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Cloud Logistics Market

Market Study on Cloud Logistics: The Rapid Pace of Adoption of Advanced Technologies Like IoT and AI Logistics Industry, Increasing Need for Scalable and Flexible Logistics Solutions, and the Rising Trend of Digital Transformation in Supply Chain Industry Indicate a Plethora of Opportunities for Participants

A Detailed Analysis of the Cloud Logistics Market Based on Escalating Demand for Real-time Visibility, Improved Supply Chain Efficiency, and Cost Optimization

Cloud Logistics Market

The global cloud logistics market is forecast to expand at a CAGR of 11.2% and thereby increase from a value of US$19.2 Bn in 2023, to US$40.4 Bn by the end of 2030.

Attributes

Key Insights

Cloud Logistics Market Size (2023E)

US$19.2 Bn

Projected Market Value (2030F)

US$40.4 Bn

Global Market Growth Rate (CAGR 2023 to 2030)

11.2%

Historical Market Growth Rate (CAGR 2018 to 2022)

8.1%

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Market Introduction and Definition

The industry of cloud logistics pertains to the implementation of cloud computing technology to oversee and enhance logistics operations. Fundamentally, it optimizes supply chain operations for increased visibility, flexibility, and efficiency through the utilization of cloud-based solutions. These features encompass inventory management, data analytics, and real-time tracking, all of which are accessed via a centralized cloud platform.

The implementation of cloud-based logistics processes enables organizations to optimize operations, diminish expenditures, and enhance the overall performance of their supply chains. By adopting this revolutionary methodology, stakeholders are not only able to effortlessly cooperate but also make decisions based on data, which ultimately fosters innovation and adaptability within the logistics industry.

Numerous significant factors are attributable to the brisk expansion of the worldwide cloud logistics market. To begin with, the increasing need for complete visibility and transparency in supply chain operations has emerged as a pivotal factor. By providing tracking and monitoring capabilities in real-time, cloud logistics solutions enable organizations to acquire comprehensive insights into their entire supply chain network.

Additionally, the growing demand for scalable and economical logistics solutions drives the implementation of cloud-based platforms. By utilizing the cloud, businesses can adapt their logistics infrastructure in real-time to changes in demand, eliminating the requirement for significant initial investments in conventional IT systems. Further, the increasing intricacies of worldwide supply chains and the proliferation of electronic commerce underscore the criticality of adaptable and technologically sophisticated logistics solutions.

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Market Growth Drivers

Growing Demand for Openness and Immediate Visibility

The increasing need for transparency and real-time visibility emerges as a significant catalyst propelling the worldwide cloud logistics industry into a novel era characterized by enhanced efficiency and flexibility. In an increasingly interconnected and dynamic business landscape, there is a growing recognition among organizations of the critical strategic value associated with acquiring comprehensive insights into their supply chain operations.

The capability to monitor and track shipments, inventory, and other vital logistics data in an immediate and live fashion is referred to as real-time visibility. To satisfy this need, cloud logistics solutions that offer a centralized infrastructure for aggregating and analysing data from multiple supply chain touchpoints are indispensable.

The necessity for instantaneous visibility stems from the intricacies of contemporary supply chains, in which merchandise moves through various geographic regions, engages numerous stakeholders, and manoeuvres through complex transportation networks. Cloud logistics platforms utilize sophisticated technologies including data analytics, sensors, and the Internet of Things (IoT) to capture, process, and present this data in a logical and actionable format. This functionality enables enterprises to oversee the transit of merchandise, evaluate the status of their inventories, and promptly detect possible interruptions or congestion.

Through this approach, businesses can proactively confront obstacles, optimize decisions regarding routing, and improve the overall efficiency of their supply chains. Moreover, the provision of real-time visibility promotes cooperation among partners in the supply chain, facilitating uninterrupted communication and coordination.

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Market Restraints

Growing Concerns About Cybersecurity

Notwithstanding the substantial expansion and prospective benefits, the worldwide cloud logistics industry encounters a limiting factor in the shape of cybersecurity apprehensions. The growing dependence of organizations on cloud-based platforms for logistics operations management presents a substantial challenge in terms of safeguarding sensitive data. Due to the extensive data exchanged and the interconnectedness of cloud logistics systems, they are a prime target for cyber threats, including ransomware and data breaches. The potential exposure of critical supply chain information, such as shipment particulars, inventory quantities, and customer data, gives rise to cybersecurity constraints.

Ongoing Challenges Around Standardization, and Interoperability

The continuous issue of standardization and interoperability is a substantial obstacle for the global cloud logistics market. There are numerous stakeholders in the logistics sector, and each of them utilizes a unique set of technologies and systems. The absence of universally accepted protocols and interoperability between these systems presents a significant obstacle to the smooth incorporation of cloud logistics solutions. This obstacle is especially evident when attempting to establish unified communication and data exchange across various platforms; it impedes the industry's capacity to effectively exploit the potential advantages of cloud-based logistics.

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Opportunities

Increasing Intervention of AI, and ML

An opportunistic factor driving substantial progress in the worldwide cloud logistics industry is the expanding implementation of machine learning (ML), and Artificial Intelligence (AI) technologies on cloud-based logistics platforms. The unprecedented opportunity created by this transformative synergy empowers organizations to enhance their supply chain capabilities, generate efficiencies, and explore uncharted domains of predictive analytics. These technologies enable cloud logistics systems to analyse enormous datasets, detect patterns, and extract valuable insights, thereby promoting a proactive and adaptable approach to logistics management.

By enabling predictive analytics, the integration of AI and ML in cloud logistics solutions revolutionizes decision-making processes. By utilizing historical data and real-time information, these technologies are capable of predicting potential disruptions, optimizing routes, and forecasting demand. For example, through the analysis of historical shipment data, AI algorithms can predict periods of high demand. This enables logistics providers to optimize resource allocation and improve overall operational efficiency. Machine learning algorithms, conversely, acquire knowledge and adjust to evolving circumstances consistently, thereby establishing a self-improving and dynamic system that progresses in tandem with the intricacies of the supply chain.

Analyst’s Viewpoint

Significant growth is anticipated in the global cloud logistics market as a result of a convergence of factors that collectively reshape the supply chain management landscape. The expanding acknowledgment of cloud-based logistics solutions as essential instruments for improving operational efficiency, agility, and overall supply chain visibility is a significant factor in this expansion. These solutions are being adopted by organizations in diverse sectors as a means to tackle the intricacies of contemporary supply chains; this represents a significant departure from the conventional methods of managing logistics.

The requirement for transparency and real-time visibility in supply chain operations is a significant motivating factor. Cloud logistics platforms provide enterprises with the capacity to oversee and trace shipments, effectively handle inventory in real time, and acquire significant insights via data analytics. The increased visibility not only promotes more informed decision-making but also empowers organizations to take proactive measures in response to disruptions, streamline routes, and enhance overall operational effectiveness.

The continuous growth of the e-commerce industry, in conjunction with increasing consumer demands for expedited and dependable deliveries, exacerbates the requirement for resilient cloud logistics solutions. The interplay between manufacturers and consumers significantly influences the dynamics of the market.

To satisfy the growing expectations of consumers for expedited deliveries, precise tracking, and improved services, manufacturers are obligated to allocate resources toward cloud logistics. The adoption of cloud-based solutions is significantly impacted by this change in consumer behavior. This creates a mutually beneficial relationship between manufacturers and consumers, as the former utilizes these technologies to maintain competitiveness while the latter gains enhanced responsiveness in the supply chain.

The worldwide cloud logistics industry is experiencing substantial expansion, driven by the need for increasing efficiency, the requirement for instantaneous visibility, and the ongoing advancement of technology. In light of the intricate nature of worldwide supply chains, organizations are compelled to adopt cloud-based solutions not merely as an option but as a strategic imperative to maintain competitiveness within a constantly changing market environment.

Supply-side Dynamics

Prominent entities including Amazon Web Services (AWS), Microsoft Corporation, IBM Corporation, Oracle Corporation, and Google Cloud are participants in the global cloud logistics market. By capitalizing on their extensive infrastructure and technological expertise, these businesses offer all-encompassing cloud logistics solutions. The US especially emerges as a preeminent region in terms of the implementation of cloud logistics solutions. Its pre-eminence is a result of the developed technological infrastructure, the mature logistics ecosystem, and the prevalence of major players.

China exemplifies widespread implementation, as evidenced by how its thriving e-commerce sector utilizes cloud logistics to optimize supply chain management. In the US, where the logistics industry is highly developed, corporations such as Amazon employ cloud logistics to streamline last-mile delivery, manage inventory in real-time, and fulfil orders. E-commerce behemoths operating in China, such as Alibaba, utilize cloud logistics to manage the intricacies of their vast supply chain networks, thereby guaranteeing punctual and dependable deliveries.

The market leaders in cloud logistics are significantly altering the terrain using ongoing innovation and strategic alliances. As an example, Amazon Web Services (AWS) is augmenting its cloud logistics solutions by incorporating predictive analytics powered by artificial intelligence (AI) to streamline inventory control and delivery pathways. Microsoft, in partnership with prominent logistics firms, utilizes its Azure platform to deliver comprehensive solutions that enable uninterrupted connectivity throughout supply chain networks.

These entities are not only broadening their range of services but also exerting an impact on industry norms, promoting compatibility, and establishing standards for the incorporation of nascent technologies such as blockchain and artificial intelligence in the domain of cloud logistics. The competitive environment is characterized by a race among these industry titans to provide comprehensive and technologically sophisticated solutions, which propels the development of the entire market.

Market Segmentation

What Type of Cloud Represents the Topmost Segment of the Market?

Private Cloud to Be at the Forefront of Revenue Generation

Private clouds are anticipated to hold the largest market share on a global scale in the cloud logistics industry. Private cloud solutions provide specialized and protected infrastructure, which renders them especially attractive to enterprises that have rigorous standards for data privacy and security. The ascendancy of this sector is propelled by the increasing implementation of cloud logistics by businesses in search of a regulated and personalized setting for their supply chain activities.

On the contrary, the multi-cloud sector is anticipated to witness the most rapid expansion in the forthcoming years. To increase flexibility and capitalize on the respective strengths of various cloud service providers, organizations are progressively adopting multi-cloud strategies. This methodology enables enterprises to allocate workloads among multiple clouds, thereby reducing vulnerabilities and guaranteeing the robustness of their logistical processes.

Which is the Spearheading Market Category by OS Type?

Web-based Category Sought-after, Native Systems for Their Comprehensive Web-Based Solutions

It is anticipated that the web-based segment will hold the largest market share on a global scale. Due to their adaptability and accessibility, web-based solutions are extensively utilized by organizations and individuals across various platforms. The dominance of this market segment is attributed to the popularity of web-based applications, which are easily accessible and do not require any special installations. In contrast, the native market segment is anticipated to expand at the quickest rate.

Designed to operate exclusively on specific operating systems, native applications offer enhanced user experiences and optimized performance. The native segment is anticipated to experience substantial growth due to the rising demand for specialized and feature-rich applications, especially in mobile environments. This segment will serve users who desire smooth integration with their devices and operating systems.

Which of the Enterprise Sizes Register the Maximum Adoption of Cloud Logistics Solutions?

Larger Enterprises Poised to Augment Investments in Advanced Cloud Logistics Solutions

It is anticipated that the large enterprise segment will hold the most substantial market share on a global scale. Large corporations generally possess extensive operations that require intricate logistics solutions, which motivates them to make substantial investments in cutting-edge cloud logistics solutions. The predominance of large enterprises in the adoption of cloud logistics technologies can be attributed to the scale of their operations and the criticality of implementing strong supply chain management.

Conversely, the sector comprising small and medium enterprises (SMEs) is positioned to experience the most rapid expansion. With the growing accessibility and scalability of cloud logistics solutions, small and medium-sized enterprises (SMEs) are beginning to acknowledge the benefits that can be gained by implementing these technologies to improve operational efficiency and competitiveness. SME supply chain process streamliners and adapters to changing market dynamics may find cloud-based logistics to be an appealing alternative due to its cost-effectiveness and flexibility.

Which End-use Industry Represents the Largest Market Share?

Consumer Electronics to be the Prime End-use Industry

The consumer electronics sector is positioned to attain the most substantial market share on a global scale. The widespread implementation of cloud logistics technologies is motivated by the consumer electronics industry's extreme product life cycles and extensive global distribution networks, which necessitate effective and prompt supply chain solutions. The importance of inventory management, real-time visibility, and streamlined distribution processes establishes the consumer electronics industry as a major user of cloud-based logistics solutions.

In contrast, the healthcare sector is projected to experience the most rapid growth rate. There is a growing acknowledgment within the healthcare sector of the profound impact that cloud logistics can have by streamlining supply chain operations, improving the traceability of pharmaceuticals and medical devices, and guaranteeing the punctual and secure distribution of vital healthcare resources.

Top Regional Markets

North America Retains a Dominant Share with Mature Logistics Industry, and Early Technology Adoption

With the highest potential market share, North America is positioned to dominate the global cloud logistics industry. Its mature logistics ecosystem, early and extensive adoption of advanced technologies, and robust infrastructure all contribute to the region's pre-eminence. Cloud logistics solutions have been rapidly adopted by businesses in North America, spanning diverse sectors such as manufacturing, retail, and healthcare. These solutions are utilized to improve the visibility, agility, and overall efficiency of supply chains.

The widespread integration of cloud logistics in North America has been substantially influenced by the firmly established e-commerce sector. In light of the ongoing expansion of e-commerce and the imperative for streamlined supply chain processes, enterprises in North America employ cloud-based solutions to fulfil customer demands for expedited deliveries and enhanced services.

Manufacturers Across South Asia, and the Pacific Find Growth Opportunities in Surging E-Commerce, and Digitization

It is expected that the South Asia, and Pacific region will witness the most rapid expansion of the worldwide cloud logistics market. This rapid expansion is attributable to several factors, including the proliferation of e-commerce, the increasing digitization of supply chain processes, and the growing awareness of the advantages provided by cloud-based logistics solutions. With the ongoing development of economies in South Asia, and Pacific and the concurrent surge in online retail activities, there is a growing demand for sophisticated logistics technologies.

The region's varied and ever-changing market conditions provide an ideal environment for the implementation of cloud logistics. Companies operating in South Asia, and the Pacific understand the importance of scalable and flexible logistics solutions to effectively manage the intricacies of diverse markets, fluctuating regulations, and distinct consumer behaviours.

Competitive Intelligence and Business Strategy

Prominent entities in the worldwide cloud logistics industry, such as Amazon Web Services (AWS), Microsoft Corporation, IBM Corporation, Oracle Corporation, and Google Cloud, safeguard and increase their market presence through a comprehensive strategy. An essential element of their strategic approach is the perpetual development of novel cloud logistics solutions. These corporations allocate significant resources towards research and development to incorporate state-of-the-art technologies, including data analytics, machine learning (ML), and artificial intelligence (AI), into their platforms.

Through the integration of predictive analytics, real-time tracking, and intelligent automation, these participants guarantee that their solutions not only satisfy present market requirements but also proactively forecast forthcoming demands. Collaborations and strategic partnerships constitute an additional pillar of their market dominance strategy. To establish all-encompassing ecosystems, these participants form alliances with critical industry stakeholders, logistics providers, and technology companies. Through the promotion of interoperability and the establishment of smooth integrations, they establish themselves as pivotal participants in the ever-changing domain of supply chain technologies.

Microsoft engages in partnerships with logistics firms to incorporate its Azure platform seamlessly into their operational processes, thereby furnishing comprehensive solutions and fortifying its market standing. Furthermore, these industry leaders place a premium on adaptability and scalability when it comes to their cloud logistics solutions. Acknowledging the heterogeneous requirements of enterprises spanning various sectors and geographical regions, they develop solutions that possess the capability to adjust to differing magnitudes of activity.

Key Recent Developments

New Partnership

SAP and Apple formed a partnership in May 2022 to foster collaborations across the digital supply chain. In continuous collaboration with Apple to revolutionize user experience on iPhones and iPads, SAP has introduced a collection of applications that optimize the digital supply chain and furnish employees with intuitive tools.

Market Impact: The collaboration between SAP and Apple, which has led to the development of digital supply chain optimization applications, is positioned to revolutionize the international market. Through the strategic integration of SAP's proficiency in supply chain solutions and Apple's intuitive devices, this partnership effectively improves the operational effectiveness and user satisfaction of the digital supply chain. The implementation of user-friendly interfaces on iPhones and iPads represents a transition towards enhanced accessibility and smoothness in supply chain management. This development may inspire other participants in the industry to place greater emphasis on developing solutions that prioritize the needs and desires of users.

(Source: Apple)

New Product

In the month of September 2021 Infor, the industrial cloud provider, has released version 3.8.4 of the Infor Hospitality Management Solution (HMS), the most recent iteration of the completely cloud-enabled hotel management software in the Infor Hospitality suite of solutions. This update aims to provide additional options for delivering and optimizing customized services. Infor HMS is real-time-accessible cloud-based technology that accommodates the chaotic schedules of modern guests and enables hotels to personalize a seamless experience.

Market Impact: The September 2021 release of version 3.8.4 of the Infor Hospitality Management Solution (HMS) by Infor represents a significant milestone in the worldwide market for hotel management software. The revision, which prioritizes the provision and optimization of personalized services, mirrors a more extensive pattern within the industry that seeks to improve guest experiences via cloud-based technologies. Through the provision of real-time accessibility and personalization functionalities, Infor's HMS plays a significant role in forcing competitors to prioritize cloud-enabled solutions that address the changing preferences and requirements of contemporary guests, thereby reshaping the hospitality industry on a global scale.

(Source: Infor)

Cloud Logistics Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Type
  • OS Type
  • Enterprise Size
  • End Use Industry
  • Region

Key Companies Profiled

  • Bwise
  • IBM Corporation
  • Oracle Corporation
  • Microsoft Corporation
  • SAP SE
  • Thomson Reuters Corporation
  • Trimble Transportation
  • Transplace (an Uber Freight Co.)
  • Descartes Systems Group
  • C. H. Robinson
  • MetricStream Inc.

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Cloud Logistics Market Research Segmentation

By Type:

  • Public
  • Private
  • Hybrid
  • Multi

By OS Type:

  • Native
  • Web-based

By Enterprise Size:

  • Large Enterprise
  • Small and Medium Enterprises

By End-use Industry:

  • Consumer Electronics
  • Healthcare
  • Automotive
  • Food & Beverage
  • Other

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • Bwise
  • IBM Corporation
  • Oracle Corporation
  • Microsoft Corporation
  • SAP SE
  • Thomson Reuters Corporation
  • Trimble Transportation
  • Transplace (an Uber Freight Co.)
  • Descartes Systems Group
  • C. H. Robinson
  • MetricStream Inc.

- Frequently Asked Questions -

The market is anticipated to grow at a CAGR of 11.2% during the projected period.

The cloud logistics market was valued at US$19.2 billion in 2023.

The US held the largest market share in 2023.

Some of the prominent players in this market are Bwise, IBM Corporation, Oracle Corporation, Microsoft Corporation, and SAP SE.

The healthcare segment is expected to grow at the fastest CAGR during the forecast period.

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