Connected Logistics Market size is expected to grow at a CAGR of over 30% over the forecast timespan. Connected logistics helps in establishing, improving interactions between all partners involved in the logistics network by enabling hub operators to monitor inward and outward traffic. This results in more transparency and enhanced efficiency. Presence of business activities across the various regions of globe makes it mandatory for organizations to opt for advanced infrastructure. Information, which is the scarcest resource in the business world, can be efficiently and effectively used with the help of connected logistic systems to redefine production schedule and logistics. The connected logistics market tries to build the competitive benefits in world of fierce competition by addressing issues with technology and speed. It can serve as a potent tool for success in today's competitive business environment, since responsiveness to customer needs is the key determinant. An enterprise that caters instantly to the needs of the customer is the winner.
Issues such as improvement in service availability, performance, and utilization through mobile devices can be addressed by asset management software to help freight and infrastructure managers. Hence, asset management software is expected to hold the maximum connected logistics market share. Solutions powered with the use of technologies like IoT and RFID help organizations address the most crucial challenge which is ensuring product delivery in a timely manner to the customer.
Real time vehicle tracking is made easier with the advent of advanced vehicle control system and tracking system. Real time fast response to false events can be provided using security software. The software detects the unauthorized objects possessed by individuals in the transport vehicles and monitors entry points. Some key users in the connected logistics market are solution providers, communication equipment providers, government agencies and authorities, system integrators, M2M, IoT, and general telecommunications companies, managed service and middleware companies, Internet identity management, privacy, and security companies.
Internet proliferation and growing affordability of IoT services like RFID, sensors have led to high growth prospects in the connected logistics market. Big data and analytics platform are equally contributing to the rising industry growth. This is also supported by the proliferation of new technological developments like wearable devices, embedded sensors. Another major factor is various technological solutions providing common platforms like M2M communication systems, platform integration that offers convenience for SCM. The main objective to use these services for organizations will be asset management, reduction in fuel costs, fleet route optimization, better inventory management, compliance management and getting deeper insights of product usage and customer behavior. The lack of awareness about benefits and hesitation of accepting new technological developments is hampering the growth. Also, the different regional regulatory compliances and ambiguity in clear definition of sea and air borders also hampers the growth of the connected logistics market size.
Major system segments include monitoring management systems, logistics management systems, warehouse management systems and security systems. Technology systems consist of cellular, Wi-Fi, Satellite, ZigBee and NFC. Key devices include gateways, sensor nodes and RFID tags. Service based contributing to connected logistics market size include 3PL services, professional services and system integration. Railways, airways, roadways, and seaways are classified under transportation modes. The segment leading the connected logistics market is software services having the highest share and is expected to continue the dominance. The main reason behind this is growth of cloud solutions which are offered to service providers by vendors across the globe. Retail, pharmaceutical, and healthcare sectors are expected to gain maximum benefits from connected logistics solutions. Retail will be one of the sectors showing highest CAGR. Retail sector has used the connected logistics solutions to address enterprise demands. The quality of shopping experience will be enhanced using IoT solutions while improving available technology, economic structure, and environmental change in the interest of the retail industry.
U.S. connected logistics market share was the leading regional segment in 2015. The APAC also consists of the world’s largest consumer market which facilitates the flow of goods and less regulatory burdens. Hence the local players are also adopting new technologies to provide better solutions. This marks the shift of logistics from conventional infrastructure to modern methods.
Some of the players are IBM, AT&T Inc., Eurotech S.P.A, ORBCOMM, Infosys, Cisco Systems, Intel Corporation, Zebra Technologies, SAP, SecureRE, GT Nexus. Major players in the market are expanding by acquiring new companies to maintain presence in the growing competitive environment. The connected logistics market share is also witnessing the collaborations of major players to provide better technological solutions.