Connected Logistics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Connected Logistics Market is projected to expand from USD 20.54 Billion in 2025 to USD 47.07 Billion by 2031, achieving a CAGR of 14.82%. This sector involves integrating digital technologies, specifically artificial intelligence and the Internet of Things, to facilitate real-time data exchange throughout supply chains. Key drivers fueling this growth include the urgent need for operational efficiency, rising demand for end-to-end shipment visibility, and the continued boom in global e-commerce, which requires agile systems for rapid fulfillment. Highlighting this strategic focus, MHI reported in 2024 that 55% of supply chain leaders increased their investment in innovation and supply chain technology, underscoring the priority placed on digital connectivity to optimize inventory and fleet management.

Conversely, a major obstacle hindering market expansion is the elevated risk of cybersecurity threats. As logistics networks become more digitized, they grow increasingly susceptible to data breaches that can interrupt operations and expose sensitive proprietary data. These security vulnerabilities often discourage organizations from fully adopting comprehensive digital platforms, thereby slowing the rate of integration. Consequently, implementing rigorous data protection protocols remains a significant challenge for stakeholders seeking to deploy connected logistics solutions.

Market Drivers

The rapid growth of the global e-commerce and last-mile delivery sectors acts as a primary catalyst for the connected logistics market. As consumer expectations for transparent, fast, and accurate delivery rise, logistics providers are pressured to digitize their networks to manage increasing shipment volumes and operational complexities. This surge in online retail demands robust digital connectivity to guarantee seamless data flow across the fulfillment ecosystem, effectively bridging the gap between digital orders and physical transport. According to the Council of Supply Chain Management Professionals, global online retail sales were approaching $6.3 trillion in June 2024, a figure that emphasizes the critical need for scalable, interconnected infrastructures to handle such massive throughput efficiently.

Simultaneously, the widespread adoption of IoT-enabled real-time asset tracking is fundamentally transforming market dynamics by offering unmatched operational transparency. Stakeholders are aggressively deploying sensor-based technologies to monitor cargo status, location, and condition in real-time, which helps mitigate risks and optimize transit routes. This push for detailed visibility is shifting from a competitive advantage to a strategic necessity for reducing inefficiencies and ensuring reliability. According to Descartes Systems Group, in June 2024, 36% of surveyed shippers and logistics service providers identified real-time transportation visibility as their top technology investment. The commercial value of this integration is evident; in January 2025, UPS reported that its Digital Access Program generated $3.3 billion in revenue for 2024, reflecting the broad adoption of connected logistics platforms.

Market Challenges

The escalating risk of cybersecurity threats presents a significant barrier to the growth of the Global Connected Logistics Market. As supply chains increasingly depend on cloud-based platforms and interconnected devices, the potential attack surface for malicious actors expands considerably. This digital exposure renders critical infrastructure vulnerable to data theft, ransomware, and systemic disruptions that can paralyze freight operations. As a result, fear of potential breaches causes organizations to hesitate in fully integrating essential digital tools, thereby stalling the market's momentum.

To highlight the severity of this issue, the National Motor Freight Traffic Association reported in 2024 that approximately 90% of cyber incidents within the industry were carried out through misconfigured network devices and phishing schemes. This statistic underscores the fragility inherent in digital supply chain networks. When companies face such a high probability of intrusion, they often delay the deployment of connected logistics solutions to focus on risk mitigation. Therefore, the persistent threat of cyberattacks serves as a direct constraint on the adoption of advanced technologies and hinders the overall expansion of the market.

Market Trends

The application of AI-driven predictive analytics is reshaping how stakeholders forecast market shifts and optimize resource allocation. Moving beyond reactive strategies, these advanced algorithms process complex variables and historical data to predict demand with high precision, enabling companies to proactively adjust fleet capacity and inventory. This evolution is largely a response to rising operational costs and the need for supply chain resilience, transitioning from simple visibility to actionable foresight. According to the Council of Supply Chain Management Professionals' '2025 State of Logistics Report' released in June 2025, U.S. business logistics costs hit a record $2.6 trillion in 2024, a financial pressure that is driving organizations to accelerate the integration of automation and artificial intelligence to enhance network efficiency.

At the same time, the industry is seeing a decisive shift toward sustainable logistics operations, driven fundamentally by corporate decarbonization goals and stringent regulatory frameworks. Organizations are increasingly using digital tools to track carbon footprints and integrating electric vehicles into their fleets to lower the environmental impact of last-mile delivery. This transition to green logistics is supported by rigorous data collection that quantifies emissions intensity, allowing companies to report progress transparently to stakeholders and meet emerging global standards. For instance, in its '2024 Sustainability Report' published in July 2025, Amazon revealed that it expanded its global electric delivery fleet to over 31,000 vehicles in 2024, demonstrating a significant commercial commitment to reducing greenhouse gas emissions within the logistics network.

Key Players Profiled in the Connected Logistics Market

• Intel Corporation
• Infosys Limited
• Cisco Systems, Inc.
• HCL Technologies Limited
• IBM Corporation
• SAP SE
• AT&T Inc.
• Oracle Corporation
• Huawei Technologies Co., Ltd.
• Zebra Technologies Corporation

Report Scope

In this report, the Global Connected Logistics Market has been segmented into the following categories:

Connected Logistics Market, by Component:

• Hardware
• Software
• Services

Connected Logistics Market, by Transportation Mode:

• Roadways
• Railways
• Airways
• Waterways

Connected Logistics Market, by Vertical:

• Manufacturing
• Automotive
• Food and Beverages
• Consumer Goods and Retail
• Oil & Gas
• Travel and Hospitality
• Healthcare and Pharmaceuticals
• Others

Connected Logistics Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Connected Logistics Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.