How Is Adoption of IoT in Logistics a Reflection of Increasing Competition?
For any company to be successful, merely having a state-of-the-art production line and effective marketing and sales strategies is not enough; the logistics system has to be efficient too. Logistics is one of the most important parts of the supply chain, because it is what actually enables raw material, individual components, and finished products to reach their destination on time. With the competition increasing rapidly across all industries, companies are innovating their strategies to cut costs and drive revenue.
As a result, the internet of things (IoT) in logistics market is set to reach $100,984.5 million by 2030, from $34,504.8 million in 2019, at a 13.2% CAGR between 2020 and 2030, says industry research firm P&S Intelligence. IoT is an ingenious technology that allows devices to connect to the internet and with each other and share data wirelessly, without the need for human intervention. The applications of IoT in the logistics industry are quite vast, ranging from efficient inventory and warehousing management and internal business processes automation to quick delivery andproduct safety and quality maintenance.
The categories under the application segment of the IoT in logistics market are inventory tracking and warehousing, location management, predictive analytics, fleet management, self-driving vehicles, blockchain for supply chain management, and others. Among these, the demand for IoT solutions has been the highest for fleet management applications, on account of the need to manage maintenance and fuel costs more efficiently, have real-time visibility into the fleet, enhance driver safety, track driver frauds, and increase the lifespan and reliability of vehicles.
North America currently holds the largest share in the IoT in logistics market, due to the fast pace of digital transformation in the region. In addition, the continent has witnessed the entry of numerous startups in the industry, thanks to the increasing penetration of the internet. On a similar note, the booming e-commerce industry is offering opportunities to logistics companies in the continent, who are deploying IoT solutions to make their operations more efficient and cost-effective.
In future, the fastest surge in the demand for IoT-driven logistics solutions is expected in Asia-Pacific (APAC). The increasing rate of urbanization and changing preference of consumers are leading to the rising demand for such solutions in APAC. Moreover, the regional logistics industry has witnessed the advent of a number of next-generation technologies, including RFID, AI, near-field communication (NFC), radio protocols, robotics, low-energy wireless, low-energy Bluetooth,and Wi-Fi-direct, which is further supporting the incorporation of IoT in the logistics sector.
Therefore, with the competition across industries becoming fiercer, companies are likely to adopt IoT in their logistics operations rapidly, with the view to gaining an edge over their competitors by assuring customers of fast delivery and product quality.