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Increasing IoT Devices Drive Growth In Connected Logistics Market: A Significant Driver Propelling The Connected Logistics Market In 2025
The Connected Logistics Market Report by The Business Research Company delivers a detailed market assessment, covering size projections from 2025 to 2034. This report explores crucial market trends, major drivers and market segmentation by [key segment categories].What Is the Current Connected Logistics Market Size and Its Estimated Growth Rate?
The market size of connected logistics has seen a quick expansion in the past few years. The market is expected to increase from a valuation of $28.33 billion in 2024 to a worth of $32.45 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 14.5%. The driving factors behind the substantial growth in the previous period include global integration, the rise of IoT, the need for real-time visibility, progression in cloud technology, and the integration of big data analytics.
The market size of connected logistics is projected to experience notable expansion in the coming years, with a predicted valuation of $55.1 billion in 2029, reflecting a compound annual growth rate (CAGR) of 14.2%. Several factors will influence this forecasted growth, including the uptake of blockchain technology, the emergence of self-driving vehicles, a heightened emphasis on environmental sustainability, the burgeoning field of predictive analytics, and the development of smart cities. It is important to note key trends during this forecast period, like improved measures for cybersecurity, the surge of edge computing, enhanced use of robotics and automation, the expansion of 5G networks, and the rise of digital twins technologies.
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How Are Emerging Segments Shaping the Connected Logistics Market Landscape?
The connected logistics market covered in this report is segmented -
1) By Component: Hardware, Solutions, Services
2) By Transportation: Roadways, Railways, Airways, Maritime
3) By Application: Inventory Tracking, Optimized Warehousing, Real-Time Fleet Management, Predictive Maintenance, Cargo Integrity Monitoring, End-To-End Delivery Tracking, Other Applications
4) By End-Use Industries: Automotive, Healthcare And Pharmaceuticals, Oil And Gas, Food And Beverage, Aerospace And Defense, Manufacturing, Information Technology (IT) And Telecommunication, Retail And E-Commerce, Other End-Use Industries
Subsegments:
1) By Hardware: Sensors, RFID Tags, GPS Devices, Communication Devices, Others (Drones, Cameras)
2) By Solutions: Fleet Management Software, Warehouse Management Systems (WMS), Supply Chain Visibility Platforms, Route Optimization Software, Inventory Management Solutions, Predictive Maintenance Solutions, Others
3) By Services: Integration Services, Consulting Services, Managed Services, Maintenance And Support Services, Data Analytics Services, Training And Support Services
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Which Growth Factors Are Influencing Connected Logistics Market Expansion?
Anticipated growth in the connected logistics market is fueled by the escalating integration of Internet of Things (IoT) devices. The IoT denotes a system of interconnected gadgets that have the ability to share information and communicate via the internet. Increased demand for automation, interconnectedness, and efficiency in various sectors and everyday undertakings propels its growth. IoT devices in logistics provide critical features like real-time tracking of shipments, vehicle condition monitoring, route planning optimization, supply chain operations streamlining, and enhanced inventory management. These capabilities result in greater efficiency, significant cost reductions, and heightened customer satisfaction. For example, Ericsson, a telecommunication firm based in Sweden, predicted in a November 2022 report that IoT connections across the globe would touch 15.7 billion by 2023, and are expected to surge to approximately 38.9 billion by 2029, demonstrating a growth rate of 16%. Therefore, the rising prevalence of IoT devices is a major factor propelling the expansion of the connected logistics market.
Who Are the Dominant Players Across Different Connected Logistics Market Segments?
Major companies operating in the connected logistics market are Microsoft Corporation, AT&T Inc., DHL International GmbH, Robert Bosch GmbH, FedEx Corporation, Huawei Technologies, Amazon Web Services, Siemens, Intel Corporation, , International Business Machines Corporation, Cisco System Inc., Oracle Corporation, Honeywell International Inc., SAP SE, TATA Consulting Services Ltd., NEC Corporation, Nippon Express Co. Ltd., Infosys Limited, HCL Technology Limited, Xpo Logistics Inc., Hexagon AB, Senko Group Holdings Co., Ltd., Yusen Logistics Co. Ltd., Trimble, Orbcomm, Eurotech Group, Freightgate Inc.
What Are the Latest Developing Trends in the Connected Logistics Market?
Key players in the connected logistics market are concentrating on innovating advanced solutions like cloud-based services, to improve the efficiency of the global supply chain. These services are cardinal in connected logistics as they offer scalable, accessible, and hub platforms for data storage, processing, and examination, enabling real-time decisions and coordination across the supply chain. For example, Fujitsu Limited, a Japanese company specializing in information and communications technology equipment and services, introduced a cloud-based logistics data standardization and visualization service in December 2023. This service was specially designed for shippers, logistics firms, and supply chain vendors, and provides advanced tools to enhance sustainability, combat challenges such as driver shortages, decrease carbon emissions, and ensure industry regulations are met. This service offers automated data conversion to align with logistics information standard guidelines and functions to link, change, and save different logistics data, along with visualization and analysis tools via logistics KPIs. The primary objective of the new service is to encourage cooperation between companies, streamline the supply chain, and address problems such as driver scarcity and reducing energy consumption achieved by sharing vehicle use.
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Which Geographic Regions Are Expected to Dominate the Connected Logistics Market in the Coming Years?
North America was the largest region in the connected logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the connected logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Connected Logistics Market?
2. What is the CAGR expected in the Connected Logistics Market?
3. What Are the Key Innovations Transforming the Connected Logistics Industry?
4. Which Region Is Leading the Connected Logistics Market?
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