Dublin, Dec. 01, 2020 (GLOBE NEWSWIRE) -- The "Digital Logistics Market - Growth, Trends and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The digital logistics market is expected to grow at a CAGR of 8.2% owing to the increasing adoption of advanced technologies as a constant effort to reducing allied costs during the forecast period of 2020 - 2025.
Digital logistics ensures end-to-end visibility across multiple functions, such as inventory, orders, and shipments. Such visibility leads to a reduction in network-wide inventory levels by increasing response time dynamically, towards logistical events. The digitizing trend has paved the way for the new supply chain-grade logistics applications. It was developed as integration for core warehouse and transportation management systems to enable efficient process models.
Key Market Trends
Trucking-as-a-service to Drive the Market Growth
The reliance on truck OEMs on loT-based gadgets has fueled the management of trucking operations such as optimal asset utilization, public transit management, fleet management, and smart inventory management, to name a few. This has also led to a considerable shift in the vehicle acquisition and service model, globally.
- TaaS has been leading the supply chain operators to access trucks on-demand, wherein the truck will need significant telematics and support services to ensure tracking, mapping, management, and optimization of routes. This led to the emergence of multiple new formats for the stakeholders to capitalize on.
- Trucking OEMs such as Volvo and Daimler have been keen on offering subscription-based models to haulage operations by leveraging digital services. LoadSmart has customized launch of a digital platform for contracted freight carriers to match Daimler's spot loads. This looks at a take on developing the digital freight brokerage services as a TaaS model by Daimler.
- As of October 2019, Volkswagen AG announced transitioning from a hardware supplier to being a provider of software and services. Also, by the end of 2024, over EUR 1 billion in R&D expenditure is expected to be incurred. Digitalization and connected vehicles also would enable the TRATON Group brands' service business to launch offerings and business models for the company's vehicles.
- Also, back in April 2019, Amazon, an e-commerce operator, has been capitalizing on newly developed digital freight brokerage websites to offer third party logistic and freight delivery at less than 30% of the market rate.
Latin America is Expected to Hold Significant Market Share
Latin America is one of the leading digital logistics markets, mainly due to the growing regional e-commerce sector and rising adoption of digital services among the regional transportation and logistics industry.
- Brazil recorded one of the highest logistics expenses in the world. Approximately 30% of the distribution cost structure represents the total logistics costs. The growing e-commerce industry is driving the demand for advanced and time-efficient logistic services. In 2017, the sales of e-commerce accounted for 5% (USD 300 billion) of the Brazilian retail market share. However, this proportion is increasing rapidly due to growing digital penetration.
- In 2018, Amazon acquired a 50,000-square-meter warehouse for lease in Brazil, as the company is planning to expand its presence in the region. Though the country's logistics market faces many problems, with the increasing need for cost-effective methods, digital logistic solutions can be expected to witness demand from this sector.
- In Argentina, with growing cloud adoption, the country's trucking market is providing growth avenues for digital logistic vendors, as digital services are helping regional logistics companies in gaining competitive advantage. The country's truck industry is worth USD 120 billion. Furthermore, with trucks that make over 150 million trips annually, the industry has a vast scope for digital logistics solutions.
Competitive Landscape
The Digital Logistics Market is fragmented due to several prominent players that cater to various types of organizations such as SMEs to Large Enterprises. Players in the market realize the importance of digital improvements and are continuously engaging in partnerships, mergers and acquisitions, and new product offerings. Some of the recent developments in the market are:
In July 2020 - Coyote Logistics expanded its Dynamic Route Optimization program in the wake of streamlining logistic operations. With further reduction in uncertainty for carriers, it maximized the efficiency of fleets via the platform. It offers a load consistency - average load and unloads times, market cost, mile per hour bands by region, home base city.
- In May 2020 - Oracle and Uber Freight partnered to integrate real-time quotes from the latter to its Oracle Transportation Management Cloud. This offers the company an extension of its previous quotes sourcing from Loadsmart and announces plans on sourcing the same from multiple vendors.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of COVID-19 Impact on the Industry
4.4 Trucking-as-a-service Analysis (Evolving Market Landscape - Truck OEMs vs Technology Providers, End-user Adoption - Retail & 3PL, Investment Analysis)
4.5 Technology Landscape (To provide coverage on Blockchain, Artificial Intelligence, and Analytics Based Applications in Logistics Industry)
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growth in the E-Commerce Industry and Emergence of Multi channel Distribution Networks
5.2 Market Challenges
5.2.1 Market Fragmentation, Legacy Systems and Low Visibility
6 MARKET SEGMENTATION
6.1 By Type
6.1.1 Software
6.1.1.1 Inventory Management
6.1.1.2 Order Management
6.1.1.3 Freight Management
6.1.1.4 Fleet Management
6.1.1.5 Other Software (Database Management, Tracking and Monitoring Systems)
6.1.2 Services (Consultation, Application Development and Integration Services)
6.2 By Application
6.2.1 Warehouse Management
6.2.2 Transportation Management
6.3 By End-user Vertical
6.3.1 Automotive
6.3.2 Pharmaceutical / Life Sciences
6.3.3 Retail
6.3.4 Food and Beverage
6.3.5 Oil and Gas
6.3.6 Other End-user Verticals
6.4 Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia Pacific
6.4.4 Latin America
6.4.5 Middle East & Africa
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 Advantech Corporation
7.1.3 Oracle Corporation
7.1.4 Samsung Electronics Co. Ltd (Samsung SDS)
7.1.5 DigiLogistics Technology Ltd
7.1.6 Hexaware Technologies Limited
7.1.7 Tech Mahindra Limited
7.1.8 JDA Software Pvt Ltd
7.1.9 UTI Worldwide Inc.(DSV Group)
7.1.10 SAP SE
7.1.11 Manhattan Associates Inc.
7.1.12 HighJump Software Inc. (Korber AG)
7.1.13 Vinculum Group
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
For more information about this report visit https://www.researchandmarkets.com/r/o2ga4f
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