Global Logistics Software Market Share to Grow at a CAGR of 9.36% During 2021 to 2031

Introduction

Logistics services software is a unified, on-premise, or cloud-based software solution enabling interaction between transportation and warehouse management systems. Logistics is a supply chain link that enhances the utility of time and place. Logistics software coordinates the mailing, shipping, and tracking of letters, packages, and other items. Business logistics software is designed to automatically display routing and scheduling information and plot delivery address-based drop-off points on a map.

Market Dynamics

Rapid Digitalization of the Logistics Sector Drives the Global Market

Diverse industries are converting business processes to digital formats to streamline operations and increase productivity. In addition to adopting software for logistics applications, such as warehouse management, fleet management, and supply chain management, the companies are also adopting software for warehouse management, fleet management, and supply chain management. For instance, Maersk and IBM launched TradeLens, a blockchain-enabled digital container logistics platform.

Numerous studies demonstrate that businesses are eager to adopt digital logistics solutions. According to the Forbes Insights poll findings, a significant majority of logistics managers, specifically 65%, demonstrated awareness of the imperative to undertake business model transformations to effectively navigate and prosper in the digital era. The growing awareness among end-users is anticipated further to stimulate the growth of the logistics software market.

Development of Novel Technologies such as AI, IoT, and Blockchain in Logistics Creates Tremendous Opportunities

Innovative technologies like AI, IoT, and Blockchain are gaining popularity across different industry verticals. These technologies have been used for various applications by the end-users. For instance, IoT leads to the logistics department's growing connections between goods, packaging, transportation hubs, and vehicles. Its adoption has generated more data that helps manage assets remotely, predict risk, ensure proper cargo handling, and forecast traffic congestion.

Similarly, AI is being used for supply chain predictive analytics and demand forecasting of products to optimize the use of their warehouse. On the other hand, blockchain technology helps logistics firms reduce red tape, automate the entire procurement process, and remove human error. These technologies' development and integration into logistics software are anticipated to provide a competitive advantage to the market players. This, in turn, is anticipated to create opportunities for market growth over the forecast period.

Regional Analysis

North America is the most significant global logistics software market shareholder and is estimated to grow at a CAGR of 8.14% over the forecast period. The logistics software market in North America is primarily driven by the region's rapidly expanding urbanization and the transportation industry's digital revolution. The expansion of IT infrastructure and demand for cloud computing also contribute to the growth of the logistics software market. The presence of market leaders who offer advanced logistics software in the region is another factor augmenting the regional market's growth.

Additionally, the market's suppliers are implementing innovative software to meet the rising demand for advanced supply chain management services in the automotive, transportation, and food and beverage industries. This will likely generate lucrative opportunities for regional market expansion. Moreover, a strong financial position, increasing investment to adopt leading technologies and tools, and booming telecommunication and IT and healthcare industries are contributing to the growth of the logistic software market in the region.

Key Highlights

• The global logistics software market size was valued at USD 14.83 billion in 2022. It is estimated to reach USD 33.17 billion by 2031, growing at a CAGR of 9.36% during the forecast period (2023–2031).
• Based on deployment, the global logistics software market is segmented on-premise and cloud. The on-premise segment is the highest contributor to the market and is projected to grow at a CAGR of 8.59% throughout the forecast period.
• Based on application, the global logistics software market is segmented into transportation management, warehouse management, asset and fleet management, data management, and others. The data management segment is the largest contributor to the market and is projected to exhibit a CAGR of 10.32% throughout the forecast period.
• Based on end-users, the global logistics software market is bifurcated into healthcare, oil and gas, automotive, IT and telecommunication, government and defense, and others. The automotive segment dominates the global market and is predicted to exhibit a CAGR of 8.18% during the forecast period.
• North America is the most significant global logistics software market shareholder and is estimated to grow at a CAGR of 8.14% over the forecast period.

Competitive Players

1. Oracle Corporation
2. SAP SE
3. Manhattan Associates
4. BluJay Solutions
5. Descartes Systems Group
6. HighJump Software
7. IBM Corporation
8. Kinaxis Inc.
9. JDA Software Group, Inc.
10. The Descartes Systems Group Inc.
11. 3GTMS, Inc.
12. Aptean
13. Epicor Software Corporation
14. Infor
15. Ramco Systems

Recent Developments

• April 2024- Holman Logistics announced that they are partnering with Deloitte to implement Fulfilld's AI-powered warehouse management software (WMS). This move highlights the growing demand for advanced logistics software, driving innovation and efficiency in warehouse operations.
• February 2024- Oracle Fusion Cloud SCM added logistics management capabilities to its platform. This enhancement is expected to contribute to the growth by providing a comprehensive solution for managing logistics operations, including transportation management, warehouse management, and supply chain visibility.

Segmentation

1. By Deployment
   1. On-Premise 
   2. Cloud 
2. By Applications
   1. Transportation Management
   2. Warehouse Management
   3. Asset and Fleet Management
   4. Data Management
   5. Others
3. By End-User
   1. Healthcare
   2. Oil and Gas
   3. Automotive
   4. Telecommunication and IT
   5. Government and Defense
   6. Others