Logistics Saas Market Size (2023 – 2030)

The size of the logistics services software market is projected to grow by USD $ 2.92 billion in 2022 to USD $ 6.26 billion in 2030, with a CAGR of 10%, and has the largest market share. Logistics service software is a computer program that enables the integration of material handling, shipping, inventory, packaging, and security in relation to supply chain processes. Logistics service software helps companies run their production cycles smoothly and manages the assembly of elements that go into the production process, such as arranging the delivery of raw materials to ship the final product to consumers. Logistic service software is primarily used in supply chain management to increase profit margins, save time and give enterprises a competitive advantage in the market. Logistics service software enables enterprises to automate the management of transportation-related data so that they can analyze the data and make informed decisions based on the analysis.

Covid -19 Impact on the Market

Most companies employ telecommuting modules during pandemics. Companies are reducing their investment in new technologies and services to manage their profitability. Most SMEs have shut down their business processes due to lack of funds to compete in the market. Business process demand in the global logistics services software market is expected to decline during the COVID 19 blockade, but increase after the pandemic.

Market Drivers

• Logistics service software is used by many companies to update and develop more productive business models that enable processes that improve delivery, procurement, returns, and supply chain performance. Logistic service software is used to speed up the delivery of essentials and helps reduce delivery times and production cycles by helping you choose the most effective delivery service.

• Logistic service software helps you calculate the complex numbers needed to analyze transportation data. Not only is this annoying, but it is often vulnerable to human error, which often costs the company a lot. Logistics service software is a supply chain coordination and core integration that provides an effective analysis breakdown of customer satisfaction and automated logistics operations to create better business opportunities for solution providers.

Logistics SaaS Market- Segmentation Analysis

• Based on the deployment, the market will be divided into on-premises and cloud-based. Logistics and supply chain software solutions designed to maximize corporate freight transportation are called SaaS clouds. The program runs locally on the company's local server and the IT team is solely responsible for managing the system. Organizations are moving to on-premises with increased user and resource mobility, continued migration of applications to the cloud, and the introduction of more sophisticated threats. Companies such as industry healthcare, BFSI, and government that prioritize compliance, security, and user experience are using on-premises deployment strategies. Major cloud providers are focused on expanding their hybrid cloud presence. For example, in July 2021, IBM acquired the Blue tab Solutions Group (Spain) to expand its data and on-premises cloud consulting market while strengthening its regional presence in Latin America and Europe.

• Based on this solution, the market is divided into warehouse management, asset management, network management, network management, and data management.  During the forecast period, data management and analytics solutions are expected to have a larger market share in the solutions sector. Data management software allows IoT devices to collect large amounts of data and derive insights from it, increasing industry efficiency.

Market Segmentation:

Logistics Saas Market segmentation By Deployment

• on-premises
• cloud-based

Logistics Saas Market segmentation By Solution

• warehouse management
• asset management
• network management
• data management.

Regional Analysis

The logistics software market is being researched in various regions, including North America, Asia Pacific, Europe and other regions. The Asia Pacific region has the largest share of the logistics software market due to the growing demand for high-end technologies and the region's fast-growing electronics industry. China, India and Japan are the countries that contribute most to the growth of the market. During the forecast period, rapid industrialization and digitization will support market expansion in the Asia Pacific region. As for the European logistics SaaS market, Germany will reach US $ 1 million by 2030 and a CAGR of 2023 - 2030 is estimated. Growth in the healthcare and IT sectors in North America has contributed to the growing demand for logistics software in the region. It will accelerate the growth of the logistics SaaS market in the region soon to reach its full potential.

Recent Developments

• ORBCOMM Inc, a global provider of Internet of Things (IoT) solutions, announced the launch of its next-generation analytics and reporting platform in July 2020, which includes enhanced features such as advanced data insights and a dynamic user interface, giving customers a single, unified view of all their transportation asset types with a single sign-on

• IBM unveiled the IBM Sterling Inventory Control Tower in June 2020 to assist businesses better manage inventory and establish robust supply chains. The AI-enabled IBM Sterling Inventory Control Tower helps organizations see, forecast, and more effectively act on inventory to better foresee disruptions, improve resiliency, manage exceptions, and respond to unplanned events.

• Intel and Smart Navigation Systems joined in May 2020 to deliver Intel Connected Logistic Platform to assist them develop smart solutions for a variety of sectors and use cases, including warehouse management, freight management, logistics, and supply chain management.