Digitized Logistics Market Size, Share, Growth, and Industry Analysis, By Type (Tracking and Monitoring Systems, Information Integrated Systems, Electronic Data interchange Systems, Database Management Systems, Fleet Management Systems and Order Management Systems), By Application (Warehouse Management, Labor Management, Transportation Management, and Others), and Regional Forecast to 2032

Last Updated: 23 June 2025
SKU ID: 25872009

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DIGITIZED LOGISTICS MARKET OVERVIEW

The Digitized Logistics Market size valued at USD 2.58 billion in 2024 and is expected to reach USD 9.85 billion by 2032, growing at a compound annual growth rate (CAGR) of 18.3% from 2024 to 2032.

Digital logistics refers to how digital technologies are being used to improve the flow of logistics. In other words, it can be described as the application of technological solutions and communication that effectively lowers operational costs, increases general effectiveness, optimizes the ways of delivering supplies, and offers client-oriented solutions. Several features go with digital logistics solutions some of which are; updated logistics strategies based on logistics data, enhanced communication and engagements with other members of the supply chain as well as increased efficiency when it comes to shipment delivery.

Digitized Logistics market is progressing with the help of the consistently rising usage of the Internet and the continuously growing popularity of online shopping. This growth is also greatly supported by the growing trend in intelligent automation and generative AI as well. Since automation is experienced in the sector’s logistics, there is a relationship between growing cloud computing technologies and market growth. Rising demand for transforming to digital, analytics, and other technological activities causes this growth.

Digitized Logistics Market Facts and Figures

Regional Breakdown

  • North America captures approximately 40% of the market, valued at around USD 0.092 billion in 2024, with an estimated CAGR of 23.8%. Growth is supported by high investment in technological innovations and the presence of major logistics companies.
  • Asia-Pacific accounts for 30% of the market share, equating to USD 0.069 billion in 2024, and growing at a CAGR of 26.2%. Key drivers include the rapid growth of e-commerce and advancements in logistics infrastructure in countries such as China, India, and Japan.
  • Europe holds about 20% of the market, valued at USD 0.046 billion in 2024, with a CAGR of 24.1%. The region benefits from strong trade activities and increasing adoption of digital solutions in logistics processes.
  • Rest of the World represents around 10% of the market, contributing approximately USD 0.023 billion in 2024, with a CAGR of 22.9%, driven by logistics modernization in Latin America, the Middle East, and Africa.

Product Segmentation Breakdown

  • Tracking and Monitoring Systems dominate the market with about 35% of total sales, valued at USD 0.08 billion in 2024, expanding at a CAGR of 25.1%.
  • Information Integrated Systems represent approximately 25% of the market, or USD 0.057 billion in 2024, with a CAGR of 24.3%.
  • Electronic Data Interchange Systems account for 15%, valued at USD 0.035 billion in 2024, growing at a CAGR of 23.5%.
  • Database Management Systems capture 10% of the market, contributing around USD 0.023 billion in 2024, with a CAGR of 23.2%.
  • Fleet Management Systems hold a 10% share, equating to USD 0.023 billion in 2024, growing at a CAGR of 23.7%.
  • Order Management Systems make up 5%, amounting to USD 0.011 billion in 2024, with a CAGR of 22.8%.

The Digitized Logistics market is poised for substantial growth due to increasing demand for streamlined operations, real-time monitoring, and predictive analytics in the logistics sector. Technological advancements and the rising need for efficiency in global supply chains are key drivers, highlighting the sector's potential to redefine traditional logistics practices and deliver sustainable growth.

COVID-19 IMPACT

Digitized Logistics Industry Had a Positive Effect 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 impact of the pandemic is visible on the growth of the digitized logistics market. It spurred the use of solutions to support working with supply chains since disruptions and scarcity of labour became critical concerns. The focus was on e-businesses, an increase in the need for tracking, automation, and application of kits to make real-time decisions. That said, it also led to disruptions in the supply chain because of closed borders and disruptions which means demand for a strong digital presence.

LATEST TREND

Rising Usage of Internet of Things (IoT) and Real-Time Tracking in Logistics to Propel Market Growth

IoT is becoming a phenomenon in the market that is simultaneously reshaping the operations of logistics businesses. The IoT devices and sensors are placed in cars, trucks, or in other applications to get complete data about every equation including the position of vehicle conditions to temperature. Real-time monitoring enables improved visibility of the operations, lowered operational risks, and better operational decisions thereby improving its utility. Moreover, by using the IoT, diverse categories of assets can be integrated with the facilities of a supply chain, and, therefore, an assessment of information produced through these connections.  

Global-Digitized-Logistics-Market-Share,-By-Application,-2032

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DIGITIZED LOGISTICS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Tracking and Monitoring Systems, Information Integrated Systems, Electronic Data interchange Systems, Database Management Systems, Fleet Management Systems and Order Management Systems

  • Tracking and Monitoring Systems: These systems offer direct visibility of the position and condition of goods that are in transit thus assisting in enhancing the efficiency of the supply chain and the overall loss minimization.
  • Information Integrated Systems: These systems integrate information from various sources to provide a smooth inflow of information in the logistics operations thus minimizing flow breaks.
  • Electronic Data Interchange Systems: EDI systems allow the logistic partners to electronically exchange business documents for improved accuracy free from errors often associated with keying in the documents manually.
  • Database Management Systems: These systems also provide honed databases that collect a great deal of logistics information that can be searched, retrieved, analyzed, and utilized within the supply chain.  
  • Fleet Management Systems: Fleet management solution takes the fleet routes in a more efficient direction, keeps tabs on the driver performance, minimizes fuel wastage and hence, the efficiency of the fleet is increased.
  • Order Management Systems: The effects of these systems are to optimize the order processing cycle starting with order placement, and delivery of the order, to enhance the client’s satisfaction.

By Application


Based on application, the global market can be categorized into Warehouse Management, Labor Management, Transportation Management, and Others 

  • Warehouse Management: Digital solutions in the logistics of warehouses are beneficial in providing solutions to warehouse management, especially in the area of inventory control, stock control and space management.
  • Labor Management: These systems monitor employee activity, determine the most suitable schedules, and research legal requirements personnel-wise, which assist organizations in controlling their expenses on staff, and increasing organizational performance.
  • Transportation Management: Transportation management solutions help to design and improve the logistics of the transport to meet delivery objectives most economically and efficiently.
  • Others: This segment includes different cases of digitized logistics, for example, customs services, returns, and last deliver, which solve exceptional logistic problems.

MARKET DYNAMICS

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

Driving Factors

Expansion of the E-Commerce Industry Boost the Market 

A factor in the Digitized Logistics market growth is the growth that has favored the e-commerce industry by the increased usage of the internet led to more online sales transactions. In the last decade, this expansion called for speed up and more effective delivery mechanisms. Internet customers expect accurate orders, fast delivery and convenient returns policies. This has led to the organisation embarking on efforts to reduce transportation costs and delivery time. Here, the general requirements include the ability to make the product to be sold visible; it should be affordable, easy to use, and available at a fast pace together with efficient returns. To address such requirements, new models and innovations are constantly emerging to support autonomous distribution networks, integrate logistics maps and optimize materials flow. It is for this reason that many fulfilment services are now quicker and more diversified, mainly for deliveries at the final consumer end and returns.

Technological Advancements Expand the Market

Digital logistics solutions are on the rise due to the fruition of technologies enabling the development of logistics solutions. The IoT has been transforming logistical operations in particular through facilitating real-time data capture with analysis, providing the ability for predictive action, & improving logistical process efficiency. Big Data Analytics has benefited commercial organizations by extracting values, recognizing more rationalities, and making more feasible decisions in routing, predicting the demands, and controlling the stock efficiently. Cloud has brought a huge revolution in how digital supply chain solutions are developed and implemented. AI & ML have changed the face of digital logistics, and automation with robotics, blockchain, Augmented Reality & Virtual Reality technologies. Mentioned technological developments, especially in logistics are driving forces towards the digital logistics market.

Restraining Factor

High Capital Investment Potentially Impede Market Growth


High capital investment in digital logistics is a major limitation as a result of; infrastructure cost, technology cost, acquisition, maintenance and updating, integration issues, uncertain returns on investment, risk of technology becoming outdated and limited access to finances by SMEs. Many countries take their time to either adopt or integrate digital logistics into their systems; also, the act of replacing current logistic infrastructure with digital logistics is expensive and slows down the advancement of digital logistics. Such fixed expenditures may encompass information technology support systems, hardware, software, and networking resources which defy SMEs’ upfront funding capacity. Technology is an expensive exercise as the acquisition and implementation process takes a lot of cash, not to mention recurrent capital expenses once the implementation process is complete.    

Opportunity

Sustainability & Green Logistics to Create Opportunity for the Product in the Market

Sustainability & environmental concerns offer market opportunities in the context of the digital logistics market. Locational strategies are also in focus through digital logistics solutions involving environmental conservatism, alternated fuel transportation, fuel-efficient and route planning techniques, and packaging minimalization with the field experiencing an upsurge in demand. The driving force to make logistics more sustainable and greener can be realized through digital logistics which serves as a potential for the digitalized market of logistics.  

Challenge

Skilled Workforce Shortage Could Be a Potential Challenge for Consumers

The shortage of skilled workforce to address beneficial consumers in the global digitized logistical market could potentially disturb service delivery rates and costs. While line-of-business functions continue to digitalize, technology work becomes ever richer and more specialized, requiring CIOs and their teams to hire specialists to manage AI-driven systems, automation, and data analytics efforts. Insufficient supply of skilled employees may cause logistics companies to manage their operations inefficiently and may increase time taken and mistakes as well as decrease customer satisfaction. This bottleneck could lead companies to raise the prices to accommodate inefficiencies which in turn would affect the consumers.  

DIGITIZED LOGISTICS MARKET REGIONAL INSIGHTS

  • North America

The North American region snapped the biggest share in the digitalized logistics market. This growth is owed to the large number of IT companies that use digital technologies to develop their products. Fortunately, the region has a well-trained labour force and a large number of academic and research centers that are actively engaging in market developments for automation R&D. The USA and Canada being the developed nations are major investors in sophisticated digital advantage logistics solutions for support from well-developed transport and commercial logistics industry. Other factors like Compliance Safety and Accountability (CSA) and Hour of Service Solution (HOS) create the market growth and the top three verticals are Retail, Utility and Services growing fast. The growth of the United States' Digitized Logistics Market is due to a necessity to make the industry compliant with current legislation. The stringent and evolving regulatory structure that is most evident in large markets like the US; especially in sectors like health care, pharmaceutical and food demands draconian digital logistics solutions. These systems assist the companies in getting around the regulatory requirement by way of offering a comprehensive augmented actual time monitoring, tracking and documenting technique.

  • Europe

The Digitized Logistics Market growth that Europe responds primarily to the increasing activity in carrying out sustainable activities across the region. Firms are embracing technology in the management of the supply chain to shave off the carbon footprint, map the shortest and most efficient routes, and promote and embrace green logistics in line with the European Union sustainability initiatives. However, enhanced spending in the transportation and logistics sector in Europe is helping the development of digital logistics. Improvements in ports, railways, and roads enhance the adoption of a digital approach to handling of logistics.   

  • Asia

The Asia-Pacific region is predicted to show the highest growth rate spearheaded by the adoption of technology in China and India. In China, the logistics sector is already shifting towards digital and adopting advanced technologies to improve its supply chain performance, and the directive it recently issued to establish a single domestic market for logistics and the drive to popularize the use of digital platforms for third-party logistics.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Leveraging Advanced Technologies

Prominent industry participants are defining the digitized logistics market across the globe by integrating superior technologies like artificial intelligence, the Internet of Things, and blockchains. Organizations are adopting these inventions to unlock various value-chain activities and strengthen end-to-end visibility and delivery. Further impetus to the sector is derived from strategic partnering, acquisitions and investment in automation. Also, technological advancement has been called to, give more emphasis on consequently the green logistics solutions that create fewer carbon impacts. These leaders are, therefore, evolving conventional logistics into an integrated, responsive, and consumer-oriented environment.

List of Top Digitized Logistics Companies

  • Tech Mahindra (India)
  • SAP (Germany)
  • Oracle (U.S.)
  • Advantech (China)
  • IBM (U.S.)
  • Huawei Technologies (China)
  • Eurotech SPAn (Italy)
  • HCL Technologies (India)
  • ORBCOMM (New Jersy)
  • Cloud Logistics (U.S.)
  • Freightgate (U.S.)

KEY INDUSTRY DEVELOPMENTS

July 2020: One industrial development in the Digitized Logistics marketplace is the release of "Gluten-Free Digitized Logistics" with the aid of Bob's Red Mill. This product caters to the growing demand for gluten-free baking alternatives. Bob's Red Mill utilizes dedicated gluten-free centers and rigorous testing to ensure the purity and protection of its Digitized Logistics for people with celiac disease or gluten intolerance.

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 Digitized Logistics market is poised for a continued boom pushed by the Rising Usage of the Internet of Things (IoT) and Real-Time Tracking in Logistics, the Expansion of the E-Commerce Industry, and Technological Advancements. Despite challenges, Sustainability & Green Logistics supports marketplace expansion. Key industry players are advancing via technological upgrades and strategic marketplace growth, enhancing the supply and attraction of Digitized Logistics.

Digitized Logistics Market Report Scope & Segmentation

Attributes Details

Market Size Value In

US$ 2.58 Billion in 2024

Market Size Value By

US$ 9.85 Billion by 2032

Growth Rate

CAGR of 18.3% from 2024to2032

Forecast Period

2024-2032

Base Year

2024

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

By Type

  • Tracking and Monitoring Systems
  • Information Integrated Systems
  • Electronic Data interchange Systems
  • Database Management Systems
  • Fleet Management Systems
  • Order Management Systems

By Application

  • Warehouse Management
  • Labor Management
  • Transportation Management
  • Other

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