Connected Logistics Market By Product Type (Tracking and Monitoring, Warehouse Management Systems (WMS), Fleet Management, Transportation Management Systems (TMS)), By End-User Industry (Automotive, Retail, Food & Beverage, Healthcare, Industrial, Logistics Service Providers), By Technology (Internet of Things (IoT), Artificial Intelligence (AI), Blockchain, Cloud Computing, Big Data Analytics), and By Mode of Deployment (On-Premise, Cloud-Based); Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Connected Logistics Market was valued at USD 25.9 Billion in 2024-e and will surpass USD 71.8 Billion by 2030; growing at a CAGR of 18.5% during 2025-2030.

The connected logistics market is experiencing significant growth, driven by the increasing need for efficient supply chain management and the growing demand for real-time data across industries. This market leverages various advanced technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and Cloud Computing to create an integrated ecosystem that enables businesses to track, manage, and optimize their logistics operations. As industries increasingly prioritize efficiency, cost reduction, and data-driven decision-making, connected logistics is rapidly becoming a key element in modern supply chains.

Tracking and Monitoring Segment is Largest Owing to Increasing Demand for Real-Time Data

The tracking and monitoring segment holds the largest share in the connected logistics market due to its crucial role in providing visibility and transparency across the supply chain. Real-time tracking of goods, vehicles, and shipments has become a necessity for businesses aiming to enhance efficiency, reduce delays, and improve customer service. This subsegment helps businesses monitor the location, condition, and status of products throughout their journey from origin to destination. Technologies like GPS, RFID, and IoT sensors play a significant role in enabling continuous monitoring, ensuring timely deliveries, and minimizing potential risks such as theft or damage. The rise in e-commerce and consumer demand for faster deliveries further contributes to the expansion of this segment.

Tracking and monitoring are also essential in preventing bottlenecks in logistics operations and improving inventory management. With the integration of IoT, businesses can capture real-time data that not only facilitates immediate decision-making but also allows predictive maintenance of assets, improving the overall efficiency of logistics networks. As logistics services grow increasingly sophisticated, the demand for tracking and monitoring solutions will continue to rise, cementing its dominance in the market.

Artificial Intelligence (AI) Technology is Fastest Growing Owing to Enhanced Operational Efficiency

Artificial Intelligence (AI) is the fastest-growing technology segment in the connected logistics market, revolutionizing how logistics operations are managed. AI-driven systems allow businesses to automate decision-making processes, predict trends, optimize supply chain routes, and forecast demand with higher accuracy. AI enhances inventory management by analyzing patterns and providing insights into stock levels, while also improving predictive maintenance of vehicles and machinery. Additionally, AI-powered tools enable advanced analytics that can further optimize transportation routes, reducing fuel consumption and delivery times.

AI's ability to process vast amounts of data at speed and offer actionable insights is driving its adoption in industries like automotive, retail, and healthcare, which are increasingly integrating AI into their logistics operations to achieve higher levels of efficiency. The growing reliance on AI for route optimization, inventory management, and demand forecasting is expected to further accelerate the growth of AI in connected logistics, making it a critical component for future supply chains.

Automotive End-User Industry is Largest Owing to Increased Demand for Connected Vehicles

The automotive industry stands as the largest end-user segment in the connected logistics market, owing to the rising adoption of connected vehicles and the critical need for seamless supply chain operations. Automotive manufacturers rely on connected logistics solutions to streamline their manufacturing processes, reduce production delays, and enhance vehicle tracking and delivery. The integration of IoT and AI within automotive supply chains enables real-time tracking of parts and components, improving assembly line efficiency and minimizing downtime. The rise of electric vehicles (EVs) and autonomous vehicles further underscores the demand for connected logistics to manage the distribution of these new vehicle types and their parts effectively.

Automotive companies are leveraging cloud-based systems to collaborate with suppliers and logistics service providers, ensuring timely deliveries and inventory accuracy. The industry's demand for more efficient, real-time monitoring systems ensures the automotive sector remains at the forefront of adopting connected logistics solutions. As consumer expectations for faster and more reliable deliveries of vehicle parts and finished products increase, the automotive industry's reliance on connected logistics will continue to grow.

Cloud-Based Deployment Mode is Fastest Growing Owing to Scalability and Flexibility

Cloud-based deployment is the fastest-growing mode in the connected logistics market due to its scalability, cost-effectiveness, and flexibility. Cloud-based solutions allow businesses to store and access large volumes of data remotely, providing real-time insights into logistics operations across multiple locations. This deployment mode eliminates the need for expensive on-premise infrastructure, reduces operational costs, and supports collaboration across the supply chain. The ability to scale operations up or down based on demand further contributes to the growing adoption of cloud solutions.

Cloud-based logistics platforms also offer businesses the ability to integrate with other technologies such as AI, IoT, and blockchain, creating a unified ecosystem that facilitates efficient decision-making. As more logistics providers and businesses transition to cloud-based platforms, the market for cloud deployment continues to expand rapidly. Cloud computing's ability to enable end-to-end visibility, real-time tracking, and remote access to critical information makes it an attractive option for businesses seeking to stay competitive in the digital age.

North America Region is Largest Owing to High Technological Adoption

North America is the largest region in the connected logistics market, driven by the high adoption rate of advanced technologies and the presence of leading logistics providers and tech companies. The region's robust infrastructure, coupled with the increasing demand for real-time data and automated solutions, contributes significantly to its dominance. The U.S. and Canada have seen substantial investments in IoT, AI, and cloud computing, which are key enablers of connected logistics.

North America is home to numerous companies leveraging connected logistics to enhance supply chain management, including major players in retail, automotive, and healthcare. The demand for more efficient logistics solutions to meet consumer expectations for faster delivery times continues to fuel the region’s growth. With continuous technological advancements and high investment in logistics infrastructure, North America is expected to maintain its leadership in the connected logistics market.

Leading Companies and Competitive Landscape

The competitive landscape of the connected logistics market is shaped by a mix of technology giants, logistics service providers, and specialized solution providers. Major players include Cisco Systems, SAP, IBM, Oracle, and Microsoft, all of whom offer cloud-based and AI-powered solutions to streamline logistics operations. Additionally, logistics companies like DHL and FedEx are embracing connected technologies to improve delivery efficiency and reduce costs.

Competition is intense, with companies striving to integrate next-gen technologies such as IoT, AI, and blockchain to gain a competitive edge. Cloud-based logistics platforms and AI-powered analytics are becoming key differentiators in the market, with firms focusing on innovation to meet the increasing demand for automation and real-time tracking. As the market continues to evolve, the integration of AI, IoT, and cloud technologies will remain central to the strategies of leading companies.

List of Leading Companies:

• Cisco Systems, Inc.
• SAP SE
• Oracle Corporation
• IBM Corporation
• JDA Software Group, Inc.
• Honeywell International, Inc.
• Zebra Technologies Corporation
• Microsoft Corporation
• Intel Corporation
• Siemens AG
• GE Transportation (GE Aviation)
• AT&T Inc.
• Trimble Inc.
• DHL International GmbH
• Logitech Inc.

Recent Developments:

• DHL has teamed up with IBM to integrate blockchain and AI technologies into its logistics solutions, enhancing transparency and efficiency across the supply chain.
• SAP has launched new cloud-based solutions for connected logistics, improving data flow and providing real-time visibility to optimize warehouse and transportation management.
• Honeywell announced the expansion of its IoT-based fleet management system, providing businesses with real-time insights into vehicle location, performance, and condition.
• Microsoft has partnered with leading logistics firms to enhance cloud-powered analytics and AI solutions, improving visibility and decision-making for retailers in logistics.
• AT&T has partnered with Trimble to offer advanced IoT and cloud-based solutions to streamline logistics operations, focusing on real-time tracking and data sharing for businesses.

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