The global digital logistics market accounted for US$ 12,478 Mn in 2020 with a considerable CAGR of 9% during the forecast period of 2021 to 2028.
The automation and digitization of processes related to the movement of goods are referred to as digital logistics. Digital logistics help enterprises to conduct logistical and supply chain planning and execution more ease to keep up with the evolving consumer behavior and demand, and also to automate recurring task so that the logistic think-tanks can thrive of critical activities. Whenever a routine logistics process relies on pen and paper and repetitive manual labor, there is an opportunity to digitize and automate it. This is where digital logistics come into play which uses machine learning, AI, IoT, cloud computing and blockchain to harness full potential of digital logistics for supply chain management.
Drivers
- Growing adoption of digital technology in logistic industry
- Rise in e-commerce industry and its logistics network
- Huge volume of data generated by the industries
Restraints
- Need for high capital for set-up
- Lack of technological infrastructure and data security concern
Opportunities
- Implementation of blockchain and IoT technology for effective logistics operations
- Increasing investment into logistics startup from venture capitals and enterprises
Report Coverage:
| Market | Digital Logistics Market |
| Market Size 2020 | US$12,478 Mn |
| Market Forecast 2028 | US $24,967 Mn |
| CAGR | 9 % During 2021 - 2028 |
| Analysis Period | 2017 - 2028 |
| Base Year | 2020 |
| Forecast Data | 2021 - 2028 |
| Segments Covered | By Solution, By System, By End-User Industry, and By Geography |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Companies Profiled |
Advantech Co., Ltd, IBM Corporation, SAP SE, Oracle Corporation, HCL Technologies Limited, Tech Mahindra, Huawei Technologies Co., Ltd, Samsung Electronics Logitech Co., Ltd., Hexaware Technologies, JDA Software Group, Inc., and others. |
| Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis |
| Customization Scope |
10 hrs of free customization and expert consultation |
As the internet's pervasiveness drives the need for greater speed and agility within the supply chain, businesses must also look for ways to cut costs and communicate more effectively with service providers and partners. As a result, supply chain management is shifting away from traditional logistics to toward digital logistics. Many digital logistics platforms, on the other hand, incorporate an element of machine learning to assist in making critical, data-informed decisions and continuously driving improvement to supply chain processes. Digital logistics, with its transparent, real-time visibility of order fulfillment, inventory status, and shipment updates, is the quickest way for logistic companies to provide a better customer experience. These factors contribute to the growth of the digital logistics market during the forecasting period.
Market Segmentation
Market by Solution
- Warehouse Management
- Labor Management
- Transport Management
Based on the solution, the warehouse and transport management segment will have a sizable market share in 2020. These management solutions are enhancing distribution control and allowing for operational flexibility leading to overall cost reduction and a decrease in inventory lag time. Warehouse management systems use radio frequency technology and bar code technology to track inventory at accuracy rates exceeding 99.99%. This system includes product storage and configurations, flexible barcoding, hold management, and order management. Moreover, the transportation management system is integrated with transportation companies and services are critical assuming accurate and timely replenishment and shipment activity for products. This system includes advance shipment notification, load planning and management, yard management, and carrier notifications.
Market by System
- Tracking and Monitoring System
- Information Integrated System
- Electronic Data Interchange System
- Database Management System
- Fleet Management
- Order Management System
Based on the system, database management system segment have significant market shares in 2020. Due to the effect of globalization, the supply chain network has become more complex than before. Real-time information sharing is a vital component for attaining high rewards in commercial activities and delivering smooth integration among different supply chain participants within the network. As a result, several efforts have been focused to improve the efficiency of logistics activities such as order picking, storage, and others by focusing on instant data collecting techniques and effective data management technologies.
Market by End-User Industry
- Government
- Aerospace
- Defense
- Automotive
- Oil & gas
- Retail
- Manufacturing
- Healthcare
- Others
Based on the end use, the manufacturing segment has a considerable market shares in 2020. Manufacturers are using digital logistics to make their production-to-shipment flows more efficient and cost-effective. Furthermore, digital logistics can assist manufacturers in improving supply chain efficiency by utilizing data analytics from existing data sets. They can collect data from sensors and connected assets and use Artificial Intelligence to extract insights from this machine data in order to run prescriptive analysis. As a result, highly valuable real-time information may be made available to operational industrial leaders for use in optimizing performance.
Digital Logistics Market Regional Overview
North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
- Spain
- Rest of Europe
Latin America
- Brazil
- Mexico
- Rest of Latin America
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa
North America dominated the digital logistics market in 2020, owing to the increasing penetration of digital technologies and systems such as radio frequency identification, electronic data interchange, and others, which are accelerating the digital logistics market. The Asia-Pacific region, on the other hand, is expected to grow at a significant rate due to the rapidly growing E-commerce industry, which is driving the digital logistics market.
Competitive Landscape
Most organizations are implementing digital logistics systems in order to remain flexible and competitive in the market as times change. Some major players covered in the digital logistics market are Advantech Co., Ltd, IBM Corporation, SAP SE, Oracle Corporation, HCL Technologies Limited, Tech Mahindra, Huawei Technologies Co., Ltd, Samsung Electronics Logitech Co., Ltd., Hexaware Technologies, JDA Software Group, Inc., and others.
In September 2020, Advantech introduces the TREK-60 modular In-Vehicle AI platform for scalable fleet management and surveillance. The TREK-60 in-vehicle solution is robust and highly customizable, making it ideal for public transportation, emergency services, heavy-duty vehicles, and utility fleets.