Connected logistics market forecast to quadruple by 2020
September 10, 2015
The connected logistics market is expected to grow from US$5bn in 2015 to more than $20bn by 2020, at a CAGR of 32.3 per cent, according to a report from Markets & Markets.
Connected technology has helped logistics companies monitor inventory, track theft and loss, and manage warehouses and assets effectively. The demand for this market is being driven by internet ubiquity across the world and the declining costs of IoT components such as sensors and RFID.
Big data and analytics platforms are another factor considered an important driver of the IoT market. Thus the connected logistics market is expected to flourish in the coming years owing to the increasing use of mobile applications along with rapid proliferation of embedded sensor technology, wearables and applications. Niche players such as ThingWorx and Secure RF are developing software platforms for efficient logistics processes. Apart from these, many others have emerged and are expected to evolve in the coming years.
The overall adoption of IoT is increasing but some companies are reluctant in adopting IoT in logistics because of security issues and lack of awareness and ICT infrastructure. The market conditions for adopting IoT in logistics are perfectly conducive because of the rise in mobile computing, affordable sensor technology, 4G and 5G networks, and advanced big data analytics.
These factors are enabling the adoption of IoT at an accelerated rate. There is also a pull from technologically advanced clients to provide IoT-based systems for their logistics operations. One major example of connected logistics is using pallet or item-level tagging using low-cost, miniature RFID devices in inventory management systems in huge warehouses.
The report has been segmented on the basis of systems, networking technologies, services, devices, transportation modes and regions. The systems section includes logistics management, warehouse management, security and monitoring, and hardware such as gateways, RFID and sensor nodes. The market has been segmented into services such as system integration, professional services and third-party logistics.
Key networking technologies include Zigbee, Bluetooth, Wifi, cellular, NFC and satellite. Transportation modes covered are roadways, railways, airways and seaways. Regions covered are North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.