Digital Logistics Market Size Reach USD 155.3 Billion by 2032

Digital Logistics Market

Digital Logistics Market

Increasing adoption of advanced technologies in the logistics sector driving the market growth

PORTLAND, PORTLAND, OR, UNITED STATE, April 1, 2024 / -- Allied Market Research published a new report, titled, " The Digital Logistics Market Share Reach USD 155.3 Billion by 2032." The report offers an extensive analysis of key growth strategies, drivers, opportunities, key segment, Porter’s Five Forces analysis, and competitive landscape. This study is a helpful source of information for market players, investors, VPs, stakeholders, and new entrants to gain thorough understanding of the industry and determine steps to be taken to gain competitive advantage.

The global digital logistics market size was valued at USD 24.8 billion in 2022, and is projected to reach USD 155.3 billion by 2032, growing at a CAGR of 20.4% from 2023 to 2032.

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The demand for efficient, data-driven logistics solutions has surged as consumers increasingly shop online. Digital logistics technologies offer real-time tracking, route optimization, and inventory management, helping companies streamline their supply chains, reduce costs, and enhance overall efficiency. In addition, the Internet of Things (IoT) has revolutionized logistics by enabling the tracking of shipments, monitoring of conditions (e.g., temperature, humidity), and predictive maintenance, leading to better decision-making and reduced operational disruptions.

The digital logistics market is segmented on the basis of component, function, organization size, deployment mode, industry verticals, and region. On the basis of the component, the market is bifurcated into solution and services. Based on the function, the market is segmented into warehouse management, transportation management and workforce management. On the basis of the organization size, the market is bifurcated into large enterprises and small and medium-sized enterprises. On the basis of the deployment mode, the market is bifurcated into cloud and On-premises. By Industry Vertical, it is bifurcated into retail and e-commerce, manufacturing, pharmaceuticals and healthcare, aerospace, and defense, automotive, energy and utilities, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

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Covid-19 Scenario

● The pandemic accelerated the adoption of automation and robotics in logistics. Warehouses, and fulfillment centers invested in autonomous robots and drones for tasks such as picking, packing, and last-mile delivery to cope with labor shortages and reduce the risk of virus transmission.

● In addition, the need for contactless operations enhanced the growth of touchless technologies. This included contactless payments, digital documentation, and biometric authentication for secure deliveries. These innovations enhanced safety and efficiency in the logistics process. Overall, the COVID-19 pandemic reshaped the digital logistics market by accelerating the adoption of technology-driven solutions.

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Based on region, North America held the highest market share in terms of revenue in 2022, sustainability is becoming a major focus with the growing environmental concerns, and there is a push for greener logistics practices. Electric and hybrid delivery vehicles, alternative fuels, and carbon-neutral shipping options are gaining traction as companies aim to reduce their carbon footprint. However, the Asia-Pacific region is expected to witness the fastest CAGR of 24.0% from 2023 to 2032 and is likely to dominate the market during the forecast period. Blockchain is improving trust and traceability in supply chains, crucial in a region where complex cross-border trade is common. Furthermore, sustainability and environmental concerns are driving the adoption of green logistics practices.

Major market players such as Tech Mahindra Limited, AT&T Intellectual Property, WebXpress, HCL Technologies Limited, SAP SE, Oracle, Infosys Limited, IBM Corporation, Honeywell International Inc., Intel Corporation.

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Based on component, the solution segment held the highest market share in 2022, accounting for more than two-thirds of the global digital logistics market revenue and the COVID-19 pandemic has highlighted the importance of resilient and adaptable supply chains, further boosting the adoption of digital solutions. However, the service segment is projected to attain the highest CAGR of 22.9% from 2023 to 2032, as the organizations continue to embrace digital logistics solutions. Service providers have the chance to offer value-added support, helping businesses harness the full potential of digital logistics technologies, and in turn, contributing to improved supply chain efficiency, reduced operational costs, and enhanced competitiveness in the global marketplace.

Based on industry vertical, the retail and e-commerce segment held the highest market share in 2022, accounting for more than one-fourth of the global digital logistics market revenue, the integration of IoT devices for real-time tracking and monitoring of goods is becoming increasingly important. However, the manufacturing segment is projected to attain the highest CAGR of 24.5% from 2022 to 2032. integration of digital logistics with manufacturing processes, such as predictive maintenance of machinery to reduce downtime, and the development of resilient supply chains capable of handling disruptions impact the market's growth.

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