Logistic Software Market Trends

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.

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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  Advantech Corporation

  
  


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  Digilogistics

  
  


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  UTI Worldwide Inc.

  
  


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  Hexaware Technologies

  
  


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  IBM Corporation

  
  


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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