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.
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.
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.
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.
The key players in the global logistics software market are Oracle Corporation, Samsung SDS Co., Ltd., IBM Corp, Tech Mahindra, Hitachi, Ltd., Honeywell International Inc., ABB Ltd, General Electric Company, Alcatel Alcatel-Lucent SA, and Alstom SA.