The digital logistics market was valued at USD 13.42 Billion in 2019, at a CAGR of 8.2% during the forecast period of 2020 - 2025. The convergence of logistics and technology, along with cloud-based collaborative solutions that extend through the entire supply chain, tight integration of warehouse, transport, and end consumer information, and transparency through the supply chain are driving the growth of the market studied.
- The global digital logistics market is expected to grow significantly over the forecast period, owing to the increasing adoption of advanced technologies in the logistics sector. Moreover, these digital solutions are helping logistics companies in reducing incurred costs.
- The issues faced like the Privacy and Security issue plays as a huge restraint for the market growth. Due to the eased number of data breaches occurring, the public’s trust has been shaken to a large extent. This significantly decreases the chances of adopting technology.
Scope of the Report
Digital logistics is driven by a new generation of web-based, enterprise logistics applications that enable collaboration and optimization, leveraging a central logistics information backbone that provides visibility across the enterprise and extended supply chain.
Key Market Trends
Fleet Management is Expected to Hold a Significant Market Share
- The increasing demand for fleet and warehouse management systems is expected to augment the need for digital solutions in the logistics sector. In-vehicle computing and fleet management solutions translate real-time data about vehicles, cargo, deliveries and workers into dynamic, understandable displays that help increase productivity and lower operating costs. Operational costs are constantly on the increase. The adoption of Fleet management helped in keeping the input costs low.
- Digital logistics and efficient fleet management are an important facet of the developing intelligent city and using telematics to monitor the location, movement, and status of vehicles helps build a comprehensive view of the entire network.
- The control center then knows the status of the deliveries in real-time. If the need for re-deliveries or returns arises, drivers can report this information to the control center via the handheld device. The control center can then monitor the relevant information to handle re-deliveries and returns through the order tracking system.
Latin America is Expected to Hold Significant Market Share
- Latin America is one of the leading digital logistics markets, mainly due to the growing regional e-commerce sector and rising adoption of digital services among the regional transportation and logistics industry.
- Brazil recorded one of the highest logistics expenses in the world. Approximately 30% of the distribution cost structure represents the total logistics costs. The growing e-commerce industry is driving the demand for advanced and time efficient logistic services. In 2017, the sales of e-commerce accounted for 5% (USD 300 billion) of the Brazilian retail market share. However, this proportion is increasing rapidly, due to growing digital penetration.
- In 2018, Amazon acquired a 50,000-square-meter warehouse for lease in Brazil, as the company is planning to expand its presence in the region. Though the country’s logistics market is facing many problems, with the increasing need for cost-effective methods, digital logistic solutions can are expected to witness demand from this sector.
- In Argentina, with growing cloud adoption, the country’s trucking market is providing growth avenues for digital logistic vendors, as digital services are helping regional logistics companies in gaining competitive advantage. The country’s truck industry is worth USD 120 billion. Furthermore, with trucks that make over 150 million trips annually, the industry has a vast scope for digital logistics solutions
The Digital Logistics Market has the presence of a number of promient players which cater to various types of organizations such as SMEs to Large Enterprises. Some key players in the market are Oracle, IBM, Tech Mahindra, Samsung electronics. Logistic suppliers are realizing the importance of Digital improvements and are continuously engaging in partnerships.
- October 2018 - Milaha, a provider of transport and supply chain solutions, collaborated with Oracle Cloud, in order to support the digital transformation of its core business operations and subsidiaries.
- April 2018 - Global shipping and logistics conglomerate, Transworld Group collaborated with the company for its digital transformation. The company is expected to provide the cloud-based technology platform, which will improve operational efficiency across Transworld Group’s shipping and logistics businesses.
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