Supply Chain IoT Market Overview
As per MRFR analysis, the Supply Chain IoT Market Size was estimated at 48.68 (USD Billion) in 2022.The Supply Chain IoT Market Industry is expected to grow from 58.2(USD Billion) in 2023 to 290.2 (USD Billion) by 2032. The Supply Chain IoT Market CAGR (growth rate) is expected to be around 19.54% during the forecast period (2024 - 2032).
Key Supply Chain IoT Market Trends Highlighted
In response to the increasing need for effective and more optimized supply chains, the Supply Chain IoT industry is still on the growth trend. The amalgamation of 301 Internet of Things, the cloud, and analytics is a facet of the industry and ‘helping’ businesses to improve visibility, lower costs, and better service customers. Real-time data is one of the key drivers, and so are the expanding regulations and the increasing level of Automation and AI adoption.
There are also measures currently being undertaken to implement and appreciate IoT technology in tracking and monitoring goods, improving and maintaining an efficient warehouse system, and improving the means of transport. It is an attractive market for the customers since the propensity to look for fast-expanding and durable IoT frameworks that work with the already existing platforms is very high. The cloud-interconnected environment and increased dependency on cloud services have led to the wider adoption of IoT sensors and devices. The improvement of the market is also propelled by the incorporation of AI and machine learning algorithms for predictive maintenance, automated decision support, and forecasting in SCM.
Figure1: Supply Chain IoT Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Supply Chain IoT Market Drivers
Rising Adoption of IoT Devices in Supply Chains
The growing adoption of IoT devices in supply chains is a critical driver of market expansion. Internet-of-Things solutions can be employed to track the goods’ location and condition, observe the inventory level, and determine the optimal shipping route. Consequently, the information obtained can lead to more efficient operations, lowered costs, and increased customer satisfaction. Owing to the benefits it provides, the use of IoT devices is becoming a common practice and is expected to drive the market further.Some of the applications of IoT devices that are present in modern supply chains are the following: Tracking goods’ location: Businesses can use IoT devices to follow the goods’ movement from the provider to the customer.
With this information, a company can improve inventory management, reduce theft, and choose an optimal route for shipping. Monitoring the inventory level: IoT devices are capable of collecting data on inventory levels in real time.Subsequently, this information can help a company avoid running out of stock and identify the perfect amount of goods to keep. Finding the optimal shipping route: An enterprise can use IoT devices to collect data about shipping routes, including traffic and delivery points. After analyzing the information, shipping can be made more efficient, saving costs further.
Implementing predictive analytics: IoT devices are able to collect data on various factors, such as temperature, humidity, and vibrations.Subsequently, by using this information, a company can create a prediction model and anticipate problems. Businesses are likely to benefit from the growing use of IoT devices in supply chains as it will allow them to become more efficient, reduce costs, and improve employees’ productivity. Moreover, since the cost of IoT devices is decreasing, more companies are likely to adopt IoT solutions, which will also drive the market. Thus, it is safe to assume that Supply Chain IoT Market Industry will continue to expand.
Increasing Demand for Real-Time Visibility
The market in which the demand for real-time visibility is rapidly increasing is IoT for supply chains. The reason is that supply chains have become much more complicated, and their work requires short-term responses to any change. Internet of Things devices can provide real-time visibility into not just goods and their condition but all the most important metrics. This data enables businesses to quickly identify and solve problems, improve customer service, and make better decisions.Thus, it can be expected that the demand for real-time visibility will continue to continually fuel market development in the future.
Government Regulations and Initiatives
Government regulations and initiatives are also driving the growth of the Supply Chain IoT Market Industry. For example, the European Union has implemented a number of regulations that require businesses to track the location of goods and monitor inventory levels. These regulations are designed to improve safety and security, and they are expected to lead to increased adoption of IoT devices in supply chains. Additionally, governments around the world are investing in initiatives to promote the adoption of IoT technology.These initiatives are expected to further drive market growth in the coming years.
Supply Chain IoT Market Segment Insights
Supply Chain IoT Market Technology Insights
The technology segment heavily influences the growth of the Supply Chain IoT Market. In particular, RFID technology has a market share of more than 30%, facilitating real-time tracking and identification of assets and inventory. Sensors are also an important part of the market, and businesses heavily use this type of technology to collect data on various parameters, including temperature, humidity, and location. In addition, cloud computing platforms present businesses with scalable and relatively low-cost data storage, processing, and analytics.
As such, businesses can store and process vast amounts of IoT-related data in a cost-effective manner. Moreover, big data analytics tools enable the extraction of valuable insights from the data collected by IoT devices. Lastly, blockchain technology is used by many businesses to enhance the transparency and traceability of supply chains. The latter is possible because blockchain is secure and tamper-proof, preventing fraud and increasing stakeholder trust. Overall, the deployment of these technologies influences the growth of the supply chain IoT market.
Figure2: Supply Chain IoT Market, By Technology, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Supply Chain IoT Market Application Insights
The Supply Chain IoT Market is divided by Application into Inventory Management, Asset Tracking, Fleet Management, Predictive Maintenance, and Logistics Optimization. Among the tools of industry, inventory management occupied the largest market share of 27.5% in 2023 and is expected to be worth USD 80.5 billion by 2032 at a CAGR of 19.8%. The growth of this segment will be due to the increasing need for real-time visibility and control over inventory levels in order to optimize the operations of the warehouse and minimize expenses. Asset tracking is yet another significant portion, which is expected to be worth USD 62.8 billion in 2032 and grow at a CAGR of 19.3%.
The expansion of the segment will be given to the rising need to have real-time information about the location of the assets, their utilization rates, and their potential theft or loss. Fleet management is also one of the more significant applications in the market, with it expected to be worth USD 55.6 billion in 2032 and grow at a CAGR of 19.1%. Its growth will be prompted by the rising employment of IoT devices for management and monitoring purposes to increase efficiency and reduce costs.
Supply Chain IoT Market Vertical Insights
The Supply Chain IoT Market is segmented into various verticals, including manufacturing, retail, transportation, healthcare, and energy. Each vertical presents unique opportunities and challenges for IoT adoption. Manufacturing: The manufacturing vertical is expected to hold a significant share of the Supply Chain IoT Market revenue in 2023, driven by the increasing adoption of IoT solutions to optimize production processes, improve efficiency, and enhance quality control. IoT sensors and devices enable manufacturers to monitor equipment performance, track inventory levels, and optimize supply chain operations in real-time.
Retail: The retail vertical is also anticipated to witness significant growth in the Supply Chain IoT Market. IoT solutions help retailers improve inventory management, optimize logistics, and enhance customer experience. IoT devices can track customer behavior, provide real-time inventory data, and facilitate seamless checkout processes. Transportation: The transportation vertical is leveraging IoT to improve fleet management, optimize routing, and enhance safety. IoT sensors and devices provide real-time data on vehicle location, fuel consumption, and maintenance needs, enabling transportation companies to improve efficiency and reduce costs.
Healthcare: The healthcare vertical is expected to experience substantial growth in the Supply Chain IoT Market. IoT solutions help healthcare providers improve patient care, streamline inventory management, and enhance operational efficiency. IoT devices can monitor patient vital signs, track medical equipment, and optimize supply chain operations for essential medical supplies. Energy: The energy vertical is also adopting IoT solutions to improve grid efficiency, reduce energy consumption, and enhance renewable energy integration. IoT sensors and devices monitor energy usage, optimize distribution networks, and facilitate the integration of renewable energy sources, leading to a more sustainable and efficient energy system.
Supply Chain IoT Market Component Insights
The Supply Chain IoT Market is segmented into Hardware, Software, and Services. Among these segments, the Hardware segment is expected to hold the largest market share of around 45% in 2023 and is projected to continue its dominance throughout the forecast period. The Software segment is expected to grow at a CAGR of 20.5% during the forecast period, owing to the increasing demand for data analytics and IoT solutions. The Services segment is expected to grow at a CAGR of 22.3% during the forecast period, driven by the growing need for managed services and consulting services in the supply chain industry.
Supply Chain IoT Market Regional Insights
The regional segmentation of the Supply Chain IoT Market offers valuable insights into the market's geographical distribution and growth dynamics. North America holds a dominant position in the market, driven by the presence of major technology hubs, a strong manufacturing sector, and early adoption of IoT solutions. The region is expected to maintain its leadership throughout the forecast period, with a projected revenue of USD 120.6 billion by 2024. Europe follows closely behind North America, with a significant market share due to the region's focus on industrial automation and a supportive regulatory environment.APAC is another region with substantial growth potential, attributed to the rapidly expanding manufacturing sector and increasing government initiatives to promote IoT adoption. South America and MEA are emerging markets with growing demand for supply chain IoT solutions, offering opportunities for market expansion.
Figure2: Supply Chain IoT Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Supply Chain IoT Market Key Players and Competitive Insights
Major players in the Supply Chain IoT Market industry are constantly innovating and developing new technologies to gain a competitive edge. Leading Supply Chain IoT Market players are investing heavily in research and development to create new products and services that meet the evolving needs of customers. The Supply Chain IoT Market is expected to witness significant growth in the coming years, driven by the increasing adoption of IoT technologies across various industries. The competitive landscape of the Supply Chain IoT Market is expected to remain fragmented, with several key players vying for market share. Strategic partnerships and acquisitions are expected to be key growth strategies for players in the Supply Chain IoT Market.
Zebra Technologies is a leading provider of supply chain IoT solutions. The company offers a wide range of products and services, including RFID tags, barcode scanners, mobile computers, and software solutions. Zebra Technologies has a presence and serves customers in a variety of industries, including manufacturing, retail, and healthcare. The company is committed to innovation and is constantly developing new technologies to improve the efficiency and productivity of supply chains.
Honeywell is another leading provider of supply chain IoT solutions. The company offers a comprehensive portfolio of products and services, including sensors, controllers, software, and cloud-based solutions. Honeywell has a strong focus on industrial automation and offers solutions that help customers improve the efficiency of their operations. The company has a presence and serves customers in a variety of industries, including manufacturing, energy, and transportation. Honeywell is committed to sustainability and is developing technologies that help customers reduce their environmental impact.
Key Companies in the Supply Chain IoT Market Include
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Siemens AG
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PTC Inc.
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SAP SE
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Zebra Technologies Corporation
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Trimble Inc.
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JDA Software, Inc.
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Cisco Systems, Inc.
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Schneider Electric SE
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Oracle Corporation
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Rockwell Automation, Inc.
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ABB Ltd.
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IBM Corporation
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Microsoft Corporation
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Honeywell International Inc.
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Manhattan Associates, Inc.
Supply Chain IoT Market Industry Developments
The supply chain IoT market is projected to grow from USD 58.2 billion in 2023 to USD 290.2 billion by 2032, at a CAGR of 19.54% from 2024 to 2032. Increasing adoption of IoT devices for real-time visibility and monitoring of supply chain operations, rising concerns over supply chain disruptions, and growing demand for predictive analytics and automation are key factors driving the market growth.
Recent developments in the market include:
In January 2023, IBM and Maersk announced a partnership to develop a blockchain-based solution for tracking and monitoring supply chains.
In February 2023, Amazon Web Services (AWS) launched a new IoT service called AWS IoT FleetWise, which is designed to help enterprises manage and connect IoT devices at scale.
In March 2023, Microsoft Azure announced the general availability of Azure IoT Central, a managed IoT service that simplifies the development and deployment of IoT solutions.
Supply Chain IoT Market Segmentation Insights
Supply Chain IoT Market Technology Outlook
- RFID
- Sensors
- Cloud Computing
- Big Data Analytics
- Blockchain
Supply Chain IoT Market Application Outlook
- Inventory Management
- Asset Tracking
- Fleet Management
- Predictive Maintenance
- Logistics Optimization
Supply Chain IoT Market Vertical Outlook
- Manufacturing
- Retail
- Transportation
- Healthcare
- Energy
Supply Chain IoT Market Component Outlook
- Hardware
- Software
- Services
Supply Chain IoT Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
48.68(USD Billion) |
| Market Size 2023 |
58.2(USD Billion) |
| Market Size 2032 |
290.2(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
19.54% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Siemens AG, PTC Inc., SAP SE, Zebra Technologies Corporation, Trimble Inc., JDA Software, Inc., Cisco Systems, Inc., Schneider Electric SE, Oracle Corporation, Rockwell Automation, Inc., ABB Ltd., IBM Corporation, Microsoft Corporation, Honeywell International Inc., Manhattan Associates, Inc. |
| Segments Covered |
Technology, Application, Vertical, Component, Regional |
| Key Market Opportunities |
Predictive analytics Blockchain integration Cold chain monitoring Realtime location tracking and Smart warehousing |
| Key Market Dynamics |
Rising adoption of cloud and edge computingIncreased demand for real-time visibilityGrowing focus on sustainability and efficiencyAdvancements in AI and machine learningGrowing adoption of digital twins |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Supply Chain IoT market size is expected to reach USD 290.2 billion by 2032, exhibiting a CAGR of 19.54% during the forecast period. The market growth is attributed to the increasing adoption of IoT devices and solutions across various industries to improve supply chain efficiency, visibility, and optimization.
North America is expected to account for the largest market share in the Supply Chain IoT Market due to the early adoption of advanced technologies, the presence of major technology providers, and the growing demand for supply chain optimization solutions.
The key growth drivers of the Supply Chain IoT Market include increasing demand for real-time visibility and tracking, growing need for supply chain optimization, rising adoption of cloud and edge computing, and government initiatives promoting digital transformation.
Major applications of IoT in the Supply Chain include inventory management, asset tracking, predictive maintenance, warehouse management, and transportation optimization. These applications help businesses improve efficiency, reduce costs, and gain real-time insights into their supply chain operations.
Key competitors in the Supply Chain IoT Market include Cisco Systems, IBM, Microsoft, SAP, Oracle, Honeywell, Zebra Technologies, and Bosch. These companies offer a range of IoT solutions and services tailored to meet the specific needs of supply chain businesses.
Challenges faced by the Supply Chain IoT Market include data security and privacy concerns, lack of interoperability between different IoT devices and systems, and the need for skilled professionals to manage and analyze IoT data.
Emerging trends in the Supply Chain IoT Market include the adoption of artificial intelligence (AI) and machine learning (ML) for predictive analytics, the integration of blockchain technology for secure and transparent data sharing, and the growing use of low-power wide-area networks (LPWANs) for long-range connectivity.
The COVID-19 pandemic has accelerated the adoption of IoT solutions in the Supply Chain sector as businesses seek to improve resilience, visibility, and efficiency in the face of disruptions. The demand for remote monitoring, predictive maintenance, and automated inventory management solutions has increased significantly.
The future outlook of the Supply Chain IoT Market is positive, with continued growth expected over the next decade. The increasing adoption of digital technologies, government initiatives promoting digital transformation, and the growing need for supply chain optimization will drive market expansion.
Specific examples of IoT applications in supply chain management include inventory management, which is the real-time tracking of inventory levels using RFID tags and sensors, enabling businesses to optimize inventory levels and reduce waste - Asset tracking: GPS and Bluetooth beacons attached to assets allow businesses to track their location and condition, improving asset utilization and reducing loss. - Predictive maintenance: IoT sensors monitor equipment performance and predict failures, enabling businesses to schedule maintenance before breakdowns occur, reducing downtime and maintenance costs.
