The global digital logistics market size was valued at USD 25.80 Billion in 2022 and is likely to reach USD 151.09 Billion by 2031, expanding at a CAGR of 21.7% during 2023 – 2031. In order to better serve the consumers, businesses are aggressively embracing digital logistics solutions for their day-to-day logistics and supply chain operations.
Digital logistics ensure that inventory, orders, and shipments are visible across the supply chain from departure to arrival. It reduces inventory across the network, boosts customer satisfaction, and mitigates logistical issues. Digital logistics improve transaction speed, operational flexibility, resource scalability, business transparency, and cost-effective logistics and supply chain solutions across a wide range of industries. All information is accessible through Internet, allowing people to filter information, and have a complete grasp of any potential issues.
Digital logistics refers to the requirement for flexibility in integrating modern technology to communicate information, synchronize activities, and collaborate across processes. A single store of all logistical data is the bedrock of all digital applications. The COVID-19 pandemic has had an impact on the consumer sector, which drives the majority of economic growth.
As a result of decreased revenues and high fixed costs, the retail, catering, and travel services industries suffered significant cash flow problems. Amidst the pandemic, the digitization of critical corporate operations such as fleet monitoring, documentation, seamless communication networks, revenue management, and the creation of digital foundations has benefited logistics organizations in shorter innovation cycles, agility, and rapid response.
Digital Logistics Market Trends, Drivers, Restraints, and Opportunities
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Rising requirement for cost-effective logistics and supply chain solutions across a wide variety of industrial verticals is estimated to drive the digital logistics market.
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Increasing consumer expectations along with cost-cutting initiatives is expected to have a significant impact on the future of the digital logistics industry.
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Over the last decade, the e-commerce industry has grown at an exponential rate due to an increase in online purchase and an increase in the number of Internet users, which is positively influencing the market growth.
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E-commerce companies are looking for ways to cut order delivery times and operational expenses resulting in growth of the digital logistics market.
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Increased usage of modern technology in the logistics sector is driving the growth of the market.
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Lack of governance in the digital logistics industry can restrain the market growth.
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Transportation and logistics companies throughout the world are seeking to improve supply chain efficiency in order to maintain profitability and viability. This, in turn, has increased the demand for digital logistics solutions.
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Self-driving cars in shared and public environments, such as highways and city streets, can be the industry's next great step in optimizing logistical operations and increasing safety. Thus, such innovations can create lucrative opportunities in the coming years.
Scope of Digital Logistics Market Report
The report on the global digital logistics market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
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Attributes
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Details
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Report Title
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Digital Logistics Market – Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 & 2021
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Forecast Period
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2023–2031
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Segmentation
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Verticals (Oil and Gas, Healthcare and Life Science, Government, Defense and Aerospace, Automotive, Telecommunication and IT, Chemical, and Others), Applications (Warehouse Management, Labour Management, and Transportation Management), Services (Consulting Services, System Integration Services, and Other Services), Systems (Information integrated systems, Fleet management systems, Electronic Data Interchange Systems, Database Management Systems, Order Management Systems, and Tracking and Monitoring Systems)
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Key Players Covered in the Report
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IBM Corporation, Advantech Corporation, Samsung Electronics Co., Oracle Corporation, Digi logistics, Hexaware Technologies Limited, JDA Software, UTI Worldwide Inc., SAP AG, and Tech Mahindra
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Digital Logistics Market Segment Insights
Based on applications, the market can be divided into warehouse management, labor management, and transportation management. The warehouse management segment is expected to hold a large market share during the forecast period. The requirement for of tools and platforms dedicated to keep track of arriving and outgoing commodities in the warehouse is increasing the adoption of warehouse management solutions (WMS). The WMS synchronizes orders with inbound and outgoing logistics data, allowing logistics providers to track inventory both within and outside the warehouse.
The transportation management segment is expected to grow at a healthy rate in the coming years. Transportation management is a platform that tries to improve the efficiency of the transportation process, which is a subset of the supply chain. It is responsible for monitoring, scheduling, managing, and handling all elements of product transportation from the time an order is placed until it is delivered to the designated location.
On the basis of services, the market can be segmented into consulting services, system integration services, and other services. The system integration services segment is expected to grow at a rapid rate in the coming years. System integration service is the process of bringing together all of an organization's physical and virtual components. Physical components include machine systems, computer hardware, and inventories.
Virtual components include data saved in databases, software, and applications. The process of integrating all of these components so that they work as a single system is the focus of system integration service. System integration service increases productivity and has a lower cost to utilize, serving toward the growth of the digital logistics market.
In terms of systems, the global digital logistics market can be fragmented into information integrated systems, fleet management systems, electronic data interchange systems, database management systems, order management systems, and tracking and monitoring systems. The fleet management system segment constituted a significant market share in 2020 and is projected to expand at a rapid rate during the forecast period.
The fleet management method has acquired additional opportunities for improving logistics services as technology and vehicle tracking systems have advanced in recent years. The combination of accessible technology and the fleet management system have become a distinctive characteristic, which enhances the talents and provides critical information to both customers and company.
Based on verticals, the market can be segregated into oil and gas, healthcare and life science, government, defense and aerospace, automotive, telecommunication and it, chemical, and others. The telecommunication and IT segment is anticipated to expand at a rapid growth rate in the coming years. Telecommunication and IT networks are unique and complicated networks that require more than simply transportation. Thus, increasing demand for digital logistics solutions that cater to this industry is spurring the segment growth.
In terms of region, the market can be divided into North America, Asia Pacific, Europe, Middle East & Africa and Latin America. North America is expected to acquire a large market share. North America constitutes of industrialized economies such as the US and Canada. The presence of significant IT firms, as well as rapid technical breakthroughs such as digitalization in the above-mentioned countries are propelling the market growth in this region.
Segments
Verticals
- Oil and Gas
- Healthcare and life science
- Government, defense and aerospace
- Automotive
- Telecommunication and IT
- Chemical
- Others
Applications
- Data Management
- Warehouse management
- Labor management
- Transportation management
Systems
- Information Integrated Systems
- Fleet Management Systems
- Electronic Data Interchange Systems
- Database Management Systems
- Order Management Systems
- Tracking and Monitoring Systems
By Services
- Consulting Services
- System Integration Service
- Other Services
Regions
- North America
- Asia Pacific
- Europe
- Middle East & Africa
- Latin America
Key Players
- IBM Corporation
- Advantech Corporation
- Samsung Electronics Co.
- Oracle Corporation
- Digi logistics
- Hexaware Technologies Limited
- JDA Software
- UTI Worldwide Inc.
- SAP AG
- Tech Mahindra
Competitive Landscape
Key players of the global digital logistics market are IBM Corporation, Advantech Corporation, Samsung Electronics Co., Oracle Corporation, Digi logistics, Hexaware Technologies Limited, JDA Software, UTI Worldwide Inc., SAP AG, and Tech Mahindra. Companies are engaging in merger & acquisition, agreement, collaboration, & partnership, new product launch & enhancement to expand their market share.
In July 2020, ORBCOMM Inc, a global provider of Internet of Things (IoT) solutions, launched its next-generation analytics and reporting platform with enhanced features such as advanced data insights and dynamic user interface, providing customers with a unified view of all of their transportation asset types through a single sign-on.
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