Digital Transformation Spending in Logistics Market - Snapshot

The global digital transformation spending in logistics market is projected to be driven by rise in demand for digitalization of business processes and increase in cost pressure on the service providers. The logistics industry has adopted digital advances at a slower pace than other industries, which could be potentially disastrous even for the major players in the industry. Hence, digitalization of business processes drives the digital transformation spending in logistics market. Additionally, digitalization is happening across industries, and the benefits are revolutionary for companies with greater consumer awareness and reach, higher productivity, and innovative business models. However, the end-users have to make significant initial investments and incur high maintenance costs. These act as restraints of the market. The global digital transformation spending in logistics market is anticipated to reach US$ 94,972.3 Million by 2026 at a CAGR of 10.7% during the forecast period.

Logistics companies spend on digital transformation to increase efficiency, optimization, and speed and timing of logistic services, thereby increasing customer satisfaction and revenue. Among a range of rapid technological evolutions and in an increasingly digital environment where digital transformations are affecting the industry, most of the CEOs of transport & logistics companies appreciate digital solutions (to engage with customers, and optimize production and operations) as major areas of investment.

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Growth in e-commerce coupled with quick delivery of goods to gain competitive advantage has led to high demand for transport management systems and warehouse management systems. Moreover, increase in the number of Internet users along with rise in popularity of social media platforms has contributed to the surge in awareness about digital solutions. Innovative digital solutions and sharing platforms are being incorporated within the enterprise infrastructure. Vinculum Solutions, an India-based company, focuses on delivering solutions (Vin eRetail WMS) and products specific to the retail industry. The solution supports easy order delivery, last mile delivery, and integration of manufacturers, logistics companies and web stores among each other.

The online sales channel has become more complex and has induced manufacturing businesses to adopt digital transformation. Moreover, as an alternative to in-house fulfillment, a large number of retailers have shifted from Internet order processing to 3PLs, which are equipped and experienced in warehouse management system to handle these online needs. This is expected to propel the Warehouse Management System (WMS) market in the next few years.

Several strategies and approaches have been established to increase the efficiency of logistics over the years. Collaboration is considered to be one of the most promising factor in these strategies. These startups as well as leading players are prepared to collaborate with each other and complement their offerings. Sharing of these platforms encourages collaborative working, allowing the key players to retain their dominance. The deal becomes a win-win for the two companies as the new player gets easy access to the market which might not be welcoming and the market leaders increase their efficiency and develop new business models, such as shared networks.

Digitalization of business processes is a key trend boosting market growth. Obsolete systems and labor-intensive processes create more challenges and complexities, slow down operations, and hinder the ability of the industries to grow revenue. These manual tasks can result in significant inefficiencies and productivity losses for the businesses. Hence, the logistics industry strives to form a complete digital, flexible, and connected supply chain optimized for e-commerce and last-mile, last-minute delivery. Technological advancements have led to increased adoption of digital transformation across the transportation and logistics industry.

The global digital transformation spending in logistics market has been segmented based on solutions, deployment, services, industry and region. In terms of solutions, the market has been classified into hardware solutions, software solutions, and services. The hardware solutions segment has been categorized into systems, devices, and IT equipment. The software solutions segment has been divided into IoT platform, warehouse management & control system, transport management system & enterprise solutions. The services segment has been classified into consulting, integration, and operation & maintenance. Based on industry, the global digital transformation spending in logistics market has been bifurcated into third-party logistics (3PL) and warehouses.

In terms of region, North America is projected to lead the global digital transformation spending in logistics market during the forecast period. Digital transformation requires active and flexible IT support, which is available in the majority of the companies in the region. North America dominates the global digital transformation spending in logistics market primarily due to increase in adoption of logistics solutions. The digital transformation spending in logistics market in Asia Pacific is anticipated to grow at a rapid pace due to increasing digitization and rising use of Internet. Furthermore, the market in Europe, the Middle East & Africa, and South America is expected to witness strong growth during the forecast period.

The global digital transformation spending in logistics market is largely driven by merger & acquisition and partnerships. For instance, in October 2017, IBM acquired Sydney-based Vivant Digital, a small boutique digital consultancy. This acquisition addressed the growing needs of clients seeking transformation though innovative digital business models and enhanced customer experiences. Key players profiled in the report include Hexaware Technologies, IBM Corporation, JDA Software WMS, Logitech Corporation, XPO Logistics, Mindtree Ltd., Oracle Corporation, Samsung Electronics, SAP SE, Sanco Software LLC, Syntel, Inc., and Tech Mahindra Limited.

Digital Transformation Spending in Logistics Market: Overview

This report by Transparency Market Research analyzes and forecasts the data at the global and regional levels. The report provides an analysis of the industry trends in each of the segments from 2016 to 2026, wherein 2018 to 2026 is the forecast period and 2017 is the base year. The global digital transformation spending in logistics market report provides an in-depth and accurate analysis of market investment across solutions covered in the scope. It also highlights various drivers, restraints, and opportunities expected to influence market growth during the forecast period. The study provides a complete perspective about the digital transformation spending in logistics and expansion throughout the research study in terms of value (US$ Mn) across North America, Asia Pacific, South America, Middle East & Africa, and Europe. Moreover, the study explains the penetration of each market segment within various regions and how these segments have accelerated the growth of the market.

The digital transformation spending in logistics market report provides analysis for the period 2016–2026, where 2018 to 2026 is the forecast period and 2017 is the base year. The report covers all the major trends and technologies playing a major role in market growth from 2018 to 2026. It also highlights various drivers, restraints, and opportunities expected to influence the market during the forecast period. The study provides a complete perspective of the evolution of the global digital transformation spending in logistics market during the forecast period in terms of revenue (US$ Mn).

The overview section of the report analyzes market dynamics such as drivers, restraints, and opportunities that influence the current nature and future status of this market, key indicators, integration challenges, end-user adoption analysis, and trends of the market. A market attractiveness analysis for every segment has also been included in the report to provide a thorough understanding of the overall scenario in the digital transformation spending in logistics market. The report also provides an overview of various strategies adopted by the key players in the market.

Global Digital Transformation Spending in Logistics Market: Scope of the Report

In terms of solutions, the report segments the market into hardware, software, and services. The hardware solutions segment has been classified into systems, devices, and IT equipment. Hardware solutions systems are categorized into conveyors, automated storage & retrieval system (ASRS), automatic sorters, automated guided vehicle (AGV), robotic picking system, automatic palletizer, and peripheral & supporting components. Devices have been divided into RFID readers, real-time location systems (RTLS), barcode scanners, barcode printers, barcode stickers, RFID tags, and global positioning system (GPS). IT equipment has been bifurcated into enterprise servers and client machines. The software solutions segment has been segmented as IoT platform, warehouse management & control systems, transport management systems, and enterprise solutions. Enterprise solutions have been classified into enterprise resource planning, supply chain management, project management system, customer relationship management, information management system, human capital management, order management system, and big data & analytics. Based on deployment, the market has been bifurcated into on-premise and cloud-based. In terms of services, the global digital transformation spending in logistics market has been categorized into consulting & training, implementation & integration, operation & maintenance, and managed services. Based on industry, the market has been bifurcated into 3PL and warehouse. The report provides in-depth segment analysis of the global digital transformation spending in logistics market, thereby providing valuable insights at the macro as well as micro levels.

The report also highlights the competitive landscape of the market, positioning all the major players according to their presence in different regions of the world and key developments initiated by them in the global digital transformation spending in logistics market. The comprehensive market estimates are a result of in-depth secondary research, primary interviews, and in-house expert panel reviews. These market estimates have been analyzed taking into account the impact of different political, social, economic, and technological factors along with the current market dynamics affecting the global digital transformation spending in logistics market expansion.

This report provides all the essential information required to understand the key developments in the global digital transformation spending in logistics market and expansion trends of each segment and region. It also includes strategies, financial information, and SWOT analysis under the company profiles section. Additionally, the report provides insights related to trends and their impact on the regional market. Moreover, Porter’s Five Forces analysis provides analysis of bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitutes, and degree of competition in the global digital transformation spending in logistics market. This study provides a comprehensive ecosystem analysis of the global digital transformation spending in logistics market, explaining the various participants including software & third-party vendors, system integrators, and distribution channels of the value chain operating in the market.

Global Digital Transformation Spending in Logistics Market: Research Methodology

The research methodology is a combination of primary research, secondary research, and expert panel reviews. Secondary research sources such as annual reports, company websites, broker reports, financial reports, SEC filings and investor presentations, national government documents, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, statistical databases, World Bank database, and industry white papers are usually referred.

Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews on the global digital transformation spending in logistics market, across regions. Primary interviews are conducted on an ongoing basis with industry experts and participants in order to get the latest market insights and validate the existing data and analysis. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by our expert panel.

Global Digital Transformation Spending in Logistics Market: Competitive Dynamics

The research study includes profiles of leading companies operating in the global digital transformation spending in logistics market. Key players profiled in the report include 3GTMS, Inc., 4Flow AG, Advantech Co., Ltd., APL Logistics Ltd., Digistics, Digital Logistics Group Ltd., Hexaware Technologies, IBM Corporation, JDA Software WMS, Logistic Solutions, Inc., Logitech Corporation, Mindtree Ltd., Oracle Corporation, PartnerTech, S2K Warehouse Management, S2K Warehouse Management, Samsung Electronics, SAP SE, Scanco Software LLC, Syntel, Inc., and Tech Mahindra Limited.

The Global Digital Transformation Spending in Logistics Market is segmented as below:

Global Digital Transformation Spending in Logistics Market, by Solutions

  • Hardware
  • Software
  • Services

Global Digital Transformation Spending in Logistics Market, by Hardware Solutions

  • Systems
  • Devices
  • IT Equipment

Global Digital Transformation Spending in Logistics Market, by Systems

  • Conveyors
  • Automated storage and retrieval system (ASRS)
  • Automatic sorters
  • Automated guided vehicle (AGV)
  • Robotic picking system
  • Automatic palletizer
  • Peripheral & supporting components BFSI

Global Digital Transformation Spending in Logistics Market, by Devices

  • RFID Readers
  • Real-time location system (RTLS)
  • Barcode Scanners
  • Barcode Printers
  • Barcode Stickers
  • RFID Tags,
  • Global positioning system (GPS)

Global Digital Transformation Spending in Logistics Market, by IT Equipment

  • Enterprise Servers
  • Client Machines

Global Digital Transformation Spending in Logistics Market, by Software Solutions

  • IoT platform
  • Warehouse Management and Control System
  • Transport Management System
  • Enterprise solutions

Global Digital Transformation Spending in Logistics Market, by Enterprises Solutions

  • Supply Chain Management
  • Project Management System
  • Customer Relationship Management
  • Information Management System
  • Human Capital Management
  • Order Management System
  • Big Data and Analytics

Global Digital Transformation Spending in Logistics Market, by Deployment

  • Cloud Based
  • On Premise

Global Digital Transformation Spending in Logistics Market, by Services

  • Consulting & Training
  • Implementation & Integration
  • Operation & Maintenance
  • Managed Services

Global Digital Transformation Spending in Logistics Market, by Industry

  • 3PL
  • Warehouse

Global Digital Transformation Spending in Logistics Market, by Geography

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • Europe
    • Germany
    • U.K.
    • France
    • Rest of Europe
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • Rest of Asia Pacific
  • South America
    • Brazil
    • Rest of South America
.