Connected logistics market to grow 32.7% by 2021

Published: Wednesday, March 8, 2017

The connected logistics market size is estimated to grow from $10.04 billion in 2016 to $41.30 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 32.7%. The growth is attributed to the increasing adoption of connected/smart devices by consumers across the globe, which is increasing the demand for better network connectivity.

The growing number of internet users, the presence of emerging economies and increasing infrastructure needs are driving the growth of the market in APAC. Increasing spending in technology is contributing to the growth of the connected logistics market in North America and Europe.

However, lack of uniform standards in organizational bodies is restraining the growth of the logistics and transportation vertical.

Retail is expected to grow at the highest CAGR in the vertical segment during the forecast period. This vertical has witnessed significant growth over the years with improvements made in the logistics management solution that helps in addressing enterprise demands.

The IoT solutions will enhance the quality of shopping experience while improving available technology, economic structure, and environmental change in the interest of the retail industry.

As per the geographic analysis, North America is expected to have the largest market share. It is likely to benefit from its technological advancements and followed by robust internet infrastructure.

APAC is expected to be the fastest-growing region between 2016 and 2021in the global connected logistics market. With a huge investment in the sector, companies are facilitating the flow of goods with a highly skilled workforce and low regulatory burdens, as the region consists of the world’s largest consumer market.

Hence, the adoption of new technologies and the presence of a strong domestic solution provider have contributed to the shift towards automated logistics and transportation infrastructure from conventional infrastructure. The market expected to grow at a significant pace in the coming years.