that support cooperation and processes, thereby creating value for customers and employees. This will strengthen their ocean & logistical partnership, with IT/tech & sustainability being the core pillars. The leading strategic cloud platform, on the other hand, is Microsoft Azure, which enables Maersk to build scalable organic growth platforms through inorganic growth. These insights will be gained by machine learning and data analytics, assisting new ways of doing work. In addition, this partnership improves transparency across global supply chains, allowing businesses to make better predictions and decisions using information.
Cloud
On-Premises
Tracking and monitoring systems
Fleet Management Systems
Information Integrated Systems
Database Management Systems
Others
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 24.1 Billion |
| Market Size 2024 | USD 28.22 Billion |
| Market Size 2032 | USD 85.4 Billion |
| Compound Annual Growth Rate (CAGR) | 14.84% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | IBM Corporation, Bosch Inc., Infosys, Tech Mahindra, Oracle Corporation, HCL Technologies, International Business Machines Corporation, Huawei Technologies Co. Ltd., Hexaware Technologies, Samsung Group, JDA Software Group Inc., Advantech Co. |
| Key Market Opportunities | The advancement in technology and demand for streamlined logistical operations. |
| Key Market Dynamics | Increased demand for e-commerce and online purchases. |
Frequently Asked Questions (FAQ) :
The global Digital Logistics market size was valued at USD 24.1 Billion in 2023.
The global market is foreseen to rise at a CAGR of 14.84% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in market are IBM Corporation, Bosch Inc., Infosys, Tech Mahindra, Oracle Corporation, HCL Technologies, International Business Machines Corporation, Huawei Technologies Co. Ltd., Hexaware Technologies, Samsung Group, JDA Software Group Inc., and Advantech Co.
The cloud category dominated the digital logistics market in 2022.
The Tracking and monitoring systems had the largest share in the global market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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