Logistics Visibility Software Market Size - By Functionality (Real-time Tracking, Route Optimization, Inventory Management, Analytics & Reporting) By Deployment Model, By Pricing Model, By Enterprise Size, By End User Industry & Forecast, 2024 - 2032

Logistics Visibility Software Market Size

Logistics Visibility Software Market size was valued at USD 785.9 million in 2023 and is estimated to register a CAGR of over 11.3% between 2024 and 2032. The rapid expansion of e-commerce and omni-channel retailing has significantly increased the complexity of logistics operations. Customers expect fast and accurate deliveries across multiple channels, necessitating seamless coordination among warehouses, distribution centers, and last-mile delivery services. By mid-2023, the International Trade Administration projected a 14% CAGR growth for global B2C e-commerce revenue.
 

Key segments driving this growth include consumer electronics, fashion, furniture, pharmaceuticals, media & entertainment, beverages, and food. This robust growth underscores the increasing consumer reliance on online shopping platforms. Companies within these segments are expected to leverage digital strategies to capitalize on this upward trend. Moreover, logistics visibility software is crucial for managing these intricate operations, providing real-time insights into inventory levels, order statuses, and delivery timelines. As e-commerce continues to grow, the demand for advanced logistics visibility solutions is projected to rise, driven by the need to handle high volumes of orders and meet escalating customer expectations.
 

Companies are prioritizing supply chain optimization to reduce costs, enhance efficiency, and improve customer service. Logistics visibility software is pivotal in this process, offering real-time data, analytics, and insights that streamline operations. With features such as route optimization, inventory management, and predictive analytics, businesses can make data-driven decisions to minimize waste, reduce lead times, and better align supply with demand. As competition intensifies, firms are leveraging these tools to gain a competitive edge, driving the adoption of logistics visibility software.
 

Integrating logistics visibility software with existing systems, such as Enterprise Resource Planning (ERP) or Warehouse Management Systems (WMS), presents significant complexities. Various stakeholders across the supply chain often use different software, leading to potential data silos. Achieving seamless interoperability between these systems is a major challenge. This process requires standardizing data formats and ensuring effective communication between different software platforms. Improper integration can result in incomplete or inaccurate visibility, undermining the software's benefits and causing inefficiencies in the supply chain.
 

Logistics Visibility Software Market Trends

Logistics visibility software increasingly incorporates artificial intelligence (AI) and machine learning (ML) to enhance predictive analytics, demand forecasting, and route optimization. AI-driven insights enable companies to anticipate disruptions, optimize routes dynamically, and make informed decisions. For instance, in May 2024, Grydd AI launched a comprehensive suite of AI applications, including demand planning, route prediction, cargo optimization, sustainability measures, and a collaboration hub. Utilizing machine-learning techniques and extensive shipment data, the software is designed to enhance visibility and control for users.
 

The integration of a collaboration hub highlights the industry's shift towards interconnected, data-driven logistics solutions that enhance real-time decision-making and operational efficiency. This advancement reflects the growing demand for intelligent, adaptable software that ensures transparency, sustainability, and seamless coordination in global logistics. Moreover, machine learning algorithms analyze extensive data from sources such as GPS, IoT devices, and historical shipment records, improving real-time tracking and delivery accuracy. This trend is driven by the need for greater efficiency, cost reduction, and the ability to respond swiftly to changing market conditions, making AI and ML essential components of modern logistics solutions.
 

Logistics Visibility Software Market Analysis

Based on functionality, the logistics visibility software market is divided into real-time tracking, route optimization, inventory management, analytics & reporting, and others. In 2023, the route optimization segment held approximately USD 322 million. Companies are increasingly adopting route optimization to enhance supply chain efficiency and reduce operational costs. Route optimization along with real-time data enables better decision-making, such as rerouting shipments to avoid delays or adjusting inventory levels based on actual demand.
 

In the logistics industry, companies are increasingly forming partnerships and integrations to enhance their service offerings and meet the rising demands for transparency and efficiency. For instance, in June 2023, Unipart partnered with Shippeo as its supply chain visibility partner. Unipart Logistics has integrated Shippeo's advanced data and real-time transportation visibility to enhance its Lead Logistics Partner (LLP) services. This trend reflects a broader industry shift, where real-time visibility has become essential for logistics providers aiming to deliver superior value and operational efficiency in a highly competitive market.
 

By optimizing logistics operations, companies can lower fuel consumption, minimize delays, and prevent stockouts or overstock situations. This efficiency translates into cost savings, making real-time tracking an essential tool for businesses aiming to improve their bottom line. The ongoing focus on cost reduction and efficiency in supply chain management is a critical driver for the growth of the segment.
 

Based on the deployment model, the logistics visibility software market is categorized into cloud-based, and on-premises. The cloud-based segment is expected to hold over USD 1.6 billion by 2032. This logistics visibility software delivers exceptional scalability, allowing companies to adjust their usage based on demand without substantial upfront IT infrastructure investments. This flexibility is particularly advantageous for businesses with fluctuating supply chain activities, enabling real-time resource adjustments to meet operational requirements.
 

Additionally, the cloud model supports global operations, allowing companies to manage logistics across various regions and quickly adapt to changing market conditions. As supply chains grow more complex and dynamic, the ability to scale and adapt swiftly is a crucial driver for the adoption of cloud-based solutions. Furthermore, cloud-based solutions significantly lower the total cost of ownership by eliminating the need for expensive on-premises hardware and reducing maintenance expenses. Companies can access the latest features and updates without investing in costly infrastructure or IT personnel.
 

Additionally, the subscription-based pricing model allows for predictable budgeting, making it easier for businesses, especially small and medium-sized enterprises (SMEs), to manage expenses. This cost-effectiveness is a major growth driver, enabling companies of all sizes to adopt advanced logistics visibility tools without the financial burden associated with traditional on-premises solutions. Consequently, the adoption of cloud-based solutions is expected to rise, driving further innovation and efficiency in the logistics sector.
 

North America dominated the logistics visibility software market with around 41% of the revenue share in 2023, driven by rapid digital transformation and a surge in e-commerce in the region. Companies are increasingly adopting advanced logistics technologies to meet the growing demand for fast and transparent delivery services. Additionally, the strong technological infrastructure in the region, supported by investments in AI, IoT, and cloud computing, further accelerates the adoption of visibility solutions. Moreover, regulatory requirements for supply chain transparency and a push for sustainability compel companies to implement robust logistics visibility software, optimizing operations and enhancing customer satisfaction.
 

In Europe, sustainability initiatives and stringent regulatory compliance are key drivers for the logistics visibility software market. The European Union's focus on reducing carbon emissions and improving supply chain transparency is pushing companies to adopt visibility tools that monitor and optimize logistics processes. Furthermore, the region's complex, multi-country supply chains require advanced visibility solutions to manage cross-border logistics efficiently.
 

The Asia Pacific region's market is propelled by rapid industrialization, expanding manufacturing sectors, and increasing supply chain complexity. As the region emerges as a global manufacturing hub, the need for efficient supply chain management and real-time visibility becomes crucial. The growing adoption of e-commerce and cross-border trade within the region further drives the demand for logistics visibility software. Additionally, governments in countries such as China and India are promoting digitalization in logistics, encouraging companies to invest in advanced visibility solutions to enhance supply chain efficiency and competitiveness.
 

Moreover, the UAE's focus on becoming a key logistics and transportation center in the Middle East has led to significant investments in modernizing its supply chain infrastructure. Further, the government's push for smart logistics solutions and the adoption of digital technologies in logistics operations further enhance the demand for visibility software. Additionally, the UAE's growing role in global trade, coupled with the need for efficient and transparent logistics management, drives market growth in the region.
 

In conclusion, the market is experiencing robust growth across various regions, driven by digital transformation, regulatory requirements, and the need for efficient supply chain management. As companies continue to invest in advanced technologies, the demand for logistics visibility solutions is expected to rise, optimizing operations and enhancing overall customer satisfaction.
 

Logistics Visibility Software Market Share

Project44 and Descartes Systems Group, Inc. are the prominent players in the market holding approximately 15% of the market share. Project44 delivers comprehensive end-to-end supply chain visibility, enabling real-time tracking and monitoring of shipments across all transportation modes. Their platform integrates with various carriers and logistics providers, offering a unified view of the entire supply chain from origin to destination.
 

The platform's automation features streamline operational processes such as order creation, tracking updates, and exception management. Additionally, it integrates seamlessly with existing enterprise resource planning (ERP) systems and transportation management systems (TMS), ensuring smooth data flow and enhanced decision-making.
 

Descartes offers a global visibility platform that provides real-time tracking and monitoring of shipments across multiple transportation modes. By integrating data from a wide network of carriers and logistics providers, the platform ensures comprehensive visibility throughout the supply chain. The Supply Chain Control Tower solution centralizes visibility and control over supply chain operations, featuring tools for performance monitoring, exception management, and logistics process optimization through a unified interface.
 

Logistics Visibility Software Market Companies

Major players operating in the logistics visibility software industry are:

• Project44
• Blue Yonder
• Descartes Systems Group, Inc.
• Manhattan Associates, Inc.
• Infor
• IBM Corporation
• e2open

Logistics Visibility Software Industry News

• In June 2024, Infor Nexus introduced a new product to assist companies in mapping their multi-tier supply chains and ensuring compliance with regulations such as the German Supply Chain Due Diligence Act, the Uyghur Forced Labor Prevention Act (UFLPA), and the French AGEC Law. This application, named "Map and Trace," was co-developed with industry leader Burton Snowboards. It enables companies to connect the dots between suppliers, their suppliers, and the transactional records that support the chain of custody.
   
• In September 2023, Yamaha Corporation deployed project44’s Ocean Visibility and Port Intel software solutions to enhance transportation visibility between its factories and distributors. These software solutions provide real-time updates on shipment statuses, and accurate estimated times of arrival, and facilitate timely decision-making.
   

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

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Market, By Functionality

• Real-time tracking
• Route optimization
• Inventory management
• Analytics and reporting
• Others

Market, By Deployment Model

• Cloud-based
• On-premises

Market, By Pricing Model

• Subscription-based
• Usage-based
• Perpetual licensing

Market, By Enterprise Size

• SMEs
• Large enterprises

Market, By End User Industry

• Retail
• Manufacturing
• Food & Beverages
• Automotive
• Healthcare
• Transportation & logistics
• Others

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

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • 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
  • Saudi Arabia
  • UAE
  • Rest of MEA