Digital Logistics Market Outlook
Digital logistics refers to the digitizing and automating procedures related to goods movement.
According to NITI Aayog, the Government of India prioritized IoT, A.I., and Big Data in 2019. It helped revolutionize the supply chain and logistics business, spending 100 crores in Indian Rupees in the area. The government initiatives are fuelling the country’s overall demand for digital logistics.
The global digital logistics market was worth $18.10 billion in 2021 and is expected to be worth $77.52 billion by 2030, with a CAGR of 17.54% from 2021 to 2030. North America dominated the industry in 2020 and will expect to maintain its dominance throughout the forecast period of 2021-2030.
Companies research in ways to reduce costs and improve communication between service providers and partners. Companies are moving toward digitization, requiring more speed and flexibility within the supply chain. Supply chain management is progressively moving away from traditional and digital logistics.
COVID-19 Impact Analysis
The consumer sector, which drives the majority of economic growth, has been harm by the COVID-19 pandemic epidemic. Due to diminishing sales and high fixed expenditures, the retail, catering, and travel industries are under extreme cash flow strain. The increased focus of the national government on the ongoing provision of necessities like food and medicine has put pressure on logistics and supply chain enterprises. Thus, the disruption brought on by the COVID-19 pandemic is causing unexpected and significant losses in the logistical networks. The trade and efficient operation of the logistics sector has been hamper by factory closures, a lack of workers to unload goods, and drivers to drive trucks for cargo clearance. Logistics organizations now have faster innovation cycles, increased agility, and access to quick solutions thanks to the digitization of fundamental business processes, including fleet monitoring, documentation, communication networks that are always open, and revenue management.
Impact of Digital Logistics on Business Operations
Machine learning is a typical part of digital logistics platforms, which may help to make important, data-informed decisions and continuously enhance supply chain operations.
Businesses can concentrate on making strategic upgrades that will directly affect client happiness. Digital logistics cannot replace the human touch. Rather, it is an improvement that frees up supply chain service providers to prioritize the client experience. Companies that use technology to remain ahead of the curve will prosper because reputation matters.
Growth Factors of Digital Logistics
High rates of digital technology adoption, expanding the capabilities of the current solution, and novel applications are a few of the elements boosting the market for digital logistics.
The usage of applications in logistics, large amounts of data, increased service quality, and quick development of I.T. business solutions are some of the factors driving the digital logistics market. The rapid rate of adoption is consider to be one of the key market driver.
- Based on Solutions, data management contributed to the biggest market share in 2020. Data management software helps IoT devices to gather enormous amounts of data and mine insights from it, which increases business productivity. In order to manage organized and unstructured data and extract insights from a vast quantity of data, manufacturers offer data management solutions. Latin America had 526 million IoT connections in 2018 and is expected to have 1,300 million by 2025, according to a GSMA analysis. This indicates a sharp rise in the overall number of connections in the region. Thus, these development are look forward to to result in a rise in the local use of mobile devices.
- On the basis of deployment, the cloud segment held the largest share of the digital logistics market in 2020. Businesses all across the world are using cloud-based solutions and apps. Services based on the cloud provide various benefits, such as flexibility, the capacity to grow applications, and simple management.
- Oracle Blockchain Applications Cloud, a package of services to improve supply chain transparency, was introduce in October 2018.
The largest share was held by North America. Significant I.T. companies and quick technological advancements, including digitalization in nations like the USA & Canada, are accelerating the overall industry boom in this field. The developed economies of the concerned countries will enable them to invest significantly in cutting-edge digital logistics services and solutions. According to transport and logistics news, the cost of digital transformation in the logistics industry is anticipated to reach $13.2 billion in the United States by 2020. Currently, the nation has 28.98% of the market. Commercial logistics and transportation are the foundation of the North American economy. The Compliance, Safety, and Accountability (CSA) Act and modifications to the Hours of Service Solution (HOS) Act are two examples of regulatory reforms contributing to the gradual growth of the North American digital logistics business. Retail, utilities, and services are the top three industries with the quickest growth rates, and they are all helping to increase the use of digital logistics solutions.