Connected Logistics Market Size Projects $158.09 Bn by 2034

Connected Logistics Market Performance, Trends & Strategic Recommendations

According to forecasts, the global connected logistics market will grow from USD 38.1 billion in 2024 to USD 158.09 billion by 2034, with an expected CAGR of 14.93%. North America leads the connected logistics market due to tech advancements and strong software presence. Asia Pacific is set for the highest growth, driven by e-commerce and rising healthcare firms. Hardware dominates with demand for sensors and RFID, while e-commerce thrives with smartphone adoption and app availability.

Connected Logistics Market Growth Drivers, Challenges and Opportunities

The connected logistics market size is projected to reach USD 158.09 billion by 2034, expanding from USD 43.79 billion in 2025, at an annual growth rate of 14.93% during the forecast period from 2025 to 2034.

Connected Logistics Market Size 2023 - 2034

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Introduction

The connected logistics market is a prominent segment of the logistics industry. This industry deals in developing solutions for enhancing the logistics operations. There are several types of hardware components used in this sector consisting of RFID tags, sensors, communication devices, tracking devices and some others. Also, there are various software that are used in this logistics sector including warehouse management, fleet management, freight transportation management, asset tracking and management, data management and analytics and some others. It finds applications in numerous end-user sectors such as retail and ecommerce, automotive, aerospace and defense, healthcare, energy, electronics and some others. The rising development in the logistics industry across the world has contributed to the industrial expansion. This market is projected to rise drastically with the growth of the online retail sector around the globe.

India Logistics Market Size in USD Billion (2021-25)

  • According to the India Brand Equity Foundation, the Indian logistics market size in 2021 was US$ 250 billion in 2021 that is predicted to reach US$ 380 billion by 2025.

Highlights of the Connected Logistics Market

  • North America held the largest share of the connected logistics market due to the technological advancements in logistics sector along with presence of several software companies in this region.
  • Asia Pacific is expected to grow with the highest CAGR due to the presence of well-developed e-commerce industry coupled with rise in number of healthcare companies in this region.
  • The hardware segment held the dominant share of the market due to growing demand for advanced sensors and RFID tags for tracking assets.
  • The e-commerce segment led the industry due to increasing proliferation of smartphones as well as availability of numerous e-commerce platforms in play store and apps store.

Connected Logistics Market NA, EU, APAC, LA, MEA Share, 2024 (%)

  • According to the International Trade Administration, the global B2B e-commerce is projected to reach US$ 36163 million by 2026.
  • According to the Ecommerce Tips, there are around 32.7 million e-commerce stores globally in current times.
  • According to the World Economic Forum, the global logistics industry is anticipated to reach US$ 18 trillion by 2023.
  • According to the Select USA, the U.S. business logistics costs reached US$2.3 trillion in 2023.

Industry Leader Announcement

In June 2024, Remco Timmer, the Vice President of Product Management at HERE Technologies made an announcement stating that,” The Fleet Optimization package is designed to streamline and enhance fleet management processes, helping customers manage their fleets more efficiently and at a reduced cost."

Competitive Landscape

E-Commerce Automotive Aftermarket Companies

The connected logistics market is a fragmented industry with the presence of several market players. Some of the prominent players in this industry comprises of Intel Corporation, Infosys Limited, Cisco System Inc., HCL Technology Limited, IBM Corporation, SAP SE and some others. These companies are continuously engaged in developing advanced logistics solutions and adopting numerous strategies to maintain their position in this industry.

IBM Software Segment Revenue in USD Million (2022-23)

  • According to the annual report of IBM, the revenue of software segment was US$ 25037 million in 2022 that increased to US$ 26308 million in 2023.

Market Segmentations

By Component

  • Hardware
    • RFID Tags
    • Sensors
    • Communication Devices
    • Tracking Devices
    • Others
  • Software
    • Warehouse Management
    • Fleet Management
    • Freight Transportation Management
    • Asset Tracking and management
    • Data Management and Analytics
    • Others
  • Services
    • Consulting
    • Integration and Deployment
    • Support & Maintenance
    • Managed Services

By Transport Mode

  • Roadways
  • Railways
  • Airways
  • Waterways

By Vertical

  • Retail & E-commerce
  • Automotive
  • Aerospace & Defense
  • Healthcare
  • Energy
  • Electronics & Semiconductors
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
  • Latin America
    • Brazil
  • Middle East & Africa
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  • Insight Code: 1507
  • No. of Pages: 150+
  • Format: PDF/PPT/Excel
  • Last Updated: 06 February 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Laxmi Narayan is a Research Analyst at Towards Automotive with 5 years of experience, specializing in edge computing and blockchain applications shaping the future of connected and intelligent mobility.

Learn more about Laxmi Narayan

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

Learn more about Aditi Shivarkar
FAQ's

The connected logistics market was valued at US$ 43.79 billion in 2025.

North America dominated this industry.

The growing development in the e-commerce sector coupled with rapid investment in logistics sector has boosted the market growth.

Some of the prominent players of this industry consists of IBM Corporation, SAP SE, ORBOCMM, Freightgate Inc., Honeywell International Inc and some others.

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