Connected Logistics Market Size & Share 2024 – 2032
Market Size by Technology (Bluetooth, Cellular, Wi-Fi, GPS), Component (Hardware, Software, Services), Mode of Transport (Railways, Airways, Roadways, Waterways), Deployment Model, Organization Size, End Use.
Report ID: GMI10101
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Published Date: July 2024
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Connected Logistics Market Size
Connected Logistics Market size was valued at USD 33.7 billion in 2023 and is anticipated to grow at a CAGR of over 10% between 2024 and 2032. The increasing use of Internet of Things (IoT) technology is a major driver of the market. IoT equipment, including sensors and GPS trackers, allow for real-time monitoring of the location, condition, & status of commodities along the supply chain. For instance, in October 2023, Overhaul, a software-based supply chain visibility, risk, compliance, and insurance solution for the world's leading brands introduced Shipment Connect, an application that offers customers unmatched visibility into logistics processes.
Connected Logistics Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The growth of e-commerce and the globalization of trade has increased the complexity of logistics operations, which necessitates the use of innovative technologies for effective management. There is an increasing desire for faster & more reliable product deliveries, putting pressure on organizations to improve its supply chain management procedures. Advanced analytics and AI-powered solutions are becoming increasingly important, as they offer essential insights into demand patterns, forecast potential disruptions, and optimize inventory management.
The growing demand for operational efficiency and cost reduction is another key driver of the connected logistics market. Companies face constant pressure to optimize their supply chain systems to remain competitive. AI, Machine Learning (ML), and advanced analytics are used in logistics operations to forecast demand, enhance inventory management, and optimize transport routes. This technological integration contributes to lower operational costs, faster delivery times, and higher overall productivity, ensuring data integrity and streamlining supply chain procedures.
Many businesses still use outdated software and infrastructure for its logistics operations, which may not be compatible with the new IoT, AI, or cloud-based solutions. This compatibility gap restricts the widespread adoption of connected logistics technologies, necessitating significant modification, data migration, and, in some cases, complete restructuring. Being inherently time-intensive, these connections can defer the realization of benefits such as improved visibility, efficiency gains, and cost savings, posing a barrier to connected logistics market expansion.
The large volume of data generated by these technologies, including real-time shipment data, customer information, and operational insights, creates substantial security and privacy threats unless it is appropriately protected. Concerns about data breaches, cyber-attacks, and unauthorized access can hinder firms from implementing linked logistics systems. Additionally, compliance with data protection legislation, such as General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) complicates data security management in a global setting.
Connected Logistics Market Trends
The use of AI and ML to improve decision-making and automation skills is a growing trend in the connected logistics business. AI-powered algorithms analyze large amounts of real-time data to forecast demand, optimize routes, and automate routine logistics operations. This breakthrough not only improves operating efficiency but also allows for proactive management of supply chain disturbances, resulting in increased overall agility. The increasing focus on sustainability and environmentally friendly practices is compelling the logistics providers to implement IoT-based solutions for monitoring carbon footprints, reducing energy use, and minimizing environmental effects throughout their supply chains.
For instance, in April 2024, Nokia announced the introduction of its 5G private wireless connectivity technology aimed at transforming logistics operations. By integrating this technology, Nokia aims to revolutionize warehouse and fulfillment center management with enhanced automation capabilities. This initiative promises to significantly improve operational efficiency, reduce energy consumption, and optimize asset tracking across the supply chain, marking a pivotal advancement in logistics technology.
Connected Logistics Market Analysis
Based on component, the market is divided into hardware, software, and services. The hardware segment is expected to reach a value of over USD 45 billion by 2032.
Based on end use, the connected logistics market is divided into retail & e-commerce, automotive, aerospace & defense, healthcare, energy, electronics & semiconductors, and others. The automotive segment is the fastest growing segment with a CAGR of over 15% between 2024 and 2032.
North America dominated the global connected logistics market in 2023, accounting for a share of over 35%. The region's strong presence in industries such as e-commerce, automotive, healthcare, and retail contributes to the demand for efficient logistics solutions. The growth of online shopping and the need for timely deliveries further stimulate investments in connected logistics to meet consumer expectations and optimize supply chain operations.
The U.S. plays a pivotal role in the market, characterized by its advanced technological infrastructure, extensive adoption of IoT and AI in logistics operations, and a thriving ecosystem of tech innovators and logistics providers. With a strong emphasis on efficiency, transparency, and customer satisfaction, companies based in the U.S. leverage connected logistics solutions to optimize supply chain management across diverse sectors such as e-commerce, automotive, healthcare, and retail.
China is experiencing robust growth in the connected logistics market, driven by its rapid industrialization, expansive e-commerce sector, and government initiatives promoting digital transformation. Chinese companies are increasingly adopting advanced technologies such as IoT and AI to streamline supply chain operations, enhance efficiency, and meet the growing demands of domestic and international markets.
South Korea is witnessing significant growth in the connected logistics sector, supported by its highly developed telecommunications infrastructure and strong technological capabilities. The country's focus on innovations and digitalization in logistics is driven by a competitive market environment and a robust manufacturing sector. South Korean companies are integrating IoT, big data analytics, and automation to optimize supply chain processes, reduce costs, and enhance logistics efficiency.
Japan's connected logistics market is advancing steadily, characterized by an advanced logistics industry and a strong emphasis on technological innovations. Japanese companies are leveraging IoT, AI, and robotics to improve warehouse automation, optimize transportation networks, and enhance the overall supply chain visibility and efficiency. With a focus on precision and reliability, Japanese logistics providers are investing in cutting-edge technologies to address challenges such as aging workforce demographics and increasing demand for faster and more reliable delivery services.
Connected Logistics Market Share
IBM Corporation and Cisco System Inc. hold a significant share of over 15% in the connected logistics industry. IBM's expertise in cloud computing, data analytics, and AI, coupled with Cisco's leadership in networking solutions and IoT infrastructure, enable them to offer comprehensive connected logistics solutions. Together, these companies provide integrated platforms that enhance supply chain visibility, optimize operations, and improve decision-making processes for businesses globally. This collaborative approach leverages advanced technologies to address evolving market demands, driving innovations and efficiency across logistics & supply chain management sectors.
Some of the other major players in the market are HCL Technology Limited, NEC Corporation, DHL International GmbH, FedEx Corporation, United Parcel Service (UPS), Alibaba Group, Siemens AG, and Oracle Corporation.
Connected Logistics Market Companies
Major players operating in the connected logistics industry are:
Connected Logistics Industry News
The connected logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) from 2021 to 2032, for the following segments:
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Market, By Technology
Market, By Component
Market, By Mode of Transport
Market, By Deployment Model
Market, By Organization Size
Market, By End Use
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
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Trust & credibility
Verified data sources
Trade publications
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Industry databases
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Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
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Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →