Connected Logistics Market Size, Share, Growth, and Industry Analysis, By Type (Device Management, Application Management, Connectivity Management), By Application (Roadway, Railway, Airway & Seaway), and Regional Forecast to 2034

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CONNECTED LOGISTICS MARKET OVERVIEW

The connected logistics market value at USD 33.43 billion in 2025, and reaching USD 160 billion by 2034, expanding at a CAGR of 19% from 2025 to 2034

The United States Connected Logistics market size is projected at USD 10.54 billion in 2025, the Europe Connected Logistics market size is projected at USD 8.53 billion in 2025, and the China Connected Logistics market size is projected at USD 10.12 billion in 2025.

Connected logistics focuses on bringing the integration of new technologies such as IoT, cloud computing, AI, and big data into logistics operations. These allow business companies to gain real-time visibility with their supply chains so that they might optimize their operations and shape better decision making. Seamless coordination of work is allowed between the different stakeholders, including manufacturers, distributors, and retailers involved in the delivery of goods effectively. The sectors of e-commerce, retail, automotive, and manufacturing are driving huge growth in the market, which is based on greater transparency, efficiency, and automated application in logistics.

KEY FINDINGS

COVID-19 IMPACT  

Connected Logistics Market Had a Positive Effect Due to Rise in Demand for Real-Time Visibility During COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The industry was already beginning to adopt digital solutions, but the pandemic triggered a rise in demand for real-time visibility, automated processes, and digitally enabled supply chain management. Lockdowns and border restrictions, further supplemented by workforce shortages, presented unprecedented challenges that fully surpassed the initial expectations of connected logistics technologies cutting across business disruptions to improvements in resilience and efficiency enhancement.

LATEST TRENDS

Integration of IoT and AI technologies in Connected Logistics Market to Drive Market Growth

Integration of IoT and AI technologies is the newest trend that drives growth in the market of connected logistics. Today, real-time tracking and predictive analytics with the ability of automated decision making are spread over the entire supply chain using IoT devices, for instance, sensors and smart tags, supplying real-time data about shipments, inventory, or environmental conditions. Artificial intelligence can analyze this information to make decisions that are optimal for routes, predict delays, and cut operational costs. This trend changes logistics by increasing efficiencies and introducing more transparency as well as better customer experiences, and its expansions are seen to be fueled.

• Over 38 billion USD worth of logistics assets were equipped with IoT sensors in 2024, enabling real‑time tracking and condition monitoring According to the U.S. Department of Transportation, >50% of air‑cargo carriers now use data loggers for temperature, GPS, and humidity monitoring
• As of now, 79 % of major container traffic at Busan Port is managed by AI‑backed digital systems under a smart‑port metaverse framework, boosting ship punctuality by 79 % and generating an estimated 7.3 million USD/year in extra revenue 

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CONNECTED LOGISTICS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Device Management, Application Management, Connectivity Management.

• Device Management: This is the provision of management and control over the physical devices and sensors that are put into a logistics network. It includes deployment, configuration, as well as monitoring and controlling IoT-enabled devices, which scan data in real-time.

• Application Management: This represents the control and management of the software or applications used in processing logistics data. This may include tracking systems, inventory management, and customer service platforms.

• Connectivity Management: This category includes managing the communication infrastructure connecting different devices, applications, and systems to ensure hassle-free transfer of data across the logistics network and its linkage.

By Application

Based on application, the global market can be categorized into Roadway, Railway, Airway & Seaway

• Roadway: In this section, connected logistics solutions covered under road transport have been compiled, such as fleet management, vehicle tracking and route optimization, and the real-time monitoring of cargo on trucks and delivery vehicles.

• Railway: This presents logistics solutions in rail transport with cargo tracking, train scheduling, and inventory management, among others, and safe and efficient running on railways.

• Airway: In this module, connected logistics is practiced in the operation of air transport with real-time cargo tracking, airport logistics, air cargo management, and flight schedule optimization.

• Seaway: This category encompasses the connected logistics solutions utilized in maritime transport, like ship tracking, port operations, container management, and visibility into shipping routes and chains.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Increasing Necessity of Real-Time Tracking to Boost the Market

In fact, the demand for this connected logistics market is primarily driven by the increasing necessity of real-time tracking and visibility in supply chain operations as players strive for operational efficiency, costs, and customer satisfaction. Such advancements along with other technological breakthroughs like IoT, big data analytics, and cloud computing enabled e-commerce to raise a tide to change the manners of connected logistics market growth, seeing to end-to-end visibility, optimized routes, and timely delivery.

• The UN reports 3.9 billion people (54 %) now live in urban areas—a jump from 746 million in 1950—driving demand for efficient last‑mile logistics
• In 2023, 33.7 billion USD was invested in connected logistics globally, with IoT being cited as a key driver Asia-Pacific is now the fastest‑growing region, driven largely by IoT deployment in countries like India and China

Increase of artificial intelligence and automation integration to Expand the Market

Increase of artificial intelligence and automation integration in logistics operations is one of the largest drivers that would make the connected logistics market grow bigger. Through AI, demand can now be predicted, warehouse operations can be automated, and route planning can be enhanced. Application of AI with other automation tools such as autonomous vehicles and drones is revolutionizing logistics as it avoids human fault, grows speed, and enables smart decisions. This has given way to new opportunities for growth, particularly in companies looking for more efficient, and cost-effective, scalable logistics solutions.

Restraining Factor

High Initial Investment to Potentially Impede Market Growth

The chief limiting factor that may hinder the market growth of connected logistics would be the type of high initial investment one would have to make on advanced technologies. Advanced technologies in IoT devices, sensors, AI platforms, and automated systems also require huge capital expenditure in logistics. Moreover, maintenance, upgrades, and cybersecurity costs can be overwhelming, especially for SMEs. Such financial limitations, therefore, slow down market adoption and reduce growth in specific regions or among smaller businesses.

• Around 44 % of connected‑logistics platforms in 2024 were limited to device management, due to cyber‑resilience and data sovereignty regulations forcing a cautious rollout
• The UN notes that while urbanization surged, 66 % of world's population will live in cities by 2050, many lacking adequate road and rail infrastructure—slowing connected-logistics implementation

Rising Demand for Real-Time Data Analytics to Create Opportunity for the Product in the Market

Opportunity

The rising demand for real-time data analytics and supply chain visibility represents one of the biggest opportunities in the connected logistics market. As operations continue to become more streamlined, there is an ever-increasing need for such connected logistics solutions that can provide live tracking of goods, manage inventory, and apply predictive analytics. This would help a company make the right choices based on data and ensure the optimal routing system, minimum costs, and satisfied customers. But the expansion of e-commerce and the happening globalization also rapidly increases the need for connected logistics solutions, thereby offering significant growth prospects in this market.

• India’s rollout of electric trucks (first mid-haul 8‑ton model delivering 250 km on a single charge) reduces CO₂ by over 50 tonnes per truck per year
• With 28 mega‑cities (10 million+ population) in 2014 and projected to rise to 41 by 2030, urban logistics platforms are being prioritized in smart‑city blueprints by UN and national governments 

Security of Customers' Data Could Be a Potential Challenge for Consumers

Challenge

One of the major concerns for a consumer in this market will be the security of the customers' data. With the rapidly increasing usage of connected devices and IoT technologies in logistics, shipment details, real-time location tracking, as well as customer information, will all become vulnerable to cyberattacks and breaches. Consumers do worry that their data will be safe and confidential when they become dependent on third-party service providers. This will require the imposition of immense cybersecurity, which further increases the cost and complexity of implementing connected logistics solutions.

• As of 2019, blockchain‑based air, sea, road, and rail integrations like IATA’s cargo blockchain and Maersk‑IBM’s TradeLens cover nearly 50 % of global container shipments, yet full end‑to‑end integration remains partial
• green ammonia used in marine shipping can cost 3–7× more than traditional fuels, presenting a barrier to deploying eco‑friendly connected logistics

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CONNECTED LOGISTICS MARKET REGIONAL INSIGHTS

• North America

North America, specifically the United States Connected Logistics Market, highly employs connected logistics because of high-technology products, a good-built network of infrastructures, and significant logistics companies. IoT-based devices have already been in use for wide usage; cloud-based platforms are frequently used, and strong transportation management systems have also enabled tracing shipments accurately. Moreover, supply chain transparency efficiency sustainability is at the heart of this region, hence connected logistics solutions, as demand the region takes a step forward to increase the smart logistics technologies such as AI, big data leading to growth in the U.S. market.

• Europe

Europe is not far from the North America stages in the adoption of connected logistics solutions.  Germany, France, and UK are significant market players in this direction, with notable investments in the digital management of supply chains and green logistics. The European market benefits from strict rules centered on environmental sustainability that call for a reduction in carbon footprints by implementing connected logistics systems. In addition, cross-border trade networks are big in the region and enhance and maximize logistics operations; hence, IoT-enabled transportation and real-time tracking solutions are very much in use.

• Asia

Asia, led by China, Japan, and India, is highly rapidly developing connected logistics. The rise in e-commerce accompanied by high industrialization and the growth of supply chain networks is likely to speed up connected logistics in the region. Chinese BRI also created the need for border-spanning logistics solutions. The region is seeing enormous expansion in IoT adoption in transportation and warehousing and has been driving improvements in efficiency and real-time tracking of goods. Growth in smart city initiatives in Asia adds additional impetus to the technologies that connect logistics flows. Fragmented infrastructure in parts can hamper seamless connectivity and comprise the challenges.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

A few major players are leading the connected logistics market through constant innovation and market expansion. The best ones are advanced IoT-based logistics solutions, cloud platforms, and AI-powered supply chain management systems through companies like Cisco Systems (USA), IBM Corporation (USA), Honeywell International (USA), Intel Corporation (USA), and SAP SE (Germany). Such companies are utilizing cutting-edge technologies, which include real-time tracking, predictive analytics, and automation, to make logistics operation smooth and add to the excellence of transparency in the supply chain. In addition, AT&T of USA, Infosys of India, and ORBCOMM of USA are reaching out globally through partnering with logistics organizations and e-commerce companies to enhance connectivity, efficiency, and operational effectiveness among different modes of transport. Companies, in close collaboration, continue to strive for the best practice of offering advanced logistics solutions that are shaping the future of connected logistics.

• Infosys Limited: According to Infosys, its Oracle‑based "Logistics Industry Solution" supports end‑to‑end digital warehousing and fleet automation, including predictive analytics, smart warehousing, blockchain, and real‑time visibility tools
• HCL Technologies Limited: Identified in multiple market reports as a core player alongside Infosys, Intel, and Cisco HCL contributes enterprise‑grade IoT and connectivity solutions adopted by major global logistics firms for device and asset management

List Of Top Connected Logistics Market Companies

• Infosys Limited
• HCL Technology Limited
• Cloud Logistics
• Intel Corporation
• ORBCOMM
• Cisco System Inc.
• IBM Corporation
• SAP SE
• Freightgate Inc.
• Eurotech S.P.A
• AT&T Inc.

KEY INDUSTRY DEVELOPMENT

October 2022: When AT&T teamed with IBM for the enhancement of its 5G-enabled connected logistics solutions. Such a collaboration was expected to leverage the advanced IoT and AI technologies through improved visibility along the supply chains for greater efficiency, increasing smart logistics solutions uptake across the globe.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.