According to the latest market study released by Technavio, the global connected logistics market is expected to grow at a CAGR of close to 30% during the forecast period.
This research report titled ‘Global Connected Logistics Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.
According to Sharan Raj, a lead analyst at Technavio for logistics research, “The global connected logistics market is experiencing significant growth. The use of advanced IT solutions such as internet of things, Big Data analytics, cloud computing, and remote temperature monitoring systems have revamped logistics services.”
Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.
The report categorizes the global connected logistics market into three major segments by technology and services. They are:
- Software services
- IT services
- Hardware devices
Global connected logistics market by software services
This segment includes on-premise and cloud-based software services used to meet the requirements of connected logistics. Software solutions offered by the vendors in the market can be integrated with enterprise resource planning (ERP) systems and other applications and system software installed in the connected logistics facilities.
Software vendors in the market such as SAP and Oracle offer connected logistics solutions for database management systems and IT security. Earlier the solutions were offered on the on-premise software deployment model. However, the trend is now changing due to the advent of the cloud computing model. Vendors are also offering cloud-based connected logistics solutions to attract logistics service providers that seek low-cost and flexible information technology solutions.
Global connected logistics market by IT services
System integration services, consultation services, IT support and maintenance services, and application management services are used extensively in the connected logistics market. The system integration services help enterprises to integrate their existing IT systems with new IT systems to promote seamless data and information exchange.
“Consulting services are mated with IT planning to enhance the performance of the technologies deployed in connected logistic services. Application management services manage the enterprise application on mobile devices for the remote tracking system. Finally, IT support services manage the end-to-end IT systems used throughout the supply chain,” says Sharan.
Global connected logistics market by hardware devices
Connected logistics systems require hardware such as tracking and monitoring devices. The hardware segment includes radio frequency identification (RFID) sensors, smart connected devices, communication and networking devices such as switches, routers, and wireless communication devices, biometric devices, fleet management devices, vehicle telematics, and other hardware devices used to set up connected logistics.
Communication systems, supply chain monitoring systems, vehicle tracking, and IT security are the four pillars of the connected logistics systems. Advanced communication systems embedded with RFID, sensor devices, and powered by IoT are helping enterprises to move up the value chain. Maersk Group, a Danish business conglomerate, has implemented IoT solutions provided by AT&T to manage their refrigerated containers. IoT solutions are also helping to track the physical and mechanical conditions of the refrigerated states.