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.
Digitization in the Logistics Supply Chain Market Analysis
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.
Digitization in the Logistics Supply Chain Market Overview
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.
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Digitization in the 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 the 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 the Logistics Supply Chain Market Drivers and Opportunities
Growth in Retail and E-Commerce to Favor Market
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.
Government investment for smart solutions – An Opportunity in Digitization in the Logistics Supply Chain Market
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.
- In September 2023, the Biden-Harris Administration announced US$ 160 Million for smart transportation technology. This investment also focused on systems innovation, such as delivery and logistics, traffic signals, smart grid, and data integration.
- In February 2023, the Indian Finance Minister announced a budget allocation of approximately US$ 3363.5 million (INR 27,482 crore) for the Dedicated Freight Corridor Corporation of India (DFCC), a 75% rise compared to the previous year. The budget speech highlighted the prioritization of 100 crucial transport infrastructure projects, such as last and first-mile delivery for ports, coal, steel, fertilizers, and food grains.
Thus, such investments can boost digitalization in the logistics and supply chain sector and act as an opportunity for market growth.
Digitization in the Logistics Supply Chain Market Report Segmentation Analysis
Key segments that contributed to the derivation of digitization in the logistics supply chain market analysis are components, organization size, and industry.
- Based on components, the market is bifurcated into software and services. The software segment held a larger market share in 2023.
- By organization size, the market is segmented into large enterprises and SMEs. The large enterprise segment held the largest share of the market in 2023.
- By industry, the market is segmented into retail and e-commerce, healthcare, manufacturing, automotive, and others. The retail and e-commerce segment held the largest share of the market in 2023.
Digitization in the Logistics Supply Chain Market Share Analysis by Geography
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.
Digitization in the Logistics Supply Chain Market Report Scope
Digitization in the Logistics Supply Chain Market News and Recent Developments
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:
- In December 2023, Fujitsu announced the launch of a new cloud-based logistics data standardization and visualization service for shippers, logistics companies, and vendors across the supply chain. The service offers new tools to customers to achieve sustainability in their operations and address a variety of challenges, including looming shortages of truck drivers, the urgent need to reduce the carbon footprint of transportation, and compliance with stricter industry regulations. (Source: Fujitsu, Press Release, 2023)
- In January 2024, Blue Yonder, a leading supply chain solutions provider, announced the release of its largest product update in the history of the company, launched the first set of interoperable solutions across the entire supply chain – from planning to warehouse, transportation, and commerce – delivered on the company’s Luminate Cognitive Platform. Leaning into interoperability allows Blue Yonder to provide its customers with increased productivity, reduced waste, and more resilient supply chains. (Source: Blue Yonder, Press Release, 2024)
Digitization in the Logistics Supply Chain Market Report Coverage and Deliverables
The “Digitization in the Logistics Supply Chain Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
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
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- 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.
- 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:
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.
- 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.
- 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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