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Connected Logistics Market to Reach $17.5B by 2026, Driven by IoT and M2M Adoption

Strategic Insights

— 2 min read

The Connected Logistics Market is expected to register a compound annual growth rate (CAGR) of 17.5% during the forecast period (2021 - 2026), driven by the increasing adoption of Internet of Things (IoT) and Machine-to-Machine (M2M) technologies. Connected Logistics help businesses become more customer-centric and efficient by increasing transparency in the business process. Companies such as Bosch, Cisco, and IBM are already investing in Connected Logistics to improve their operations and customer experience.

Key Takeaways:

  • The Global Connected Logistics Market is expected to reach $17.5B by 2026, with the Asia-Pacific region exhibiting maximum growth due to the increasing adoption of IoT and M2M technologies in countries like China and India.
  • The market is driven by the increasing use of IoT and future technologies in various industries, with CISCO predicting that global internet traffic from non-PC devices will be 71% of total IP traffic in 2020.
  • Machine-To-Machine (M2M) connections are expected to be half of the total connected devices and connections in the world by 2023, with 14.7 billion M2M connections expected by 2023.
  • The use of asset tracking solutions has been shown to increase productivity by 53% and compliance by 52%, with Verizon surveying fleet managers and finding that over one-third of them would expect an increase in productivity if they implemented fleet tracking solutions.
  • Walmart is using IoT, machine learning, and Big Data to transform its retail operations and improve its customer experience in more than one way, including using RFID tags to track inventories.
  • The Asia-Pacific region is expected to show robust growth in terms of revenue in the forecast period, significantly in the developing economies like India and China.
  • Developed economies like the US, UK, Japan, Germany, and France, will also see growth in their E-commerce market, with China's online retail sales reaching USD 1.33 trillion in 2018 and projected to reach USD 1.99 trillion by 2019.
  • Singapore has begun transforming logistics to reinforce its place in APAC's logistics industry by integrating the technologies with the existing processes, under its USD 4.5 billion Industry Transformation Programme.

Statistics:

  • The Global Connected Logistics Market is expected to register a CAGR of 17.5% during the forecast period (2021 - 2026).
  • 14.7 billion M2M connections are expected by 2023.
  • The use of asset tracking solutions has been shown to increase productivity by 53% and compliance by 52%.
  • Walmart is using IoT, machine learning, and Big Data to transform its retail operations and improve its customer experience.
  • China's online retail sales reached USD 1.33 trillion in 2018 and are projected to reach USD 1.99 trillion by 2019.
  • The number of digital buyers in China surpassed 560 million in 2018 and is projected to reach 634 million in 2020.

Sources:

  • ResearchAndMarkets.com's report, "Connected Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)"
  • CISCO's report on global internet traffic from non-PC devices
  • Verizon's survey on fleet tracking solutions
  • Dezan Shira & Associates' report on China's online retail sales
  • Singapore government's Industry Transformation Programme

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