Connected Logistics Market Size, Share, Trends and Forecast by Component, Software, Technology, Devices, Transportation Mode, End Use Industry, and Region, 2025-2033

Connected Logistics Market Size, Share, Trends and Forecast by Component, Software, Technology, Devices, Transportation Mode, End Use Industry, and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112024A5960
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Connected Logistics Market Size and Share:

The global connected logistics market size was valued at USD 40.3 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 149.3 Billion by 2033, exhibiting a CAGR of 14% from 2025-2033. North America currently dominates the market, holding a market share of over 32.9% in 2024. The market is being driven by the adoption of advanced analytics and artificial intelligence, the expanding use of blockchain technology, and heightened investments in innovative tracking systems that provide comprehensive supply chain visibility.

Report Attribute
 Key Statistics
Base Year
2024
Forecast Years
2025-2033
Historical Years
2019-2024
Market Size in 2024 USD 40.3 Billion
Market Forecast in 2033 USD 149.3 Billion
Market Growth Rate 2025-2033 14%


The connected logistics market is fueled by the rising demand for operational efficiency and real-time insights in logistics. The integration of Internet of Things (IoT) technology enables seamless communication between devices, improving supply chain visibility and route optimization. Advancements in artificial intelligence (AI) and machine learning support predictive analytics, enhancing demand forecasting and inventory management. A notable example is the January 24, 2024, launch of Accenture Alpha Automation, a joint venture of Accenture with Mujin, which integrates robotics and digital engineering to automate logistics processes. The integrates operational data with business systems to enhance decision-making and drive efficiency. The growth of e-commerce, increasing consumer demand for faster delivery, and the push for sustainable, eco-friendly practices further accelerate the need for smarter, data-driven logistics solutions, driving market expansion.

The United States is emerging as a key regional market and is experiencing significant growth driven by the increasing demand for real-time tracking and improved operational efficiency across various industries. The widespread adoption of 5G connectivity and IoT technologies facilitates seamless communication, enhancing supply chain visibility and enabling better route optimization. The continued expansion of e-commerce, coupled with the need for faster and more reliable delivery services, further fuels market demand. The integration of big data analytics and cloud-based solutions enables predictive maintenance and better inventory management, improving overall logistics operations. For example, EXL’s strengthened partnership with Databricks, announced on September 30, 2024, leverages Databricks’ Data Intelligence Platform for big data analytics, enhancing decision-making and improving operational efficiency across sectors like healthcare, banking, and insurance. Sustainability efforts also drive the market with eco-friendly solutions, including optimized routes and energy-efficient fleets.

Connected Logistics Market Trends:

Rising Integration of Advanced Analytics and Artificial Intelligence (AI)

Advanced analytics and AI technologies play a crucial role in the connected logistics market as these technologies enable the processing and analysis of large volumes of data generated by connected devices, sensors, and systems. According to an industrial report, worldwide Artificial Intelligence industry is expected to show an annual growth rate of 28.46% between 2024-2030. By leveraging AI algorithms, logistics companies can gain actionable insights, optimize routes and schedules, predict demand patterns, and improve overall supply chain efficiency. For instance, AI-based platforms such as project44 use real-time data and machine learning algorithms to predict delivery delays and optimize routing. Similarly, companies like UPS leverage AI for predictive maintenance of their fleet, thereby reducing unplanned downtime. AI-powered solutions also enable autonomous decision-making and enhance real-time monitoring and predictive maintenance capabilities. Advanced analytics and AI can process large volumes of data in real time, enabling more accurate and timely decision-making. This could include adjusting routes on-the-fly based on traffic conditions, weather forecasts, or other variables. Advanced analytics is also used to model and analyze entire supply chains, enabling companies to identify bottlenecks or inefficiencies and optimize their operations.

Increasing Utilization of Blockchain Technologies

The possibility exists for the blockchain to change the whole logistics industry in the most positive way as a secure, transparent platform that ensures recording and verification of transactions and shipment. Blockchain guarantees data integrity, traceability, and prevention of frauds and mistakes due to the decentralized, immutable nature. Smart contracts, enabled through blockchain, can automatize and smooth out diverse processes, from payment to a contract or document for custom clearance. It's promising with the improvement in integrity in data and proof for its application in traceability. Currently, 60% of the logistics companies utilize blockchain to achieve transparency in their supply chains. As per a recent survey in 2024 industry report, the same would add the value in increasing visibility to the supply chain with lesser paperwork, as well as making more efficient cross border trades secure. Additionally, the immutability offered by blockchain to give an irreversible record of each step of a supply chain from the source of production to the final consumer is fueling the connected logistics market.

Growing Popularity of Cloud Computing and Platform Integration

Cloud computing plays a significant role in connected logistics by offering scalable and flexible infrastructure for data storage and processing. As per a leading IT consulting firm, global spending on public cloud services is forecast to reach USD 805 billion in 2024. Cloud-based logistics platforms facilitate seamless integration and collaboration between various stakeholders in the supply chain, including manufacturers, suppliers, carriers, and customers. For instance, DHL employs its "Resilience360" platform that features cloud computing for real-time risk monitoring and supply chain visibility. Also, Maersk applies "Navis," a cloud-based platform that enables standardization across its global shipping network, improves collaboration, and reduces the cost of running operations. Furthermore, UPS's "Quantum View" provides real-time tracking and inventory management using cloud technology, thereby providing greater integration across logistics systems, better communication between stakeholders, and improving the efficiency of the supply chain. These platforms provide a centralized system for managing and sharing data, enabling real-time communication, enhancing transparency, and promoting collaboration across the logistics ecosystem. Cloud computing allows for better integration of different logistics systems and applications, increasing interoperability. Moreover, a cloud-based logistics platform is capable of integrating with an inventory management system or a customer relationship management system, allowing for a unified view and better control over the logistics process.

Connected Logistics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global connected logistics market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on component, software, technology, devices, transportation mode and end use industry.

Analysis by Component:

  • Hardware
  • Solutions
  • Services
     

Solutions dominate the market with a share of 34.5% in 2024. Connected logistics solutions leverage advanced technologies, such as the Internet of Things (IoT), artificial intelligence (AI), and data analytics to streamline and optimize the flow of goods and information across the entire supply chain. These solutions enable predictive insight, and automation, revolutionizing the way logistics operations are managed and executed. Connected logistics solutions also facilitate end-to-end visibility across the supply chain. Through the integration of various stakeholders, including suppliers, manufacturers, distributors, and retailers, these solutions enable seamless information sharing and collaboration. Connected logistics solutions provide real-time visibility into the movement and status of packages throughout the supply chain. This visibility enables logistics companies to track shipments, examine inventory levels, and identify potential bottlenecks or delays.

Analysis by Software:

  • Asset Management
  • Warehouse IoT
  • Security
  • Data Management
  • Network Management
  • Streaming Analytics
     

Asset management leads the market in 2024. Asset management in connected logistics refers to the process of tracking, monitoring, and optimizing the utilization of physical assets involved in logistics operations through connected technologies and data analytics. These assets include vehicles, containers, inventory, machinery, and other resources used in the supply chain. Connected logistics leverage Internet of Things (IoT) devices, sensors, and connectivity solutions to gather real-time data from assets. This data is then transmitted to a centralized platform where it can be analyzed to provide insights and enable informed decision-making. Connected logistics enable predictive maintenance practices. By analyzing data collected from assets, algorithms can identify patterns and indicators of potential failures or maintenance needs. This allows for proactive maintenance scheduling, reducing unexpected breakdowns, and optimizing asset uptime.

Analysis by Technology:

  • Bluetooth
  • Cellular
  • Wi-Fi
  • ZigBee
  • NFC
  • Satellite
     

Bluetooth technology accounts for the 23.5% share in the market, enabling seamless communication and data transfer between various devices and systems. Bluetooth-enabled tags or beacons can be attached to assets such as shipping containers, pallets, or packages. These tags transmit their location and other relevant information to nearby Bluetooth-enabled devices, such as smartphones or gateways. This enables real-time asset tracking and monitoring throughout the supply chain, providing visibility and improving efficiency. Bluetooth sensors can be employed to monitor environmental conditions, such as temperature, humidity, or shock, within the logistics ecosystem. Bluetooth technology can also be utilized to connect and communicate with vehicles and their onboard systems. This enables tracking of vehicle locations, driver behavior monitoring, and remote diagnostics. Additionally, Bluetooth connectivity can be used for seamless integration with mobile devices used by drivers, enabling hands-free communication and access to critical information.

Analysis by Devices:

  • Gateways
  • RFID Tags
  • Sensor Nodes
     

Sensor nodes represents the leading market share in 2024. It plays a crucial role in connected logistics by capturing and transmitting real-time data from various points within the supply chain. They can measure and transmit data about temperature, humidity, light levels, air quality, and other environmental factors. This information is valuable for ensuring optimal conditions during storage, transportation, and handling of goods, especially for perishable or sensitive products. Sensor nodes can be attached to assets, such as containers, vehicles, or equipment, to track their location and movement. By continuously transmitting global positioning system (GPS) coordinates or using proximity-based technologies like Bluetooth, these nodes enable real-time asset tracking, reducing the risk of loss, theft, or misplacement.

Analysis by Transportation Mode:

  • Roadways
  • Railways
  • Airways
  • Seaways
     

Roadways dominate the market share in 2024, with 45.7% market share. Connected logistics systems provide real-time visibility into the movement of goods and vehicles on roadways. By utilizing technologies, such as GPS, sensors, and telematics, logistics operators can track the location, speed, and status of vehicles, allowing them to monitor and control the entire supply chain more effectively. Connected logistics enable efficient route planning and optimization. By analyzing real-time data on traffic conditions, road closures, and weather information, logistics systems can identify the most optimal routes for deliveries, reducing fuel consumption, minimizing delays, and improving overall efficiency. Connected logistics generates vast amounts of data related to vehicle performance, traffic patterns, customer preferences, and supply chain operations.

Analysis by End Use Industry:

  • Automotive
  • Manufacturing
  • Oil and Gas
  • IT and Telecom
  • Healthcare
  • IT and Telecommunication
  • Retail
  • Food and Beverage
  • Others
     

Manufacturing leads the market share in 2024, with a market share of 26.8%. It utilizes connected logistics to revolutionize the way goods are produced, distributed, and delivered. Connected logistics, enabled by advanced technologies and data-driven systems, offer numerous benefits to the manufacturing industry, driving efficiency, reducing costs, and enhancing overall performance. It enables manufacturers to gain real-time insights into their entire supply chain, from raw material procurement to finished goods distribution. By integrating sensors, RFID tags, and other tracking devices, manufacturers can monitor the movement and location of materials, components, and products at every stage. This visibility enables better planning, inventory management, and demand forecasting, ensuring that the right materials are available when needed and reducing stockouts or overstocks.

Regional Analysis:

  • North America
    • United States
    • Canada
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Russia
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East and Africa
     

In 2024, North America accounted for the largest market share of 32.9%. North America held the biggest market share due to the development of robust IT infrastructure and widespread adoption of connected devices allowing for seamless data transfer and communication between various elements of the logistics ecosystem. Besides this, the increasing number of e-commerce brands due to the rising online shopping activities of individuals is propelling the growth of the market. In addition, the growing focus on improving customer satisfaction and experience is offering a favorable market outlook.

Key Regional Takeaways:

United States Connected Logistics Market Analysis

In 2024, the United States represents 88.00% of the North America connected logistics market. The U.S. boasts a highly developed transportation infrastructure. In 2023, the number of registered vehicles across the nation is estimated to be approximately 270 million. These comprise 250 million passenger vehicles and 20 million commercial ones, as per the Bureau of Transportation Statistics. It is among the largest automobile markets worldwide, with the majority of sectors recording very high ownership rates of vehicles. In road, highways, and the overall transport network for both personal or freight transportation, the present trends toward greater integration and connectivity show significant promises for growth of the sector. Government push further creates investments through the adoption of technology and increased efficiency at logistics points through IoT at shipment tracking, autonomous, and the development of autonomous infrastructure, for example e-commerce increasing the demand with real-time delivery solutions of the entire sector. For its part, the United States is a forerunner in the integration of electric and driverless vehicles into transport systems, with a proliferation of regulatory legislation oriented towards sustainable development and smart transport solutions.

Europe Connected Logistics Market Analysis

In Europe, vehicle ownership is greatly diversified across countries. For instance, in 2022, Germany had about 47 million registered passenger vehicles, putting it at one of the largest automotive markets in Europe. Other significant markets are France, Italy, and the UK. As such, over 300 million vehicles are registered across the European Union, according to ACEA. This encompasses passenger vehicles as well as commercial vehicles. The entire diverse transport landscape of this continent is being characterized as taking up a growing level of interest in sustainability and digitization. Countries are investing largely into the connected transportation system to have smart road networks, management of fleets for more efficient carbon emission-reduced solutions. The push into electric vehicles and sustainable logistics from the EU's Green Deal and other regulatory frameworks is helping lead to this shift. Countries like the Netherlands and Norway are already well ahead of the adoption curve, which is redefining logistics operations in these regions.

Asia Pacific Connected Logistics Market Analysis

The Asia Pacific region is marked by fast growth in both vehicle ownership and connected logistics infrastructure. China, the world's largest automotive market, boasts more than 300 million vehicles, comprising passenger and commercial types, as of 2023. India, with its growing middle class and increasing urbanization, is also experiencing a growth spike in vehicle registrations, which now exceed 200 million vehicles. Japan and South Korea are also among the top countries for innovation in transportation, where self-driving vehicles and intelligent traffic management systems are already in trial phases. E-commerce is also showing great promise in the region, and its growth will raise the requirement for efficient supply chain management solutions and logistics. The government initiatives like investments in infrastructure and policies for EVs and green logistics solutions is also propelling the market. The increasing focus on digitization, including AI and IoT technologies, is therefore changing logistics systems across the region to add up to better efficiency and sustainability.

Latin America Connected Logistics Market Analysis

The penetration of vehicle ownership in Latin America is on the up-and-up, led by high and rising disposable incomes, rapid urbanization, and growing infrastructure investment by the government. Brazil, the largest economy of the region, had nearly 65 million registered vehicles in 2022-a mix of passenger and commercial vehicles. Mexico follows close behind with approximately 50 million vehicles on the roads. The region is witnessing a shift towards modernizing its transportation systems with the government focusing on road infrastructure, public transport, and logistics networks. Global trends like electric vehicle adoption are also influencing the automotive sector in this region, although the pace is slower compared to other developed regions. Electric cars have gained traction in Brazil, especially in urban centers. Growing e-commerce in Brazil and Mexico are also fuelling a strong need for more efficient logistics solutions. Companies operating in Latin America have started to adapt connected logistics technologies like real-time tracking and fleet management to optimize their operations and achieve better delivery efficiency.

Middle East and Africa Connected Logistics Market Analysis

Vehicle ownership patterns are diversified in the Middle East and Africa. Urbanization, economic development, and regional security issues have impacted such diversified vehicle ownership. According to Bureau of Transportation Statistics, In the continent's largest economy, South Africa, it was estimated that 2022 had about 12 million registered vehicles. South Africa had a large percentage of passenger cars and commercial vehicles. Saudi Arabia had over 15 million vehicles due to its large population and its rapidly growing urban centers. The Middle East region, particularly the UAE and Saudi Arabia, has also turned out to be a haven for embracing cutting-edge transport technologies like autonomous vehicles and connected logistics systems. Governments here have invested heavily in transportation infrastructure as part of economic growth, urban development, and international trade. Vehicle ownership is still much lower across the continent as a whole, but in some countries like Nigeria and Egypt, where economies are improving, there is a rising number of vehicles. These trends are impacting the evolution of the connected logistics sector, where mobile technology and real-time tracking are transforming supply chains across the region.

Competitive Landscape:

Key market players are allocating significant resources to research and development (R&D) activities to innovate and improve their connected logistics solutions. They are developing new technologies, enhancing existing features, and exploring emerging trends, such as artificial intelligence (AI), machine learning (ML), blockchain, and automation. Top companies are focusing on enhancing their data analytics capabilities to derive valuable insights from the excessive amounts of data generated by connected devices and sensors. They are also tailoring their connected logistics solutions to meet specific customer needs and deliver an exceptional user experience. Leading companies are investing in robust cybersecurity infrastructure, implementing encryption techniques, and adhering to industry standards and regulations to protect sensitive information.

The report provides a comprehensive analysis of the competitive landscape in the connected logistics market with detailed profiles of all major companies, including:

  • AT&T Inc.
  • Cisco Systems Inc.
  • Eurotech S.p.A.
  • HCL Technologies Limited
  • Honeywell International Inc.
  • Infosys Limited
  • Intel Corporation
  • International Business Machines Corporation
  • Microsoft Corporation
  • Oracle Corporation
  • SAP SE
  • Zebra Technologies Corporation
     

Latest News and Developments:

  • October 2024: HCLTech received a five-year contract to manage over 260 business-critical applications, platforms, and cloud operations from Transport for NSW. The deal will provide AI-driven innovation and security services, thereby making the technology infrastructure of Transport for NSW stronger. HCLTech's shares were seen trading flat at ₹1,852.65.
  • June 2024: Honeywell closed its USD 4.95 Billion acquisition of Carrier Global's Global Access Solutions business on June 3, 2024. The acquisition bolsters Honeywell's digital security solutions business while adding to its Building Automation segment. The deal brings three brands and software capabilities, enhancing Honeywell's growth prospects. The company also revised its 2024 financial outlook, with sales ranging from USD 38.5 Billion to USD 39.3 Billion.
  • Feb 2024: AT&T launches the Smart Label solution, enabling enhanced visibility in supply chains worldwide for better handling. The smart shipping label provides temperature and humidity conditions while presenting near-real-time location data and leverages secure connectivity offered by AT&T across 210 countries for the purpose of shipment handling and anticipating responses to interruptions.
  • September 2022: Eurotech S.p.A. announced the launch of DynaGATE 10-14 edge AI gateway, which is certified for load and rail vehicles to enable the next generation of mobility applications.
  • May 2021: AT&T partnered with Sony Semiconductor Israel to develop a smart printable and disposable shipping label that enables businesses to track the location and condition of products shipped worldwide. The label, connected to AT&T's LTE-M cellular network, sends data to the cloud for real-time visibility and actionable decisions.


Connected Logistics Market Report Scope:

Report Features Details
Base Year of the Analysis 2024
Historical Period 2019-2024
Forecast Period 2025-2033
Units Billion USD
Scope of the Report Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment
  • Component
  • Software
  • Technology
  • Devices
  • Transportation Mode
  • End Use Industry
  • Region
Components Covered Hardware, Solutions, Services
Software Covered Asset Management, Warehouse IoT, Security, Data Management, Network Management, Streaming Analytics
Technologies Covered Bluetooth, Cellular, Wi-Fi, ZigBee, NFC, Satellite
Devices Covered Gateways, RFID Tags, Sensor Nodes
Transportation Modes Covered Roadways, Railways, Airways, Seaways
End User Industries Covered Automotive, Manufacturing, Oil and Gas, IT and Telecom, Healthcare, IT and Telecommunication, Retail, Food and Beverage, Others
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered AT&T Inc., Cisco Systems Inc., Eurotech S.p.A., HCL Technologies Limited, Honeywell International Inc., Infosys Limited, Intel Corporation, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, Zebra Technologies Corporation, etc.
Customization Scope 10% Free Customization
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)


Key Benefits for Stakeholders:

  • IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the connected logistics market from 2019-2033.
  • The research study provides the latest information on the market drivers, challenges, and opportunities in the global connected logistics market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the connected logistics industry and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Key Questions Answered in This Report

Connected logistics refers to the integration of digital technologies, such as the Internet of Things (IoT), big data analytics, and cloud computing, to optimize and streamline supply chain and logistics operations. This interconnected system allows real-time tracking, enhanced visibility, predictive analytics, and improved decision-making throughout the logistics process.

The global connected logistics market was valued at USD 40.3 Billion in 2024.

IMARC estimates the global connected logistics market to exhibit a CAGR of 14% during 2025-2033.

Key factors driving the global market include the growing adoption of advanced analytics, AI technologies, and IoT. These innovations enhance supply chain visibility, enable real-time tracking, and support predictive maintenance, all contributing to operational efficiency and reduced costs across logistics operations.

In 2024, connected logistics represented the largest segment by component, driven by the demand for IoT, AI, and data analytics to optimize logistics operations and improve supply chain visibility.

Asset management leads the market by software attributed to the need for real-time tracking, maintenance optimization, and maximizing asset utilization in logistics operations.

Bluetooth technology is the leading segment by technology, driven by its ability to enable seamless communication, real-time asset tracking, and integration with other logistics systems.

In 2024, sensor nodes represented the largest segment by devices, driven their crucial role in real-time data collection for asset tracking, monitoring environmental conditions, and optimizing logistics operations.

Roadways leads the market by transportation mode attributed to their extensive use in logistics and the ability to optimize routes and monitor vehicle performance in real time.

Manufacturing is the leading segment by end use industry, driven by the demand for optimized supply chain management, better inventory control, and improved efficiency through connected logistics technologies.

On a regional level, the market has been classified into North America, Asia Pacific, Europe, Latin America, and Middle East and Africa, wherein North America currently dominates the global market.

Some of the major players in the global connected logistics market include AT&T Inc., Cisco Systems Inc., Eurotech S.p.A., HCL Technologies Limited, Honeywell International Inc., Infosys Limited, Intel Corporation, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, and Zebra Technologies Corporation, among others.

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Connected Logistics Market Size, Share, Trends and Forecast by Component, Software, Technology, Devices, Transportation Mode, End Use Industry, and Region, 2025-2033
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