Logistics Services Software Market Size to grow by USD 3.76 billion between 2024-2028
According to a research report “ Logistics Services Software Market” by End-user (Retail and e-commerce, Manufacturing, Healthcare, Automotive, Others) Deployment (On-premises, Cloud-based) Geography (North America, Europe, APAC, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 3.76 billion, at a CAGR of almost 9.64% during the forecast period. Third-party logistics (3PL) refers to the business practice where companies outsource their logistics functions, including warehousing, transportation, and freight forwarding, to specialized service providers known as 3PL providers. These providers offer value-added services (VAS) such as inventory management, cross-docking, break-bulk, kitting and assembling, door-to-door delivery, and product packaging. By leveraging advanced supply chain management techniques, 3PL providers deliver operational and strategic value to shippers worldwide, ensuring efficient and effective logistical operations.
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By End-user, the Retail and e-commerce segment is projected to dominate the market size in 2024
On-premises logistics services software solutions are the preferred choice for businesses seeking enhanced system security and control over their IT infrastructure. With this deployment model, organizations manage both hardware and software on their premises, ensuring they have full ownership and control over system performance, data, and security. Notable vendors, including SAP, Oracle, and Infor, provide on-premises solutions for warehouse management and transportation management. This model is particularly beneficial for large organizations and global e-commerce providers, enabling them to maintain optimal performance, security, and data privacy for their logistics operations.
By Deployment, On-premises segment is expected to hold the largest market size for the year 2024
In the global logistics services software market, retail and e-commerce businesses represent a significant end-user demographic. These enterprises rely on logistics services software to effectively manage and execute customer orders. The software equips them with essential features, such as order processing, inventory management, warehouse integration, and shipment tracking, enhancing the overall efficiency of the order fulfillment process. Retailers and e-commerce companies encounter challenges in maintaining optimal inventory levels due to high product volumes. Logistics service software addresses this challenge by offering inventory management capabilities, including demand forecasting, stock tracking, and automated replenishment, ensuring accurate and timely product delivery to customers.
North America is forecasted to hold the largest market size by region in 2024
The logistics services software market is experiencing significant growth, driven by the expanding usage of Transportation Management Systems (TMS) and Warehouse Management Systems (WMS). Key buyers in this market consist of logistics and warehouse companies. In 2023, North America held the largest market share due to the region's prominent e-commerce industry and substantial logistics sector investments. Notable logistics companies in North America include ABCO Transportation, Air Cargo Inc., American Letter Mail Co., United Parcel Service, US Logistics Inc., and UShip Inc. Leading warehouse companies in the region are Caruso Logistics Inc. and others.
The Logistics Services Software Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Logistics Services Software Market is witnessing significant growth due to the increasing demand for digital solutions in various industries, including Food and Groceries and Chemistry. WMS (Warehouse Management Systems) software solutions and transport management systems are the two major segments of this market. A unified software solution that offers both WMS and transport management capabilities is becoming increasingly popular. Cloud-based logistics software is gaining traction due to its flexibility and accessibility. This technology enables real-time inventory management, delivery accuracy, and doorstep deliveries in the e-commerce sector. AI technology is being integrated into logistics software to optimize routing, scheduling information, and transportation services. Businesses in the logistics industry are adopting digital technology to streamline their operations and improve efficiency. Logistics services software offers features such as tracking, shipping, mailing, and time and place management for packages and letters. The supply chain benefits from this technology by reducing transportation costs, improving warehouse stock management, and enhancing overall supply chain visibility. Logistics software provides mapping and routing capabilities to help transportation companies optimize their delivery routes and reduce fuel consumption. In summary, the logistics services software market is a dynamic and evolving space that is transforming the way businesses manage their supply chains and deliver products to customers.
Market Research Overview
The logistics services software market is experiencing significant growth due to the increasing demand for technological solutions in various industry verticals. TMS Software (Transportation Management Systems) and WMS Software (Warehouse Management Systems) are two key types of logistics software that are gaining popularity in sectors like Retailing, Food and Groceries, Chemistry, Oil and Gas, Engineering and Manufacturing, Telecommunication and IT, Healthcare, Government and Defense, and Freight Transportation. Unified software solutions, such as cloud-based TMS and WMS, are becoming the norm for managing the complexities of logistics operations. These systems offer real-time visibility into supply chain data, enabling businesses to optimize their operations, improve delivery accuracy, and enhance brand reputation. The retail sector and the e-commerce industry are major adopters of logistics software, with a focus on doorstep deliveries and inventory management. The transportation sector is also investing heavily in digital solutions for fleet management, routing, and scheduling information. Innovative technologies like AI, Blockchain, and IoT are transforming the logistics industry, with applications in risk management, asset tracking, and cargo handling. Logistics managers are leveraging these technologies to mitigate risks, optimize operations, and enhance the overall efficiency of their logistics departments. According to a Forbes Insights poll, 85% of logistics managers believe that digital solutions are essential for business growth, with cloud-based software solutions being the preferred choice for their IT infrastructure. The logistics software market is expected to continue growing, with a focus on data-driven solutions and the integration of diverse industries like retail, manufacturing, and transportation. However, challenges like red tape, traffic congestion, and the need for packaging and cargo handling remain, and logistics software must continue to evolve to address these issues. The future of logistics services software lies in the integration of advanced technologies and the ability to provide real-time, actionable insights to logistics managers.
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Jesse Maida
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Email: media@technavio.com
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