According to the latest market research study released by Technavio, the global connected logistics market is expected to grow at a CAGR of around 30% during the forecast period 2016-2020.
This market research report by Technavio provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report also includes an up-to-date analysis and forecasts for various market segments and all geographical regions.
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Technavio research analysts categorize the global connected logistics market based on technology and services:
Global connected logistics market share by technology and services 2015
|
Software services |
37.41% |
|
IT services |
32.73% |
|
Hardware devices |
29.86% |
Source: Technavio
The top three revenue contributing technology and service segments are discussed below:
Global connected logistics market by software services
In 2015, software services segment held the maximum share of around 37% in the global connected logistics market and is expected to continue to hold the highest share during the forecast period, growing at a CAGR of around 30% by 2020. This segment includes on-premise and cloud-based software services that are used to meet the requirements of connected logistics. Software solutions offered by the vendors in the market can be integrated with ERP systems and other application and system software installed in connected logistics facilities.
“Software vendors in the market such as SAP and Oracle offer connected logistics solutions for database management systems and IT security. The advent of the cloud computing model has compelled the vendors to offer cloud-based connected logistics solutions to attract logistics service providers that seek low-cost and flexible information technology solutions,” says Sharan Raj, a lead analyst at Technavio for research on logistics.
The growth rate of the cloud computing software services market is higher than that of the on-premise software services market. The global connected logistics market by software services was valued at around $2 billion in 2015, and Technavio expects it to reach over $8 billion by the end of 2020.
Global connected logistics market by IT services
The IT services segment is expected to post a CAGR of around 33% during the forecast period and will be the fastest-growing segment in the global connected logistics market. The IT service market is driven majorly by system integration services and IT support and maintenance services. Consultation services, system integration services, IT support and maintenance services, and application management services are used widely in the connected logistics market. The system integration services help enterprises to assimilate their existing IT systems with new IT systems to promote seamless data and information exchange. Consulting services are coupled with IT planning to enhance the performance of the technologies deployed in connected logistic services. Application management services manage the enterprise application on mobile devices for the remote tracking system. Finally, IT support services manage the end-to-end IT systems used throughout the supply chain. The leading IT service vendors such as TCS, Accenture, Tech Mahindra, and Infosys are providing logistics services to improve supply chain performance. The introduction of new IT paradigms (such as IoT) has also increased the need for the integration of disconnected systems for information sharing.
Global connected logistics market by hardware devices
Connected logistics systems require hardware such as tracking and monitoring devices. The hardware segment includes sensors, smart connected devices, radio frequency identification (RFID), communication and networking devices such as routers, switches, vehicle telematics, biometric devices, fleet management devices, wireless communication devices, and other hardware devices used to set up connected logistics. Communication systems, vehicle tracking, supply chain monitoring systems, and IT security are the four pillars of the connected logistics systems. Advanced communication systems embedded with sensor devices, RFID, and powered by IoT are helping enterprises to move up the value chain. The use of M2M communication systems and IoT technology are the primary forces behind the increase in hardware spending in the connected logistics market. Globally, hardware spending in supply chain solutions is declining, mainly due to the advent of cloud computing and virtualization solutions. However, the growing shipments of RFID, sensors, smart connected devices, and vehicle telematics systems are contributing significantly to increase spending on hardware in the connected logistics market.
The top leading vendors operating in the global connected logistics market are:
- Accenture
- AT&T
- Cisco
- SAP
- Oracle
Other prominent vendors in the market include Alcatel-Lucent, Amazon Web Services, BT9, Gemalto, Huawei Technologies, IBM, Infosys, Intel, Microsoft, ORBCOMM, PTC, Qualcomm, Samsung Electronics, Siemens, TCS, and Vitria.
A more detailed analysis is available in the Technavio report titled, ‘Global Connected Logistics Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
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- Global Automotive Spare Parts Logistics Market 2016-2020
- Global Military Infrastructure and Logistics Market 2016-2020
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