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The logistics software market is dynamically influenced by a myriad of market factors that collectively shape its growth trajectory. One of the key drivers propelling the expansion of this market is the global surge in e-commerce activities. As more businesses and consumers opt for online transactions, the demand for efficient and streamlined logistics solutions has escalated. This has prompted companies to invest in logistics software to enhance supply chain visibility, optimize route planning, and manage inventory effectively. Moreover, the increasing complexity of supply chain networks has underscored the need for advanced logistics software solutions. These tools offer real-time tracking, automation of manual processes, and data analytics capabilities, enabling companies to make informed decisions and adapt to changing market conditions swiftly. The logistics software market also thrives on the escalating demand for end-to-end visibility in supply chain operations, driven by the growing complexity and globalization of supply chains.
The ever-evolving technological landscape plays a pivotal role in shaping the logistics software market. The advent of technologies such as artificial intelligence (AI), machine learning, and the Internet of Things (IoT) has revolutionized logistics processes. These technologies facilitate predictive analytics, route optimization, and predictive maintenance, thereby enhancing the overall efficiency of logistics operations. As businesses strive to stay competitive, the integration of cutting-edge technologies into logistics software becomes imperative. Market regulations and compliance requirements also exert a significant influence on the logistics software market. Governments and regulatory bodies across the globe are imposing stringent regulations to ensure the safety and security of goods during transportation. Logistics software that offers compliance management features becomes crucial for businesses to adhere to these regulations seamlessly.
The need for sustainability and environmental compliance is also emerging as a key factor, with companies seeking software solutions that enable them to optimize routes for fuel efficiency and minimize their carbon footprint. The competitive landscape of the logistics software market is shaped by factors such as mergers and acquisitions, partnerships, and collaborations among key players. Companies are increasingly focusing on strategic alliances to expand their product portfolios, geographical presence, and customer base. This trend contributes to the consolidation of the market, with larger players leveraging their resources to offer comprehensive logistics software solutions. Customer preferences and demands constitute another pivotal factor influencing the logistics software market.
Businesses are becoming more customer-centric, emphasizing the importance of last-mile delivery solutions and enhanced customer experience. Logistics software that caters to these specific needs, providing features like real-time tracking, delivery notifications, and easy returns management, gains a competitive edge in the market. The economic landscape also plays a crucial role in shaping the logistics software market. Economic fluctuations, geopolitical events, and trade policies impact the global movement of goods, influencing the demand for logistics software. Economic downturns may lead businesses to seek cost-effective logistics solutions, driving the demand for software that optimizes operational costs and improves overall efficiency.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 10.1 Billion |
| Market Size Value In 2023 | USD 10.9 Billion |
| Growth Rate | 8.31% (2023-2032) |
Logistic Software Market Highlights:
Logistic Software Market Overview
The Logistic Software Market is projected to grow from USD 10.9 billion in 2024 to USD 22.3 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.00% during the forecast period (2024 - 2032). Additionally, the market size for Logistic Software was valued at USD 10.4 billion in 2023.
Benefits of adopting logistics software include time and money savings, effective labour management, and the rise of digital technology in emerging countries, are the key market drivers enhancing the market growth.
Figure 1: Logistic Software Market Size, 2023 - 2032 (USD Billion)
Software Type: Secondary Research, Primary Research, MRFR Database and Analyst Review
Logistic Software Market Trends
Benefits if using logistics software is driving the market growth
Benefits of employing logistics software, such as cost and time savings, appropriate labour management, and the rapid development of digital technology in developing nations are all contributing to the market's rapid growth. Benefits of employing logistics software, such as cost and time savings, appropriate labour management, and the rapid development of digital technology in developing nations are all contributing to the market's rapid growth. Another significant element propelling the market's expansion is an increase in the demand for logistics and transportation services on a scale. Vendors are providing software solutions with cutting-edge technologies like AI in order to take advantage of the increased usage of logistics software solutions. In order to cut lead times and transportation costs, the supply chain uses AI to estimate demand, plan demand and supply forecasts, optimise warehouse stock management, and ensure delivery accuracy.
Furthermore, due to the widespread use of cellphones and the internet, the e-commerce sector is expanding quickly. Since doorstep deliveries are a part of the e-commerce industry, the expansion of that sector directly affects the growth of the logistics sector. The transportation and warehousing sectors' logistics service providers are putting digital solutions into place to boost productivity. Additionally, these systems give e-commerce businesses updates on stock and goods forwarding. WMS software solutions offer precise information about inside and outward stock and aid end users in inventory management. In order to benefit from the expansion of the market, suppliers are now working together with logistics service providers.
The expansion of the retail and e-commerce sectors, constant technological innovation that frequently results in the introduction of novel solutions, and the improvement of bilateral trade ties between various countries are other elements that are propelling the industry. However, the COVID-19 pandemic's exceptional circumstances had a negative impact on the industry's new sales and installations. Retail sector disruption brought on by forced lockdowns, a shift in consumer buying patterns, and a rise in supply chain inconsistencies with regulatory constraints may impede market expansion.
The rate at which Logistic software was adopted ultimately suffered as a result of large system producers temporarily ceasing business due to disruptions in the supply of components. On the other hand, vigorous use is being made of the transport management systems already in place around the world. Additionally, the unavoidable use of technology in disaster relief and the increasing significance of data-driven solutions in the transportation and logistics sector to reduce the pandemic's unexpected consequences greatly expand the potential for the use of logistics software in the future. The use of logistics software by market leaders in numerous business verticals improves customer service while lowering overall costs, increasing shipment efficiency, and providing real-time supply chain visibility.
In addition, cloud-based solutions let users connect with business partners, interact with them, reuse and share supply chain data, all of which improve time-to-value. Such characteristics are gaining significant momentum in the market for solutions. Furthermore, inefficiencies in the movement of commodities between the source and the destination can substantially raise overall costs. At the same time, it might damage the brand's reputation and increase customers' annoyance. In order to prevent financial losses and safeguard the reputation of the brand, officials from many industries are aggressively implementing logistics software in their business processes. The goal of logistics software is to offer fresh approaches to optimisation that may boost operational effectiveness and increase ROI for end customers.Thus, driving the Logistic Software market revenue.
Logistic Software Market Segment Insights
Logistic Software: Software Type Insights
The Logistic Software market segmentation, based on Software Type, includes Warehouse Management, Labor Management, Transportation Management, and Data Management. Warehouse management segment accounted for the largest revenue share in 2022. The day-to-day management of warehouses, distribution centres, and fulfilment centres is accomplished through the use of automated systems. Auditing, picking procedures, and inventory management are other components of these operations. Additionally, it lessens the paperwork and human errors that are made when picking and storing products manually in warehouses. Because of the time savings, service providers' staff members are more productive and efficient. These advantages will keep the WMS segment's market growth rising. Additionally, the WMS segment will increase the market more quickly than the transportation management segment.
Figure 2: Logistic Software Market, by Software Type, 2022 & 2032 (USD Billion)
Software Type: Secondary Research, Primary Research, MRFR Database and Analyst Review
Logistic Software End User Insights
The Logistic Software market segmentation, based on End User, includes Automotive, Government & defense, Healthcare, Telecommunication and IT, Industrial, Engineering and manufacturing, Oil & gas, and Others. Engineering and manufacturing segment dominated the Logistic Software market in 2022. The requirement for outsourcing inventory and raw materials has expanded as a result of the rising number of manufacturing facilities in developing nations like Mexico and India. For instance, the 'Make in India' effort of the Indian government places a great emphasis on the growth of the home manufacturing sector and may even stimulate indigenous production. Such activities are encouraging for the manufacturing segment's growth during the projection period.
Logistic Software Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Logistic Software market dominated this market in 2022 (45.80%). Over the forecast period, it is anticipated that the expanding retail and e-commerce sectors in India, China, Singapore, and Indonesia will propel regional expansion. It is also predicted that the efforts being followed and the policies being created by various companies in the area to foster the expansion of intelligent transportation would help to the region's development. Moreover, China’s Logistic Software market held the largest market share, and the Indian Logistic Software market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: LOGISTIC SOFTWARE MARKET SHARE BY REGION 2022 (USD Billion)
Software Type: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Logistic Software Market is expected to register significant growth from 2023 to 2032. Leading logistics software providers including Infor Inc., 3Glogistics software, Cerasis Inc., International Business Machines Corp., and MercuryGate International Inc. are present in the region, which is fostering market expansion.Further, the U.S. Logistic Software market held the largest market share, and the Canada Logistic Software market was the fastest growing market in the North America region.
Europe Logistic Software market accounted for the healthy market share in 2022.Roadways are frequently used as the principal means of freight transportation throughout Europe. One of the main factors influencing the industry in this area is the growth in local municipalities' expenditures for linked infrastructure for efficient transit.Further, the German Logistic Software market held the largest market share, and the U.K Logistic Software market was the fastest growing market in the European region.
Logistic Software Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Logistic Software market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Logistic Software industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Logistic Software industry to benefit clients and increase the market sector. In recent years, the Logistic Software industry has offered some of the most significant advantages to medicine. Major players in the Logistic Software market, including Advantech Corporation, Digilogistics, UTI Worldwide Inc., Hexaware Technologies, IBM Corporation, JDA Software, Oracle, Samsung Electronics Co, SAP AG, and Tech Mahindra, are attempting to increase market demand by investing in research and development operations.
Enterprise software and services are offered by Infor Inc (Infor). A variety of corporate business software products and solutions are available from the company, including cloud suite, supply chain management, human resource management, enterprise asset management, and customer relationship management. Additional services include advising, deployment, managed, and client support. Education services like transformation and training services are among Infor's other offerings. It benefits the automotive, chemical, distribution, fashion, financial services, food and beverage, manufacturing, and healthcare industries in addition to aerospace and defence. Asia-Pacific, Europe, and the Americas are the company's operating regions. The US city of New York City serves as the headquarters of Infor. To develop a supply chain solution, Infor Inc. teamed up with DB Schenker, a supplier of supply chain management and logistics solutions, in February 2022.
A transport management system created by MercuryGate International is intended to leverage the speed of automation and the strength of data. The business provides all-inclusive logistics solutions that specifically target all customer groups, including shippers, third-party logistics providers (3PLs), freight forwarders, freight brokers, and carriers. As a result, shipping and inventory costs are reduced, order-to-delivery cycle times are sped up, and the automated movement of goods throughout the supply chain is made possible. MercuryGate International, Inc. improved its TMS solution in February 2022 by incorporating smart transportation capabilities like integrated analytics, artificial intelligence, and machine learning.
Key Companies in the Logistic Software market include
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Digilogistics
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UTI Worldwide Inc.
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Hexaware Technologies
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JDA Software
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Oracle
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Samsung Electronics Co
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SAP AG
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Tech Mahindra
Logistic Software Industry Developments
February 2022: To help businesses increase efficiency and generate value throughout their supply chains, Oracle Corp. recently announced the addition of new logistics management tools to Oracle Fusion Cloud Supply Chain & Manufacturing (SCM).
Logistic Software Market Segmentation
Logistic Software: Software Type Outlook
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Warehouse Management
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Labor Management
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Transportation Management
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Data Management
Logistic Software End User Outlook
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Automotive
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Government & defense
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Healthcare
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Telecommunication and IT
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Industrial
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Engineering and manufacturing
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Oil & gas
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Others
Logistic Software Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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