Secure Logistics Market Size

Secure Logistics Market Size

Secure Logistics Market size was valued at USD 85.7 billion in 2023 and is estimated to register a CAGR of over 8% between 2024 and 2032. The market will demonstrate healthy growth driven by increasing globalization and supply chain complexity. As businesses expand globally, supply chains become more complex, involving multiple parties, regions, and transportation modes. This complexity increases the risk of theft, fraud, and other security breaches. Secure logistics services become crucial to safeguard valuable goods during transportation and storage.

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Against this backdrop, in December 2022, BVC Logistics announced the successful dispatch of the initial export facilitated by the India-Australia Economic Cooperation and Trade Agreement (ECTA). The shipment, executed promptly within hours of ECTA taking effect on December 29, 2022, was carried out on behalf of their client, Venus Jewels. This accomplishment follows BVC's earlier success in overseeing the inaugural consignment under the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE.

The ECTA is designed to substantially boost bilateral trade, foster new employment opportunities, and enhance the well-being of both Indian and Australian citizens. Furthermore, the trade pact is anticipated to propel total bilateral trade beyond USD 45 billion within the next five years. Notably, the Gems and Jewellery industry is poised to benefit from zero duties on both imports and exports as stipulated by the agreement.

Continuous advancements in technology, including the adoption of IoT, GPS tracking, real-time monitoring, and data analytics contribute to the secure logistics market growth. These technologies enhance visibility and control over the supply chain, allowing companies to respond quickly to security threats and minimize losses.

For instance, in January 2024, Nigerian startup Fez Delivery, specializing in logistics, unveiled Fez Safe Lockers, an automated locker system set to revolutionize the last-mile delivery sector in Nigeria. Founded in 2018, Fez Delivery has created a last-mile delivery platform that serves as a link between businesses and markets. Having successfully obtained seed funding in the previous year and rolled out a fleet of e-bikes, the company has now introduced a network of automated lockers. These lockers offer a secure, efficient, and economical solution for sending and receiving packages, delivering advantages to both businesses and individuals.

However, implementing advanced security measures and technologies can be expensive for logistics companies. The investment in state-of-the-art surveillance systems, secure storage facilities, and advanced tracking technologies contributes to higher operational costs. Some businesses, especially smaller ones or those operating in cost-sensitive industries, might be hesitant to invest in comprehensive secure logistics solutions, impacting the widespread adoption of such services.