Digitization in Logistics Supply Chain Market to Grow at a CAGR of 8.5% to reach US$ 23607.06 Million from 2020 to 2027

Digitization in Logistics Supply Chain Market Forecasts to 2027 - Covid-19 Impact & Global Analysis by Component (Solutions and Services); Organization Size (SMEs and Large Enterprise); Industries (Automotive, BFSI, Manufacturing, IT & Telecom, Healthcare, Oil & Gas)

  • Report Code : TIPRE00013577
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 215
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The digitization in logistics supply chain market expected to grow from US$ 13336.57 million in 2020 to US$ 23607.06 million by 2027; it is estimated to grow at a CAGR of 8.5% from 2020 to 2027.

Smart Logistics Technologies is attributing to the growth of the market. The global logistics sector is witnessing transformation as the companies are moving from traditional concepts to newer concepts. The demand for advanced technologies is mounting among the logistics players, such as raw material suppliers, logistics service providers, and manufacturers. The upsurge in internet connectivity; advent of connected technologies; and real-time monitoring, tracking, and tracing solutions generate substantial demand for the same in this sectors. This factor is catalyzing the digitization in logistics supply chain market.

The future of digitization in logistics supply chain market is promising to pertain to the development of smart logistics systems. Smart logistics offers public authorities several opportunities to enhance traffic management by enabling optimum usage of traffic systems and logistics management. Smart logistics solutions improvise efficient and easy warehousing and transportation, and facilitate the establishment of different logistics networks.

The benefits of intelligent logistics solutions are attracting many logistics players, and it is foreseen to fascinate more businesses over the years. Moreover, the development of last-mile delivery using drones also projects a significant demand for IoT-based logistics solutions to manage these drones used in deliveries. Also, over the years, the governments of various countries are anticipated to allow the usage of drones for last-mile delivery, based on numerous successful trails. Thus, smart logistics development is anticipated to drive the digitization in logistics supply chain market in the future.

Impact of COVID-19 Pandemic on Digitization in Logistics Supply Chain Market

The COVID-19 virus outbreak has been affecting every business globally since December 2019. The continuous growth in the number of virus-infected patients has governments to put a bar on transportation of humans and goods. The manufacturing sector has witnessed severe losses due to the temporary shutdown of factories and low production volumes, which has had a negative impact on the logistics sector. Additionally, the social or physical distancing measures imposed by governments have led the logistics service providers to limit their operations. However, the logistics and supply-chain industry players are focusing on digital technologies to curb the negative effect of the pandemic on the logistics operations based on traditional logistics concepts. This is boosting the digitization in logistics supply chain market. Nonetheless, the lower volumes of production are limiting the full-fledged usage of the fleets, which is creating tremors on the logistics service providers' business, thereby leading to slower growth of digitization in logistics supply chain market.

Lucrative Regions in Digitization in Logistics Supply Chain Market

Lucrative Regions in Digitization in Logistics Supply Chain Market
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Market Insights–Digitization in Logistics Supply Chain Market

Increasing Demand for IoT in Developing Countries

Developing countries in the world are experiencing rapid industrialization, which mainly results in increase in the number of manufacturing facilities. Various multinational companies have their manufacturing plants in several developing countries. The expansion of multinational companies to these countries generates substantial demand for strong internet capabilities to streamline numerous operations. The logistics and supply chain industries are among the key sectors of any country, and pertaining to the fast-maturing digital technologies in the two sectors mentioned above, the demand for the same is escalating in developing countries. This supports the growth of the Internet of Things (IoT) in developing countries. IoT-enabled processes boost task efficiency and reduce accidents. In addition, the IoT enables real-time monitoring, tracking, and tracing for both international and domestic transit, thereby offering higher levels of logistic visibility to the service providers and customers.

Brazil is among the developing countries that are a forefront of embracing digital logistics. The country's logistics industry is one of the prominent sectors across South America. The Brazilian government emphasizes heavily on this industry with an aim to generate substantial revenue year on year. Moreover, the country exhibits easy acceptance toward newer technologies, compared to other countries in the region. Brazil is one of the most preferred locations for expansion for various multinational companies. This substantially supports the demand for advanced logistics infrastructure. Recently, in 2019, Maersk, an industry-recognized logistics service provider, launched Twill's digital logistics solution in the country to boost competitiveness. The digital logistics solution is aimed at removing the complexities in international trade. This development in the Brazilian logistics sector is foreseen to bolster the growth of the digitization in logistics supply chain market in the country as well as several other developing countries across the globe.

Component-Based Insights

Based on component, the digitization in logistics supply chain market is segmented into solution and services. The solution segment held the largest market share in 2019.

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Digitization in Logistics Supply Chain Market: Strategic Insights

Market Size Value inUS$ 13336.57 Million in 2020
Market Size Value byUS$ 23607.06 Million by 2027
Growth rateCAGR of 8.5% from 2020-2027
Forecast Period2020-2027
Base Year2020
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Players operating in the digitization in logistics supply chain market are mainly focused on the development of advanced and efficient products.

  • In 2020, Pagero and SAP SE inked an agreement aiming at offering extended global reach to the SAP Ariba solutions and Ariba Network. Pagero will offer B2B and B2G exchange of e-order, e-invoices, messages and order responses.
  • In 2020, Advantech has collaborated with President Chain Store Corp. to develop e cold chain management, wireless e-paper, and energy monitoring solutions by using the application of artificial intelligence of things (AIoT) technology. By this, Advantech has supported 7-ELEVEN in updating the futuristic convenience store- X-STORE 3.

The digitization in logistics supply chain market has been segmented as follows:

Digitization in Logistics Supply Chain Market – by Component

  • Solutions
    • Tracking and Monitoring
    • EDI
    • Fleet Management
    • Order Management
    • CRM
    • Others
  • Services
    • Consulting
    • Integration
    • Others

Digitization in Logistics Supply Chain Market – by Organization Size

  • SMEs
  • Large Enterprise

Digitization in Logistics Supply Chain Market – by Industry

  • Automotive
  • BFSI
  • Manufacturing
  • IT & Telecom
  • Healthcare
  • Oil & Gas
  • Others

Digitization in Logistics Supply Chain Market – by Geography

  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • France
    • Germany
    • Italy
    • Russia
    • U.K
    • Rest of Europe
  • Asia Pacific (APAC)
    • Japan
    • China
    • Australia
    • India
    • South Korea
    • Rest of APAC
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA
  • South America (SAM)
    • Brazil
    • Argentina
    • Rest of SAM

Digitization in Logistics Supply Chain Market – Company Profiles

  • Accenture
  • Advnatech Co. Ltd.
  • Cognizant
  • Capgemini SE
  • Hexaware Inc.
  • IBM Corporation
  • Oracle Corporation
  • SAP SE
  • Tata Consulting Services Limited
  • Wipro Ltd.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Component ; Organization Size ; Industries

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions

Which industry led the digitization in logistics supply chain market?

Manufacturing segment is among the key industry segment in the digitization in logistics supply chain market.The manufacturing sector include electronics industry, general manufacturing industry, railway equipment industry, and construction equipment manufacturing industry. These industries procure and produce significantly higher volumes of products and in order to continue the operations, the manufacturers operating in the industries mentioned above employ notably large supply chain.This is generating substantial demand for digital logistics and digital supply chain technologies, thereby positively imprinting on the growth of digitization of logistics supply chain market.

Which factor is driving the digitization in logistics supply chain market?

The global logistics and transportation sector is soaring at an exponential rate over the past decade. The demand for transportation of raw materials from various locations to the production unit, and finished product from the manufacturing facility to warehouse and distribution center, and ultimately to the customers, requires extensive supply chain and logistics infrastructure. The continuous growth in the logistics sector has allowed several software developers and connected devices manufacturers to design and develop robust software and systems, for benefitting manufacturing facilities as well as the logistic partners through efficient technologies. The growing logistics industry is significantly driving the global digitization in logistics supply chain market.

Which region led digitization in logistics supply chain market in 2019?

The digitization in logistics supply chain market was dominated by North America in 2019 due to developed economies such as the US, Canada, and Mexico.The US is the early adopters of advanced technologies. In the era of continuous developments, digitization is anticipated to have a broader range of applications across diversified industries, including logistics and transportation. The logistics industry is anticipated to leverage artificial intelligence and robotics to adopt automation in more fields while lowering human errors. In addition to digitization, digital logistics systems are also utilized by third-party logistics providers, B2B distribution companies, and other manufacturing companies. Therefore, digitization within supply chain and warehouse is rising across all major country-based e-commerce markets.

The List of Companies - Digitization in Logistics Supply Chain Market

  1. Accenture Plc
  2. Advantech Co. Ltd.
  3. Cognizant
  4. Capgemini
  5. Hexaware Inc.
  6. IBM Corporation
  7. Oracle Corporation
  8. SAP SE
  9. Tata Consulting Services Limited
  10. Wipro Ltd.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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