Digital Logistics Market By Component, (Solution {Transportation Management, Warehouse Management, Asset Tracking & Monitoring, Order Management, Data Management & Analytics}, Services {Consulting, Integration & Implementation, Support & Maintenance), By Deployment Mode (On-Premises, Cloud-Based), By Transportation Mode (Roadways, Railways, Airways, Seaways), By Application (Transportation Management, Warehouse & Storage Management, Order Management, Inventory Management, Labor Management), By End-User (Retail & E-commerce, Manufacturing, Automotive, Healthcare & Pharmaceuticals, Food & Beverages, Oil & Gas, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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Industry Outlook

The Digital Logistics market accounted for USD 34.67 Billion in 2024 and USD 41.09 Billion in 2025 is expected to reach USD 224.73 Billion by 2035, growing at a CAGR of around 18.52% between 2025 and 2035 The Digital Logistics Market means using technology like IoT, AI, cloud computing and blockchain to help logistics and supply chain management become clearer, more vital and allow instant problem-solving. It makes it possible to control stocks better, achieve automated warehousing and use analytics to foresee and optimize demand and deliveries. As the world’s trade grows and online shopping grows, businesses are moving toward using digital logistics to handle their operations more easily. Advances are happening with more robotic vehicles, drones and planning features based on intelligence entering the market. With more people asking for near-instant logistics and greener ways to ship, the Digital Logistics Market is expected to grow in all regions.

Industry Experts Opinion

"The digital logistics market is transforming traditional supply chains into highly automated, data-driven networks that improve efficiency and customer satisfaction. The integration of AI and IoT is driving this evolution rapidly."

• Steve Banker, Vice President of Supply Chain Services at ARC Advisory Group

"Digital logistics solutions are key to unlocking supply chain transparency and agility. Cloud-based platforms enable companies to respond faster to disruptions and changing market demands”.

• Tom Raftery, Global VP at SAP and Industry Analyst

Report Scope:

Market Dynamics

The rising e-commerce sector is demanding faster, more transparent, and efficient delivery systems.

E-commerce is one of the main reasons the Digital Logistics Market is growing. Currently, online shopping is growing rapidly across the globe, so consumers are expecting quicker, more open and well-managed delivery. Companies in digital logistics are putting effort into improving the last step in delivery, route planning and live tracking of shipments.  Because e-commerce is growing rapidly, efficient digital logistics systems are required to deal with a high number of orders and guarantee transparency.

Therefore, companies are spending a lot on digital solutions to keep their customers happy and ensure they do not lose to rivals in this growing area. Besides, using digital payment methods and automated customer services helps to achieve better logistics performance. By introducing these developments, the Digital Logistics Market can support the rapid changes going on in the retail sector.

Growing adoption of IoT and AI for real-time supply chain optimization and tracking.

Real-time optimising and monitoring of supply chains is now possible, thanks to the rising use of IoT and AI, which is driving the growth of the Digital Logistics Market. The data from IoT solutions in vehicles, warehouses and shipments helps in understanding every process from start to finish and makes predictions. AI solutions process this data to arrange efficient routes, forecast the amount of goods that will be needed and leave less work for employees. Over 614 logistics companies have registered on ULIP, with 106 companies signing Non-Disclosure Agreements (NDAs) to access data. By adopting digital technologies, logistics companies will drive faster growth in the market and help supply chains meet ongoing changes in the market more effectively.

Systems powered by AI can prevent most delays caused by weather or traffic. Because of these technologies, the digital logistics industry has become stronger and can respond more quickly. Investing in both freight infrastructure and new logistics technology is highlighted by the U.S. Department of Transportation to support more capacity and improved connectivity, according to their Freight and Logistics Supply Chain Assessment.

High initial investment and integration costs for digital logistics infrastructure.

At the start, many firms need to pay a lot for technology and services, slowing the development of digital logistics. Taking advantage of advanced technologies in AI, IoT, cloud and automation involves spending a significant amount of capital. It is not always easy for SMEs to provide the necessary funds for digital transformation. The process of modernizing old IT systems increases the organization’s financial responsibilities. Besides, adding these technologies to various logistics areas and systems is a demanding task that calls for trained experts and takes lots of time. As companies change and staff train, the overall costs of the business increase. Some companies worry about the immediate financial gain of automating, which stops them from automating. Complicated procedures with existing systems also cause problems during deployment. Building out new security systems also increases the cost. These difficulties make it hard for adoption to speed up, especially in parts of the world that are developing. Even though the long-term pros are well-known, too many people cannot afford to join the digital logistics world because of the high costs. It is very important to solve these problems to encourage inclusive growth in the Digital Logistics Market.

Emergence of autonomous vehicles and drones in last-mile delivery services.

The use of autonomous vehicles and drones for delivering goods is transforming the last mile, which offers a major business opportunity for the Digital Logistics Market. They require less human help, make deliveries arrive faster and reduce the cost of running the company. Distributing or selling products will shrink the time needed for deliveries. Many companies are testing vehicles and robots that make deliveries without contact, due to increased demand for shopping and delivery online. It assists in making customers happy while solving the problem of skilled drivers. Using GPS and AI, these smart systems can be efficiently used for route planning.

Real-time monitoring and smart routes using online platforms help increase the system’s effectiveness. Several leading logistics and tech companies are putting funds into research and development. As both innovations and regulations grow, the use of these technologies will become more common. This trend is expected to greatly help the Digital Logistics Market. The introduction of these systems indicates a big leap forward in the digital logistics market’s delivery abilities.

Rising demand for green logistics and sustainable transportation technologies.

People are becoming more aware of the environment, and new regulations are leading to a greater demand for green and sustainable transportation systems in digital logistics. Businesses are searching for ways to use clean fuels, electric trucks and energy-saving warehouses to decrease how much carbon they produce. Planning and managing routes with digital tools help ensure loads are arranged properly, and this cuts the amount of fuel used and lowers the number of emissions. The use of blockchain and Internet of Things technology makes it simpler to supervise carbon emissions throughout the supply chain. Due to rising pressure from people and groups interested in the company, businesses are urged to embrace sustainability, which can give them a leading edge.

It is now possible to track and measure environmental indicators as they happen on digital platforms. Circular supply chains and reverse logistics are becoming more important within the move toward sustainability. Both new and old companies are spending money on solutions that promote environmental sustainability. So, the Digital Logistics Market is not only getting more efficient but also paying more attention to being environmentally responsible. Sustainable advances in technology are important for the future growth of the digital logistics market.

Segment Analysis

Based on the component, the Digital Logistics Market is classified into Solutions and Services. The reason the solutions segment leads is that many businesses use transportation management, warehouse management and asset tracking, which help see and control processes in real time. Order management and data analytics help to improve performance at the company and project upcoming demand. In contrast, the services segment that consists of consulting, integration & implementation and support & maintenance is gaining steady growth since businesses depend more on professionals for a smooth digital move and to maintain their systems. Having strong solutions along with helpful services is necessary to succeed in using Digital Logistics Market.

Based on the application, the Digital Logistics Market is classified as On-Premises and Cloud-Based. The on-premises segment is preferred by large enterprises requiring data security and high control over system optimization. However, the cloud-based segment is seeing rapid growth due to its scalability, low upfront cost and ease of remote access. Cloud purpose enables real -time data sharing and integration in geographically scattered operations, making it ideal for modern, dynamic supply chains. As digital changes faster, more organizations are moving towards cloud-based logistics platforms. This change is expected to lead to innovation and flexibility in the digital logistics market.

Regional Analysis

North America's Digital Logistics Market has the largest share in the world, driven by the initial adoption of advanced technologies and strong infrastructure. The presence of large technical logistics and large companies such as Amazon, FedEx, and IBM contributed significantly to digital transformation in this field. More investments in automation, IA, and IoT for supply chain optimization will grow more fuel Digital Logistics Market.

The government's support for intelligent logistics and the growing demand for E-Mer Mars also play a crucial role. The US regional market dominates with strong innovation and well-established logistics networks. As a result, North America leads the adoption and expansion of digital logistics  

The Asia Pacific Digital Logistics Market is rapidly developing, powered by rapid industrial development and e-commerce activities of the region. Countries like China, India, Japan and South Korea invest a lot in smart supply chain technologies. The expanding production base of the sector and increasing trade across national borders are demanding effective logistics solutions. The government initiative to digitize the infrastructure and support for Industry also contributes to market acceleration. Increasing smartphone penetration and the use of the Internet improve the visibility and connection of logistics. With the growing focus on Automation and cloud-based logistics, Asia-Pacific is expected to surpass other regions in future growth.

Competitive Landscape

The Digital Logistics Market is very competitive, focusing on innovation, partnership and global expansion to strengthen market status with major players. Companies such as SAP SE, Oracle Corporation and IBM Corporation invest in AI-operated logistics platforms to improve real-time visibility and supply chain talent. Siemens AG and Honeywell focus on International Industrial Automation and Smart Storage Solutions. DHL and FedEx use IOT, robotics and autonomous techniques for rapid, more efficient delivery. CHH Robinson and XPO Logistics improve their service offerings through cloud-based platforms and future stating analysis.

Strategic cooperation, purchasing and integration of advanced technologies among leading players to stay ahead in the fast-developing digital logistics market are still the main strategies. In addition, many companies focus on the initiative of stability to reduce their carbon footprints in their logistics operations. Investment in cyber safety measures to protect sensitive supply chain data also increases. Customer-centric solutions and flexible service models continue to conduct competitive differentiation in this market.

Digital Logistics Market, Company Shares Analysis, 2024

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Recent Developments:

• In February 2025, DHL invested £230 million in a new state-of-the-art e-commerce hub in Coventry, UK. The facility, covering 25,000 square meters, is designed to process up to a million parcels daily, improving delivery times and creating up to 600 local jobs.
• In December 2024, DHL Supply Chain partnered with Volvo Autonomous Solutions to launch driverless freight trucks operating between Dallas and Houston. These trucks, powered by Aurora Driver technology, are equipped with advanced safety systems and aim to enhance efficiency while addressing labour challenges in the trucking industry.

Report Coverage:

By Component:

• Solution
  • Transportation Management
  • Warehouse Management
  • Asset Tracking & Monitoring
  • Order Management
  • Data Management & Analytics
• Services
  • Consulting
  • Integration & Implementation
  • Support & Maintenance

By Deployment Mode

• On-Premises
• Cloud-Based

By Transportation Mode

• Roadways
• Railways
• Airways
• Seaways

By Application

• Transportation Management
• Warehouse & Storage Management
• Order Management
• Inventory Management
• Labour Management

By End-User

• Retail & E-commerce
• Manufacturing
• Automotive
• Healthcare & Pharmaceuticals
• Food & Beverages
• Oil & Gas

• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• SAP SE
• Oracle Corporation
• IBM Corporation
• Siemens AG
• Cisco Systems Inc.
• Honeywell International Inc.
• Manhattan Associates
• Descartes Systems Group
• Blue Yonder (formerly JDA Software)
• Infor Inc.
• Oracle NetSuite
• C.H. Robinson Worldwide Inc.
• DHL (Deutsche Post AG)
• XPO Logistics Inc.
• Kuehne + Nagel

Frequently Asked Questions (FAQs)