Digital Logistics Market Report 2025

The digital logistics market size has grown rapidly in recent years. It will grow from $24.03 billion in 2024 to $28.3 billion in 2025 at a compound annual growth rate (CAGR) of 17.8%. The growth in the historic period can be attributed to globalization and supply chain complexity, e-commerce boom, focus on sustainability, rise of omnichannel retail, customer expectations for faster delivery, dynamic market conditions, regulatory compliance requirements, data-driven decision-making, focus on inventory optimization.

The digital logistics market size is expected to see rapid growth in the next few years. It will grow to $54.14 billion in 2029 at a compound annual growth rate (CAGR) of 17.6%. The growth in the forecast period can be attributed to rapid growth in e-commerce volumes, growth of autonomous vehicles, enhanced cybersecurity measures, shift towards servitization, digital twins for supply chain visualization, cross-border trade facilitation. Major trends in the forecast period include adoption of IoT in logistics, automation and robotics in warehousing, artificial intelligence (AI) in route optimization, cloud-based logistics platforms, sustainable logistics practices, 5g connectivity for logistics networks, cybersecurity measures, and predictive analytics for demand forecasting.

The rapid expansion of the e-commerce sector is anticipated to drive growth in the digital logistics market in the future. E-commerce encompasses the online sale of physical goods and any business transactions facilitated by the internet. As the e-commerce industry grows, it necessitates a robust logistics supply chain characterized by transparency and efficient operations, which digital logistics can provide by enhancing visibility, simplifying processes, and eliminating inefficiencies while reducing costs. For example, in August 2024, the United States Census Bureau, a government agency, reported that U.S. retail e-commerce sales were estimated at $291.6 billion in the second quarter of 2024, reflecting a 6.7% increase compared to the same period in 2023. During this time, e-commerce accounted for 16% of total retail sales, continuing the trend of steady growth in online retail. On a non-seasonally adjusted basis, e-commerce sales for the quarter reached $282.3 billion, representing 15.2% of total sales. Therefore, the exponential growth of the e-commerce sector is expected to significantly boost the digital logistics market in the coming years.

The growth of the digital logistics market is further propelled by the increasing adoption of artificial intelligence (AI). AI, a branch of computer science focused on creating smart machines capable of human-like tasks, is being leveraged in digital logistics to optimize route planning, enhance predictive analytics for demand forecasting, and automate decision-making processes. This integration results in improved efficiency and cost savings across the supply chain. Notably, 35% of businesses worldwide used AI in 2022, reflecting a 4% increase from the previous year. The rising adoption of AI is playing a pivotal role in reshaping the landscape of digital logistics and driving its growth.

Technological advancement is a significant trend gaining traction in the digital logistics market. Major players in the digital logistics sector are concentrating on research and development to create technologically advanced solutions that facilitate various use cases in connected logistics. For example, in September 2022, XPO Logistics, a U.S.-based transportation company, launched its integrated digital customer service management platform, known as Assist, across the Iberian Peninsula. This innovative platform is designed to simplify customer account service requests and processes, providing effective communication tools and immediate visibility into the status of customer inquiries. The implementation of Assist has led to faster responses to customer questions, as it has reduced the time customer service representatives spend on administrative tasks.

Major companies in the digital logistics market are intensifying their efforts to introduce state-of-the-art digital logistics solutions, such as ClickargoSG, to secure a competitive advantage. ClickargoSG is an innovative digital logistics platform designed to enhance and streamline logistics processes. For instance, in September 2022, GUUD, a Singapore-based technology firm, unveiled a new digital logistics platform named ClickargoSG. This platform aims to facilitate the digitalization of logistics and optimize the supply chain process. ClickargoSG features a variety of capabilities, including real-time tracking, digital documentation, and automated customs clearance, all intended to improve the efficiency and transparency of logistics operations.

In June 2022, DB Schenker, a leading Germany-based supply chain management and logistics solutions company, successfully acquired Bitergo, a German IT company. The financial details of the transaction were not disclosed. This strategic acquisition is designed to enhance DB Schenker's service portfolio, advance its digital strategy, and facilitate expansion into cloud-based products, particularly catering to small and medium-sized clients. Bitergo, the acquired company, is a Germany-based firm known for providing comprehensive software solutions aimed at digitizing shipping operations. The acquisition reflects DB Schenker's commitment to leveraging technology to optimize its logistics services and strengthen its position in the evolving landscape of supply chain management.

Major companies operating in the digital logistics market are Oracle Corporation, IBM Corporation, SAP SE, Advantech Co Ltd., AT&T Inc., Intel Corporation, Honeywell International Inc., HCLTech Ltd., Blue Yonder Inc., DigiLogistics, Hexaware Technologies Ltd., Tech Mahindra Pvt. Ltd., Samsung SDS, ORBCOMM Inc., Freightgate, Huawei Technologies Co. Ltd., WebXpress, Ramco Systems Ltd., Logisuite, ICAT Logistics, JDA Software Pvt. Ltd., Cloud Logistics, Infosys Limited, Kuehne + Nagel International AG, UPS Supply Chain Solutions, Accenture PLC, Capgemini SE, Cognizant Technology Solutions Corporation, Deutsche Post DHL Group, FedEx Corporation, Kenco Logistics Services LLC, Schneider Electric SE, XPO Logistics Inc.

North America was the largest region in the digital logistics market in 2024. The regions covered in the digital logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Digital logistics involves the automation and digitization of processes related to the transfer of products. This digital approach enhances data transparency for all suppliers and partners involved in every stage of supply chain management and operations management, creating new opportunities for companies to reduce operating costs, eliminate productivity losses, and improve order fulfillment accuracy.

The main product types of digital logistics include 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, for instance, enable real-time monitoring of someone or something using GPS trackers to broadcast locations to a device. These systems facilitate tracking movements and locations of vehicle assets on the road or at remote worksites. Digital logistics components include solutions and services deployed through modes like cloud and on-premises. They find application in various industries such as government, aerospace, defense, automotive, oil and gas, retail, manufacturing, healthcare, and others, addressing functions like warehouse management, labor management, and transportation management.

The digital logistics market research report is one of a series of new reports that provides digital logistics market statistics, including digital logistics industry global market size, regional shares, competitors with a digital logistics market share, detailed digital logistics market segments, market trends and opportunities, and any further data you may need to thrive in the digital logistics industry. This digital logistics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The digital logistics market consists of revenues earned by entities by providing digital logistics solutions and services such as convergence of logistics and technology, cloud-based collaborative solutions, real-time order visibility, automated approvals, and digital billings. The market value includes the value of related goods sold by the service provider or included within the service offering. The digital logistics market also includes sales of software and systems that are used to provide digital logistics services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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