Digital Transformation Spending in Logistics Market Share, Size, Trend & Global Industry Analysis

Digital Transformation Spending in Logistics Market Overview

The Global Digital Transformation Spending in Logistics Market size is expected to grow from USD 63.89 billion in 2023 to USD 128.68 billion by 2032, at a CAGR of 8.09% during the forecast period (2024-2032).

Digital Transformation Spending in Logistics is the process of reshaping products services and entire business models by adopting digital technologies. Due to the high cost of building the whole IT department, only large and international organizations can afford to build a whole internal IT department. The spending in logistics are quite expensive and hence can hamper the growth of Digital Transformation Spending in Logistics market.  

According to the analyst, the emergence of Artificial Intelligence and the Internet of Thinking has escalated Digital Transformation Spending in Logistics market growth for digital transformation in multinational companies. The logistics industries have adopted the Digital Transformation Spending in Logistics at a moderate pace than every other industry. The major driver for this market is the digitalization of business. The higher business models and innovative solutions with excellent reach to consumers are happening because of the digitalization all across the globe which is impacting the growth of Digital Transformation Spending in Logistics market positively.    

By the end of 2027, the Digital Transformation Spending in Logistics market size is estimated to be USD 86.63 billion. Increasing and excessive use of artificial intelligence in multinational corporates are going to drive Digital Transformation Spending in Logistics market in the forecast period.

The Digital Transformation Spending in Logistics market is segmented by Solutions (Hardware, Software, and Services), by Hardware Solutions (Systems, Devices, and IT Equipment), by Systems (Conveyors, Automated Storage and Retrieval Systems (ASRS), Automatic Sorters, Automated guided vehicle (AGV), Robotic Picking System, Automatic Palletizer, Peripheral & Supporting Components BFSI), by Devices (RFID Readers, Real-time Location System, Barcode Scanners, Barcode Printers, Barcode Stickers, RFID Tags, GPS), by IT Equipment (Enterprise Servers, and Client Machines), by Deployment (Cloud-Based and On-Premise), by End-User (3PL and Warehouse).

Market Trend Analysis

Digital Transformation Spending in the Logistics Market

The rapid growth of e-commerce and the increasing demand for faster delivery of goods have emerged as pivotal drivers for digital transformation in the logistics market. Businesses are striving to gain a competitive edge by adopting advanced systems like Warehouse Management Systems (WMS) and Transport Management Systems (TMS). This surge in digital adoption is further bolstered by the exponential rise in Internet users and the growing influence of social media platforms, which have amplified awareness about innovative digital solutions.

Companies like Vinculum Solutions in India exemplify this trend, offering specialized solutions such as Vin eRetail WMS tailored to the retail industry. The complexity of online sales channels has compelled manufacturers and retailers to transition from in-house order fulfillment to third-party logistics providers (3PLs). These 3PLs are equipped with advanced warehouse management capabilities to address the growing online retail demands. This shift has accelerated the growth of the WMS industry, fostering efficiency and scalability.

Collaboration among logistics players also plays a crucial role. Established companies and startups are increasingly sharing digital platforms, enabling mutual benefitsnew entrants gain market access, while incumbents enhance operational efficiency and explore shared network models. These developments underscore the critical role of digital transformation in shaping the logistics industry's future.

Leveraging E-Commerce Growth and Internet Proliferation for Market Expansion

The explosive growth of the e-commerce industry, fueled by increasing online shopping and the proliferation of internet users, presents significant opportunities for market expansion. Businesses can capitalize on this trend by investing in innovative solutions to enhance operational efficiency and customer satisfaction.

Digitization of logistics operations offers a transformative approach to managing supply chains, enabling real-time tracking, improved inventory management, and faster delivery times. Automation of material handling systems and warehouse management systems can reduce operational costs while increasing throughput, providing a competitive edge in a fast-paced market. Furthermore, integrating artificial intelligence and predictive analytics into e-commerce logistics allows businesses to anticipate consumer demand and optimize inventory levels.

The emphasis on transparency, convenience, and speed in e-commerce aligns with consumer expectations, encouraging the adoption of new business models. Companies that proactively adapt to these demands by implementing digital tools and automation are positioned to strengthen customer loyalty and boost profitability. This opportunity underscores the critical role of technology in shaping the future of commerce and driving sustainable growth in a competitive landscape.

Impact of COVID-19 on Digital Transformation Spending in Logistics Market

Due to most of the organizations adopting the work from home policy all over the globe, the IT and Telecom sector has been growing continuously at a moderate pace during the pandemic. Digital Transformation Spending in Logistics increasing use of the internet and digitalization for businesses haven’t caused many hindrances for the growth of the business in the pandemic. As there are relaxations in the lockdown across the globe, the digital transformation spending in the Digital Transformation Spending in Logistics market is expected to boost in the forecast period due to every business transaction now being preferred online  

Market Segmentation

Solutions Insights:

By Solutions, Digital Transformation Spending in Logistics market can be segmented into Hardware, Software, and Services. The segment Services held the largest market share of 77.28% with market size of USD 61.29 billion in the year 2026. But, Digital Transformation Spending in Logistics segment, software holds the highest CAGR of 8.51% for the year 2020..

Deployment type Insights:

By Deployment Type, Digital Transformation Spending in Logistics market is segmented into Cloud-Based and On-Premise. The Cloud-based segment held the largest market share of 76.35% in the year 2019. The increasing investment for this segment by the IT sector to increase the productivity and efficiency of the businesses is improving the market share for this segment. It held Digital Transformation Spending in Logistics largest market size of USD 36.54 billion in the year 2019 and is anticipated to increase more in Digital Transformation Spending in Logistics forecast period to be at USD 62.58 billion in the year 2026 with a CAGR of 8.07%. 

Major Key Players Considered in the Market

• JDA Software WMS
• Logitech
• Unisys Corporation
• Sanco Software
• Advantech
• Partner Tech
• Oracle
• Hexaware Technologies
• S2K warehouse management
• Samsung
• Mindtree
• 3GTMS
• XPO Logistics
• IBM
• APL Logistics Ltd.
• Digital Logistics Group
• Syntel
• 4Flow AG
• SAP
• Tech Mahindra

Salient Features of the Digital Transformation Spending in Logistics Market

The approximate expected value for the Digital Transformation Spending in Logistics was USD 46.97 billion in 2019, and it is expected to reach USD 80.04 billion by 2026.

• In 2019, Companies have spent around USD 2 trillion on Digital Transformation Spending in Logistics for digital tracking, efficiency, and due to competitive pressure.
• Digital Transformation Spending in Logistics estimated market share for the North-American region was 38.21% with market size of USD 17.95 billion in the year 2019 and is expected to be at USD 30.56 billion in the year 2026 with a high CAGR value.
• Digital Transformation Spending in Logistics Improved economic conditions, especially in emerging economies like India and China will support industry growth. Also, extensive investments in R&D programs by the international corporates are further responsible for the dominance of Digital Transformation Spending in Logistics market in this region which is the major driver for the market.
• Asia-Pacific is expected to be the fastest-growing region and hold the largest CAGR in the forecast period of 8.88% and has Digital Transformation Spending in Logistics estimated market size of USD 20.94 billion in the year 2026.

Key Industry Development in the Digital Transformation Spending in Logistics Market:

• In October 2023, UPS announced the acquisition of Happy Returns, a reverse logistics company specializing in seamless, box-free, and label-free return solutions for consumers and merchants. This strategic move aimed to expand UPS's digital logistics capabilities, offering enhanced convenience and efficiency in returns processing. The acquisition reinforced UPS's commitment to innovative solutions that streamline the logistics experience for businesses and their customers.
• In August 2023, Seedcom Logistics successfully transformed its warehouse environment through the implementation of Blue Yonder’s Warehouse Management System (WMS). This digital upgrade, completed in collaboration with Seedcom and Blue Yonder, significantly enhanced the capabilities of Seedcom Logistics. The new WMS has streamlined operations, improved efficiency, and set a benchmark for advanced logistics solutions, underscoring the company’s commitment to innovation and excellence in supply chain management.

Chapter 1: Introduction
 1.1 Research Objectives
 1.2 Research Methodology
 1.3 Research Process
 1.4 Scope and Coverage
  1.4.1 Market Definition
  1.4.2 Key Questions Answered
 1.5 Market Segmentation

Chapter 2:Executive Summary

Chapter 3:Growth Opportunities By Segment
 3.1 By Solutions
 3.2 By System

Chapter 4: Market Landscape
 4.1 Porter's Five Forces Analysis
  4.1.1 Bargaining Power of Supplier
  4.1.2 Threat of New Entrants
  4.1.3 Threat of Substitutes
  4.1.4 Competitive Rivalry
  4.1.5 Bargaining Power Among Buyers
 4.2 Industry Value Chain Analysis
 4.3 Market Dynamics
  4.3.1 Drivers
  4.3.2 Restraints
  4.3.3 Opportunities
  4.5.4 Challenges
 4.4 Pestle Analysis
 4.5 Technological Roadmap
 4.6 Regulatory Landscape
 4.7 SWOT Analysis
 4.8 Price Trend Analysis
 4.9 Patent Analysis
 4.10 Analysis of the Impact of Covid-19
  4.10.1 Impact on the Overall Market
  4.10.2 Impact on the Supply Chain
  4.10.3 Impact on the Key Manufacturers
  4.10.4 Impact on the Pricing

Chapter 5: Digital Transformation Spending in Logistics Market by Solutions
 5.1 Digital Transformation Spending in Logistics Market Overview Snapshot and Growth Engine
 5.2 Digital Transformation Spending in Logistics Market Overview
 5.3 Hardware
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size (2017-2032F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Hardware: Grographic Segmentation
 5.4 Software
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size (2017-2032F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Software: Grographic Segmentation
 5.5 Services
  5.5.1 Introduction and Market Overview
  5.5.2 Historic and Forecasted Market Size (2017-2032F)
  5.5.3 Key Market Trends, Growth Factors and Opportunities
  5.5.4 Services: Grographic Segmentation

Chapter 6: Digital Transformation Spending in Logistics Market by System
 6.1 Digital Transformation Spending in Logistics Market Overview Snapshot and Growth Engine
 6.2 Digital Transformation Spending in Logistics Market Overview
 6.3 Conveyors
  6.3.1 Introduction and Market Overview
  6.3.2 Historic and Forecasted Market Size (2017-2032F)
  6.3.3 Key Market Trends, Growth Factors and Opportunities
  6.3.4 Conveyors: Grographic Segmentation
 6.4 Automated Storage and Retrieval Systems (ASRS)
  6.4.1 Introduction and Market Overview
  6.4.2 Historic and Forecasted Market Size (2017-2032F)
  6.4.3 Key Market Trends, Growth Factors and Opportunities
  6.4.4 Automated Storage and Retrieval Systems (ASRS): Grographic Segmentation
 6.5 Automatic Sorters
  6.5.1 Introduction and Market Overview
  6.5.2 Historic and Forecasted Market Size (2017-2032F)
  6.5.3 Key Market Trends, Growth Factors and Opportunities
  6.5.4 Automatic Sorters: Grographic Segmentation
 6.6 Automated guided vehicle (AGV)
  6.6.1 Introduction and Market Overview
  6.6.2 Historic and Forecasted Market Size (2017-2032F)
  6.6.3 Key Market Trends, Growth Factors and Opportunities
  6.6.4 Automated guided vehicle (AGV): Grographic Segmentation
 6.7 Robotic Picking System
  6.7.1 Introduction and Market Overview
  6.7.2 Historic and Forecasted Market Size (2017-2032F)
  6.7.3 Key Market Trends, Growth Factors and Opportunities
  6.7.4 Robotic Picking System: Grographic Segmentation
 6.8 Automatic Palletizer
  6.8.1 Introduction and Market Overview
  6.8.2 Historic and Forecasted Market Size (2017-2032F)
  6.8.3 Key Market Trends, Growth Factors and Opportunities
  6.8.4 Automatic Palletizer: Grographic Segmentation
 6.9 Peripheral & Supporting Components BFSI)
  6.9.1 Introduction and Market Overview
  6.9.2 Historic and Forecasted Market Size (2017-2032F)
  6.9.3 Key Market Trends, Growth Factors and Opportunities
  6.9.4 Peripheral & Supporting Components BFSI): Grographic Segmentation
 6.10 Others
  6.10.1 Introduction and Market Overview
  6.10.2 Historic and Forecasted Market Size (2017-2032F)
  6.10.3 Key Market Trends, Growth Factors and Opportunities
  6.10.4 Others: Grographic Segmentation

Chapter 7: Company Profiles and Competitive Analysis
 7.1 Competitive Landscape
  7.1.1 Competitive Positioning
  7.1.2 Digital Transformation Spending in Logistics Sales and Market Share By Players
  7.1.3 Industry BCG Matrix
  7.1.4 Ansoff Matrix
  7.1.5 Digital Transformation Spending in Logistics Industry Concentration Ratio (CR5 and HHI)
  7.1.6 Top 5 Digital Transformation Spending in Logistics Players Market Share
  7.1.7 Mergers and Acquisitions
  7.1.8 Business Strategies By Top Players
 7.2 JDA SOFTWARE WMS
  7.2.1 Company Overview
  7.2.2 Key Executives
  7.2.3 Company Snapshot
  7.2.4 Operating Business Segments
  7.2.5 Product Portfolio
  7.2.6 Business Performance
  7.2.7 Key Strategic Moves and Recent Developments
  7.2.8 SWOT Analysis
 7.3 LOGITECH
 7.4 UNISYS CORPORATION
 7.5 SANCO SOFTWARE
 7.6 ADVANTECH
 7.7 PARTNER TECH
 7.8 ORACLE
 7.9 HEXAWARE TECHNOLOGIES
 7.10 S2K WAREHOUSE MANAGEMENT
 7.11 SAMSUNG
 7.12 MINDTREE
 7.13 3GTMS
 7.14 XPO LOGISTICS
 7.15 IBM
 7.16 APL LOGISTICS LTD.
 7.17 DIGITAL LOGISTICS GROUP
 7.18 SYNTEL
 7.19 4FLOW AG
 7.20 SAP
 7.21 TECH MAHINDRA
 7.22 OTHER MAJOR PLAYERS

Chapter 8: Global Digital Transformation Spending in Logistics Market Analysis, Insights and Forecast, 2017-2032
 8.1 Market Overview
 8.2 Historic and Forecasted Market Size By Solutions
  8.2.1 Hardware
  8.2.2 Software
  8.2.3 Services
 8.3 Historic and Forecasted Market Size By System
  8.3.1 Conveyors
  8.3.2 Automated Storage and Retrieval Systems (ASRS)
  8.3.3 Automatic Sorters
  8.3.4 Automated guided vehicle (AGV)
  8.3.5 Robotic Picking System
  8.3.6 Automatic Palletizer
  8.3.7 Peripheral & Supporting Components BFSI)
  8.3.8 Others

Chapter 9: North America Digital Transformation Spending in Logistics Market Analysis, Insights and Forecast, 2017-2032
 9.1 Key Market Trends, Growth Factors and Opportunities
 9.2 Impact of Covid-19
 9.3 Key Players
 9.4 Key Market Trends, Growth Factors and Opportunities
 9.4 Historic and Forecasted Market Size By Solutions
  9.4.1 Hardware
  9.4.2 Software
  9.4.3 Services
 9.5 Historic and Forecasted Market Size By System
  9.5.1 Conveyors
  9.5.2 Automated Storage and Retrieval Systems (ASRS)
  9.5.3 Automatic Sorters
  9.5.4 Automated guided vehicle (AGV)
  9.5.5 Robotic Picking System
  9.5.6 Automatic Palletizer
  9.5.7 Peripheral & Supporting Components BFSI)
  9.5.8 Others
 9.6 Historic and Forecast Market Size by Country
  9.6.1 U.S.
  9.6.2 Canada
  9.6.3 Mexico

Chapter 10: Europe Digital Transformation Spending in Logistics Market Analysis, Insights and Forecast, 2017-2032
 10.1 Key Market Trends, Growth Factors and Opportunities
 10.2 Impact of Covid-19
 10.3 Key Players
 10.4 Key Market Trends, Growth Factors and Opportunities
 10.4 Historic and Forecasted Market Size By Solutions
  10.4.1 Hardware
  10.4.2 Software
  10.4.3 Services
 10.5 Historic and Forecasted Market Size By System
  10.5.1 Conveyors
  10.5.2 Automated Storage and Retrieval Systems (ASRS)
  10.5.3 Automatic Sorters
  10.5.4 Automated guided vehicle (AGV)
  10.5.5 Robotic Picking System
  10.5.6 Automatic Palletizer
  10.5.7 Peripheral & Supporting Components BFSI)
  10.5.8 Others
 10.6 Historic and Forecast Market Size by Country
  10.6.1 Germany
  10.6.2 U.K.
  10.6.3 France
  10.6.4 Italy
  10.6.5 Russia
  10.6.6 Spain
  10.6.7 Rest of Europe

Chapter 11: Asia-Pacific Digital Transformation Spending in Logistics Market Analysis, Insights and Forecast, 2017-2032
 11.1 Key Market Trends, Growth Factors and Opportunities
 11.2 Impact of Covid-19
 11.3 Key Players
 11.4 Key Market Trends, Growth Factors and Opportunities
 11.4 Historic and Forecasted Market Size By Solutions
  11.4.1 Hardware
  11.4.2 Software
  11.4.3 Services
 11.5 Historic and Forecasted Market Size By System
  11.5.1 Conveyors
  11.5.2 Automated Storage and Retrieval Systems (ASRS)
  11.5.3 Automatic Sorters
  11.5.4 Automated guided vehicle (AGV)
  11.5.5 Robotic Picking System
  11.5.6 Automatic Palletizer
  11.5.7 Peripheral & Supporting Components BFSI)
  11.5.8 Others
 11.6 Historic and Forecast Market Size by Country
  11.6.1 China
  11.6.2 India
  11.6.3 Japan
  11.6.4 Singapore
  11.6.5 Australia
  11.6.6 New Zealand
  11.6.7 Rest of APAC

Chapter 12: Middle East & Africa Digital Transformation Spending in Logistics Market Analysis, Insights and Forecast, 2017-2032
 12.1 Key Market Trends, Growth Factors and Opportunities
 12.2 Impact of Covid-19
 12.3 Key Players
 12.4 Key Market Trends, Growth Factors and Opportunities
 12.4 Historic and Forecasted Market Size By Solutions
  12.4.1 Hardware
  12.4.2 Software
  12.4.3 Services
 12.5 Historic and Forecasted Market Size By System
  12.5.1 Conveyors
  12.5.2 Automated Storage and Retrieval Systems (ASRS)
  12.5.3 Automatic Sorters
  12.5.4 Automated guided vehicle (AGV)
  12.5.5 Robotic Picking System
  12.5.6 Automatic Palletizer
  12.5.7 Peripheral & Supporting Components BFSI)
  12.5.8 Others
 12.6 Historic and Forecast Market Size by Country
  12.6.1 Turkey
  12.6.2 Saudi Arabia
  12.6.3 Iran
  12.6.4 UAE
  12.6.5 Africa
  12.6.6 Rest of MEA

Chapter 13: South America Digital Transformation Spending in Logistics Market Analysis, Insights and Forecast, 2017-2032
 13.1 Key Market Trends, Growth Factors and Opportunities
 13.2 Impact of Covid-19
 13.3 Key Players
 13.4 Key Market Trends, Growth Factors and Opportunities
 13.4 Historic and Forecasted Market Size By Solutions
  13.4.1 Hardware
  13.4.2 Software
  13.4.3 Services
 13.5 Historic and Forecasted Market Size By System
  13.5.1 Conveyors
  13.5.2 Automated Storage and Retrieval Systems (ASRS)
  13.5.3 Automatic Sorters
  13.5.4 Automated guided vehicle (AGV)
  13.5.5 Robotic Picking System
  13.5.6 Automatic Palletizer
  13.5.7 Peripheral & Supporting Components BFSI)
  13.5.8 Others
 13.6 Historic and Forecast Market Size by Country
  13.6.1 Brazil
  13.6.2 Argentina
  13.6.3 Rest of SA

Chapter 14 Investment Analysis

Chapter 15 Analyst Viewpoint and Conclusion