Logistics Software Market Size, Share, and Industry Analysis, By Solution (Transportation Management System, Warehouse Management System, Supply Chain Planning, Fleet Management System, Freight Management System, and Others), By Deployment (On-premises and Cloud), By End-user (Oil and Gas, Automotive, Healthcare, IT and Telecom, Retail and E-commerce, Manufacturing, Government, and Others), and Regional Forecast, 2024-2032

Logistics software is a specific business solution that manages and optimizes several stages of the production process. This includes inventory management, transportation of raw materials, shipping of finished products, and warehouse operations. Logistics software is an on-premise, cloud-based, or unified software that enables interaction between warehouse and transportation management systems. The key objective of logistics software is to reduce cycle time and enhance profit margins, providing businesses with a competitive edge in the market.

By integrating logistics software into existing procurement or supply chain management logistics software, organizations can make informed decisions regarding inventory management, transportation routing, and delivery schedules.

The global logistics software market is being driven by the growth of the retail and e-commerce industries, ongoing technological advancements leading to the introduction of innovative solutions in the market, and the strengthening of bilateral trade relations among various countries globally.

• According to industry experts, in 2022, approximately 76% of enterprises are adopting the digital revolution in supply chain management. They are seeking enhanced visibility and agility to navigate the dynamic business landscape. Logistics software is identified as one of the tools capable of unleashing the untapped potential of entire supply chain operations.

The COVID-19 pandemic significantly affected the global logistics software market. The demand for logistics software increased due to the widespread popularity of e-commerce in 2021. The onset of the COVID-19 pandemic drove this increased demand for logistics technology. Consequently, the logistics sector is continuously evolving to meet the rising demands of various industries dependent on it. In the upcoming years, the industry is expected to adopt cloud, mobile, and emerging technologies to revolutionize logistics operations.

Impact of Generative AI on the Logistics Software Market

Generative AI is ready to transform the logistics industry in various ways. It can improve demand forecasting, optimize routes, manage inventory, and more, making processes cost-effective and efficient. This ensures smooth and timely deliveries to customers around the world. According to industry studies, 40% of organizations in the supply chain have already started using Gen AI, with a primary focus on knowledge management apps.

Moreover, generative AI, in addition to its predictive capabilities, demonstrates creativity by producing original content, forecasts, and data-driven strategies. In the domain of supply chain management, it excels in simulating intricate logistics networks and predicting outcomes for various strategies in diverse conditions.

• In September 2023, Uber Freight announced its product roadmap, which includes the use of artificial intelligence-powered software to improve the global transportation of goods. This announcement comes after Uber Freight acquired Transplace, a transportation management company, in 2021. This acquisition has allowed Uber Freight to expand its offerings to provide comprehensive logistics services and applications.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Impact of Generative AI on the Global Logistics Software Market


• Consolidated SWOT Analysis of Key Players

Analysis by End-user

By end-user, the market is divided into oil and gas, automotive, healthcare, IT and telecom, retail and e-commerce, manufacturing, government, and others.

In 2023, retail and e-commerce gained significant popularity. The segmental growth is due to the increasing preference for online shopping among consumers, which has driven the demand for supply chain logistics management software in the market. According to the United Nations Conference on Trade and Development (UNCTAD) report, the significant increase in e-commerce during the movement restrictions brought by the pandemic led to the online retail sales’ share among total retail sales rising from 16% to 19% in 2020.

For instance, in July 2022, IBS Software, a SaaS solutions provider for the travel and logistics industry, entered into a strategic partnership with digital learning and human capital management software company Mintra to improve operational safety and accelerate logistics efficiency across the energy and renewables industries. The partnership allowed energy and renewable companies to integrate safety and logistics excellence by providing end-to-end supply chain visibility and supporting ESG performance.

Regional Analysis

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The global logistics software market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. As of 2023, a significant share of the market was held by North America due to rising investments in technologies such as artificial intelligence (AI) and the Internet of Things (IoT), particularly in lucrative markets, such as the U.S. and Canada.

The logistics software market in North America is mainly fuelled by the region's rapid urbanization and the digital transformation of the transportation industry. The growth of IT infrastructure and the increasing demand for cloud computing also play a role in driving the logistics software market. Furthermore, the presence of market leaders offering advanced logistics software in the region further boosts the growth of the regional market.

• In August 2023, EmergeTech, Inc., a provider of freight procurement solutions, entered into a partnership agreement with e2open, the connected supply chain SaaS platform with the largest multi-enterprise network. This partnership combines the expertise and capabilities of both companies to transform how carriers and shippers d optimize their supply chain operations and make strategic decisions.

The Asia Pacific region is expected to experience the highest growth rate in the upcoming forecast period. This is primarily due to the increasing number of smart city projects across multiple nations such as South Korea, China, India, and Singapore. As urbanization continues to grow, so does the demand for efficient and advanced solutions in the logistics industry.

The distribution of the global logistics software market by region of origin is as follows:

• North America – 33%


• South America – 8%


• Europe – 27%


• Middle East & Africa – 11%


• Asia Pacific – 21%

Key Players Covered

The key players in this market include SAP SE, Oracle Corporation, JDA Software Group, Manhattan Associates, Descartes Systems Group, Samsung, IBM Corporation, Tech Mahindra, SBT Logistics, and NetSuite Inc.

Key Industry Developments

• June 2024: HERE Technologies launched its software package for fleet optimization. This package is designed to improve the scalability and efficiency of fleet management operations. It includes key components and features such as HERE Tour Planning, HERE Routing, HERE Geocoding and Search, and HERE Map Rendering. These tools aim to address the challenge of complex routing operations for commercial fleets.


• March 2024: Walmart Commerce Technologies revealed a new AI-powered logistics product called Route Optimization. This product, which has been previously used internally by Walmart, is now available to other businesses as a Software as a Service (SaaS) solution. The goal is to help enterprises enhance their supply chain efficiency.