Rapid Growth in the E-Commerce Industry to Drive the Global Connected Logistics Market

Published: Dec 2019

The global connected logistics market is estimated to grow at a CAGR of over 28% during the forecast period owing to rapid urbanization and internet penetration, which is positively influencing the global connected logistics industry. As per the US Census Bureau, the retail e-commerce sales in the US for the third quarter of 2019 was valued $145.7 billion, a rise of 4.4% from the second quarter of 2019. The e-commerce sales in the third quarter of 2019 accounted for 10.5% of total retail sales. Likewise, in India, as per the India Brand Equity Foundation (IBEF), the e-commerce market in India is expected to reach $200 billion by 2027 from $38.5 billion in 2017. 

Browse the full report description Connected Logistics Market Size, Share & Trends Analysis Report, By Solution (Asset Tracking & Management, Data Management, Network Management, Security and Others), By End-Use Industry (Food & Beverage, Healthcare, Retail, Manufacturing, Oil & Gas, and Others), By Mode (Roadway, Waterway, Railway and Airway) and Forecast 2019-2025 at https://www.omrglobal.com/industry-reports/connected-logistics-market

The major e-commerce companies include Amazon, Inc., Alibaba Group Holding Ltd., and eBay Inc. These companies are significantly focusing on expanding its transportation and warehousing capabilities across the countries, including the US, India, and China. This, in turn, contributes to the increasing demand for IoT-enabled solutions in the e-commerce industry. Transportation services play a vital role in e-commerce logistics. The e-commerce companies distribute their products to the customers by their network or taking the support of outsourcing companies such as DHL Express and BlueDart Express. These companies are using several initiatives to attract a large number of e-commerce companies.

For instance, in May 2018, DHL Group introduced DHL SmarTrucking for innovative road transportation across India. The launch of this solution is aimed at leveraging the development of technology-led logistics solutions across the country. With this solution, the company supposed to transport 100,000 tons of cargo and cover a distance of approximately 4 million kilometers across the country every day. For optimization of routes, it encourages IoT technology and data-driven insights. The technology decreases transit times by up to 50% rather than the conventional trucking industry. It can offer more than 90% reliability with ease of use, real-time tracking, end-to-end visibility of consignment, and temperature-controlled capabilities. 

IoT sensors monitored through the centralized control tower of the company can offer real-time consignment and temperature tracking. Status updates and information alerts are also sent to DHL SmarTrucking’s operations teams and customers through the internal and external mobile applications and customer portal. As a result, this growing focus on the integration of smart solutions by logistics companies tends to drive the global connected logistics market. 

Further, in October 2019, JD.com, China’s one of the largest online retailer launched China’s first 5G-driven smart logistics park in Beijing, China. Along with its Industrial IoT strategy, the park will implement 5G networks at its warehouse in Beijing, China. The monitoring system in the facility allows to detect and examine any problems happening in the warehouse in real-time. It will allow real-time monitoring of routes and location for pallets and forklifts and offer preemptive alerts when something abnormal occurs.

For instance, it will support to offer abnormal driving route alerts and wrong parking location alerts for the forklifts to ensure safety and efficiency. As compared to manual monitoring, mass pallet monitoring will significantly enhance the improvement in operational efficiency. By smart parking, the 5G system would significantly increase the operational efficiency in the facility. The technology will guide incoming vehicles to the highly suitable parking space or docking bay, and digital docking bay that can perform real-time monitoring of the truck loading and unloading goods. As the e-commerce companies are expanding their warehouse capabilities, the demand for IoT-enabled solutions is expected to grow significantly, which in turn, is driving the global connected logistics market.

Connected Logistics Market Segmentation

By Solution

  • Asset Tracking & Management
  • Data Management
  • Network Management
  • Security
  • Others (Streaming Analytics)

 By End-Use Industry

  • Food & Beverage
  • Healthcare
  • Retail
  • Manufacturing
  • Oil & Gas
  • Others (Chemical) 

By Mode 

  • Roadway
  • Waterway
  • Railway
  • Airway

Connected Logistics Market – Segment by Region 

North America

  • US
  • Canada

Europe

  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe

Asia-Pacific

  • China
  • Japan
  • India
  • Rest of Asia-Pacific

Rest of the World

  • Latin America
  • Middle East & Africa

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