Market Overview:
The connected logistics market is experiencing rapid growth, driven by exponential rise of e-commerce and global trade, government focus on supply chain digitization and infrastructure, and advancements in IoT, 5g, and cloud computing. According to IMARC Group's latest research publication, "Connected Logistics Market Size, Share, Trends and Forecast by Component, Software, Technology, Devices, Transportation Mode, End Use Industry, and Region, 2026-2034", offers a comprehensive analysis of the industry, which comprises insights on the global connected logistics market share. The global market size was valued at USD 45.9 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 150.4 Billion by 2034, exhibiting a CAGR of 14.10% from 2026-2034.
This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.
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Our report includes:
- Market Dynamics
- Market Trends And Market Outlook
- Competitive Analysis
- Industry Segmentation
- Strategic Recommendations
Growth Factors in the Connected Logistics Market
- Exponential Rise of E-commerce and Global Trade
The relentless expansion of e-commerce and the increasing globalization of supply chains are primary growth drivers for connected logistics. As consumers demand faster, more transparent delivery across borders, businesses require sophisticated, real-time systems to manage complex, international shipments. This demand is pushing logistics providers to adopt IoT sensors and connected fleet management solutions that offer end-to-end visibility. For example, the global trade in goods is expected to surpass its record levels, demonstrating the sheer volume of cross-border shipments that need efficient management. Major logistics companies are actively integrating advanced Transportation Management Systems (TMS), often cloud-based, to optimize routes, consolidate loads, and handle the intricacies of customs clearance and multi-modal transport, thereby facilitating seamless movement of an increasing number of packages worldwide. The pressure to reduce transit times and improve reliability directly necessitates these connected solutions.
- Government Focus on Supply Chain Digitization and Infrastructure
Government initiatives worldwide are heavily promoting the digitization and integration of national and regional logistics infrastructure, providing a significant boost to the connected logistics market. These policy frameworks aim to streamline trade, reduce bureaucracy, and lower logistics costs by connecting various transport and regulatory entities onto a single digital platform. For instance, the National Logistics Policy (NLP) in India is focused on leveraging technology to improve supply chain efficiency and aims to reduce logistics costs as a percentage of its GDP. A key component of this initiative, the Unified Logistics Interface Platform (ULIP), integrates systems from various ministries, including customs and ports, to offer real-time cargo tracking and a single-window interface. This public-sector push for integrated digital ecosystems encourages widespread adoption of connected solutions by businesses seeking compliance and efficiency.
- Advancements in IoT, 5G, and Cloud Computing
The maturation and widespread deployment of key underlying technologies, particularly the Internet of Things (IoT), 5G networks, and cloud computing, are fundamentally enabling connected logistics growth. IoT sensors provide the critical data stream—location, temperature, vibration—essential for real-time monitoring and condition-based tracking. The low latency and high bandwidth of 5G are crucial for reliably transmitting this massive volume of data instantly, especially for time-sensitive applications like autonomous guided vehicles (AGVs) in warehouses or real-time route adjustments for delivery vehicles. Furthermore, cloud logistics platforms offer the scalability and centralized data processing power needed to run complex Big Data analytics and machine learning algorithms across diverse global operations. The integration of 37 systems from various government ministries into one digital platform demonstrates the extensive data sharing and robust connectivity that these technologies support.
Key Trends in the Connected Logistics Market
- Hyper-Automation of Warehouse and Yard Operations
A significant trend involves the move toward hyper-automation within warehouses and logistics yards, leveraging a combination of robotics, IoT, and Artificial Intelligence (AI) to minimize human intervention. This trend is driven by the necessity to process orders faster and mitigate labor shortages. Concrete examples include the deployment of fleets of Autonomous Guided Vehicles (AGVs) and collaborative robots, or 'cobots,' for tasks like picking, packing, and sorting inventory. Major e-commerce companies utilize vast robotic networks in their fulfillment centers, which handle high volumes of items rapidly and with minimal error. In the yard, automated gate systems use cameras and sensors to check trucks in and out instantly, improving yard dispatch efficiency dramatically, with certain implementations showing significant improvements in operational speed compared to manual processes.
- Integration of AI for Predictive and Prescriptive Logistics
The use of Artificial Intelligence (AI) is moving beyond simple route optimization to enable truly predictive and prescriptive logistics. This trend involves AI algorithms analyzing massive datasets—including historical order patterns, real-time traffic, weather, and geopolitical events—to forecast demand and prescribe optimal actions proactively. For example, AI-powered platforms are used by major shippers to predict potential delivery delays hours or even days in advance, allowing dispatchers to automatically reroute shipments before a problem materializes. In fleet maintenance, AI algorithms analyze sensor data from vehicles to predict equipment failures, enabling predictive maintenance and significantly reducing unplanned vehicle downtime. These systems provide measurable benefits, with early adopters reporting notable reductions in overall logistics costs and substantial improvements in customer service levels.
- Blockchain for Enhanced Supply Chain Trust and Traceability
The adoption of blockchain technology is emerging as a critical trend to establish an unprecedented level of trust, security, and traceability across the multi-party supply chain network. By creating a decentralized, immutable ledger of all transactions and cargo movements, blockchain eliminates data siloes and reduces the need for intermediaries and paper documentation. A practical application is the use of smart contracts that automatically execute payments or release documents upon verified delivery, eliminating manual paperwork and potential fraud in cross-border trade. This technology is particularly impactful for high-value or temperature-sensitive products, such as pharmaceuticals, where secure, tamper-proof records of the entire journey—from manufacturing to final delivery—are mandatory for compliance and quality assurance. This focus on data integrity is increasingly vital for international trade.
Leading Companies Operating in the Global Connected Logistics Industry:
- AT&T Inc.
- Cisco Systems Inc.
- Eurotech S.p.A.
- HCL Technologies Limited
- Honeywell International Inc.
- Infosys Limited
- Intel Corporation
- International Business Machines Corporation
- Microsoft Corporation
- Oracle Corporation
- SAP SE
- Zebra Technologies Corporation
Connected Logistics Market Report Segmentation:
By Component:
- Hardware
- Solutions
- Services
Solutions dominate the market with a 34.5% share in 2024, leveraging IoT, AI, and data analytics to optimize logistics operations and provide end-to-end visibility across the supply chain.
By Software:
- Asset Management
- Warehouse IoT
- Security
- Data Management
- Network Management
- Streaming Analytics
Asset management leads the market in 2024 by utilizing connected technologies to track and optimize the use of physical assets in logistics, enabling predictive maintenance and informed decision-making.
By Technology:
- Bluetooth
- Cellular
- Wi-Fi
- ZigBee
- NFC
- Satellite
Bluetooth technology accounts for a 23.5% market share, facilitating real-time asset tracking and monitoring through seamless communication between devices, enhancing logistics efficiency.
By Devices:
- Gateways
- RFID Tags
- Sensor Nodes
Sensor nodes represent the leading market share in 2024, capturing and transmitting real-time data on environmental conditions and asset location, crucial for managing sensitive products in the supply chain.
By Transportation Mode:
- Roadways
- Railways
- Airways
- Seaways
Roadways dominate the market with a 45.7% share in 2024, utilizing GPS and telematics for real-time visibility and efficient route planning, thus improving overall logistics efficiency.
By End Use Industry:
- Automotive
- Manufacturing
- Oil and Gas
- IT and Telecom
- Healthcare
- IT and Telecommunication
- Retail
- Food and Beverage
- Others
Manufacturing leads the market with a 26.8% share in 2024, using connected logistics to enhance production, distribution, and delivery processes through real-time insights and better inventory management.
Regional Insights:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America accounted for the largest market share of 32.9% in 2024, driven by robust IT infrastructure, widespread connected device adoption, and the growth of e-commerce, enhancing customer satisfaction and experience.
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