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Digital logistics market set for 8.1 percent compound annual growth through 2022

Advanced technologies and communication tools improve supply chain efficiency, a new report says.

Supply Chain Quarterly Staff
By Supply Chain Quarterly StaffMar 23, 2017
Supply Chain Quarterly Staff
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The market for global digital logistics is expected to see "massive demand" in the next five years, rising from revenues of $10.26 billion in 2016 to $16.36 billion by the end of 2022, a study released Wednesday says.

Defined as operations that use advanced technologies and communication, digital logistics can increase supply chain efficiency by allowing users to reduce operating costs and improve supply chain integration, according to the Dallas-based market research firm Orbis Research.

Practitioners create digital logistics systems by deploying technologies like radio frequency identification (RFID) tags, information integration, and electronic data interchange, allowing them to optimize costs, reduce inventories, and provide flexible operations.

Attracted by those benefits, customers are expected to drive steep demand for digital logistics—also known as smart logistics—at a pace of 8.1 percent compound annual growth rate (CAGR) during the forecast period of 2017 - 2022, Orbis said in its report, "Global Digital Logistics Market By Type of System, Services, Industry, Geography, Trends Forecast 2017-2022."

Vendors that are positioned to meet that hot demand include technology providers such as IBM Corp., Advantech Corp., Oracle Corp., DigiLogistics Technology Ltd., Hexaware Technologies Ltd., Samsung Electronics Co, Tech Mahindra Ltd., JDA Software Group Inc., UTi Worldwide Inc., and SAP AG, the report said.

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