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How Large Will the Digital Logistics Market Size By 2025?
The scale of the digital logistics market has swiftly expanded in the past few years. It is forecasted to surge from $24.03 billion in 2024 to $28.3 billion in 2025, boasting a compound annual growth rate (CAGR) of 17.8%. The historical growth was propelled by factors such as globalization and the complexity of the supply chain, the explosion of e-commerce, a focus on sustainability, the emergence of omnichannel retail, customer demands for quicker delivery times, fluctuating market conditions, the need for regulatory compliance, data-informed decision making, and emphasis on optimizing inventory.
How Big Is the Digital Logistics Market Size Expected to Grow by 2029?
Projecting towards the future, a swift escalation is anticipated in the size of the digital logistics market. The market is predicted to surge to a value of $54.14 billion by 2029, progressing at a compound annual growth rate (CAGR) of 17.6%. Factors such as the proliferating growth in e-commerce volumes, imminent rise of autonomous vehicles, bolstered cybersecurity protocols, shift towards service-based models, implementation of digital twins for enhancing supply chain visibility, and the facilitation of cross-border trade are expected to drive growth during the forecast period. In addition, the period may witness an adoption uptick in technological enhancements such as IoT application in logistics, automation and robotics in warehousing, route optimization through AI, functionalities of cloud-based logistics platforms, focus on sustainable logistics operations, 5g-powered logistic networks, reinforced cybersecurity measures, and the utilization of predictive analytics for demand forecasting.
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Which Key Market Drivers Powering Digital Logistics Market Expansion and Growth?
The anticipated surge in the e-commerce sector is predicted to propel the expansion of the digital logistics market. E-commerce encompasses internet-enabled sales of physical products, but also any business transaction facilitated by online connectivity. The expanding e-commerce sector necessitates a strong, transparent, and smoothly functioning logistics supply chain, delivered by digital logistics. This system ensures operational ease, visibility, cost reduction, and efficiency. For instance, the United States Census Bureau, a government organization, reported in August 2024 that retail e-commerce sales in the U.S. for the second quarter of 2024 climbed to $291.6 billion. This figure represented a 6.7% rise from the same quarter in 2023. E-commerce made up 16.0% of the total retail sales of the period, indicating a consistent increase in online retailing. On a basis not adjusted for seasonality, e-commerce sales for the quarter came to $282.3 billion, constituting 15.2% of total sales. Thus, the surging e-commerce sector is predicted to fuel the expansion of the digital logistics market in the future.
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Which Fast-Growing Trends Are Poised to Disrupt the Digital Logistics Market?
The development and adoption of advanced technology is emerging as a significant trend in the digital logistics industry. The majority of companies in this sector are actively engaged in R&D efforts geared towards creating high-tech digital logistics solutions that facilitate various functionalities in connected logistics. For instance, XPO Logistics, an American transportation firm, unveiled its all-encompassing digital customer service management platform known as “Assist” in the Iberian Peninsula in September 2022. This ground-breaking platform is designed to streamline the handling of customer account service requests and procedures, provide efficient communication tools, and give real-time updates on customer inquiries’ status. The implementation of Assist has allowed for faster responses to customer questions, as it has reduced the amount of time customer service representatives spend on administrative duties.
What Are the Emerging Segments in the Digital Logistics Market?
The digital logistics market covered in this report is segmented –
1) By Component: Solution, Services
2) By System: Tracking And Monitoring Systems, Information Integrated Systems, Electronic Data Interchange Systems, Database Management Systems, Fleet Management Systems, Order Management Systems
3) By Deployment Mode: Cloud, On-Premises
4) By Application: Warehouse Management, Labor Management, Transportation Management
5) By End-User Industry: Government, Aerospace, Defense, Automotive, Oil And Gas, Retail, Manufacturing, Healthcare, Other End-User Industries
Subsegments:
1) By Solution: Transportation Management Systems (TMS), Warehouse Management Systems (WMS), Inventory Management Solutions, Supply Chain Visibility Solutions, Fleet Management Solutions
2) By Services: Consulting Services, Implementation Services, Support And Maintenance Services, Training And Education Services
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Who Are the Global Leaders in the Digital Logistics Market?
Major companies operating in the digital logistics market are Oracle Corporation, IBM Corporation, SAP SE, Advantech Co Ltd., AT&T Inc., Intel Corporation, Honeywell International Inc., HCLTech Ltd., Blue Yonder Inc., DigiLogistics, Hexaware Technologies Ltd., Tech Mahindra Pvt. Ltd., Samsung SDS, ORBCOMM Inc., Freightgate, Huawei Technologies Co. Ltd., WebXpress, Ramco Systems Ltd., Logisuite, ICAT Logistics, JDA Software Pvt. Ltd., Cloud Logistics, Infosys Limited, Kuehne + Nagel International AG, UPS Supply Chain Solutions, accenture* PLC, Capgemini SE, Cognizant Technology Solutions Corporation, Deutsche Post DHL Group, FedEx Corporation, Kenco Logistics Services LLC, Schneider Electric SE, XPO Logistics Inc.
Which are the Top Profitable Regional Markets for the Digital Logistics Industry?
North America was the largest region in the digital logistics market in 2024. The regions covered in the digital logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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