Market Definition
Connected logistics comprises interconnected cloud platforms, communication systems, and Internet of Things (IoT) technologies that provide real-time information regarding the goods shipped through various transportation modes like roadways, railways, airways, & seaways. These solutions share relevant data & logistical information with supply chain operators to smoothen the transportation process and help companies improve their operational efficiency, productivity, & real-time access.
Market Insights
The Asia-Pacific Connected Logistics Market is expected to grow at a CAGR of more than 18% CAGR during the forecast period, i.e., 2023-28. Currently, the market is in its nascent phase, and future growth would be driven primarily by the ever-growing need for optimizing the transportation & logistics industry to reduce operational costs & carbon emissions and the rapidly growing penetration of Industry 4.0 & industrial IoT devices. Besides, rapid technological advancements in transportation, the flourishing manufacturing & e-commerce sectors, and massive investments by governments in megacity projects are other prominent aspects projected to drive the connected logistics market in the forecast years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 18% |
| Country Covered | China, Japan, India, South Korea, South East Asia, Australia, New Zealand, Rest of Asia-Pacific |
| Key Companies Profiled | SAP SE, American Telephone and Telegraph Inc. (AT&T), Parametric Technology Corporation Inc. (PTC), Cisco Systems, Inc., Zebra Technologies Corporation, International Business Machines Corporation (IBM), Oracle Corporation, Eurotech S.p.A., SecureRF, Intel Corporation, Others. |
| Unit Denominations | USD Million/Billion |
Several countries across Asia-Pacific are actively working on bringing remarkable advancements in IoT-enabled solutions for supply chain management. Japan is making rigorous efforts toward transforming its logistics industry by integrating new technologies with existing processes in order to strengthen its position in the regional market.
Likewise, China is also witnessing a significantly expanding logistics sector owing to booming e-commerce. On the other hand, India has also recorded substantial e-commerce revenues in the past few years, thereby escalating the adoption of connected logistics solutions. Moreover, rapidly rising agricultural exports in Australia are further spurring growth in the logistics & warehousing industries across the country.
More & more connected logistics solutions equipped with top-notch interoperability, security, & accessibility features are becoming available across the region. Furthermore, continuous R&D in autonomous logistics trucks and declining costs of IoT-enabled sensors are also creating new avenues for the connected logistics industry to witness notable expansion in Asia-Pacific over the coming years.
Market Dynamics
Key Driver: Mounting Adoption of IoT-Enabled Connected Devices
Rising fuel costs and carbon emission & pollution levels have amplified the adoption of IoT- enabled connected logistics solutions equipped with cloud technology, sensors, & IoT for the remote management, monitoring, and control of supply chain operations. IoT adoption has proved to improve the efficiency of the supply chain platform for the logistics & transportation industry as it offers complete visibility and quicker detection of network issues that help in effective & timely decision-making and, in turn, allow for long-term cost savings. Hence, several logistics & transportation companies are increasingly adopting IoT devices for their associated benefits, i.e., spurring growth in the connected logistics industry across Asia-Pacific.
Growth Restraint: Lack of Logistics Standardization in China & South Korea
Across Asia-Pacific, countries like China & South Korea have a limited extent of logistics standardization, owing mainly to the lack of enforcement made by their governments, coupled with the absence of organizations that can proactively initiate & unify multi-national logistics standardization efforts, including the development & implementation of both domestic & international standards associated with logistics equipment, tools, packaging, storage, transportation, loading/unloading, & ICT, which are compatible with widely used international logistics standards. Hence, increased costs associated with supply chain operations due to the lack of logistics standardization might act as a major growth restraint for the Asia-Pacific Connected Logistics Market during 2023-28.
Market Segmentation
Based on Software:
Of them all, asset management holds a significant share of the Asia-Pacific Connected Logistics Market, mainly due to the ever-rising need for remotely tracking & monitoring inventories and goods movement in real-time. Asset management solutions are safe, reliable, & an efficient approach toward managing the entire logistics facility and include route plans for resources, timescales, & route asset strategies, as well as a detailed plan to optimize the delivery of renewals, maintenance, & enhancement.
Enterprises can collect massive amounts of data during the shipping & transit processes by incorporating RFID (Radio Frequency Identification) chips and IoT (Internet of Things) devices, which can be attached to carriage trucks & containers and provide exporters with thorough insights into the current status, potential threats, ETA, etc. Hence, these aspects indicate a rapidly growing adoption of asset management solutions across Asia-Pacific, which, in turn, would stimulate the growth of the connected logistics market in the region over the coming years.
Based on Transportation:
Here, roadways holds a prominent share of the connected logistics market, and is likely to record a significant growth rate through 2028. It owes to the mounting need in the region to ensure state-of-the-art transportation of retail goods across long distances, especially for last-mile delivery. Roadways offer a large carrying capacity, and thus, it is a preferred mode for logistics.
Governments of various countries are making active efforts toward promoting road transport. A national logistics policy to facilitate the ease of doing business and reduce transportation costs has been introduced in India. In addition, a highway network from the port area to the remote site of the country is being constructed in order to reduce fuel consumption, i.e., considered the utmost cost-impacting factor in freight transport.
Moreover, the growing need to organize & manage the flow of goods related to purchasing, production, warehousing, distribution, and reuse & exchange, coupled with the provision of added-value services, and the ever-growing demand for tracking real-time location of cargo to address & mitigate transportation problems, are further projected to boost the connected logistics industry for roadways in the coming years.
Country Projection
Geographically, the Asia-Pacific Connected Logistics Market expands across:
Of all countries across Asia-Pacific, China, the world's leading e-commerce industry that accounts for over half of all global e-commerce transactions, is projected to continue its dominance in the Connected Logistics Market during 2023-28. The logistics sector in China is undergoing significant transformations and adopting new digitized supply chain tools & solutions. Technologies like cloud-based systems, data analytics, and AI are penetrating the industry and reshaping supply chain operations in order to provide enterprises with better & more accurate inventory management.
The ever-increasing online food & beverage purchases in the country by the middle-class population, i.e., increasingly becoming affluent, has instigated the need for specialized packing & temperature requirements. In addition, China's flourishing cold chain logistics sector is showing active interest in digital technologies like AI, IoT, & Blockchain to reduce operating costs and efficiently track, manage, & improve the supply chain. Moreover, the implementation of BLOS (Beyond-Line-of-Sight) drone operation standards to enhance supply chain operations, especially last-mile operations, and provide same-day deliveries, is another prominent aspect projected to bode well for the China Connected Logistics Market through 2028.
Recent Developments in the Asia-Pacific Connected Logistics Market
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Frequently Asked Questions
A. The Asia-Pacific Connected Logistics Market is projected to grow at more than 18% CAGR during 2023-28.
A. The mounting need to optimize the transportation & logistics industry and reduce operational costs & carbon emissions, coupled with the increasing adoption of Industry 4.0 & IIoT (Industrial IoT) devices, are the prime factors projected to drive the Asia-Pacific Connected Logistics Market during 2023-28.
A. SAP SE, American Telephone and Telegraph Inc. (AT&T), Parametric Technology Corporation Inc. (PTC), Cisco Systems, Inc., Zebra Technologies Corporation, International Business Machines Corporation (IBM), Oracle Corporation, Eurotech S.p.A., SecureRF, and Intel Corporation are the key companies participating in the Asia-Pacific Connected Logistics Market.
A. Roadways is projected to provide profitable opportunities for the leading players in the Asia-Pacific Connected Logistics Market during 2023-28.
A. Across Asia-Pacific, China would generate remunerative prospects for the Connected Logistics Market during 2023-28.
