The digitization in the logistics supply chain market size is projected to reach US$ 34.85 billion by 2031 from US$ 17.63 billion in 2023. The market is expected to register a CAGR of 8.9% in 2023–2031. Increasing demand for supply chain management and increasing retail and e-commerce industry are likely to remain key digitization in the logistics supply chain market trends.
Automation across various industries such as automotive, retail and e-commerce, manufacturing, healthcare, and others has benefitted the operators of these industries on a large scale by reducing human errors. For example, the retail worldwide is continuously growing and is expected to grow more in the future. Thus, the growing retail industry is focusing on lowering total operational costs by removing manual operations for stocking and managing the supply chain and logistics. The demand for automation solutions throughout the retail industry fuels the market. The logistics sector across several industries is witnessing digital transformation as stakeholders are inclined towards minimizing errors, enhanced operations, and on-time delivery, which is propelling the market.
Progressing digital transformation is changing traditional business models to be more effective and efficient. The adoption of digital technologies helps market players across several industries to gain a competitive advantage over the other players by optimizing their business models. Digitalizing the logistics supply chain operations helps them to save costs on the workforce, fasten their processes, and minimize errors. The inclusion of more advanced technologies, such as artificial intelligence (AI) helps them to make effective business decisions with advanced analytics.
The rise in income and purchasing power of individuals has been a major factor leading to the growth in the retail and e-commerce industry. The rise in mobile penetration and internet connections has provided feasibility and easy accessibility to the retail industry, leading to the growing e-commerce industry. According to the India Brand Equity Foundation (IBEF), countries such as the US, Canada, Germany, United Kingdom, China, Japan, France, Australia, Switzerland, Italy, and India are among others with a robust retail market. Digitization in the logistics supply chain helps the stakeholders in the supply chain to optimize their operations. Digitalization helps in the real-time tracking and tracing of orders and raw materials in the supply chain. It helps to efficient coordination between the manufacturers, suppliers, distributors, and retailers to reduce costs, increase quality, and meet customer demands. Thus, the growth in retail and e-commerce drives the demand for solutions to enhance the supply chain and logistics workflow which further drives the digitization in the logistics supply chain market growth.
To promote digitalization worldwide, the government is investing in smart solutions. Bringing smart solutions helps boost production, optimize operations, and provide a higher return on investment. It helps to simplify complex business models and foster faster operations.
Thus, such investments can boost digitalization in the logistics and supply chain sector and act as an opportunity for market growth.
Key segments that contributed to the derivation of digitization in the logistics supply chain market analysis are components, organization size, and industry.
The geographic scope of digitization in the logistics supply chain market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
In terms of revenue, North America accounted for the largest digitization in the logistics supply chain market share. The US, Canada, and Mexico are among the key countries in North America. The region is an early adopter of technologically advanced solutions, which is one of the key factors driving the market growth. The rise in the retail and e-commerce industry in the region generates the demand for digital solutions to optimize supply chain and logistics activities, which foster the market. According to the US Department of Commerce, US retail and food services sales rose by 0.6% in February 2024 compared to January 2024. In addition, according to International Trade Administration, Canada had around 75% of e-commerce users of Canada’s total population in 2022 which is expected to rise to 77.6% by 2025. People in Canada buying stuff online is increasing, contributing to the country's increased e-commerce activities such as product delivery operations.
The regional trends and factors influencing the Digitization in the Logistics Supply Chain Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Digitization in the Logistics Supply Chain Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 17.63 Billion |
| Market Size by 2031 | US$ 34.85 Billion |
| Global CAGR (2023 - 2031) | 8.9% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Digitization in the Logistics Supply Chain Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Digitization in the Logistics Supply Chain Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
Digitization in the logistics supply chain market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
The “Digitization in the Logistics Supply Chain Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
The global digitization in the logistics supply chain market was estimated to be US$ 17.63 billion in 2023 and is expected to grow at a CAGR of 8.9% during the forecast period 2023 - 2031.
Increasing demand for digital solutions across various industries and growth in the retail and e-commerce industry are the major factors that propel global digitization in the logistics supply chain market.
The adoption of advanced technology, such as blockchain and artificial intelligence (AI), is anticipated to play a significant role in the global digitization of the logistics supply chain market in the coming years.
The global digitization in the logistics supply chain market is expected to reach US$ 34.85 billion by 2031.
The key players holding majority shares in the global digitization in the logistics supply chain market are SAP SE, Oracle Corporation, Infor, IBM, and Intel Corporation.