Logistics plays a crucial role in the supply chain management and business handling for a company. Changing dynamics and requirements of the industry players are creating demand for innovative solutions. Digital logistics provide profitability and competitive advantage to the companies with dramatically lowering the costs, improving supply chain, enhancing efficiency and provide customer centric solutions. As a result, enterprises from around the world are adopting these solutions to gain competitive edge in the industry. Innovative applications, rapid rate of adoption and advancing capacities of the existing solutions are some of the major factors contributing to the growth of the overall digital logistics market. These are considered to be vital factors driving the development of the key players from around the world.
Key Driving Factors & Restraints
The global digital logistics market is driven by several vital factors, which include immense cut down in the cost and time by the logistics and competitive edge. Strong rate of adoption is considered to be a major driving factor for the global market. Emergence of digital technology and growing use of innovative applications are also expected to be the major drivers for the industry in the years to come. Improve service quality and transfer of high volume of data is some of the features that make digital logistic services highly effective for the overall industry. Major restraining factors for the market include issues with security, reliability and privacy and lack of proper ICT infrastructure around the world. Expensive data communication and system scalability are also expected to be key challenges for the market.
Researchers segment the digital logistics market on the basis of the vital components like systems, services and applications and their demand across different industrial verticals and geographic regions. Following are the sub-segments in the industry:
- Systems: Information integrated tracking, monitoring, database management, electronic data intelligence, order management, fleet management, etc.
- Applications: Labor management, warehouse management and transportation management
- Services: System integration services, consulting services and other services
- Industries: Government, defense, aerospace, telecom & IT, automotive, oil & gas, chemical, retail, life sciences, healthcare, manufacturing, engineering, industrial and others
- Geography: Middle East & Africa, North America, Latin America, Asia Pacific and Europe
Growth Prospects & Forecasts
According to the experts, the digital logistics market is expected to witness healthy growth from 2014 to 2019. At an estimated CAGR of over 8%, the industry is projected to become worth more than $12.96 billion by the end of 2019, which is currently estimated to be worth $8.78 billion. retail segment is expected to dominate the global market. In terms of geographic regions, Europe is projected to be the largest market on the basis of growth.