Connected Logistics Market
By Software;
Asset Management, Warehouse Internet of Things, Security, Data Management, Network Management, and Streaming AnalyticsBy Platform;
Device Management Platform, Application Enablement Platform (AEP), and Network Management PlatformBy Service;
Professional Services and Managed ServicesBy Transportation Mode;
Roadways, Railways, Airways, and SeawaysBy Vertical;
Retail, Manufacturing, Oil, Gas & Energy, Pharmaceuticals & Healthcare, Telecom & Information Technology, Automotive, Aerospace & Defense, Food & Beverage, Chemicals, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Connected Logistics Market Overview
Connected Logistics Market (USD Million)
Connected Logistics Market was valued at USD 89.75 million in the year 2024. The size of this market is expected to increase to USD 653.75 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 32.8%.
Connected Logistics Market
*Market size in USD million
CAGR 32.8 %
Study Period | 2025 - 2031 |
---|---|
Base Year | 2024 |
CAGR (%) | 32.8 % |
Market Size (2024) | USD 89.75 Million |
Market Size (2031) | USD 653.75 Million |
Market Concentration | Low |
Report Pages | 394 |
Major Players
- AT&T, Inc.
- Eurotech S.P.A.
- IBM Corporation
- Intel Corporation
- SAP SE
- Infosys Limited
- Cisco Systems, Inc.
- HCL Technologies Limited
- Orbcomm Inc.
- Cloud Logistics
- Freightgate Inc.
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Connected Logistics Market
Fragmented - Highly competitive market without dominant players
The Connected Logistics Market is experiencing significant momentum as logistics companies increasingly implement cutting-edge connectivity technologies. Approximately 62% of organizations now rely on IoT, cloud platforms, and big data analytics to achieve real-time supply chain visibility and data-driven decision-making. This shift enhances operational efficiency, minimizes errors, and optimizes resource allocation across the logistics spectrum.
Customer-Centric Innovations Fuel Expansion
Elevating customer satisfaction has become a primary focus, as around 53% of consumers demand real-time tracking and timely delivery notifications. In response, companies are investing in digital platforms that offer complete transparency and personalized services, strengthening customer trust and creating competitive differentiation within the market.
Heightened Focus on Supply Chain Resilience
Heightened uncertainties have pushed 57% of businesses to prioritize resilience by enhancing visibility and developing contingency plans. Connected logistics solutions enable comprehensive monitoring, allowing swift responses to disruptions, minimizing downtime, and sustaining operational continuity even during unexpected challenges.
Collaborative Ecosystem Development Grows
The rise of collaborative logistics models is reshaping the industry, with 46% of companies forming alliances with technology innovators, transport operators, and analytics firms. These collaborations promote seamless data integration, coordinated management, and synchronized workflows, ultimately driving scalability, efficiency, and agility across logistics operations.
Connected Logistics Market Recent Developments
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In February 2024, Cisco partnered with logistics firms to deploy 5G-enabled IoT solutions for improved connectivity and operational visibility across global networks.
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In September 2022, AT&T launched a suite of connected logistics solutions leveraging edge computing for real-time monitoring of supply chains.
Connected Logistics Market Segment Analysis
In this report, the Connected Logistics Market has been segmented by Software, Platform, Service, Transportation Mode, Vertical, and Geography.
Connected Logistics Market, Segmentation by Software
The Connected Logistics Market has been segmented by Software into Asset Management, Warehouse Internet of Things, Security, Data Management, Network Management, and Streaming Analytics.
Asset Management
Asset management software is essential for tracking physical logistics infrastructure and inventory in real time. It improves asset visibility, reduces loss, and optimizes operational workflows. With growing investments in digitized fleet and warehouse systems, this segment is gaining rapid momentum. Enhanced ROI through predictive analytics also drives adoption across logistics firms.
Warehouse Internet of Things
Warehouse IoT systems enable smarter storage and logistics by integrating sensors, RFID, and automation tools. These solutions enhance real-time stock updates, environmental monitoring, and efficiency. The rise of smart warehousing in e-commerce and retail sectors significantly boosts this sub-segment. It offers improved supply chain accuracy and data transparency.
Security
Security software ensures safe transit and warehousing by managing access control, video surveillance, and anomaly detection. With increased cyber and physical threats, companies prioritize logistics security. Innovations in AI-powered monitoring and blockchain-led traceability contribute to market expansion. This segment is vital for safeguarding high-value and sensitive cargo.
Data Management
Data management tools consolidate logistics data from multiple nodes into actionable insights. These systems enable predictive forecasting, route optimization, and regulatory compliance. As logistics networks grow in complexity, the demand for robust data management increases. It empowers better decision-making and reduces operational delays.
Network Management
Network management software supports the seamless flow of logistics operations by optimizing communication between supply chain nodes. It reduces downtime and enhances scalability in interconnected logistics platforms. The segment is vital for ensuring system-wide stability and real-time responsiveness. Global expansion of logistics networks is fueling its demand.
Streaming Analytics
Streaming analytics allows real-time analysis of logistics events as they occur across the supply chain. This enables faster decision-making on issues like route deviations or delivery delays. Businesses benefit from immediate anomaly detection and dynamic routing. Its adoption is rising due to demand for agile and responsive logistics frameworks.
Connected Logistics Market, Segmentation by Platform
The Connected Logistics Market has been segmented by Platform into Device Management Platform, Application Enablement Platform (AEP), and Network Management Platform.
Device Management Platform
This platform manages connected logistics devices like sensors and GPS trackers deployed across vehicles and warehouses. It helps ensure system health, security, and updates. Increasing adoption of IoT devices in fleet and asset tracking is driving this segment’s growth. It also enables lifecycle management of logistics hardware efficiently.
Application Enablement Platform (AEP)
AEPs facilitate the development and deployment of logistics applications by offering pre-built tools and APIs. These platforms support rapid customization for different logistics workflows. Their scalability and flexibility are ideal for managing complex supply chains. AEPs are becoming central to digital transformation in logistics operations.
Network Management Platform
Network management platforms optimize the integration and performance of logistics networks. They allow centralized control and troubleshooting of connected systems. With logistics chains becoming more digitally connected, reliable network performance is critical. This sub-segment ensures uptime, visibility, and seamless connectivity across platforms.
Connected Logistics Market, Segmentation by Service
The Connected Logistics Market has been segmented by Service into Professional Services and Managed Services.
Professional Services
Professional services include consulting, integration, and deployment for connected logistics systems. These services ensure customized solutions and smooth implementation. Demand is rising among logistics firms adopting digital-first operations. Providers are expanding offerings to include training and workflow optimization strategies.
Managed Services
Managed services support the ongoing operation, monitoring, and maintenance of connected logistics infrastructure. Businesses prefer outsourcing these tasks to reduce overhead and gain expert support. As logistics systems become more complex, the need for 24/7 managed services grows. This segment enhances scalability and performance efficiency.
Connected Logistics Market, Segmentation by Transportation Mode
The Connected Logistics Market has been segmented by Transportation Mode into Roadways, Railways, Airways, and Seaways.
Roadways
Roadways dominate connected logistics due to their extensive use in last-mile delivery and urban freight. GPS tracking, driver behavior analysis, and route optimization tools are widely applied. This segment sees strong growth with rising e-commerce and smart fleet initiatives. Real-time road condition data further enhances logistics efficiency.
Railways
Railways benefit from connected logistics through sensor-equipped cargo, remote monitoring, and automated signaling. These systems help improve schedule reliability and safety. Integration with national logistics networks strengthens this segment's appeal. Governments are investing in digital rail infrastructure to boost freight capacity and security.
Airways
Air freight operators use connected logistics for temperature tracking, cargo authentication, and air traffic coordination. This ensures timely and secure delivery of high-value or perishable goods. As global trade expands, the segment gains traction in international logistics. Smart tracking improves transparency and regulatory compliance.
Seaways
Connected seaways enhance container tracking, fuel optimization, and port logistics management. Maritime operators are adopting IoT and AI for operational visibility. The segment plays a critical role in global freight, especially for bulk cargo. Innovations in vessel monitoring and blockchain-based documentation are transforming maritime logistics.
Connected Logistics Market, Segmentation by Vertical
The Connected Logistics Market has been segmented by Vertical into Retail, Manufacturing, Oil, Gas & Energy, Pharmaceuticals & Healthcare, Telecom & IT, Automotive, Aerospace & Defense, Food & Beverage, Chemicals, and Others.
Retail
Retailers rely on connected logistics for efficient inventory management, automated replenishment, and rapid delivery. Real-time tracking enhances customer satisfaction and reduces shrinkage. The boom in e-commerce accelerates this segment’s expansion. Advanced analytics and IoT devices ensure better order fulfillment processes.
Manufacturing
Manufacturers deploy connected logistics to streamline production supply chains and reduce downtime. Integration with ERP and SCM platforms improves materials handling. Predictive analytics supports lean manufacturing goals. The segment is growing due to smart factory adoption and global sourcing needs.
Oil, Gas & Energy
Connected logistics ensures safe and efficient transportation of energy products through monitoring of pressure, temperature, and asset health. The segment is crucial for managing hazardous materials. Remote tracking and predictive maintenance reduce risks and operational costs. Digital transformation of energy supply chains drives adoption.
Pharmaceuticals & Healthcare
This vertical uses connected logistics to maintain cold chain integrity and ensure timely delivery of sensitive drugs and devices. Compliance with regulatory standards is a key driver. AI-powered tracking and condition monitoring ensure product safety. Demand surges with vaccine distribution and global medical exports.
Telecom & IT
Connected logistics supports telecom and IT companies in handling high-value components and time-sensitive equipment deliveries. Automated alerts and dynamic routing improve service quality. Logistics digitization enables real-time tracking and fraud prevention. This segment benefits from expanding telecom infrastructure investments.
Automotive
Automotive manufacturers apply connected logistics to manage global part sourcing, just-in-time delivery, and vehicle tracking. Telematics and AI help optimize logistics efficiency. The rise of EV production adds complexity and boosts segment demand. Supply chain disruptions have accelerated digital adoption in this space.
Aerospace & Defense
Connected logistics ensures real-time visibility and traceability of aerospace components and defense equipment. It supports secure and compliant transport for critical shipments. Military-grade solutions and encrypted data sharing dominate the segment. National security needs and export regulations further enhance growth.
Food & Beverage
Food logistics uses IoT and connected tools for temperature control, route tracking, and inventory optimization. Perishability and safety requirements make this segment highly sensitive. Real-time updates ensure compliance with food safety laws. Rising demand for fresh and fast delivery strengthens segment expansion.
Chemicals
Connected logistics helps track hazardous chemical shipments, ensure safe handling, and optimize delivery routes. Regulatory compliance is key for this vertical. Predictive tools help avoid accidents and reduce environmental risks. Smart packaging and labeling further improve logistics visibility.
Others
This segment includes logistics support for sectors like education, construction, and public services. Growing adoption of digitized supply chains across all sectors fuels its presence. Scalability and customization of connected logistics systems attract varied users. These emerging applications contribute to market diversification.
Connected Logistics Market, Segmentation by Geography
In this report, the Connected Logistics Market has been segmented by Geography into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Regions and Countries Analyzed in this Report
Connected Logistics Market Share (%), by Geographical Region
North America
North America holds the largest share of the connected logistics market at 32%, driven by widespread adoption of IoT and AI across transportation and warehousing sectors. The U.S. leads in technology innovation, with major logistics firms and tech giants deploying advanced tracking and fleet solutions. Government support for smart infrastructure also boosts regional adoption. Robust internet connectivity and a mature logistics network further support market dominance.
Europe
Europe accounts for approximately 26% of the market, propelled by strict regulatory standards and the push for greener logistics. Countries like Germany, France, and the UK are investing in smart freight corridors and automated warehousing. The European Union’s focus on data privacy and logistics digitalization accelerates platform adoption. Growing cross-border e-commerce also enhances regional demand for real-time tracking and compliance tools.
Asia Pacific
Asia Pacific contributes around 24% to the market share, with rapid industrialization and expansion in logistics tech across China, India, and Japan. The rise in online retail, large-scale manufacturing, and investments in smart cities are driving adoption. Regional players focus on automation, AI, and mobile logistics apps to enhance competitiveness. Increasing government initiatives in digital infrastructure further aid growth.
Middle East & Africa
The Middle East & Africa region holds nearly 10% market share, driven by infrastructure modernization and smart port initiatives in the Gulf countries. Adoption is rising in sectors like oil & gas and food logistics due to enhanced security and compliance needs. The region is witnessing pilot programs in AI logistics and smart trucking. Emerging African economies are gradually adopting connected platforms to overcome supply chain inefficiencies.
Latin America
Latin America represents about 8% of the connected logistics market, with growing interest in automation and predictive tracking across Brazil, Mexico, and Argentina. The region faces infrastructure challenges, but digital transformation in retail and manufacturing drives demand. Startups and regional logistics providers are investing in GPS, RFID, and IoT-based solutions. Government policies supporting tech adoption in logistics are slowly gaining momentum.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Connected Logistics Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- IoT Adoption
- Supply Chain Visibility
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Demand for Real-time Tracking - The demand for real-time tracking is a pivotal driver fueling the growth of the Global Connected Logistics Market. In an era where speed and efficiency are paramount, businesses across industries are increasingly relying on real-time tracking solutions to monitor the movement and status of their goods throughout the supply chain. Real-time tracking enables stakeholders to gain instant visibility into the location, condition, and ETA (Estimated Time of Arrival) of shipments, empowering them to make proactive decisions and respond swiftly to any disruptions or delays. Whether it's monitoring the progress of a high-value shipment or ensuring the timely delivery of perishable goods, real-time tracking solutions offer unparalleled transparency and control over logistics operations.
The proliferation of e-commerce and omnichannel retailing has further intensified the demand for real-time tracking capabilities. With consumers expecting fast, reliable, and transparent delivery experiences, businesses are under pressure to optimize their logistics operations and provide real-time updates on shipment status. Real-time tracking not only enhances customer satisfaction by providing accurate delivery ETAs but also enables businesses to differentiate themselves in the competitive market landscape. By leveraging real-time tracking solutions, companies can improve operational efficiency, minimize shipping errors, and build trust with customers, thereby gaining a competitive edge in the fast-paced world of e-commerce.
Real-time tracking solutions play a critical role in enhancing supply chain resilience and risk management. By continuously monitoring the movement of goods, businesses can identify potential issues or disruptions in advance and take proactive measures to mitigate their impact. Whether it's rerouting shipments to avoid traffic congestion or reallocating inventory to meet changing demand patterns, real-time tracking solutions enable logistics stakeholders to adapt quickly to unforeseen circumstances and maintain the smooth flow of goods across the supply chain. In essence, the demand for real-time tracking is reshaping the Global Connected Logistics Market, driving innovation, efficiency, and agility in logistics operations worldwide.
Restraints:
- High Implementation Costs
- Regulatory Compliance
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Infrastructure Limitations - Infrastructure limitations pose a significant challenge to the advancement and widespread adoption of connected logistics solutions within the Global Connected Logistics Market. Despite rapid technological advancements, many regions around the world still lack the necessary infrastructure to support seamless connectivity and data transmission across the supply chain. Inadequate internet connectivity, particularly in rural and remote areas, hampers the deployment of IoT sensors and other connected devices essential for real-time tracking and monitoring. Furthermore, outdated transportation infrastructure, such as roads and ports, may lack the necessary infrastructure for integrating advanced technologies like RFID (Radio Frequency Identification) or GPS (Global Positioning System) tracking, limiting the effectiveness of connected logistics solutions.
The interoperability of existing infrastructure poses a significant challenge to the seamless integration of connected logistics systems. Incompatibility between legacy systems and emerging technologies may hinder the exchange of data and communication between different stakeholders within the supply chain. Standardization efforts are essential to address these interoperability challenges and establish common protocols and frameworks that enable seamless connectivity and data exchange across diverse systems and platforms. Additionally, the lack of cybersecurity measures and robust data privacy regulations further exacerbates infrastructure limitations, raising concerns about the integrity and security of logistics data transmitted across interconnected networks.
Infrastructure limitations also present opportunities for innovation and investment within the Global Connected Logistics Market. Initiatives aimed at improving infrastructure, such as the development of smart cities and digital corridors, create new avenues for the deployment of connected logistics solutions. Investments in 5G networks, IoT infrastructure, and cloud computing technologies can help overcome existing infrastructure challenges and unlock new possibilities for connected logistics innovation. Furthermore, public-private partnerships and government incentives play a crucial role in accelerating infrastructure development and fostering a conducive environment for the adoption of connected logistics solutions. By addressing infrastructure limitations, the Global Connected Logistics Market can unleash its full potential, driving efficiency, resilience, and competitiveness across the entire supply chain ecosystem.
Opportunities:
- Predictive Analytics
- Sustainability Initiatives
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Cross-border Trade - Cross-border trade represents a significant opportunity and challenge within the Global Connected Logistics Market. As businesses expand their operations globally, the demand for efficient and reliable logistics solutions to facilitate cross-border trade continues to rise. Connected logistics technologies play a crucial role in addressing the complexities of international trade by enabling seamless coordination and communication between various stakeholders, including suppliers, manufacturers, distributors, and customs authorities. Real-time tracking, electronic documentation, and supply chain visibility solutions streamline cross-border logistics processes, reducing delays, minimizing errors, and enhancing compliance with regulatory requirements across different jurisdictions.
The proliferation of e-commerce platforms has fueled the growth of cross-border trade, with consumers increasingly purchasing goods from international sellers. Connected logistics solutions enable businesses to meet the evolving demands of cross-border e-commerce by providing end-to-end visibility and transparency throughout the delivery process. From order fulfillment and inventory management to customs clearance and last-mile delivery, connected logistics technologies optimize the cross-border supply chain, ensuring timely and cost-effective delivery of goods to customers worldwide. By leveraging advanced technologies such as AI, IoT, and blockchain, businesses can overcome logistical barriers and unlock new opportunities for growth in the global marketplace.
Cross-border trade also presents challenges that must be addressed to fully realize the potential of connected logistics solutions. Complex customs procedures, trade regulations, and geopolitical tensions can create bottlenecks and uncertainties in cross-border logistics operations. Moreover, differences in infrastructure, standards, and cultural norms across countries further complicate the seamless flow of goods and information. To overcome these challenges, stakeholders within the Global Connected Logistics Market must collaborate closely to develop interoperable systems, streamline processes, and build trust and transparency in cross-border trade. By embracing connected logistics technologies and fostering collaboration, businesses can navigate the complexities of cross-border trade more effectively, unlocking new opportunities for growth and expansion in the global marketplace.
Competitive Landscape Analysis
Key players in Global Connected Logistics Market include:
- AT&T, Inc.
- Eurotech S.P.A.
- IBM Corporation
- Intel Corporation
- SAP SE
- Infosys Limited
- Cisco Systems, Inc.
- HCL Technologies Limited
- Orbcomm Inc.
- Cloud Logistics
- Freightgate Inc.
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Software
- Market Snapshot, By Platform
- Market Snapshot, By Service
- Market Snapshot, By Transportation Mode
- Market Snapshot, By Vertical
- Market Snapshot, By Region
- Connected Logistics Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- IoT Adoption
- Supply Chain Visibility
- Demand for Real-time Tracking
- Restraints
- High Implementation Costs
- Regulatory Compliance
- Infrastructure Limitations
- Opportunities
- Predictive Analytics
- Sustainability Initiatives]
- Cross-border Trade
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Connected Logistics Market, By Software, 2021 - 2031 (USD Million)
- Asset Management
- Warehouse Internet of Things
- Security
- Data Management
- Network Management
- Streaming Analytics
- Connected Logistics Market, By Platform, 2021 - 2031 (USD Million)
- Device Management Platform
- Application Enablement Platform (AEP)
- Network Management Platform
- Connected Logistics Market, By Service, 2021 - 2031 (USD Million)
- Professional Services
- Managed Services
- Connected Logistics Market, By Transportation Mode, 2021 - 2031 (USD Million)
- Roadways
- Railways
- Airways
- Seaways
- Connected Logistics Market, By Vertical, 2021 - 2031 (USD Million)
- Retail
- Manufacturing
- Oil
- Gas & Energy
- Pharmaceuticals & Healthcare
- Telecom & Information Technology
- Automotive
- Aerospace & Defense
- Food & Beverage
- Chemicals
- Others
- Connected Logistics Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Connected Logistics Market, By Software, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- AT&T, Inc.
- Eurotech S.P.A.
- IBM Corporation
- Intel Corporation
- SAP SE
- Infosys Limited
- Cisco Systems, Inc.
- HCL Technologies Limited
- Orbcomm Inc.
- Cloud Logistics
- Freightgate Inc.
- Company Profiles
- Analyst Views
- Future Outlook of the Market