Digital Logistics Market

Surging e-commerce industry is driving the market growth

Market CAGR for digital logistics is being driven by the rising e-commerce industry. The drastic growth of the e-commerce industry over the past few years has been fueled by the increase in online shopping and the rise in the number of Internet users. The growth in e-commerce activities needs logistics providers in order to operate rapidly and more efficiently to process small individual orders. Online customers anticipate order accuracy, free returns, and same-day or same-hour delivery. E-commerce industries are exploring solutions to minimize order delivery operational costs and time.

The surge in e-commerce is a pivotal driver of the Global Digital Logistics Market Industry. With consumers increasingly favoring online shopping, logistics providers are compelled to adapt their services to meet heightened demand. This shift necessitates advanced logistics solutions to ensure timely deliveries and efficient inventory management. The market is anticipated to grow significantly, reaching 129.3 USD Billion by 2035, driven by the need for seamless integration of logistics and e-commerce platforms. Companies that leverage digital logistics solutions can enhance their operational capabilities and respond effectively to consumer expectations.

The evolving landscape of global trade is significantly influencing the Global Digital Logistics Market Industry. Trade agreements and geopolitical shifts can create new opportunities and challenges for logistics providers. For example, the expansion of trade routes and the reduction of tariffs can facilitate smoother cross-border transactions. As the market adapts to these changes, it is expected to grow, driven by the need for efficient logistics solutions that can navigate complex international regulations. This adaptability is crucial for companies aiming to thrive in a dynamic global marketplace.

The Global Digital Logistics Market Industry is on an upward trajectory, with projections indicating a remarkable growth from 28.2 USD Billion in 2024 to 129.3 USD Billion by 2035. This growth is underpinned by a compound annual growth rate (CAGR) of 14.84% from 2025 to 2035. Such figures illustrate the increasing importance of digital logistics solutions in enhancing operational efficiency and meeting consumer demands. As businesses continue to invest in digital transformation, the market is expected to expand significantly, reflecting the evolving nature of logistics in a globalized economy.

Sustainability is becoming a central focus within the Global Digital Logistics Market Industry. Companies are increasingly adopting eco-friendly practices to reduce their carbon footprint and meet regulatory requirements. This trend includes optimizing transportation routes and utilizing electric vehicles, which can lead to cost savings and improved brand reputation. As businesses strive for sustainability, the digital logistics sector is likely to see substantial growth, with a projected CAGR of 14.84% from 2025 to 2035. Organizations that prioritize sustainability may gain a competitive edge in attracting environmentally conscious consumers.

The Global Digital Logistics Market Industry is experiencing rapid transformation due to technological advancements. Innovations such as artificial intelligence, machine learning, and the Internet of Things are streamlining operations and enhancing supply chain visibility. For instance, AI-driven analytics can optimize route planning, reducing delivery times and costs. In 2024, the market is projected to reach 28.2 USD Billion, reflecting the growing reliance on technology in logistics. As companies adopt these technologies, they can expect improved efficiency and customer satisfaction, which are crucial in a competitive landscape.

Data analytics is revolutionizing the Global Digital Logistics Market Industry by enabling companies to make informed decisions. The ability to analyze vast amounts of data allows logistics providers to identify trends, optimize operations, and enhance customer service. For instance, predictive analytics can forecast demand fluctuations, allowing for better inventory management. As organizations increasingly rely on data-driven strategies, the market is poised for growth, with projections indicating a substantial increase in value over the next decade. This reliance on data is likely to shape the future of logistics.

By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Digital Logistics market area dominates the market due to the availability of large IT industries and fast advancement in technology. Increased utilization of digital systems and technologies, inclusive of radio frequency identification, electronic data exchange and others. The US is the largest contributor to the growth of digital Logistics market in the North American region.

Further, the prime countries studied in the market report are The US, Canada, the UK, German, France, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil.

Figure 2: GLOBAL DIGITAL LOGISTICS MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Digital Logistics market accounts for the second-largest market share as the number of people becoming familiar with digital Logistics because of the trend of cloud services in this region. Further, the German Digital Logistics market held the largest market share, and the UK Digital Logistics market was the rapid-growing market in European region.

The Asia-Pacific Digital Logistics Market is expected to grow at the rapid CAGR from 2023 to 2032. This is due to the presence rapidlyof developing countries and the adoption of digital technologies in this region. Moreover, China’s Digital Logistics market held the largest market share, and the Indian Digital Logistics market was the rapid-growing market in Asia-Pacific region.

Leading market players are investing hugely in research and development in order to expand their product lines, which will help the Digital Logistics market grow even more. Market players are also undertaking a variety of strategic activities to spread their global footprint, with important market developments including new product launches, mergers and acquisitions, contractual agreements, higher investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Digital Logistics industry must offer cost-effective items.

Manufacturing locally to reduce the operational costs is one of the key business tactics used by the manufacturers in the global Digital Logistics industry to benefit the clients and increase the market sector. In recent years, the Digital Logistics industry has offered some of the most significant advantages to various industries. Major players in the Digital Logistics market, including IBM Corporation, Bosch Inc., Infosys, Tech Mahindra, Oracle Corporation, HCL Technologies, International Business Machines Corporation, Huawei Technologies Co.

Ltd., Hexaware Technologies, Samsung Group, JDA Software Group Inc., Advantech Co., and others, are trying to increase market demand by investing in the research and development operations.

Bosch, headquartered in Gerlingen, Germany, founded in the year 1886, is a German multinational technology and engineering company. It is a leading supplier of services and technology globally. The company operates in four businesses; mobility (Hardware and software), industrial technology (inclusive of drive and control), consumer goods (inclusive of power tools and household appliances) and energy and building technology. In April 2022, the company and Amazon Web Services came together in order to advance digital Logistics. Bosch will design and operate the Logistic platform, gaining control over the core, and AWS will help with its extensive cloud experiences and resources.

This digital platform will gain easy access to the data and other services. This will also allow businesses in the transportation and benefits section to create a basis for their own cost and resource-intensive IT initiatives.

IBM Corporation, founded in the year 1911, and headquartered in Armonk, New York, is a multinational technology company. The company is known for its software and hardware products, inclusive of servers, computers, networking equipment, and storage systems. The company also offers technology, consulting and business services like cloud computing, artificial intelligence, and data analytics. The R&D efforts of the company have helped various technological innovations.

In May 2022, the signing of a Strategic Collaboration Agreement was announced by the company with Amazon Web Services Inc. with the aim to offer a broad range of its software catalog as Software-as-a-Service (SaaS) on AWS. This partnership between AWS and IBM will help with supply chain digitalization.