The global sales of Connected Logistics are estimated to be worth USD 29726.4 million in 2025 and anticipated to reach a value of USD 97392.7 million by 2035. Sales are projected to rise at a CAGR of 12.6% over the forecast period between 2025 and 2035. The revenue generated by Connected Logistics in 2024 was USD 16422.9 million. The market is anticipated to exhibit a Y-o-Y growth of 12.7% in 2025.
Data governance primarily focuses on maintaining the integrity and security of data, while the Connected Logistics Market helps businesses to manage these aspects. We connect logistics assets, such as vehicles, warehouses, and inventory systems, for greater efficiency, lower, costs and better visibility of the supply chain.
Fleet management, innovative inventory tracking solutions, predictive analytics, and automated warehousing are just a few of the solutions that make up this market for the industries of retail, manufacturing, healthcare, and e-commerce to name a few. This sector is witnessing a surge because of the growing demand for smart logistics, last mile delivery optimization digital transformation.
Global Connected Logistics Industry Assessment
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2025 | USD 29726.4 million |
| Projected Size, 2035 | USD 97392.7 million |
| Value-based CAGR (2025 to 2035) | 12.6% |
Growth of the Connected Logistics Market is being driven due to the growing adoption of IoT, AI, and cloud-based solutions, further contributing towards better real-time tracking, automation, and predictive analytics in supply chain operations.
It is driven by increasing demand for fleet management efficiency, automated warehousing, and last-mile delivery optimization in retail, e-commerce, healthcare, and manufacturing among few major industries. Progress in storage space management using heavy e-mail integration and big data computing from the county for e-mail information will additionally help in enhancing the expansion of this continent.
North America dominates the market with advanced digital infrastructure, whereas Asia-Pacific is witnessing a notable surge in demand with significant investments in smart logistics solutions.
Key industry participants aim for operational efficiency with strategic partnership, AI-based analytics, and digital twin technology. Expected to see the healthy growth during the next few years, the global Connected Logistics Market is gradually becoming more focused on supply chain visibility and cost reduction.
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The below table presents the expected CAGR for the global Connected Logistics market over several semi-annual periods spanning from 2025 to 2035. In the first half H1 of the year from 2024 to 2034, the business is predicted to surge at a CAGR of 11.3%, followed by a slightly higher growth rate of 11.8% in the second half H2 of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2024 | 11.3% (2024 to 2034) |
| H2, 2024 | 11.8% (2024 to 2034) |
| H1, 2025 | 12.6% (2025 to 2035) |
| H2, 2025 | 12.9% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2035 the CAGR is projected to increase slightly to 12.6% in the first half and remain relatively moderate at 12.6% in the second half. In the first half H1 the market witnessed a decrease of 50 BPS while in the second half H2, the market witnessed an increase of 30 BPS.
Growing Adoption of IoT and AI for Real-Time Visibility and Predictive Analytics.
Real-time tracking, route optimization, and predictive analytics are some of the most common applications of IoT and AI-based technologies reshaping the Connected Logistics Market. IoT sensors embedded in fleets, warehouses and inventory systems provide insight into shipment status, environmental conditions and asset health.
AI-enabled analytics help with demand forecasting, route efficiency, and predictive maintenance, minimizing operational costs and delays. These technologies are being harnessed by businesses for end-to-end visibility across their supply chains, empowering them to operate more efficiently and make better decisions.
In addition, growing demand for automated and smart logistics operations across sectors including retail, e-commerce, manufacturing, and healthcare is also catalyzing the market growth. The evolution towards 5G connectivity and cloud synchronization has allowed for real-time logistics monitoring solutions to become both more efficient and widespread.
Expansion of E-Commerce and Demand for Fast and Efficient Last-Mile Delivery.
E-commerce and e-retailing, especially omnichannel, is growing rapidly and increasing the demand for fast, transparent, and cost-effective last-mile delivery challenges. This, in turn, is driving online retail and logistics providers to deploy connected logistics across their fleet management, automated warehousing and delivery routing processes.
When and how consumers expect packages to arrive on their doorstep has evolved, with many expecting same-day or next-day deliveries, even so, tracking real time and dynamic routing is crucial for customer satisfaction. Autonomous delivery vehicles, drones, and AI-driven logistics platforms are becoming increasingly prevalent in order to facilitate quicker deliveries with lower costs.
Logistics processes are becoming easy with the introduction of smart warehouses empowered with robotics and AI-based inventory management. With global e-commerce on a constant rise, logistics operators are placing a premium on digitization, automation, and real-time connectivity.
Rising Demand for Blockchain Technology to Improve Security and Transparency in Logistics
Blockchain technology addresses many of the security risks associated with supply chain management, thereby revolutionizing the Connected Logistics market. Traditional logistics systems can still face problems with data manipulation, fraud, and inefficiencies when it comes to processing documents.
Blockchain addresses these concerns, and that is from a single and tamper-proof digital ledger to secure transactions, smart contracts, and automated payment settlements. In particular, this tech is extremely useful in pharmaceutical, food & beverage, and high-value goods industries where real-time authentication and compliance tracking are essential.
Businesses are leveraging blockchain to securely document freight, verify suppliers, and prevent counterfeiting, streamlining this process, decreasing instances of fraud, and increasing trust among those involved. Integration of blockchain is proving to be a leading factor for market growth, with greater focus on supply chain security and compliance.
Limited Interoperability Between Legacy Systems and Modern Connected Logistics Technologies
The poor interoperability between legacy logistics infrastructure and modern digital solutions. The majority of organizations still use antiquated ERP, warehouse management, and fleet tracking systems that fail to interface with cutting-edge IoT sensors, AI-driven analytics, and cloud-based logistics platforms.
This technology gap causes inefficiencies whereby a company has to spend lots of time and money building custom integrations, single-purpose middleware or a complete overhaul of their system. Second, the variation in data formats and communication protocols used by different logistics providers creates barriers to data sharing, severely limiting end-to-end visibility.
This challenge is particularly acute for small and medium enterprises (SMEs), who often do not have the financial and technical capabilities to make a transition smoothly. To overcome this constraint, we need standardized APIs, adaptable software architectures, and government-led initiatives promoting interoperability in logistics ecosystems.
The worldwide Connected Logistics market experienced a Compound Annual Growth Rate (CAGR) of 10.5% over the historical period of 2020-2024. Connected Logistics industry value was very good growth from 19047.6 million in 2020 to USD 25780.0 million in 2024.
It was Driven by IoT and AI-driven analytics and real-time tracking across supply chain operations, the Connected Logistics Market was steady growth from 2020 to 2024. The pandemic accelerated demand for automated logistics and cloud-based fleet management systems from e-commerce, digital freight management, and last-mile delivery solutions, driving the growth of the space.
During this period, market recorded moderate CAGR between 2020 to 2023, driven by regional digitization initiatives as well as investments in smart logistics platforms.
During the period 2025 to 2035, the Connected Logistics Market growth will be dominated due to 5G deployment, blockchain integration, AI-enabled logistics automation and autonomous vehicle adoption. Growing requirement for real-time supply chain transparency, eco-friendly logistics, and predictive maintenance solutions will further accelerate the market growth.
The shift toward smart warehouses, robotics and AI in logistics will also change the industry. Double-digit CAGR is expected during the forecast period due to increasing investments in the global digital logistics ecosystem.
Tier 1 companies include the industry leaders such as IBM, Cisco, SAP, Intel, Microsoft, using disruptive IoT solutions with intelligent analytics and logistics cloud platforms, rcqVbgkTi. These are companies focused on end-to-end logistics digitalization that offers solutions like real-time tracking, automated warehousing, and blockchain to safeguard supply chain security.
AI, edge computing, and predictive analytics are moving toward becoming their deep expertise, and they act as key enablers of this transformation of smart logistics. Examples are IBM's Watson AI, SAP's digital supply chain solutions, and Cisco's IoT-enabled fleet management solutions, just to name a few that are widely used by large enterprises.
These players also allocate significant funds towards research & development, partnerships, and acquisitions to remain a step ahead in global connected logistics innovations and enterprise-wide digital logistics implementations.
Tier 2: AT&T, AWS, and Oracle are examples of Tier 2 Companies, and focus on cloud-based logistics connectivity, IoT infrastructure, and real-time data exchange. They also serve logistics firms on AWS’s cloud computing platforms that offer scalable and secure solutions for running AI and Internet of Things applications at scale in support of logistics.
AT&T’s 5G, along with IoT, connectivity services enable real-time fleet tracking, autonomous logistics operations, and sensor-based warehouse management. Oracle, through its Cloud SCM and digital logistics offerings, connects classical supply chain management with fully automated, AI-driven logistics ecosystems.
They serve both large enterprises and mid-sized logistics companies, which makes them important enablers of next-generation connected logistics infrastructure.
Tier 3: Some of the companies at Tier 3 are Huawei, Bosch Connected Logistics and other emerging market players that cater to industry-specific connected logistics. As a leader in 5G and cloud computing, Huawei’s smart logistics platforms powered by AI are being widely adopted in Asia-Pacific logistics operations.
He is an expert on sensor-based fleet and cargo tracking, real-time vehicle diagnostics, and predictive maintenance for automotive, industrial and retail logistics. While this was the general background of players in the IoT space, they are contributing significantly to the transformation for new markets and niche industries due to their focus on cost-effective solutions, local logistics optimization, and industry specific integrations.
The section below covers the industry analysis for the Connected Logistics market for different countries. The market demand analysis on key countries in several countries of the globe, including USA, Germany, UK, China and India are provided.
The united states are expected to remains at the forefront in North America, with a value share of 59.9% in 2025. In South Asia & Pacific, India is projected to witness a CAGR of 13.2% during the forecasted period.
| Country | Value CAGR (2025 to 2035) |
|---|---|
| USA | 10.5% |
| Germany | 11.2% |
| UK | 9.8% |
| China | 12.9% |
| India | 13.2% |
North America is dominating the market, owing to wide adoption of artificial intelligence, IoT, blockchain, and automation to improve supply chain efficiency for their connected supply chain. Some of the biggest logistics players and retailers like Amazon, FedEx and UPS are utilizing real-time tracking, AI-led demand forecasting and automated warehouses to optimize the process.
As 5G networks and edge computing continue to be implemented more widely, logistics connectivity becomes stronger, allowing companies to monitor and track fleets more effectively as well as optimize last-mile delivery.
The USA government and private enterprises also spend significantly on smart logistics infrastructure, autonomous delivery vehicles, and predictive maintenance technologies. The USA relies on a vibrant digital ecosystem and growing cloud penetration in logistics solutions, making it a leader of next-generation logistics transformation.
In the United Kingdom, the digital transformation of supply chains along with the rising demand for sustainable logistics solutions are driving the Connected Logistics Market forward. The growing trend of e-commerce and omnichannel retailing also drives higher adoption of AI-based fleet management, IoT-based inventory management, and autonomous delivery solutions.
The commitments to carbon-neutral logistics, green supply chain initiative and green transportation in the UK also inspire investments in the areas of electric vehicles, AI-powered logistics optimization and blockchain for transparency in freight management.
Market growth is also driven by government initiatives such as smart transportation and 5G logistics facilities as well as AI-based route planning. Furthermore, logistics companies in United Kingdom are using cloud-based logistics platforms and real-time analytics to improve the visibility of supply chain and reduce operational cost.
The growth trajectory for Connected Logistics applications in India is significant, with the rapid expansion of e-commerce, the digital transformation of existing supply chains, significant investments in 3PL players, and the push for smart logistics solutions driving this outlook. IoT-based fleet management, AI-enabled predictive analytics, and cloud-integrated logistics platforms are becoming increasingly common, driving efficiency in the supply chain.
Government initiatives such as Digital India, Make in India and reforms of the logistics sector will further drive the adoption of smart warehouses, AI-driven route optimization, and blockchain-enabled freight tracking. Moreover, an increase in hyperlocal and last-mile delivery services, as well as increasing investments in automated supply chains, are driving the growth of the market.
Almost every startup and enterprise are using AI, machine learning, and big data analytics to solve for route congestion and nuisance in inventory management with real-time shipment tracking will be key for Connected Logistics, making India an important emerging market.
The section contains information about the leading segments in the Connected Logistics industry. by Component, the Connected Logistics Devices segment has holding the share of 38.6% in 2025 and by Vertical, the Connected Logistics in Healthcare segment is estimated to grow at a CAGR of 14.2% during the forecasted period. moreover,
| Component | Share (2025) |
|---|---|
| Connected Logistics Devices | 38.6% |
The audio accessories segment is predicted to grow faster, recording the highest compound annual growth rate (CAGR) for Connected Logistics market between 2025 - 2035. This growth has been driven by the increasing use of wireless earbuds, noise-canceling headphones and high-fidelity speakers that work with Apple gear. Similar to AirPods Pro and AirPods Max, demand for these devices are still strong, and advances in spatial audio, AI-dependent audio enhancements and integration into Apple’s ecosystem should also fuel further growth of the market. The spike in music streaming, podcast viewership and gaming also contributes to the segment’s rapid growth. Then there are Apple’s innovations, like adaptive noise cancellation and health-monitoring features in AirPods, that spark consumer interest. This trend along with continuous technological advancements and an increase in the consumer spending on premium audio products is likely to result in this segment leading in growth in the Connected Logistics market.
| Industry | CAGR (2025 to 2035) |
|---|---|
| Connected Logistics in Healthcare | 14.0% |
The Healthcare segment under Connected Logistics is experiencing highest CAGR as there is a growing demand for real time temperature monitoring, cold chain logistics, and secured pharmaceutical supply chain.
To meet strict healthcare regulations, the need for IoT-driven tracking systems, artificial intelligence (AI) -fueled predictive analytics, and blockchain-based traceability solutions is increasing. Biopharmaceuticals, vaccines, and personalized medicine are on the rise, with delivery systems needing to be carefully temperature-controlled, so the need for connected solutions is motivated.
Healthcare professionals and pharmaceutical companies are embracing AI-driven supply chain automation in order to combat risks associated with drug shortages, counterfeit drugs, and supply chain inefficiencies.
The pandemic quickened adoption of cloud-enabled logistics solutions to facilitate the distribution of medical supplies. As demand for smart cold chain logistics and real-time pharmaceutical tracking grows, the healthcare segment is likely to continue its rapid growth trajectory.
The competitive landscape of the Connected Logistics Market is characterized by the presence of global technology companies, logistics service providers and disruptive IoT-based start-ups. The Market is dominated by key players including IBM, Cisco, SAP, Microsoft, Oracle, and Intel offering AI-powered logistics analytics, IoT-based Fleet management, and Blockchain-enabled supply chain solutions.
AWS and AT&T will offer cloud-based logistics platforms and 5G-enabled real-time tracking solutions to improve efficiency in the supply chain. Smart IoT devices and AI-powered predictive maintenance of logistics operations are offered by Huawei and Bosch Connected Logistics.
Market competition is increasing as businesses pour money into autonomous logistics, AI-powered route optimization, and robotized warehouses. A lot of competitive strategies in this fast-growing field are still partnerships, acquisitions, and also R&D regarding smart logistics technologies.
Recent Industry Developments in Connected Logistics Market
In terms of Component, the segment is divided into Connected Logistics Devices, Connected Logistics Software, and Connected Logistics Services. The Connected Logistics Devices segment includes Vehicle Telematics, Data Loggers, GPS Tracking Devices, and RFID Tags. The Connected Logistics Software segment consists of Fleet Management, Asset Tracking, and Security Solutions. The Connected Logistics Services segment is categorized into Consulting, Integration & Deployment, and Support & Maintenance.
In terms of Transportation, the segment is distributed into Connected Logistics for Roadways, Connected Logistics for Railways, Connected Logistics for Airways, and Connected Logistics for Seaways.
In terms of Vertical, the segment is classified into Connected Logistics in Manufacturing, IT & Telecom, Automotive, Retail & Consumer Goods, Food & Beverages, Healthcare, Energy & Utilities, and Others.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & pacific, Middle East and Africa (MEA) have been covered in the report.
The global Connected Logistics industry is projected to witness CAGR of 12.6% between 2025 and 2035.
The global Connected Logistics industry stood at USD 29726.4 million in 2025.
The global Connected Logistics industry is anticipated to reach USD 97392.7 million by 2035 end.
South Asia & Pacific is set to record the highest CAGR of 13.2% in the assessment period.
The key players operating in the global Connected Logistics industry include IBM Corporation, Cisco Systems, Inc., SAP SE, Intel Corporation, AT&T Inc. and others.
| Estimated Market Size (2024E) | USD 24.5 billion |
|---|---|
| Projected Market Valuation (2034F) | USD 33.2 billion |
| Value-based CAGR (2024 to 2034) | 3.1% |
| Market Value (2022) | USD 941.58 Billion |
|---|---|
| Market Value (2032) | USD 2,924.42 Billion |
| Market CAGR (2022 to 2032) | 12% |
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