Global Digital Logistics Market (2020 to 2025) - Growth, Trends and Forecasts - ResearchAndMarkets.com

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The "Digital Logistics Market - Growth, Trends and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.

The digital logistics market is expected to grow at a CAGR of 8.2% owing to the increasing adoption of advanced technologies as a constant effort to reducing allied costs during the forecast period of 2020 to 2025.

Companies Mentioned

  • IBM Corporation

  • Advantech Corporation

  • Oracle Corporation

  • Samsung Electronics Co. Ltd (Samsung SDS)

  • DigiLogistics Technology Ltd

  • Hexaware Technologies Limited

  • Tech Mahindra Limited

  • JDA Software Pvt Ltd

  • UTI Worldwide Inc. (DSV Group)

  • SAP SE

  • Manhattan Associates Inc.

  • HighJump Software Inc. (Korber AG)

  • Vinculum Group

Key Market Trends

Trucking-as-a-service to Drive the Market Growth

The reliance on truck OEMs on loT-based gadgets has fueled the management of trucking operations such as optimal asset utilization, public transit management, fleet management, and smart inventory management, to name a few. This has also led to a considerable shift in the vehicle acquisition and service model, globally.

  • TaaS has been leading the supply chain operators to access trucks on-demand, wherein the truck will need significant telematics and support services to ensure tracking, mapping, management, and optimization of routes. This led to the emergence of multiple new formats for the stakeholders to capitalize on.

  • Trucking OEMs such as Volvo and Daimler have been keen on offering subscription-based models to haulage operations by leveraging digital services. LoadSmart has customized launch of a digital platform for contracted freight carriers to match Daimler's spot loads. This looks at a take on developing the digital freight brokerage services as a TaaS model by Daimler.

  • As of October 2019, Volkswagen AG announced transitioning from a hardware supplier to being a provider of software and services. Also, by the end of 2024, over EUR 1 billion in R&D expenditure is expected to be incurred. Digitalization and connected vehicles also would enable the TRATON Group brands' service business to launch offerings and business models for the company's vehicles.

  • Also, back in April 2019, Amazon, an e-commerce operator, has been capitalizing on newly developed digital freight brokerage websites to offer third party logistic and freight delivery at less than 30% of the market rate.

Latin America is Expected to Hold Significant Market Share

Latin America is one of the leading digital logistics markets, mainly due to the growing regional e-commerce sector and rising adoption of digital services among the regional transportation and logistics industry.

  • Brazil recorded one of the highest logistics expenses in the world. Approximately 30% of the distribution cost structure represents the total logistics costs. The growing e-commerce industry is driving the demand for advanced and time-efficient logistic services. In 2017, the sales of e-commerce accounted for 5% (USD 300 billion) of the Brazilian retail market share. However, this proportion is increasing rapidly due to growing digital penetration.

  • In 2018, Amazon acquired a 50,000-square-meter warehouse for lease in Brazil, as the company is planning to expand its presence in the region. Though the country's logistics market faces many problems, with the increasing need for cost-effective methods, digital logistic solutions can be expected to witness demand from this sector.

  • In Argentina, with growing cloud adoption, the country's trucking market is providing growth avenues for digital logistic vendors, as digital services are helping regional logistics companies in gaining competitive advantage. The country's truck industry is worth USD 120 billion. Furthermore, with trucks that make over 150 million trips annually, the industry has a vast scope for digital logistics solutions.

Key Topics Covered:

1 INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS

4.1 Market Overview

4.2 Industry Attractiveness - Porter's Five Force Analysis

4.3 Assessment of COVID-19 Impact on the Industry

4.4 Trucking-as-a-service Analysis (Evolving Market Landscape - Truck OEMs vs Technology Providers, End-user Adoption - Retail & 3PL, Investment Analysis)

4.5 Technology Landscape

5 MARKET DYNAMICS

5.1 Market Drivers

5.1.1 Growth in the E-Commerce Industry and Emergence of Multi channel Distribution Networks

5.2 Market Challenges

5.2.1 Market Fragmentation, Legacy Systems and Low Visibility

6 MARKET SEGMENTATION

6.1 By Type

6.1.1 Software

6.1.2 Services (Consultation, Application Development and Integration Services)

6.2 By Application

6.2.1 Warehouse Management

6.2.2 Transportation Management

6.3 By End-user Vertical

6.3.1 Automotive

6.3.2 Pharmaceutical / Life Sciences

6.3.3 Retail

6.3.4 Food and Beverage

6.3.5 Oil and Gas

6.3.6 Other End-user Verticals

6.4 Geography

6.4.1 North America

6.4.2 Europe

6.4.3 Asia Pacific

6.4.4 Latin America

6.4.5 Middle East & Africa

7 COMPETITIVE LANDSCAPE

7.1 Company Profiles

8 INVESTMENT ANALYSIS

9 FUTURE OF THE MARKET

For more information about this report visit https://www.researchandmarkets.com/r/mh3w88

View source version on businesswire.com: https://www.businesswire.com/news/home/20201204005249/en/

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