Physical Internet Market

The rising support for zero-emission logistics is driving the market growth

The potential for a worldwide networked logistics system, the explosive growth of e-commerce, and the expanding popularity of zero-emission logistics are just a few of the factors stoking significant interest in the Physical Internet sector. Contrarily, the need for a conceptual shift towards the physical internet is what is preventing industrial development. Additional elements that contribute to market issues include the rising demand for education and skill development in the PI Market, as well as the need for enhanced trust among partners and users of shared networks, platforms, collaborative systems, and autonomous systems.

However, the company is benefiting from PI Market's expanding advantages, which include better freight transit, lower expenses, and a higher standard of living for truck drivers.

Almost every business on the earth has been impacted by the COVID-19 outbreak. Therefore, there will be a big influence on the logistics and transportation sectors. Logistics companies that oversee the transportation, storage, and transit of goods have been directly impacted by the Covid-19 pandemic. Logistics companies facilitate trade and commerce and help enterprises get their products to clients. They are an essential component of value chains both domestically and internationally. Supply chain implications of the epidemic have made it more challenging for the sector to compete, grow commercially, and generate jobs.

The logistics and transportation sector is particularly vulnerable to the effects of economic downturns. Over 80% of all global trade involves commercial ships, so businesses are scrambling to meet demand and rebalance their portfolios. The volume of the shipping industry is predicted to decline by 20 to 25% notwithstanding this rebalancing and the anticipated rise in demand for logistics services after the coronavirus issues are resolved. Several airlines are making changes to their aircraft so that they can be utilised for freight flights in order to prevent devastating economic interruptions. Thus, driving the Physical Internet (PI) market revenue.

Regulatory frameworks are increasingly supporting the Global Physical Internet (PI) Market Industry by promoting collaborative logistics and shared infrastructure. Governments are recognizing the benefits of PI principles in enhancing supply chain resilience and efficiency. Policies that encourage the adoption of digital technologies and data sharing among logistics providers are becoming more prevalent. Such regulatory support not only facilitates the implementation of PI frameworks but also fosters innovation within the industry. As these supportive measures gain traction, they are expected to contribute to the market's expansion, aligning with the projected growth trajectory towards 45 USD Billion by 2035.

The Global Physical Internet (PI) Market Industry is influenced by evolving global trade dynamics, including shifts in trade agreements and international regulations. As countries seek to enhance trade relationships, the demand for efficient logistics solutions increases. The PI framework facilitates seamless cross-border logistics, enabling businesses to adapt to changing trade landscapes. For instance, the implementation of standardized protocols can simplify customs processes, reducing delays and costs. This adaptability is crucial for businesses aiming to remain competitive in a globalized economy. Consequently, the market is poised for growth, with a projected CAGR of 12.35% from 2025 to 2035.

In the Global Physical Internet (PI) Market Industry, consumer demand for faster delivery times is reshaping logistics strategies. As e-commerce continues to flourish, businesses are compelled to adopt PI principles to meet customer expectations for rapid fulfillment. The ability to provide real-time tracking and efficient last-mile delivery solutions is becoming paramount. Companies that leverage PI frameworks can optimize their supply chains, ensuring timely deliveries while minimizing costs. This shift towards speed is likely to drive market growth, as businesses recognize the competitive advantage of efficient logistics in an increasingly impatient consumer landscape.

The Global Physical Internet (PI) Market Industry is on a growth trajectory, with projections indicating a rise from 12.5 USD Billion in 2024 to 45 USD Billion by 2035. This anticipated growth reflects the increasing adoption of PI principles across various sectors, driven by technological advancements, sustainability initiatives, and evolving consumer demands. The market is expected to experience a compound annual growth rate of 12.35% from 2025 to 2035, highlighting the industry's potential to transform logistics and supply chain management. These projections underscore the importance of embracing PI frameworks to enhance efficiency and competitiveness in a rapidly changing global landscape.

Growing awareness of environmental issues is propelling the Global Physical Internet (PI) Market Industry towards sustainable practices. Companies are increasingly adopting PI principles to minimize their carbon footprints and enhance resource efficiency. For example, the integration of shared logistics networks can significantly reduce empty miles and optimize transportation routes. This shift not only aligns with corporate social responsibility goals but also meets regulatory requirements aimed at reducing emissions. As sustainability becomes a core business strategy, the market is anticipated to expand, with projections indicating a growth to 45 USD Billion by 2035, reflecting a commitment to greener logistics.

The Global Physical Internet (PI) Market Industry is experiencing rapid technological advancements that enhance logistics and supply chain efficiency. Innovations in automation, artificial intelligence, and the Internet of Things are streamlining operations and reducing costs. For instance, smart containers equipped with sensors can provide real-time data on shipment conditions, improving transparency and reliability. As these technologies become more accessible, they are likely to drive the adoption of PI frameworks across various sectors, facilitating a more interconnected and efficient global supply chain. This trend is expected to contribute to the market's growth, projected to reach 12.5 USD Billion in 2024.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Physical Internet (PI) Market dominated this market in 2022 (45.80%). The region is also making good progress and has the most sophisticated Pl implementation strategy in the world, in addition to substantial momentum from activities in the United States and Canada. Further, the U.S. Physical Internet (PI) market held the largest market share, and the Canada Physical Internet (PI) market was the fastest growing market in the North America region.

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

Figure 2: GLOBAL PHYSICAL INTERNET (PI) MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Physical Internet (PI) market accounted for the healthy market share in 2022. Since 2010, Europe has been aware of and involved in the development of the physical internet (PI). The Alliance for Logistics Innovation Through Collaboration (ALICE), which is sponsored by the European Union, has integrated the Physical Internet into its supply chain. The European Union has set 2030 as the deadline for a Physical Internet, which would replace present logistical methods. It is projected that it will be completely operational by 2040, which is ten years from now.

Its functionality will be similar to that of the Internet, including data transfer techniques using customary transit means. Further, the German Physical Internet (PI) market held the largest market share, and the U.K Physical Internet (PI) market was the fastest growing market in the European region.

The Asia Pacific Physical Internet (PI) market is expected to register significant growth from 2023 to 2032. This is caused by a number of variables, including the rapid uptake of 5G and 4G LTE services, the expansion of internet penetration, and others. Additionally, Asia presents enormous potential for development and innovation in the physical internet (PI) sector. Moreover, China’s Physical Internet (PI) market held the largest market share and the Indian Physical Internet (PI) market was the fastest growing market in the Asia-Pacific region.

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

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Physical Internet (PI) industry to benefit clients and increase the market sector. In recent years, the Physical Internet (PI) industry has offered some of the most significant advantages to medicine. Major players in the Physical Internet (PI) market, including Amazon.com Inc., UPS, AmeriCold Logistics LLC, Mercedes-Benz Group AG, SF Express Co. Ltd., Yamato Logistics Ltd., DHL, FedEx Corporation, Velove Bikes AB, and MIXMOVE, are attempting to increase market demand by investing in research and development Types.

Amazon.com Inc. is an online retailer and provider of web services. The company offers a wide range of products for sale, including apparel, auto and industrial supplies, cosmetics, health and beauty aids, electronics, food, games, jewellery, baby and children's items, music, sports gear, toys, and tools. Additionally, it offers assistance with online-related services including cloud web hosting, home delivery, and shipping. These products are sold by Amazon utilising its own online and offline venues. It also manufactures and markets a variety of electric products, such as Kindle e-readers, Fire tablets, Fire TVs, and other tech.

The company makes it possible for authors, musicians, filmmakers, and others to publish and sell their work. Amazon is based in Seattle, Washington, in the United States.

United Parcel Service Inc. (UPS) provides package delivery services. It provides contract logistical, distributional, and transportation services. The company offers residential ground services in the US as well as same-day, time-definite, next-day, two-day and three-day delivery choices for ground and air package transportation services. In Africa, the Middle East, Latin America, and Asia-Pacific, it offers international shipping services. The company also offers freight forwarding, logistics, truckload brokerage, customs brokerage, and financing for cargo-related insurance. Value-added services are provided by UPS through its UPS shops, authorised shipping sites, business counters, customer centres, and drop boxes.

Some of its well-known trademarks include Express Plus, UPS Express, Worldwide Express Freight, and Express Saver. UPS is based in Atlanta, Georgia, in the US.