The global logistics industry is on the cusp of a technological revolution, but basic data analytics and artificial intelligence (AI) remain largely untapped. A recent survey by HERE Technologies reveals that transportation and logistics professionals in Germany, the UK and the US are still struggling with the adoption of these essential tools.
A market ripe for disruption
In 2023, the global connected logistics market was worth US$35.0 billion, and projections indicate that it will reach US$123.5 billion by 2032. This astronomical growth, marked by a rate Compound annual growth rate (CAGR) of 14.74%, is driven by technological advancements, growing demand for transparency and the booming e-commerce sector.
The major market players include AT&T Inc., Cisco Systems Inc., Eurotech SpA, HCL Technologies Limited, Honeywell International Inc., Infosys Limited, Intel Corporation, IBM, Microsoft Corporation, Oracle Corporation, SAP SE, and Zebra Technologies Corporation. Among the solutions offered, asset management holds the largest market share, while Bluetooth and sensor nodes dominate by technology and product type, respectively.
Barriers to implementing technology
Despite the market potential, the HERE Technologies survey reveals a significant lag in the adoption of core data analytics and AI in the logistics sector. Respondents cite various obstacles, such as lack of in-house expertise, budget constraints, and concerns about data privacy and security.
Additionally, the survey highlights the industry’s challenges in implementing technology seamlessly into existing processes. Professionals therefore express a need for reliable, user-friendly and easily integrated solutions.
Sustainability and real-time visibility
The logistics sector is also under increasing pressure to achieve sustainable development goals. In response, businesses are turning to technology to find solutions that can optimize routes, reduce fuel consumption and minimize their carbon footprint.
Additionally, the quest for real-time supply chain visibility is more critical than ever. The survey reveals that while some progress has been made, the industry is far from reaching this goal. Real-time visibility is essential to improve operational efficiency, reduce costs and improve customer satisfaction.
With the global connected logistics market poised for exponential growth, the need for reliable, easy-to-use technology solutions is more urgent than ever. The industry must overcome implementation barriers and harness the potential of data analytics and AI to drive efficiency, sustainability and real-time visibility across the global logistics landscape.
In this era of unprecedented technological advancement, the logistics industry finds itself at a crossroads. By harnessing the power of data analytics and AI, it can pave the way to a more efficient, more sustainable and more connected future. The question is: will it seize this opportunity or will it be left behind in the race for digital transformation?
