Market Challenges And Opportunities

Factors Driving Growth of the Global Connected Logistics Market

Major factors driving growth of the global connected logistics market include increasing adoption of IoT across various industries, decreasing cost of communication devices, and increasing demand for logistic operational efficiency. For instance, according to a report by Pew Research Centre, 49% of the world’s population is connected online and an estimated 8.4 billion IoT are in use worldwide as of 2018. Increasing adoption of smart devices globally, including smartphones and growing adoption of cloud computing is also impacting the growth of the global connected logistics market. For instance, according to the report by Associated Press Organization, the world’s mobile phone user base was around 4.43 billion, which implies that around 61% of the world’s population used a mobile handset in 2015 and this number is projected to increase over the forecast period. Increasing adoption of advanced technology in connected logistics industry helps provide smarter and better communication devices. Additionally, easy availability and low cost of these devices is responsible for the low costs of connected logistics. Integration of on-time and real-time tracking technology in connected logistics is increasing, further boosting market growth. Moreover, connected logistics provides transparency control and service integrity, which in turn is increasing its demand, thus fueling growth of the connected logistics market.

A safe and sufficient supply chain is necessary for the smooth functioning of any sector. The growth of this market is majorly driven by the rising adoption of connected logistics in the healthcare sector. For instance, according to report by Cloud Standard Customer Council, 11-17% growth in demand for connected logistics in the healthcare sector was recorded between 2014 and 2025 in the U.S. Additionally, it is imperative for hospital employees to provide best possible treatment to patients, which in turn, is aided by connected logistics. This logistics helps to redefine the patient-caregiver relationship and simplify the treatment from diagnosis to cure by using the Internet of Things. Moreover just-in-time logistics is the emerging trend of connected logistics, which provides fast treatment for patients as well as allows healthcare personnel to fully focus on the task at hand with convenience.

Connected logistic also helps in operational productivity and ensures faster and safer delivery. At present, cloud technology is used widely amongst all the businesses, which provides logistical businesses affordable solutions. This has increased the adoption of the cloud-based solutions in the connected logistics market. According to report by ITA (International Trade administration), businesses will spend around US$ 191 billion on cloud services by 2020, as compared to US$ 72 billion in 2014. The increased adoption of intelligent transportation solutions is expected to drive the connected logistics market growth. Connected logistics is especially required for the transportation of goods, which are delicate and would require special monitoring during transportation. Connected logistics manage the products even under changing climatic conditions. It is majorly used in effective management of temperature-sensitive products. Additionally, growing adoption of Internet of Things (IoT) enables connected logistics services to create high volumes of data and a variety of information, which can be stored and analyzed with the highest level of accuracy. IoT technologies helps in detection and control of faults.