Connected Logistics Market Size (2025-2030)

The Connected Logistics Market was valued at USD 33.94 billion and is projected to reach a market size of USD 62.59 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 13.02%. 

The Connected Logistics Market is witnessing large-scale growth owing to the application of innovative technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and cloud computing across logistics activities. These technologies drive real-time visibility, operational efficacy, and supply chain transparency, allowing companies to react in a timely fashion to the needs and dislocations of markets. This growth is mostly due to the fast development of online trade and cross-border commerce, which require complex logistics solutions to cater to intricate supply chains and consumer demands for timely delivery. While there are obstacles like expensive implementation and data security issues, the trend in the market is upward, with companies embracing the importance of connected logistics in providing a competitive advantage in a fast-paced global economy.

Key Market Insights:

• Blockchain technology is also being brought into the scene to strengthen the transparency and security of supply chains. Strategic purchases like Blackstone's €1 billion buyout of European warehouse holdings highlight the increased focus on expanding logistics facilities to cater to escalating demand.
• E-commerce and international trade growth are also driving demand for integrated logistics solutions, with companies seeking ways to navigate sophisticated supply chains while fulfilling consumer expectations for rapid deliveries.
• North America is currently in the lead with approximately 36% of the world's share in 2024 because it has a well-developed infrastructure and used connected technologies earlier. Yet, the Asia-Pacific is experiencing the quickest growth, fuelled by economic development and rising e-commerce activities, especially in nations such as China and India.
• Major industry companies, such as IBM Corporation, Intel Corporation, Cisco Systems, Inc., and SAP SE, are spending aggressively on research and development to provide innovative solutions to improve logistics efficiency and transparency.

Connected Logistics Market Key Drivers:

Revolutionizing Logistics with IoT: Enhancing Connectivity, Efficiency, and Transparency:

Increased use of Internet of Things (IoT) devices has changed the face of logistics by introducing real-time monitoring and data exchange. IoT offers smooth communication among assets, ensuring enhanced operational effectiveness and supply chain transparency. With this interlinking, active decision-making is possible along with predictive maintenance, minimizing downtime and maximizing overall output.

Adoption of Artificial Intelligence (AI) and Advanced Analytics:

The use of AI and advanced analytics in logistics operations has revolutionized conventional supply chain management. These technologies allow for the analysis of large datasets to predict demand precisely, optimize inventory levels, and optimize transportation routes. Through the use of AI-based insights, businesses can lower operational expenses, improve customer satisfaction, and react quickly to market changes.

Call for Real-Time Visibility in the Supply Chain:

With the fast-moving nature of today's market, consumers and businesspeople alike require openness and real-time information about goods on the move. Interconnected logistics technologies offer stakeholders real-time information on shipment statuses, environmental parameters, and delivery times. Real-time visibility not only enhances reliability and confidence but also enables companies to respond quickly to disruptions, thus preserving the integrity of the supply chain.

Connected Logistics Market Restraints and Challenges:

The Connected Logistics Market is confronted with several challenges that can hamper its development. One major challenge is the absence of standardization in the logistics industry, which results in inefficiencies and higher operational expenses. This lack of common standards makes it challenging to integrate different technologies and processes, and thus, companies find it hard to realize seamless interoperability. Also, the exorbitant expenses involved in installing advanced connected logistics solutions are daunting, particularly for small and medium-sized businesses. These costs include not just the upfront investment in hardware and software but also recurring maintenance and training expenses. In addition, security and privacy issues related to data produced and transferred by connected logistics systems are serious challenges. Protecting sensitive information from cyber-attacks demands strong security protocols, which may be difficult and expensive to undertake. How these are overcome is important to the mass uptake and success of connected logistics solutions.

Connected Logistics Market Opportunities:

The Connected Logistics Market is ready to experience immense growth triggered by the huge growth of e-commerce and international trade, which require sophisticated logistics solutions to orchestrate intricate supply chains and accommodate consumer demands for fast deliveries. The convergence of innovative technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and blockchain increases real-time visibility, predictive analytics, and automation, making operational efficiency and visibility better. Moreover, strategic investment in infrastructure, such as represented by projects like India's Multi-Modal Logistics Parks (MMLPs), is improving supply chain connectivity and efficiency, opening new opportunities for expansion in the interconnected logistics space.

CONNECTED LOGISTICS MARKET REPORT COVERAGE:

Connected Logistics Market Segmentation:

Connected Logistics Market Segmentation By Component:

• Hardware
• Software/Solutions
• Services

In the Connected Logistics Market, the solutions segment, including software applications and platforms, is the largest at present, with a market share of 34.5% in 2024. Such solutions make use of sophisticated technologies like IoT, AI, and data analytics to streamline supply chain operations. In contrast, the services segment, including consulting, integration, and managed services, is expected to grow the quickest over the forecast period. This growth is stimulated by the heightened need for expert services that enable organizations to introduce and sustain networked logistics systems efficiently.

Connected Logistics Market Segmentation By Transportation Mode:

• Roadways
• Railways
• Airways
• Maritime/Seaways

In the Connected Logistics Market, transportation modes are categorized into roadways, railways, airways, and maritime/seaways. Of these, the roadways segment is the largest market share holder, with about 45% in 2024. This is due to the flexibility and widespread infrastructure available for road transport, which is a preferred option for most logistics operations. Further, the seaways/maritime segment is witnessing strong growth on account of rising demand for ocean freight solutions for the transportation of chilled and frozen goods in an efficient manner.

Connected Logistics Market Segmentation By Application:

• Inventory Tracking
• Optimized Warehousing
• Real-time fleet Management
• Predictive Maintenance
• Cargo Integrity Monitoring
• End-to-End Delivery Tracking
• Other Applications

In the market for Connected Logistics, inventory monitoring presently commands the biggest market, led by the necessity for real-time inventory movement and accuracy improvement. The end-to-end delivery track segment, on the other hand, is poised to grow the fastest as it ensures the effortless consolidation of supply chain processes into one friendly interface.

Connected Logistics Market Segmentation By End-Use Industry:

• Automotives
• Healthcare and Pharmaceuticals
• Oil and Gas
• Food and Beverage
• Aerospace and Defense
• Manufacturing
• Information Technology (IT) and Telecommunication
• Retail and E-Commerce
• Other Industries

The Connected Logistics Market finds application across different end-use industries, with the retail and e-commerce industry proving to be the largest and fastest-growing segment. The automotive sector also has strong growth potential, as manufacturers increasingly incorporate connected logistics to improve supply chain visibility and operations efficiency.

Connected Logistics Market Regional Analysis:

The Connected Logistics Market shows huge regional differences, where North America is the leader of the industry, holding around 36% of the world market share in 2024. This is because of the developed infrastructure and speedy integration of IoT technologies in the region. Europe comes second due to huge investments in the transport and logistics industries. The Asia-Pacific region is growing the fastest, driven by economic growth and rising e-commerce activities, especially in China and India. Latin America and the Middle East & Africa regions are also making their contributions, though smaller in size.

COVID-19 Impact Analysis on the Connected Logistics Market:

The COVID-19 pandemic heavily affected the Connected Logistics Market, causing weaknesses in supply chains around the world through lockdowns, restrictions on movement, and labor shortages. All this resulted in enormous delays and inefficiencies in goods movement, storage, and flow. To that end, businesses hastened the implementation of technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and blockchain for increasing real-time monitoring, predictive analysis, and automation, improving resilience in operations. The pandemic also led to a strategic focus on regionalization and supply chain diversification as firms attempted to de-risk dependency on single-supplier sources and geographically located manufacturing clusters. This restructuring was designed to reduce future disruptions and create stronger, more resilient logistics networks.

Recent Trends/Developments:

The Connected Logistics Market is witnessing tremendous growth fueled by technological convergence and strategic investments. The use of Internet of Things (IoT) devices and Artificial Intelligence (AI) is increasing real-time monitoring, predictive analytics, and automation in logistics operations, resulting in enhanced efficiency and operational visibility. Moreover, the use of blockchain technology is strengthening supply chain transparency and security. Additionally, the boom in cross-border trade and e-commerce is driving demand for integrated logistics solutions as companies look to serve complex supply chains and fulfill customer demands for rapid delivery. These are all trends that together add to the strong growth and development of the Connected Logistics Market.

Key Players in the Connected Logistics Market :

1. IBM Corporation
2. Intel Corporation
3. Cisco Systems, Inc.
4. SAP SE
5. Oracle Corporation
6. Honeywell International Inc
7. Kuehne + Nagel International AG
8. Deutsche Bahn AG (DB Schenker)
9. DHL Supply Chain
10. Maersk