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The physical internet market has been experiencing significant growth and innovation in recent years, driven by the need for more efficient and sustainable logistics solutions. The physical internet concept, inspired by the digital internet, aims to create a seamless and interconnected network of physical infrastructure, vehicles, and operations to optimize the movement of goods and reduce inefficiencies in global supply chains. One of the key trends in this market is the adoption of technology-enabled solutions such as Internet of Things (IoT), automation, and data analytics to enhance visibility, traceability, and efficiency across the supply chain. By leveraging IoT sensors and devices, companies can track the location, condition, and status of goods in real time, enabling better decision-making and proactive management of logistics operations.
Furthermore, there is a growing emphasis on sustainability and environmental responsibility within the physical internet market. As concerns about climate change and carbon emissions continue to rise, companies are under increasing pressure to reduce the environmental impact of their logistics operations. The physical internet offers opportunities to optimize transportation routes, consolidate shipments, and minimize empty miles through collaborative logistics models such as freight pooling and shared distribution networks. By reducing the number of vehicles on the road and optimizing transportation efficiency, companies can lower their carbon footprint and contribute to a more sustainable future.
Another key trend in the physical internet market is the rise of smart and connected infrastructure, such as smart warehouses, ports, and distribution centers. These facilities are equipped with advanced technologies such as robotics, artificial intelligence, and predictive analytics to streamline operations, improve throughput, and enhance overall efficiency. For example, automated guided vehicles (AGVs) and drones can be used to move goods within warehouses and distribution centers, while predictive analytics algorithms can forecast demand and optimize inventory levels in real time. By leveraging smart infrastructure, companies can achieve greater agility, responsiveness, and cost-effectiveness in their supply chain operations.
Moreover, there is a growing focus on collaboration and interoperability within the physical internet ecosystem. In order to realize the vision of a truly interconnected supply chain, companies need to collaborate with each other and share data, resources, and infrastructure in a seamless and standardized manner. This requires the development of open standards, protocols, and platforms that enable interoperability and facilitate communication and coordination among different stakeholders in the supply chain. By breaking down silos and fostering collaboration, companies can unlock new opportunities for efficiency, innovation, and value creation across the entire logistics ecosystem.
Additionally, the physical internet market is witnessing increased investment and innovation in last-mile delivery solutions. Last-mile delivery, the final leg of the supply chain where goods are delivered to the end customer, is often the most costly and inefficient part of the logistics process. Companies are exploring innovative approaches such as crowdshipping, autonomous vehicles, and micro-fulfillment centers to address the challenges of last-mile delivery and improve the customer experience. By leveraging technology and data analytics, companies can optimize delivery routes, reduce delivery times, and provide more flexible and convenient delivery options to customers.
Furthermore, there is a growing trend towards modular and scalable logistics solutions within the physical internet market. Companies are seeking flexible and adaptable logistics systems that can easily scale up or down to accommodate changing business needs and market dynamics. Modular logistics solutions enable companies to quickly deploy new capabilities, integrate with existing infrastructure, and respond to changing customer demands without significant disruption to operations. By adopting modular and scalable logistics solutions, companies can achieve greater agility, resilience, and competitiveness in today's rapidly evolving business environment.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Type, Component, Organization Size, Vertical, and Region |
Physical Internet Market Highlights:
Physical Internet (PI) Market Overview
Global Physical Internet (PI) Market Size was valued at USD x.x Billion in 2022. The Physical Internet (PI) market industry is projected to grow from USD x.xx Billion in 2023 to USD xx.x Billion by 2032, exhibiting a compound annual growth rate (CAGR) of xx.xx% during the forecast period (2023 - 2032). The potential for a worldwide networked logistics system, growing interest in zero-emission logistics, and the explosive development of e-commerce, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Physical Internet (PI) Market Trends
The rising support for zero-emission logistics is driving the market growth
The potential for a worldwide networked logistics system, the explosive growth of e-commerce, and the expanding popularity of zero-emission logistics are just a few of the factors stoking significant interest in the Physical Internet sector. Contrarily, the need for a conceptual shift towards the physical internet is what is preventing industrial development. Additional elements that contribute to market issues include the rising demand for education and skill development in the PI Market, as well as the need for enhanced trust among partners and users of shared networks, platforms, collaborative systems, and autonomous systems. However, the company is benefiting from PI Market's expanding advantages, which include better freight transit, lower expenses, and a higher standard of living for truck drivers.
The PI Market is without a doubt the most ambitious concept in transport logistics in terms of effectiveness and sustainability. It marks a fundamental shift in logistics and the movement of commodities that will greatly improve the efficiency with which assets and resources are used. The PI is built on the concepts of flow and network of networks, which have been carefully and painstakingly combined. The Physical Internet aims to entirely combine the logistical flows from many shippers, for instance through increasing pooling and shared networks. The Physical Internet also suggests merging resources and assets in open, linked, and shared networks (i.e., connecting existing (commercial) networks, capabilities, and resources) to create customer value so that network users and partners may easily utilise them. It is considered that resource utilisation will be more effective if resources and demand are combined to meet that requirement.
Almost every business on the earth has been impacted by the COVID-19 outbreak. Therefore, there will be a big influence on the logistics and transportation sectors. Logistics companies that oversee the transportation, storage, and transit of goods have been directly impacted by the Covid-19 pandemic. Logistics companies facilitate trade and commerce and help enterprises get their products to clients. They are an essential component of value chains both domestically and internationally. Supply chain implications of the epidemic have made it more challenging for the sector to compete, grow commercially, and generate jobs. The logistics and transportation sector is particularly vulnerable to the effects of economic downturns. Over 80% of all global trade involves commercial ships, so businesses are scrambling to meet demand and rebalance their portfolios. The volume of the shipping industry is predicted to decline by 20 to 25% notwithstanding this rebalancing and the anticipated rise in demand for logistics services after the coronavirus issues are resolved. Several airlines are making changes to their aircraft so that they can be utilised for freight flights in order to prevent devastating economic interruptions. Thus, driving the Physical Internet (PI) market revenue.
Physical Internet (PI) Market Segment Insights
Physical Internet (PI) Type Insights
The global Physical Internet (PI) market segmentation, based on Type, includes Logistic Nodes and Logistic Network. Logistic nodes segment dominated the global market in 2022. This is a result of logistic nodes being preferred more and more.
Figure 1: Global Physical Internet (PI) Market, by Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Physical Internet (PI) Component Insights
The global Physical Internet (PI) market segmentation, based on Component, Solution and Services. Solution segment dominated the global market in 2022. Additional divisions of the services section include planning and consulting, integration and deployment, and support and maintenance. The solutions market is further divided into the following subsegments: asset management, network management and security, warehouse management, transportation management, workforce management, cold chain management, and others.
Physical Internet (PI) Organization Size Insights
The global Physical Internet (PI) market segmentation, based on Organization Size, includes SMEs and Large Enterprises. Large enterprises segment dominated the global Physical Internet (PI) market in 2022. This is related to how big businesses use physical internet (PI).
Physical Internet (PI) Vertical Insights
The global Physical Internet (PI) market segmentation, based on Vertical, includes Retail & E-commerce, Transportation & Logistics, Pharmaceuticals and Healthcare, Manufacturing, FMCG, Automotive, Aerospace & Defense, and Others. Retail & e-commerce segment dominated the global Physical Internet (PI) market in 2022. This can be linked to the retail and e-commerce industry vertical's exponential growth.
Physical Internet (PI) Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Physical Internet (PI) Market dominated this market in 2022 (45.80%). The region is also making good progress and has the most sophisticated Pl implementation strategy in the world, in addition to substantial momentum from activities in the United States and Canada. Further, the U.S. Physical Internet (PI) market held the largest market share, and the Canada Physical Internet (PI) market was the fastest growing market in the North America 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 2: GLOBAL PHYSICAL INTERNET (PI) MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Physical Internet (PI) market accounted for the healthy market share in 2022. Since 2010, Europe has been aware of and involved in the development of the physical internet (PI). The Alliance for Logistics Innovation Through Collaboration (ALICE), which is sponsored by the European Union, has integrated the Physical Internet into its supply chain. The European Union has set 2030 as the deadline for a Physical Internet, which would replace present logistical methods. It is projected that it will be completely operational by 2040, which is ten years from now. Its functionality will be similar to that of the Internet, including data transfer techniques using customary transit means. Further, the German Physical Internet (PI) market held the largest market share, and the U.K Physical Internet (PI) market was the fastest growing market in the European region.
The Asia Pacific Physical Internet (PI) market is expected to register significant growth from 2023 to 2032. This is caused by a number of variables, including the rapid uptake of 5G and 4G LTE services, the expansion of internet penetration, and others. Additionally, Asia presents enormous potential for development and innovation in the physical internet (PI) sector. Moreover, China’s Physical Internet (PI) market held the largest market share and the Indian Physical Internet (PI) market was the fastest growing market in the Asia-Pacific region.
Physical Internet (PI) 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 Physical Internet (PI) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global 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, Physical Internet (PI) industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Physical Internet (PI) industry to benefit clients and increase the market sector. In recent years, the Physical Internet (PI) industry has offered some of the most significant advantages to medicine. Major players in the Physical Internet (PI) market, including Amazon.com Inc., UPS, AmeriCold Logistics LLC, Mercedes-Benz Group AG, SF Express Co. Ltd., Yamato Logistics Ltd., DHL, FedEx Corporation, Velove Bikes AB, and MIXMOVE, are attempting to increase market demand by investing in research and development Types.
Amazon.com Inc. is an online retailer and provider of web services. The company offers a wide range of products for sale, including apparel, auto and industrial supplies, cosmetics, health and beauty aids, electronics, food, games, jewellery, baby and children's items, music, sports gear, toys, and tools. Additionally, it offers assistance with online-related services including cloud web hosting, home delivery, and shipping. These products are sold by Amazon utilising its own online and offline venues. It also manufactures and markets a variety of electric products, such as Kindle e-readers, Fire tablets, Fire TVs, and other tech. The company makes it possible for authors, musicians, filmmakers, and others to publish and sell their work. Amazon is based in Seattle, Washington, in the United States.
United Parcel Service Inc. (UPS) provides package delivery services. It provides contract logistical, distributional, and transportation services. The company offers residential ground services in the US as well as same-day, time-definite, next-day, two-day and three-day delivery choices for ground and air package transportation services. In Africa, the Middle East, Latin America, and Asia-Pacific, it offers international shipping services. The company also offers freight forwarding, logistics, truckload brokerage, customs brokerage, and financing for cargo-related insurance. Value-added services are provided by UPS through its UPS shops, authorised shipping sites, business counters, customer centres, and drop boxes. Some of its well-known trademarks include Express Plus, UPS Express, Worldwide Express Freight, and Express Saver. UPS is based in Atlanta, Georgia, in the US.
Key Companies in the Physical Internet (PI) market include
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Amazon.com Inc.
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UPS
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AmeriCold Logistics LLC
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Mercedes-Benz Group AG
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SF Express Co. Ltd.
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Yamato Logistics Ltd.
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FedEx Corporation
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MIXMOVE
Physical Internet (PI) Industry Developments
Amazon.com Inc., for example, The physical internet is about to get a lot more involved with an effort to build a network where boxes are bytes travelling through the supply chain network in the same way that data travels on the internet. Amazon wants to vertically integrate its logistics.
In order to provide a holistic approach for logistics and supply chain management invention research, innovation, and market deployment in Europe, the European Technology Platform (ETP) Alliance for Logistics Innovation via Collaboration in Europe (ALICE) was founded.
Physical Internet (PI) Market Segmentation
Physical Internet (PI) Type Outlook
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Logistic Nodes
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Logistic Network
Physical Internet (PI) Component Outlook
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Solution
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Services
Physical Internet (PI) Organization Size Outlook
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SMEs
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Large Enterprises
Physical Internet (PI) Vertical Outlook
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Retail & E-commerce
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Transportation & Logistics
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Pharmaceuticals and Healthcare
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Manufacturing
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FMCG
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Automotive
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Aerospace & Defense
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Others
Physical Internet (PI) Regional Outlook
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North America
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U.S.
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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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