The Internet of Things (IoT) expands internet access beyond traditional devices such as laptop computers, smartphones, laptops and others. IoT has various applications in logistics and the devices connected through it can be monitored and accessed remotely.
The IoT in logistics market shows a significant demand owing to the growing competition and a constant need of cost cutting. The logistics industry has evolved quite a lot from the time when goods where just transferred from one point to the other. Nowadays, the time required for goods to reach the customer matters the most and numerous companies are implementing IoT for this purpose. Companies use it for location management to track the location of the driver. Moreover, this helps the customer to track the order and know the delivery status. Furthermore, it also helps companies for efficient inventory management and tracking. This in turn leads to superior warehouse operations. In addition, using automation by integrating IoT leads to minimizing human errors. All these factors point towards a vibrant market. However, the high cost of these systems might slowdown market growth to a certain extent.
On the basis of software, traffic and fleet management shows substantial growth. With the advent of speedy deliveries every logistics company is thriving to implement traffic and fleet management softwares. This leads to better routing options and tracking deliveries in real time. It also leads to increased warehouse efficiency. Implementing these softwares help in reducing the freight expenses as it uses analytics to give suggestions on cost saving potentials. All these factors increase the overall supply chain efficiency. Hence, this segment holds a major market share.
On the basis of hardware, RFID is expected to hold a prominent market share. The use of RFID in place of barcodes for tracking has increased considerably. Moreover, RFID helps edit data remotely. It gives an enhanced efficiency in warehouse operations and better inventory management. RFID tags give the exact location of the pallet in the warehouse. Companies have massive warehouses and it is thus essential to use an effective system for tracking the vast number of products it stocks. Hence, the segment depicts an extensive share of the market.
On the basis of region, North America is considered to hold a huge share of the market. USA is a pioneer to the adoption of logistics solutions. Moreover, most of the companies of the region have an active IT infrastructure for implementing IoT. Furthermore, the economy of the region is very stable and developed. The purchasing power of the people is high. In addition, logistics and transportation industry accounts to almost 8% of the GDP of USA. The country has a highly developed supply chain network which enables both producers and consumers to use a multi-modal transportation network. Hence, the market offers huge opportunities.
Asia Pacific is considered to hold a tremendous market share owing to the booming industrial sector. China and India are one of the largest logistics markets of the world. The logistics industry of India is worth USD 160 billion and provides employment to around 22 million people. With the implementation of GST, the sector is estimated to cross the USD 200 billion mark. Moreover, the rapidly growing economy of the region is propelling the market towards further growth. The region also forms a huge chunk of populations which in turn drives the market demand. Thus, there is an incredible potential in the region.
The market constitutes of companies such as IBM Corporation, PTC Inc, Kaa IoT Technologies, LLC, Novire Technologies, NEC Corporation, Intel Corporation, SAP SE, Oracle Corporation, Rockwell Automation, Inc., Bosch Software Innovations GmbH, BICS SA/NV, Honeywell International, Amazon Web Services, Octonion SA and Cisco Systems Inc. among others.
The report segments the IoT in logistics market as follows:
Global IoT in Logistics Market: Hardware Segment Analysis
Global IoT in Logistics Market: Software Segment Analysis
Global IoT in Logistics Market: Organization Size Segment Analysis
Global IoT in Logistics Market: Application Segment Analysis
Global IoT in Logistics Market: Regional Segment Analysis