Cloud Logistics Market Size - By Component, By Deployment Model (Private, Public, Hybrid), By Enterprise Size (Large Enterprises, SME), By Operating System (Native, Web-Based), By Service, By End User Industry & Forecast, 2024 – 2032

Cloud Logistics Market Size

Cloud Logistics Market size was valued at USD 21.2 billion in 2023 and is expected to grow at over 12% CAGR between 2024 and 2032, owing to the rapid growth of the e-commerce sector. According to the International Trade Administration, worldwide e-commerce sales for B2B businesses are rising year on year and the global B2B e-commerce market is expected to cross USD 30 trillion by 2026.
 

The growth in online shopping worldwide has increased the demand for businesses to adopt efficient logistics solutions capable of managing high order volumes, inventory control, and ensuring timely deliveries. These platforms address these needs by offering scalability, flexibility, and real-time visibility, which facilitates seamless operations and enhances customer satisfaction.
 

The increasing demand for real-time data in modern supply chains to enhance decision-making and boost operational efficiency is expected to drive cloud logistics market growth. Cloud logistics solutions provide advanced tracking and visibility features that enable companies to monitor shipments, inventory, and delivery statuses in real-time. This real-time visibility helps reduce delays, optimize routes, and enhance overall customer satisfaction.
 

Moreover, as businesses aim to improve service and operational transparency, the need for cloud-based logistics solutions with these capabilities are growing among its end-users. Furthermore, cloud logistics platforms offer a cost-effective alternative to traditional on-premises solutions by eliminating the need for substantial capital investments in hardware and software. They also provide scalability, allowing businesses to easily adjust their resources and capabilities according to demand fluctuations.
 

Storage of large volumes of sensitive logistics and supply chain data on cloud platforms can pose significant risks, including data breaches and unauthorized access. Vulnerabilities such as cyberattacks, inadequate encryption, and lapses in regulatory compliance can result in data breaches and financial losses.
 

To mitigate these risks, it is important to implement robust security measures, such as strong encryption, effective access controls, regular backups, and strict adherence to data protection regulations. Inadequate attention to these security concerns can expose organizations to substantial risks and compromise the reliability of cloud logistics solutions, thus restricting the adoption of these solutions in the market.

Cloud Logistics Market Trends

The cloud logistics industry is experiencing robust growth, driven by several key trends. A significant factor is the increasing adoption of advanced technologies such as AI and IoT. These technologies enhance real-time tracking, predictive analytics, and supply chain visibility, enabling more efficient logistics operations. The integration of 5G connectivity further supports this by improving data transmission speeds, thus facilitating faster and more reliable logistics processes.
 

Moreover, scalability and flexibility have become essential features of cloud logistics solutions, allowing businesses to quickly adapt to fluctuating demand, particularly in the rapidly growing e-commerce sector. Further, there is a growing emphasis on sustainability, with companies leveraging cloud logistics to optimize routes, reduce fuel consumption, and lower carbon footprints. The service providers are launching new logistics capabilities to help customers in enhancing logistics operations.
 

For instance, in February 2024, Oracle unveiled new logistics capabilities within Oracle fusion supply chain & manufacturing (SCM). The updates to Oracle transportation management and Oracle global trade management, part of Oracle cloud SCM help customers in enhancing logistics operations by improved decision-making, low costs, increased visibility, and automating regulatory compliance.
 

Cloud Logistics Market Analysis

Based on enterprise size, the market is segmented into large enterprises and SME. The large enterprises held over 65% of the market share in 2023 and are expected to cross USD 35 billion by 2032. Large enterprises often deal with complex and global supply chains that require efficient management. Cloud logistics solutions offer advanced tools for optimizing supply chain processes, automating routine tasks, and improving overall operational efficiency.
 

Furthermore, features such as real-time tracking, predictive analytics, and automated workflows help large enterprises streamline operations and reduce inefficiencies. The ability of cloud logistics to enhance operational efficiency drives large enterprises to adopt cloud logistics solutions to manage their extensive and intricate logistics networks more effectively.
 

Based on end-user industry, the cloud logistics market is divided into retail & e-commerce, manufacturing, healthcare, automotive, aerospace & defense, food & beverage, chemical, and others. The retail & e-commerce industry held around 24% of the market share in 2023. In the retail and e-commerce sector, cloud logistics solutions are important for handling high-volume and fast-paced supply chains, with a focus on swift order fulfilment and customer satisfaction.
 

These solutions offer real-time tracking and inventory management, allowing retailers to quickly adapt to shifting consumer demands and manage stock across various channels. Cloud logistics platforms provide the scalability needed to handle peak periods, such as holiday seasons and promotional events, and use advanced analytics to enhance routes and shorten delivery times. Moreover, integrating cloud-based logistics with e-commerce platforms enables smooth omnichannel operations and improves the overall customer experience by ensuring accurate and timely deliveries.
 

North America holds around 35% of the cloud logistics market share in 2023. The market is driven by the region's advanced technological infrastructure and high adoption rates of digital solutions across industries. Further, North America region is a leader in technological innovation, with a strong focus on digital transformation across industries. These solutions use cutting-edge technologies such as AI, machine learning, and IoT to enhance supply chain operations, improve efficiency, and reduce costs. The region's emphasis on technological progress drives the adoption of cloud logistics solutions that offer advanced features and capabilities for enhanced supply chain management.
 

The rising consumers expectations in U.S. for fast and reliable delivery services, driven by the rapid growth of online shopping in the country is expected to drive the growth of the cloud logistics market in the country. Cloud logistics solutions provide the tools to meet these high expectations through efficient order fulfillment, real-time tracking, and accurate inventory management.
 

Moreover, European businesses are increasingly focused on sustainability and reducing their environmental footprint. Cloud logistics solutions support these initiatives by optimizing routes, reducing emissions, and improving resource management through data-driven insights. The emphasis on sustainability in Europe supports the adoption of cloud logistics solutions that contribute to more efficient supply chain operations.
 

China's rapid urbanization and robust economic growth has significantly increased demand for efficient logistics solutions to support its expanding consumer base and infrastructure development. Cloud logistics platforms help manage high volumes of goods and streamline operations in the Chinese market.
 

Cloud Logistics Market Share

IBM Corporation and Oracle Corporation hold a significant market share of over 10% in the cloud logistics industry in 2023. IBM Corporation integrates its AI and data analytics capabilities into its cloud logistics solutions through platforms like IBM Watson. These technologies enhance predictive analytics, optimize supply chain processes, and provide actionable insights for improving operational efficiency.
 

Oracle Corporation focuses on developing tailored cloud logistics solutions for specific industries, such as retail, manufacturing, and healthcare. These industry-specific solutions address the unique requirements and challenges faced by different sectors, providing customized features and functionalities.
 

Cloud Logistics Market Companies

Major companies operating in the cloud logistics industry are:

• C. H. Robinson
• Descartes Systems Group
• Detrack Systems
• IBM Corporation
• Magaya Corporation
• Microsoft Corporation
• Oracle Corporation
• SAP SE
• Trimble Inc.
• MetricStream, Inc.
   

Cloud Logistics Industry News

• In June 2024, CMA CGM, a logistics solution provider partnered with Google to speed up the integration of AI across CMA CGM’s operations across the globe. CMA CGM uses Google’s AI solutions to help employee’s decision-making. Additionally, the collaboration aims to transform shipping by enhancing efficiency, responsiveness, and adaptability to market disruptions.
   
• In December 2023, Fujitsu launched a new cloud-based logistics data standardization and visualization service for shippers, logistics companies, and vendors across the supply chain. The service will offer new tools to customers to achieve sustainability in their operations and address various challenges, including looming shortages of truck drivers, and the growing need to reduce the carbon footprint of transportation.
   

The cloud logistics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Component

• Software
• Services

Market, By Deployment Model

• Private
• Public
• Hybrid

Market, By Enterprise Size

• Large Enterprises
  • Private
  • Public
  • Hybrid
• SME
  • Private
  • Public
  • Hybrid

Market, By Operating System

• Native
• Web-based

Market, By Service

• Transportation management
• Warehouse management
• Order management
• Inventory management
• Supply chain management
• Shipping & tracking

Market, By End User Industry

• Retail & E-commerce
• Manufacturing
• Healthcare
• Automotive
• Aerospace & defense
• Food & Beverage
• Chemical
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA