The flourishing e-commerce sector, owing to the changing buying behavior of customers, is resulting in the incorporation of internet of things (IoT) solutions in logistics activities. E-commerce companies are increasingly opting for such solutions to manage inconsistent shipping, sudden surge in orders, and meeting the time-sensitive needs of customers. The increasing popularity of e-commerce services is resulting in the burgeoning demand for fast and free shipping, without increasing the prices of the products, which is being met by the usage of IoT solutions in the logistics industry.
Moreover, the soaring need for enhancing logistics efficiency will aid the IoT in logistics market in advancing at a 13.2% CAGR during the forecast period (2020–2030). According to P&S Intelligence, the market revenue will grow from $34,504.8 million in 2019 to $100,984.5 million by 2030. The success of any logistics firm is determined by the quick delivery of goods, efficient management of warehousing and inventory, safe storage, internal process automation, and quality of goods. To accomplish these objectives, such companies are implementing IoT solutions in logistics operations.
Nowadays, IoT solution providers, such as Robert Bosch GmbH, Intel Corp., Honeywell International Inc., SAP SE, Cisco Systems Inc., Qualcomm Inc., AT&T Inc., and Oracle Corp., are opting for partnerships and collaborations to widen their customer base. For instance, in February 2020, Attivo Networks Inc. entered into a partnership with Microsoft Corp. to integrate improved detection and response solutions for Azure IoT Edge, with its ThreatDefend platform. With this partnership, the former intends to address the inherent risk of cyberattacks in the progressing logistics environment.
The application segment of the IoT in logistics market is categorized into fleet management, location management, blockchain for supply chain management, predictive analysis, self-driving vehicles, and inventory tracking and warehousing. Among these, the fleet management category held the largest market share during the historical period (2014–2019). This is because fleet management IoT solutions enable logistics companies to enhance driver safety, manage fuel and maintenance costs more efficiently, increase vehicle reliability along with its lifespan, and eliminate driver frauds.
North American logistics companies have been using IoT the most due to the rapid digital transformation being observed in this region. Moreover, the increasing number of startups in the IoT landscape of the region, owing to the surging internet penetration and expanding opportunities for e-commerce companies, will propel the adoption of IoT solutions in the logistics industry in the foreseeable future. Additionally, the increasing awareness about robotics, near-field communication (NFC), radio-frequency identification (RFID), and low-power wide-area network (LPWAN) will fuel the usage of IoT in the logistics sector.
Whereas, the Asia-Pacific (APAC) IoT in logistics market is expected to witness the fastest growth during the forecast period. This will be due to the changing customer behavior and escalating urbanization rate in emerging economies, such as China and India. These factors will further lead to the introduction of high-end technologies, such as NFC, RFID, artificial intelligence (AI), radio protocols, low-energy Bluetooth, Wi-Fi direct, low-energy wireless, and robotics, in the regional logistics industry.
Thus, the growing e-commerce industry and burgeoning need for improving the efficiency of its operations will fuel the integration of IoT solutions in the logistics sector.
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