Major Growth Expected in Global Connected Logistics Market in Future

Major Growth Expected in Global Connected Logistics Market in Future

Published Nov 24, 2022 

One of the biggest factors driving the demand for connected logistics is the rapid evolution of internet of things (IoT) and related connected technologies, which have resulted in the development of cheaper, smarter, and more efficient communication devices. Due to their ability to provide better and easier connectivity, these devices are witnessing an increasing adoption in several industries, including transportation and logistics, in which they are used to enhance the efficiency of operations through effective data communication.

Since the last few years, several logistics and IoT solution providers have been providing various advanced connected logistics technologies for warehouse management, transportation, fleet management, tracking, monitoring, and other associated processes, such as financial transactions, order processing, shipping, and dispatching, which are enhancing the efficiency of logistics operations. Due to these factors and the numerous advantages offered by connected logistics over the conventional solutions, the global connected logistics market is expected to witness massive growth in the coming years.

Connected logistics basically refers to a set of advanced network connections, communication devices, and IoT technologies which are adopted in order to offer more customer-centric logistics solutions. Connected logistics is also becoming more popular across the globe owing to the rapid development of faster internet connections and advancements in communication technologies, which are improving the efficiency of warehouse operations, freight transportation, and end-delivery processes. Furthermore, such solutions allow the logistic providers to make changes in their supply chains, in order to streamline delays and cancellations.

Connected logistics solutions providers majorly offer professional services and managed services. Of these, the professional services, including consulting services, system integration and deployment services, overall logistics management, and on-time support and maintenance, recorded higher demand in the past. This was mainly due to the fact that these services are usually required during as well as after the successful adoption of connected logistics systems in an industry.

The connected logistics market is presently witnessing swift advancements in the cloud computing technology, increasing implementation of sensor-based technologies in various industries, and rising demand for advanced freight management systems. Advancements in the cloud technology are offering features including information sharing to transport carriers and logistics providers in real time, which is, in turn, helping in the optimization and efficient management and delivery of inbound and outbound shipments to various locations across the world.

Globally, North America witnessed the highest adoption of connected logistics systems and solutions in the past. The fastest growth in the demand for connected logistics systems is expected to be observed in the Asia-Pacific (APAC) region in the coming years. This is attributed to various factors such as the advancements in technologies, surge in digitalization rate, boom in retail industry, and swift adoption of connected solutions by major logistics providers in the region. Additionally, the burgeoning improvements in technology, pertaining to supply chain management and infrastructure, are expected to further boost the adoption of such solutions in the region in future.

Therefore, owing to the rising need for efficient supply chain management and customer-centric processes, the demand for connected logistics is expected to record a massive surge in the coming years.