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
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
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 in US$ 13336.57 Million in 2020 Market Size Value by US$ 23607.06 Million by 2027 Growth rate CAGR of 8.5% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Digitization in Logistics Supply Chain Market: Strategic Insights
| Market Size Value in | US$ 13336.57 Million in 2020 |
| Market Size Value by | US$ 23607.06 Million by 2027 |
| Growth rate | CAGR of 8.5% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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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
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component ; Organization Size ; Industries
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
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
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.
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.
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
- Accenture Plc
- Advantech Co. Ltd.
- Cognizant
- Capgemini
- Hexaware Inc.
- IBM Corporation
- Oracle Corporation
- SAP SE
- Tata Consulting Services Limited
- Wipro Ltd.
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- Data Analysis:
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- 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.
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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.
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