Connected Logistics Market – Global Vertical Size, Share, Trends, Opportunity, and Forecast Segmented By Component (Hardware, Software, Services), By Transportation Mode (Roadways, Railways, Airways, Waterways), By Vertical (Manufacturing, Automotive, Food and Beverages, Consumer Goods and Retail, Oil & Gas, Travel and Hospitality, Healthcare and Pharmaceuticals, and Others), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 20.54 Billion
CAGR (2026-2031)	14.82%
Fastest Growing Segment	Hardware
Largest Market	North America
Market Size (2031)	USD 47.07 Billion

Market Overview

The Global Connected Logistics Market will grow from USD 20.54 Billion in 2025 to USD 47.07 Billion by 2031 at a 14.82% CAGR. Connected logistics refers to the integration of digital technologies such as the Internet of Things and artificial intelligence to enable real-time data exchange across supply chains. The primary drivers supporting market growth include the necessity for operational efficiency and the rising demand for end-to-end shipment visibility. Furthermore, the expansion of global e-commerce compels companies to adopt agile systems for faster fulfillment. According to MHI, in 2024, 55% of supply chain leaders increased their investment in supply chain technology and innovation. This data underscores the strategic priority placed on digital interconnectedness to optimize fleet and inventory management.

However, a significant challenge impeding market expansion is the heightened risk of cybersecurity threats. As logistics networks become increasingly digitized, they become vulnerable to data breaches that can disrupt operations and compromise sensitive proprietary information. These security concerns often deter organizations from fully integrating comprehensive digital platforms and thereby slow the rate of adoption. Consequently, establishing rigorous data protection measures remains a critical hurdle for stakeholders aiming to implement connected logistics solutions.

Key Market Drivers

The exponential expansion of the global e-commerce and last-mile delivery sector is a primary force propelling the connected logistics market. As consumer expectations for rapid, transparent, and accurate delivery intensify, logistics providers are compelled to digitize their networks to handle increasing shipment volumes and operational complexity. This surge in online retail necessitates robust digital connectivity to ensure seamless data exchange across the fulfillment ecosystem, from warehousing to final delivery, effectively bridging the gap between digital orders and physical movement. According to the Council of Supply Chain Management Professionals, in June 2024, global online retail sales were nearing $6.3 trillion, a figure that underscores the critical need for scalable, interconnected logistics infrastructures to manage this massive throughput efficiently.

Simultaneously, the proliferation of IoT-enabled real-time asset tracking solutions is fundamentally reshaping market dynamics by providing unprecedented operational transparency. Stakeholders are aggressively deploying sensor-based technologies to monitor cargo condition, location, and status in real-time, thereby mitigating risks and optimizing transit routes. This drive for granular visibility is transitioning from a competitive advantage to a strategic imperative for reducing inefficiencies and ensuring service reliability. According to Descartes Systems Group, in June 2024, real-time transportation visibility was cited as the priority technology investment by 36% of surveyed shippers and logistics service providers. The tangible value of such digital integration is evident in market performance; according to UPS, in January 2025, the company reported that its Digital Access Program generated $3.3 billion in revenue for 2024, reflecting the widespread commercial adoption of connected logistics platforms.

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Key Market Challenges

The heightened risk of cybersecurity threats constitutes a formidable barrier to the expansion of the Global Connected Logistics Market. As supply chains increasingly rely on interconnected devices and cloud-based platforms, the attack surface for malicious actors widens significantly. This digital exposure leaves critical infrastructure vulnerable to ransomware, data theft, and systemic disruptions that can paralyze freight operations. Consequently, the fear of potential breaches makes organizations hesitant to fully integrate essential digital tools, thereby stalling the market's momentum.

To illustrate the severity of this issue, according to the National Motor Freight Traffic Association, in 2024, approximately 90% of cyber incidents within the industry were executed through phishing schemes and misconfigured network devices. This statistic highlights the fragility of digital supply chain networks. When companies face such high probabilities of intrusion, they often delay the deployment of connected logistics solutions to focus on risk mitigation. Therefore, the persistent threat of cyberattacks acts as a direct constraint on the adoption of advanced technologies and impedes the overall growth of the market.

Key Market Trends

The deployment of AI-driven predictive analytics is transforming how stakeholders anticipate market fluctuations and optimize resource allocation. Unlike reactive measures, these advanced algorithms analyze historical data and complex variables to forecast demand with high precision, allowing companies to preemptively adjust inventory and fleet capacity. This shift is largely a response to escalating operational expenses and the need for resilience against supply chain volatility, moving beyond simple visibility to actionable foresight. According to the Council of Supply Chain Management Professionals, June 2025, in the '2025 State of Logistics Report', US business logistics costs reached a record $2.6 trillion in 2024, a financial pressure that is driving organizations to accelerate the integration of artificial intelligence and automation to enhance network efficiency.

Simultaneously, the industry is witnessing a decisive shift towards sustainable logistics operations, fundamentally driven by stringent regulatory frameworks and corporate decarbonization goals. Organizations are increasingly leveraging digital tools to track carbon footprints and integrating electric vehicles into their fleets to mitigate the environmental impact of last-mile delivery. This green transition is supported by rigorous data collection that quantifies emissions intensity, enabling companies to report progress transparently to stakeholders and comply with emerging global standards. According to Amazon, July 2025, in the '2024 Sustainability Report', the company expanded its global electric delivery fleet to more than 31,000 vehicles in 2024, demonstrating the large-scale commercial commitment to reducing greenhouse gas emissions within the logistics network.

Segmental Insights

The Hardware segment is anticipated to witness the most rapid expansion in the Global Connected Logistics Market, driven by the widespread deployment of sensor-based tracking devices. Organizations are increasingly investing in physical components, such as RFID tags, IoT sensors, and gateways, to establish the necessary infrastructure for real-time data collection. This growth is fundamentally supported by the rising need for granular asset visibility and condition monitoring across complex international supply chains. Consequently, the acquisition of these essential devices serves as the critical initial step for enterprises aiming to digitize their logistical operations.

Regional Insights

North America holds the leading position in the global connected logistics market, driven by the widespread integration of Internet of Things solutions and cloud platforms within supply chain operations. The region benefits from robust infrastructure and substantial investments by major technology and logistics enterprises focused on improving asset tracking and fleet management. Furthermore, strict safety and compliance standards enforced by the United States Department of Transportation mandate precise monitoring systems, accelerating the adoption of connected technologies. These factors collectively establish North America’s dominance in modernizing logistics frameworks.

Recent Developments

• In February 2025, HERE Technologies expanded its partnership with Project44 to incorporate advanced location intelligence into a leading supply chain visibility platform. This collaboration involved licensing specialized truck routing and search capabilities to improve the management of multimodal transportation networks. The integration provided logistics professionals with more precise tracking data and predictive insights, particularly for road freight operations. By enhancing the quality of location data, the companies sought to resolve visibility gaps and reduce friction in global supply chains, thereby enabling more resilient and efficient connected logistics strategies.
• In October 2024, Bridgestone Americas and Geotab launched a strategic collaboration to develop a data-driven fleet mobility ecosystem. This partnership focused on integrating analytics from connected tire monitoring and telematics technologies to enhance fleet safety and performance. By leveraging anonymized insights from millions of vehicles, the companies aimed to provide logistics operators with critical information to optimize routes and reduce maintenance costs. The initiative highlighted the growing importance of combining diverse data streams in the global connected logistics market to achieve higher levels of operational intelligence and sustainability.
• In May 2024, Geotab and Rivian announced a partnership to deliver an integrated telematics solution for commercial electric vehicles in North America. This collaboration enabled fleet managers to access comprehensive vehicle data, such as range and charging activity, directly through a unified management dashboard without requiring additional hardware. The initiative aimed to streamline the management of electric fleets by providing actionable insights that improve operational efficiency and sustainability. This development represented a significant step in the connected logistics sector, facilitating the easier adoption and management of electric vehicles within complex supply chains.
• In January 2024, Honeywell formed a strategic alliance with Hai Robotics to enhance flexible automation capabilities within the connected logistics market. This collaboration focused on integrating autonomous mobile robots with advanced warehouse execution software to create high-density storage and retrieval systems. The joint solution was designed to optimize space utilization and increase operational speed in distribution centers, allowing businesses to adapt quickly to changing demand. By combining robotics with sophisticated software, the initiative aimed to drive greater productivity and accuracy in warehouse operations, supporting the broader trend of digital transformation in supply chain management.

Key Market Players

• Intel Corporation
• Infosys Limited
• Cisco Systems, Inc.
• HCL Technologies Limited
• IBM Corporation
• SAP SE
• AT&T Inc.
• Oracle Corporation
• Huawei Technologies Co., Ltd.
• Zebra Technologies Corporation

By Component	By Transportation Mode	By Vertical	By Region
Hardware Software Services	Roadways Railways Airways Waterways	Manufacturing Automotive Food and Beverages Consumer Goods and Retail Oil & Gas Travel and Hospitality Healthcare and Pharmaceuticals Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Connected Logistics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Connected Logistics Market, By Component:

• Hardware
• Software
• Services

• Connected Logistics Market, By Transportation Mode:

• Roadways
• Railways
• Airways
• Waterways

• Connected Logistics Market, By Vertical:

• Manufacturing
• Automotive
• Food and Beverages
• Consumer Goods and Retail
• Oil & Gas
• Travel and Hospitality
• Healthcare and Pharmaceuticals
• Others

• Connected Logistics Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE