The global connected logistics market reached a value of $25.55 Billion in 2021. Looking forward, it’s expected that the market will exhibit a 17.71 CAGR from 2021-2027.
Connected logistics offers geofencing, route optimization, fleet management, vehicle analytics, and security from theft, loss, or damage of shipments. Besides this, it helps forecast for predictable departure and arrival of shipments, improve operational efficiency, and enhance productivity by integrating multiple connected devices on a single interface.
According to the release from Research & Markets, there are extensive applications in businesses across different industry verticals, such as automotive, healthcare, retail, manufacturing, and food and beverage (F&B).
The thriving information technology (IT) sector represents one of the key factors positively influencing the market. Moreover, conventional logistics cycles do not have transparency and clarity as the logistics workflow relies on historical information for ongoing transportation and delivery processes.
As a result, there are differences between the estimates about fuel prices, route choices, and other aspects. However, connected logistics integrates radio frequency identification (RFID) chips and the internet of things (IoT) devices in carriage trucks, shipments, and individual product units. The data generated from these devices enables organizations to know the exact location and condition of the loads.
Additionally, they can interpret the transportation and shipping prices in the market before they select their freight forwarders for overseas shipping, which increases the overall visibility and transparency in logistics.