IoT in Logistics Market Overview
The mushrooming requirement of higher efficiency in logistics all over the world and the rapid growth of the e-commerce industry are the major factors propelling the advancement of the global internet of things (IoT) in logistics market. Due to these factors, the market is expected to reach a valuation of $100,984.5 million by 2030, progressing at a CAGR of 13.2% between 2020 and 2030.
However, the COVID-19 pandemic has caused severe disruptions in the logistics sector across the world. This is ascribed to the fact that many countries around the world imposed complete lockdowns, including closing off all industrial operations in March 2020 in order to reduce the spread of the infection and enforce isolation and social distancing norms. As a result, there was a huge rise in labor shortage, inconsistent delivery of shipments, and major disruptions in the global supply chain, which, in turn, affected the progress of the IoT in logistics market all over the globe.
IoT in Logistics Market Size
On the basis of application, the market is categorized into inventory tracking and warehousing, location management, blockchain for supply chain management, predictive analytics, fleet management, and self-driving vehicles. Out of these, the blockchain for supply chain management division will progress at the fastest rate in the market in the coming years. This is because of the fact that blockchain has a huge potential of replacing the conventionally used methods in supply chain management that use the distributed ledger technology. The adoption of blockchain technology in logistics sector would significantly improve the logistics operations by making them sustainable and ethical.
Under the vertical segmentation of the IoT in logistics market, the main categories are food and beverage, automotive, real estate, retail, aerospace and defense, oil and gas, and healthcare. Amongst these divisions, the retail one recorded the highest market growth in the last few years. This is ascribed to the huge demand for technological innovations and developments in the logistics services from the e-commerce firms for keeping up with the rising customer demands for e-commerce services and deliveries.
Globally,the IoT in logistics market was dominated by North America during the past several years. This is attributed to the existence of major retail firms in the region such as Amazon.com Inc. and Walmart Inc. and the resultant surge in the demand for efficient and effective logistics solutions and services. However, the market will exhibit the fastest growth in the Asia-Pacific (APAC) region in the future years. On account of the high population levels in various APAC nations such as India and China. These highly populous countries have huge customer bases for logistics solutions and services. In addition to this, the rising disposable income of the people in these countries. On account of the rapid economic growth of these nations. Will make the market very lucrative in the APAC region in the upcoming years.
The e-commerce industry continues to expand around the world, and with it, the global internet of things (IoT) in logistics market. Which had valued $34,504.8 million in 2019. With the share of e-commerce in the total retail sales predicted to increase from 16.5% in 2019 to 17% by 2021. The IoT in logistics industry would grow at a 13.2% CAGR between 2020 and 2030, to reach $100,984.5 million by 2030.
IoT in Logistics Market Trends
To cater to the rising consumer demand for cost-effective and quick delivery, logistics firms are focusing on upgrading their operational technology. Thereby providing the IoT in logistics market with traction. To manage a sudden rise in orders, inconsistent shipping activities, and time-sensitive customer needs. Such companies are integrating an array of IoT solutions in their operation.
Due to the rising COVID-19 cases, most of the affected countries have entered a self-imposed lockdown, so people-to-people transmission of the virus can be checked, which is negatively affecting the IoT in logistics market. As a result of labor shortage, slow or no manufacturing activities, and a disrupted supply chain, the logistics sector has been hit hard. Moreover, people are now apprehensive about going out to buy non-essential stuff or having it delivered, which has negatively impacted logistics companies, which are now rethinking their investments in the IoT technology.
IoT in Logistics Market Segmentation Analysis
In 2030, the location management category, based on application, would hold the largest IoT in logistics market share. As this application of IoT in the logistics sector allows for the tracking of drivers’ activities, vehicle location, and delivery status and helps in planning the delivery of items, thus ensuring smooth operations.
The waterways category, on the basis of mode of transportation, would witness the fastest growth in the IoT in logistics market during 2020–2030. This is because over 100,000 merchant vessels conduct almost 90% of the international trade. Via the sea, huge volumes of cargo can be transported cost-effectively, making seaways the preferred logistics mode.
IoT in Logistics Market Outlook
In the coming years, the cellular network category, under segmentation by technology. Is expected to grow with the highest IoT in logistics market CAGR, of 18.8%, on account of the rapid proliferation of the 5G technology. Which has already been launched in several countries in 2019. This technology is expected to help provide better insurance coverage for vehicles and offer real-time traffic updates. Thereby enhancing the experience of the driver.
Large enterprises would observe the more-rapid IoT in logistics market growth in the years to come, in the basis of organization type. This is attributed to the fact that large enterprises are better able to afford IoT solutions, which is why they would adopt them quickly.
IoT in Logistics Market Business Analysis
During 2014–2019, the retail category, under the vertical segment, dominated the IoT in logistics market, as e-commerce companies are witnessing a massive increase in orders and changes in customer preferences, which is why the demand for advanced technologies in this sector is quite high.
Currently, the IoT in logistics market of North America is the most productive. Owing to the rapid digital transformation, large number of IoT startups, increasing penetration of 5G connectivity. And growing e-commerce domain here. In addition, technologies such as radio-frequency identification (RFID), near-field communication (NFC). Artificial intelligence (AI), robotics, and low-power wide-area network (LPWAN) are witnessing widespread adoption. And several programs are being launched to train professionals on their usage. In future, Asia-Pacific (APAC) would be the fastest-growing regional market. Due to the quick urbanization, change in the preference of consumers, introduction of miniature and cost-effective IoT devices. Rising popularity of the RFID, AI, robotics, NFC, low-energy Bluetooth, radio protocols, Wi-Fi-direct, and low-energy wireless technologies.
Partnerships Paving Way for Companies’ Industry Growth
In the present scenario, partnerships are providing IoT in logistics market players with a clear path to prosperity, by allowing them the flexibility to:
- Counter cyber risks in the IoT in logistics landscape
- Together innovate technologies and promote the adoption of existing ones
- Help customers in the logistics domain easily deploy IoT solutions
- Combine each other’s technologies and platforms to create a better solution
- Offer remote warehouse operations management, real-time machine health monitoring, supply chain spatial health metrics, and freight transportation and last-mile delivery capabilities to customers, over the cloud
The major organizations in the global IoT in logistics market are Robert Bosch GmbH, Cisco Systems Inc., Honeywell International Inc., IBM Corp., Qualcomm Inc., AT&T Inc., Microsoft Corp., Intel Corp., Oracle Corp., and SAP SE.
The research offers market size of the global internet of things (IoT) in logistics market for the period 2014–2030.
- Location Management
- Inventory Tracking and Warehousing
- Fleet Management
- Predictive Analytics
- Blockchain for Supply Chain Management
- Self-Driving Vehicles
Mode of Transport
- Cellular network
- Local Area Network (LAN)
- Low-Power Wide-Area Network (LPWAN)
- Small and Medium Enterprise (SME)
- Large Enterprise
- Food & Beverage
- Real Estate
- Oil & Gas
- Aerospace & Defense
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