Physical Internet (PI) Market Research Report—Global Forecast till 2050

Physical Internet (PI) Market Research Report: By Type (Logistic Nodes and Logistic Networks), By Component (Solution [Asset Management, Warehouse Management, Transportation Management, Workforce Management, Cold Chain Management, Data Management & Analytics, Network Management & Security, Others] and Services [Planning & Consulting, Deployment & Integration, Support & Maintenance]), By Organization Size (Small and Medium Enterprises (SMEs) and Large Enterprises), By Vertical (Retail & E-Commerce, Transportation & Logistics, Pharmaceuticals

ID: MRFR/ICT/9349-HCR | 100 Pages | Published By Ankit Gupta on March 2023         

Physical Internet (PI) Market Synopsis


Physical Internet Market size is anticipated to experience substantial growth during the forecast timespan The Physical Internet is inspired by the ideas of the Digital Internet, thus it is not just a carbon replica of its parts, such as the transmission control and Internet protocols (TCP/IP). This is critical since there are significant disparities between data packets on the digital side and packages and freight on the physical side, as well as significant variances between organizational levels. The Physical Internet differs from the Internet of Things (IoT), which is characterized by the connectivity of physical things to the Digital Internet. Having said that, the IoT may be a Physical Internet enabler by enhancing visibility and management of items beyond a company's information systems. The Physical Internet is about connecting the world's logistic networks, defining a new opportunity for supply chain design and operations by enabling seamless open asset sharing and flow consolidation, and meeting society's demand for physical objects with orders-of-magnitude better efficiency and sustainability due to improved economies of scale and scope.


The success of the physical Internet is due to the interconnection of logistics players on several tiers, including physical, digital, operational, transactional, and legal. Finally, the PI Market will permit global interconnection with any organization, at any time and from any location. This is a disruption to the majority of service or customer-specific logistic networks. The Physical Internet opens the door to totally new integrated operations and business models at the supply chain design and management levels, with the obvious purpose of improving overall sustainability. The Physical Internet, as a new paradigm, causes changes in logistics organizations and supply chain applications, but it is also changing depending on trends and backed by current and future research.


COVID-19 Analysis


The COVID-19 epidemic has left its mark on almost every industry on the planet. Consequently, the impact on the transportation and logistics industries is significant. The COVID-19 epidemic has had a direct impact on logistics organizations, which are involved in the transit, storage, and flow of commodities. Logistics organizations, as a vital element of value chains both inside and beyond international boundaries, support trade and commerce and assist businesses in getting their products to customers. Supply chain interruptions caused by the epidemic have harmed the sector's competitiveness, economic development, and job creation. The transportation and logistics industry is especially exposed to economic disruptions. With commercial shipping transporting over 80% of global commerce volume, firms are working hard to fulfil demand and rebalance their portfolio. Nonetheless, despite such rebalancing and the predicted increase in demand for logistics services after the coronavirus problems subside, the shipping industry's volumes are expected to fall by 20-25 percent. To avoid fatal business interruptions, several airlines are altering their jets, allowing their passenger flights to serve as freight planes.


PI Market Dynamics


The rising support for zero-emission logistics, the prospect of a globally networked logistics system, and the exponential development seen in the e-commerce business are some of the drivers fueling great interest in the Physical Internet market. Whereas the necessity for a conceptual shift toward the physical internet is impeding industry expansion. Furthermore, the rising requirement for education and skill development connected to the PI Market, as well as the increased need for trust among partners and users of shared networks, platforms, collaborative, and autonomous systems, create market issues. However, the industry is being aided by the growing benefits of PI Market, such as efficient and smooth freight transit, cheaper costs, and improved quality of life for truck drivers, among others.


PI Market Driver



  • Growing Support Towards Zero Emission Logistics


The PI Market is undoubtedly the most ambitious notion in transportation logistics in terms of efficiency and sustainability. It represents a far-reaching transformation of freight transport and logistics, allowing assets and resources to be utilized considerably more efficiently. The PI is based on a comprehensive and systematic consolidation of flow and network of networks principles. The Physical Internet envisions a complete consolidation of logistical flows from separate shippers (through enhanced pooling and shared networks, for example). Furthermore, in order to provide customer value, the Physical Internet suggests pooling resources and assets in open, linked, and shared networks (i.e., linking existing (business) networks, capabilities, and resources) so that network users and partners may utilize them easily. It is predicted that by pooling demand and resources to meet that need, resource utilization will be more efficient. 


Physical Internet Market Opportunity



  • Growing Benefits of the Physical Internet (PI)


The physical internet is a multidisciplinary field of study and activity that aims to enhance logistical operations in order to develop more efficient, effective, and long-lasting supply chains. The existing method of transporting, storing, and handling freight is unsustainable from an economic, environmental, and social standpoint. Inefficiency is baked into almost every stage of our operations, from empty trucks driving 50 or even 100 miles to pick up their next loads to large distribution centres that lie idle for days or weeks at a time. The physical internet (PI) envisions a worldwide logistics system that delivers items in standard-sized, modular containers between platforms and continents as efficiently and effortlessly as the internet does digital information. That is the notion of the Physical Internet, which is generating not only a lot of excitement in the logistics business, but also a lot of money, particularly in the European Union.


RESTRAINT



  • Need for Mental Shift Towards Physical Internet (PI)


The Physical Internet Market is expanding at rapid pace and is expected to develop further with several driving factors. However, the Physical Internet (PI) find it difficult to reach its potential customers owing to the limited knowledge A mental shift is needed at different levels -from retailers and shippers, thus they rely more on the skills of logistics service providers and freight forwarders, who are less prescriptive and demanding of specialized assets, services, and infrastructure in how services are delivered, with an emphasis on service level and quality. Logistics service providers and freight forwarders must openly provide access to services and rely on the services of other logistics networks in order to build on their capabilities, assets, and resources by defining common and standard processes that will facilitate service and network interoperability.


Segmentation


The global Physical Internet market has been segmented based on type, component, organization size, vertical, and region.


Based on type, the physical internet market has been segmented into logistic nodes and logistic networks.


Based on component, the Physical Internet market has been segmented into solution and services. The services segment is further bifurcated into planning and consulting, integration and deployment, support and maintenance. The solutions segment is further bifurcated into asset management, warehouse management, transportation management, workforce management, cold chain management, data management and analytics, network management and security, and others.


Based on organization size, the Physical Internet market is segmented into small and medium enterprises (SMEs) and large enterprises.


Based on vertical, the Physical Internet market has been segmented into retail and e-commerce, transportation and logistics, pharmaceuticals and healthcare, manufacturing, FMCG, automotive, aerospace and defense, and others.


The global Physical Internet market has been analyzed for five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.


Regional Analysis


The geographic analysis of the global Physical Internet market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.


Europe is expected to contribute the largest market share across the globe. Since 2010, Europe has been conscious and active in the development of the physical internet (PI). The European Union-supported Alliance for Logistics Innovation Through Collaboration (ALICE) included the Physical Internet into its freight systems. On a European level, the target for a Physical Internet that would replace present logistical methods is established for 2030. It is expected to be completely operational ten years later, by 2040. Its operations will be similar to those of the Internet, with data-transfer techniques being applied in real-world transportation procedures. The region is also making good progress and have the world's most advanced PI implementation roadmap, as well as strong momentum with initiatives in Austria, France, Germany, and the Netherlands.


Asia-Pacific is anticipated to be the fastest-growing market in the global Physical Internet market during the forecast period mainly due to the rapid digital transformation, increasing internet penetration, rising adoption of 5G & 4G LTE services, and others. Additionally, Asia has enormous potential for development and innovation for the physical internet (PI) market.


Competitive Analysis


The global Physical Internet market is witnessing a high growth mainly due to rising expending power among individuals, rapid adoption of technologies to design & develop the physical internet, and surging demand for Physical Internet (PI). Major players have opted for partnerships, acquisitions, and product developments as their key organic growth strategies to enhance their positions in the market and cater to the demands of physical internet across various industry verticals.


Key Developments


Amazon.com Inc., for example, is preparing to become a significant participant in the physical internet, a project to establish a network in which boxes are bytes travelling through the supply chain network in the same way that data travels on the internet. Amazon is attempting to vertically integrate its logistics. This will entail the construction of its own airport, the establishment of an ecosystem of last-mile delivery micro-companies and services, a degree of uberization, as well as significant investment in automation, a strategic investment in Deliveroo, and a series of programs to reduce emissions and the carbon footprint of its operations.


Amazon is already battling with logistical behemoths such as UPS and FedEx for dominance in the Physical Internet area. Logistics behemoths are likewise gearing themselves to prosper in the new Physical Internet age. DHL Express, for example, has already begun containerized last mile delivery to allow for the cost-effective transportation of products between terminals, motor vehicles, and specialist last mile delivery vehicles.


Research Projects Towards the Physical Internet (PI)


Alliance for Logistics Innovation Through Collaboration in Europe (ALICE)


The European Technology Platform (ETP) Alliance for Logistics Innovation via Collaboration in Europe (ALICE) was established to provide a comprehensive strategy for logistics and supply chain management invention research, innovation, and market deployment in Europe. ALICE is founded on the understanding of the need for a unified perspective on logistics and supply chain planning and management, in which shippers and logistics service providers work closely together to achieve effective logistics and supply chain operations. ALICE has published a thorough roadmap for the Physical Internet (PI). The roadmap shows significant milestones, essential technologies, and initial implementation prospects for the PI from 2020 to 2040. Advanced trial implementations of the Physical Internet idea are predicted to be operational and prevalent in industry practice by 2030, contributing to a 30% decrease in transportation congestion, pollution, and energy consumption.


Key Players


The key players in the global Physical Internet market are identified based on their country of origin, presence across different regions, recent key developments, product diversification, and industry The key players in the global Physical Internet market are Amazon.com Inc. (US), UPS (US), AmeriCold Logistics LLC (US), Mercedes-Benz Group AG (Germany), SF Express Co. Ltd. (China), Yamato Logistics Ltd. (Hong Kong), DHL (Germany), FedEx Corporation (US), Velove Bikes AB (Sweden), MIXMOVE (Norway), among others.


Intended Audience



  • Value-Added Resellers (VARs)

  • Logistics Companies

  • Network operators

  • Technology consultants

  • Investors and venture capitalists

  • Chief financial officers

  • Logistics Software Vendors/ Developers



Report Scope:

Report Attribute/Metric Details
  Market Size   Significant Value
  CAGR   Significant CAGR
  Base Year   2020
  Forecast Period   2021-2050
  Historical Data   2019
  Forecast Units   Value (USD Significant)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Type, Services, Size
  Geographies Covered   North America, Europe, Asia-Pacific, the Middle East & Africa, and South America
  Key Vendors   Amazon.com Inc. (US), UPS (US), AmeriCold Logistics LLC (US), Mercedes-Benz Group AG (Germany), SF Express Co. Ltd. (China), Yamato Logistics Ltd. (Hong Kong), DHL (Germany), FedEx Corporation (US), Velove Bikes AB (Sweden), MIXMOVE (Norway), among others.
  Key Market Opportunities   Growing Benefits of the Physical Internet (PI)
  Key Market Drivers   Growing Support Towards Zero Emission Logistics


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Frequently Asked Questions (FAQ) :

The Physical Internet Market is expanding at rapid pace and is expected to develop further with several driving factors. Physical Internet, which is generating not only a lot of excitement in the logistics business, but also a lot of money, particularly in the European Union.

The physical internet (PI) envisions a worldwide logistics system that delivers items in standard-sized, modular containers between platforms and continents as efficiently and effortlessly as the internet does digital information.

There are main two types of a Physical Internet 1) Logistic Nodes 2) Logistic Networks

Amazon.com Inc, DHL Express, through enhanced pooling and shared networks

The key players in the global Physical Internet market are Amazon.com Inc. (US), UPS (US), AmeriCold Logistics LLC (US), Mercedes-Benz Group AG (Germany), SF Express Co. Ltd. (China), Yamato Logistics Ltd. (Hong Kong), DHL (Germany), FedEx Corporation (US), Velove Bikes AB (Sweden), MIXMOVE

The physical internet—the concept of handling, storing, and transporting goods in a shared network of manufacturers, retailers, and the transportation industry—would benefit the U.S. economy and significantly reduce greenhouse gas emissions.