Connected logistics system is a support service that provides material handling and transport for the superior, more significant, and value creating manufacturing process using advanced technologies. Connected logistic provides various benefits to logistic businesses by providing improved operational efficiency, real-time access, and improved productivity through integration of multiple connected platforms such as IoT, cloud computing, and smart devices. There are various communication technologies that are used to improve logistical support systems such as Bluetooth and Wi-Fi. Connected logistics is acceptable and an important business strategy, as it is more sophisticated, more automatic, more adaptive, and an intelligent system.
Factors Driving Growth of the Global Connected Logistics Market
Major factors driving growth of the global connected logistics market include increasing adoption of IoT across various industries, decreasing cost of communication devices, and increasing demand for logistic operational efficiency. For instance, according to a report by Pew Research Centre, 49% of the world’s population is connected online and an estimated 8.4 billion IoT are in use worldwide as of 2018. Increasing adoption of smart devices globally, including smartphones and growing adoption of cloud computing is also impacting the growth of the global connected logistics market. For instance, according to the report by Associated Press Organization, the world’s mobile phone user base was around 4.43 billion, which implies that around 61% of the world’s population used a mobile handset in 2015 and this number is projected to increase over the forecast period. Increasing adoption of advanced technology in connected logistics industry helps provide smarter and better communication devices. Additionally, easy availability and low cost of these devices is responsible for the low costs of connected logistics. Integration of on-time and real-time tracking technology in connected logistics is increasing, further boosting market growth. Moreover, connected logistics provides transparency control and service integrity, which in turn is increasing its demand, thus fueling growth of the connected logistics market.
A safe and sufficient supply chain is necessary for the smooth functioning of any sector. The growth of this market is majorly driven by the rising adoption of connected logistics in the healthcare sector. For instance, according to report by Cloud Standard Customer Council, 11-17% growth in demand for connected logistics in the healthcare sector was recorded between 2014 and 2025 in the U.S. Additionally, it is imperative for hospital employees to provide best possible treatment to patients, which in turn, is aided by connected logistics. This logistics helps to redefine the patient-caregiver relationship and simplify the treatment from diagnosis to cure by using the Internet of Things. Moreover just-in-time logistics is the emerging trend of connected logistics, which provides fast treatment for patients as well as allows healthcare personnel to fully focus on the task at hand with convenience.
Connected logistic also helps in operational productivity and ensures faster and safer delivery. At present, cloud technology is used widely amongst all the businesses, which provides logistical businesses affordable solutions. This has increased the adoption of the cloud-based solutions in the connected logistics market. According to report by ITA (International Trade administration), businesses will spend around US$ 191 billion on cloud services by 2020, as compared to US$ 72 billion in 2014. The increased adoption of intelligent transportation solutions is expected to drive the connected logistics market growth. Connected logistics is especially required for the transportation of goods, which are delicate and would require special monitoring during transportation. Connected logistics manage the products even under changing climatic conditions. It is majorly used in effective management of temperature-sensitive products. Additionally, growing adoption of Internet of Things (IoT) enables connected logistics services to create high volumes of data and a variety of information, which can be stored and analyzed with the highest level of accuracy. IoT technologies helps in detection and control of faults.
Regional Analysis of Connected Logistic Market
On the basis of geography, the global dehumidifier market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. North America is expected to hold the largest market share owing to high investments in the research and development of connected Logistic in the region. Countries in North America such as U.S., Canada, and Mexico shows significant growth opportunities, due to their strong financial position. Europe is expected to be the second-largest contributor in the connected logistics market, as the healthcare sector in Europe is extensively adopting connected logistics. Asia Pacific is expected to show maximum growth in the connected logistic market during the forecast period, owing to increasing consumer awareness regarding advanced technology and their benefits.
Key players in the Global Connected Logistic Market
Some key users in the connected logistics market are communication equipment providers, government agencies & authorities, IoT and general telecommunications companies, and privacy and security companies. Major players operating in the global connected logistics market include AT&T Inc., IBM Corporation, Intel Corporation, SAP SE, Infosys Limited, Cisco Systems Inc., HCL Technologies Limited, Eurotech S.P.A., Microsoft, oracle, Cloud Logistics, Zebra technologies, ORBCOMM, and GT Nexus.
Segmentation of Connected Logistic Market
The global connected logistic market size is segmented on the basis of technology, device, transportation, industrial vertical, service, and region