Connected Logistics Market: Advancements in Information Technology Segment to Augment Growth of Market

Over the last few years, the logistics industry has witnessed a significant evolution. This evolution is even more evident after globalization and opening up of the world economies. Connected logistics aids in establishing a proper communication channel between all the parities taking part in the activity even though there isn’t a direct relationship between them. Apart from this, connected logistics helps in curbing down emissions and has a positive influence on the environment. Some of the key players in the global connected logistics market include names such as Dynatrace LLC, Amazon Web Services, Feightgat, SAP SE, Oracle Corporation, Infosys Limited, Microsoft Corporation, and NETSUITE Inc. among others. Prominent players in the market are now following different growth strategies to bolster their market presence. Recently, a global leader in in transport and logistics, Maersk, joined hands with Microsoft Corporation, in a tactical business move to revamp the supply-chain management and the global commerce. From its transportation economics to connected vessels, the company is banking on Microsoft to propel the development and empower logistics across the globe. Apart from the product development, the major players in the global connected logistics market are banking on mergers and acquisitions to exert competitive advantage.

The valuation of the global connected logistics market stood at US$10.21 bn in the year 2016. This valuation is expected to reach a total of US$55.17 bn by the fall of 2025. This growth is expected to be achieved with a healthy CAGR of 17.8% over the course of the given forecast period of 2017-2025.

What Aspects Fuel Growth of Global Connected Logistics Market?

Developments in the information technology industry has been a chief driver for the growth of connected logistics market. At present, globalization and the growing need for advanced logistics and transportation infrastructure is propelling the demand for connected logistic systems. Additionally, IT services like the IoT (Internet of Things) ensures the connected logistic services are able to generate big volumes for data and wide range of information which can be analyzed and stored with a high levels of precision. It is expected that IoT will significantly help in driving the global connected logistics market ahead.

Demand for connected logistics is also driven by increased requirement for on-time delivery and calls for monitoring the logistic vehicle real time. Connected logistics help in keeping track of all the stages of the supply chain which includes storing and transportation to final delivery of the goods. Such high levels of accurate monitoring is making connected logistics very popular among market vendors.

Another important driving factor behind the growth of the global connected logistics market is the breakthrough advancements in pharmaceutical products which are transport sensitive. For instance, extreme temperature fluctuations during the time of transport can be damaging for the product. With connected logistics, alerts can be sent to manufacturers so as to take necessary actions before any severe damage.

How will Asia Pacific Fare in Coming Years of Forecast for Connected Logistics Market?

Geographically, Asia Pacific region has shown most promise to be a profitable market for the connected logistics in the coming years. It is expected that the growth of Asia Pacific region during the period 2017 to 2025 will be achieved at a sturdy CAGR of 18.1%. Primary driving factor behind this growth is the ever-expanding e-commerce industry that involves real-time monitoring of goods.

Other key geographical segments of the global connected logistics include North America, Latin America, Europe, and the Middle East and Africa. North America and Europe have dominated the world market for the connected logistics in the past due to high demand for quality control and rising adoption of logistic support in various sectors such as healthcare.


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