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Cloud Logistics Market Totaled USD 33.3 Billion with 12.7% YoY Growth

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Global Logistics, Global Trade Daily

Cloud Logistics Market Totaled USD 33.3 Billion with 12.7% YoY Growth

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Report Overview

The Cloud Logistics market is experiencing rapid growth, with projections suggesting a strong upward trajectory in the coming years. As businesses increasingly adopt cloud-based solutions, the market size is expected to expand significantly.  

According to the findings of Market.us, The Global Cloud Logistics Market is forecasted to reach a valuation of USD 33.3 billion by 2033, growing from USD 20.3 billion in 2023. This expansion is set to progress at a 12.7% CAGR over the coming years, fueled by rising demand for streamlined logistics solutions. North America holds a strong position in this market, capturing a 34.0% share in 2023, with revenues amounting to USD 6.9 billion.

The global B2B e-commerce market is witnessing rapid growth, with annual sales rising steadily. According to the International Trade Administration, worldwide e-commerce sales for B2B businesses are climbing each year, driven by increasing digitalization across industries. The market is expected to reach a staggering USD 30 trillion by 2026, reflecting strong demand for online platforms that streamline business transactions.

Read Also: Digital Logistics Market : US$ 182.9 Billion Projection by 2033

The growth trajectory is backed by an increasing preference for cloud-based solutions in logistics, aimed at enhancing operational efficiency and transparency. Additionally, technological advancements in cloud logistics-like real-time tracking and automated workflows-continue to attract industry players. These factors collectively underscore the market’s robust growth potential across regions and industries in the forecast period.

The demand for cloud logistics solutions is fueled by several key factors. There is a pronounced shift towards digitalization within supply chains, with companies leveraging cloud technology to gain real-time visibility and enhance decision-making processes. This shift is particularly notable in the retail and e-commerce sectors, where the need for efficient, scalable logistics solutions is critical to manage the high-volume and fast-paced supply chain requirements.

Technological innovation remains a cornerstone of growth in the cloud logistics market. The incorporation of AI and IoT not only enhances real-time tracking and inventory management but also drives significant advancements in predictive analytics. For instance, cloud logistics platforms increasingly feature capabilities that support dynamic route optimization and streamlined warehouse operations, thereby reducing costs and improving service delivery​.

Suggested Reading @ Artificial Intelligence Market is estimated to reach USD 3,527.8 bn by 2033, Riding on a Strong 33.3% CAGR throughout the forecast period.

The key takeaways revealed that, In 2023, the Public Cloud segment dominated the deployment mode category, capturing more than 33.5% of the market share. This is driven by the scalability and cost-effectiveness of public cloud services, which appeal to a broad range of logistics companies. Additionally, the Web-Based operating system segment held a commanding position with a 56.1% share, showcasing the demand for flexible, web-accessible logistics platforms that enable real-time management and collaboration.

Large enterprises also played a significant role, with 64.9% of the market in 2023, as these organizations increasingly seek advanced logistics solutions to manage their complex global supply chains. In terms of industry verticals, the Retail and E-Commerce segment led the way, holding over 21.8% of the market, driven by the sector’s need for faster, more efficient fulfillment processes to meet consumer expectations.

Opportunities within the cloud logistics market are vast, especially with the ongoing integration of advanced technologies like AI, IoT, and big data analytics. These technologies are transforming the logistics landscape by enabling predictive maintenance, enhancing supply chain visibility, and improving overall operational efficiency. Moreover, the adoption of multi-cloud and hybrid strategies is becoming more prevalent, offering businesses greater flexibility and data security, thus broadening the market’s potential further​.

For instance, In February 2024, Oracle made a significant move by introducing new logistics capabilities within its Oracle Fusion Supply Chain & Manufacturing (SCM) platform. These updates, specifically to Oracle Transportation Management and Oracle Global Trade Management, are designed to elevate logistics operations for businesses. With these enhancements, companies can expect better decision-making, lower operational costs, and increased visibility across their supply chains.

Emerging Trends in Cloud Logistics

  • Generative AI Integration: Generative AI is significantly enhancing logistics operations by automating complex tasks such as route planning and predictive maintenance, ensuring efficiency in resource allocation and risk management​.
  • Advanced Analytics and AI: Predictive analytics and AI are revolutionizing logistics by optimizing route efficiency and fleet management, leading to reduced costs and enhanced service delivery​.
  • IoT and Real-time Tracking: The Internet of Things (IoT) is pivotal in enabling real-time tracking of goods, enhancing transparency, and improving the management of inventory through smart warehousing techniques​.
  • Sustainability Initiatives: Eco-friendly logistics practices are becoming crucial, with companies adopting greener methods such as optimizing route planning to minimize carbon emissions and introducing sustainable packaging solutions​.
  • Augmented Reality (AR) Applications: AR is transforming logistics by providing real-time data to workers through wearable devices, improving accuracy and efficiency in inventory management​.

Top Use Cases for Cloud Logistics

  • Real-time Data Access and Collaboration: Cloud-based systems provide a platform for real-time visibility and collaboration across the supply chain, allowing businesses to make swift decisions based on current data​.
  • Last-Mile Delivery Optimization: Innovative solutions like drones and micro-fulfillment centers are being used to enhance the efficiency and speed of last-mile delivery, addressing one of the most costly segments of the shipping process​.
  • On-Demand Manufacturing with 3D Printing: 3D printing is enabling localized, on-demand production which helps in reducing transportation needs and streamlining supply chains​.
  • Enhanced Fleet Management: Through cloud-based technologies, companies can track and manage fleet operations in real-time, optimizing routes and reducing overhead costs​.
  • Automated and Efficient Warehousing: Robotics and automation in warehousing are not only improving space utilization but also increasing productivity by automating routine tasks such as packing and sorting​.

Major Challenges in Cloud Logistics for 2023

  • Cybersecurity Threats: As logistics operations become increasingly digitized, they face heightened cybersecurity risks. These include sophisticated cyberattacks such as ransomware and phishing, making it crucial for companies to strengthen their security measures to safeguard data and systems​.
  • Economic Uncertainty: Fluctuations in the global economy, influenced by factors like inflation and interest rates, can impact consumer demand and disrupt logistics planning. Companies need to adapt by building more resilient and flexible supply chains​.
  • Sustainability Demands: The logistics sector is under pressure to reduce its environmental impact. This includes adopting green practices such as electrified fleets and optimizing routes to decrease emissions. There’s a growing need for investments that align with sustainability while maintaining competitiveness​.
  • Technological Lag: Despite the available advanced technologies, many logistics operations still rely on outdated methods, which hinders efficiency. Adopting modern technologies like AI and real-time data analytics is necessary to stay competitive and manage complex supply chains more effectively.
  • Skilled Worker Shortage: The logistics sector continues to face a shortage of skilled workers, exacerbated by an aging workforce and shifting job expectations among younger generations. Investing in workforce training and utilizing technology to attract talent is crucial​.

Top Attractive Opportunities in Cloud Logistics for 2023

  • Digital Transformation: There’s significant potential for growth through digital transformation in logistics, including the adoption of cloud-based platforms and tools that enhance visibility, improve shipment tracking, and optimize supply chain operations​.
  • Advanced Analytics and AI: Leveraging advanced analytics and artificial intelligence can provide logistics companies with insights to optimize routes, predict maintenance, and manage inventories more efficiently, thereby reducing costs and improving service delivery​.
  • E-commerce Growth: The expansion of e-commerce continues to create opportunities for logistics providers to innovate in last-mile delivery solutions, including automated delivery vehicles and drones. This is particularly pertinent as consumer expectations for speedy deliveries grow​.
  • Collaborative Ecosystems: Building partnerships and collaborative ecosystems can help logistics companies enhance their service offerings and expand their market reach. This includes integrating with global platforms to gain real-time data and insights​.
  • Sustainability Innovations: As sustainability becomes a more significant competitive differentiator, there are opportunities for logistics companies to lead in green logistics. This involves investing in sustainable technologies and practices, such as using alternative fuels and improving packaging efficiency​.

Recent Developments

  • In June 2024, CMA CGM, a global logistics solution leader, partnered with Google to accelerate AI integration across its worldwide operations. Leveraging Google’s AI technology, CMA CGM focuses on enhancing employee decision-making for improved responsiveness and adaptability in an industry often challenged by shifting market demands. This collaboration aims to drive a more efficient and adaptable shipping environment, addressing disruptions swiftly and ensuring that CMA CGM remains competitive and forward-thinking in its logistics operations.
  • In December 2023, Fujitsu introduced an innovative cloud-based logistics service designed to support shippers, logistics companies, and suppliers throughout the supply chain. The service standardizes and visualizes data, giving users powerful tools to address key industry issues, including the shortage of truck drivers and the urgent need to lower the carbon footprint in transportation. By prioritizing sustainability, Fujitsu’s solution empowers companies to meet modern logistics challenges and aligns with global goals for greener operations.

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Conclusion

The Cloud Logistics market is poised for significant expansion, driven by technological advancements and increasing digital transformation in supply chain management. As companies continue to integrate cloud-based solutions, the demand for enhanced real-time visibility, scalability, and operational efficiency grows, underpinning the market’s robust growth trajectory. While the adoption of advanced technologies like AI, IoT, and big data analytics offers considerable opportunities for innovation and efficiency improvements, challenges such as data security and integration complexities remain.

Addressing these challenges effectively will be crucial for sustaining growth and harnessing the full potential of cloud logistics. The strategic adoption of these technologies not only promises enhanced operational capabilities for businesses but also opens up new avenues for service improvement and competitive advantage in a rapidly evolving market landscape.

About The Author

Mr. Yogesh Shinde is ICT Manager at Market.us. He oversees a comprehensive portfolio of ICT products and solutions, including network infrastructure, cybersecurity tools, cloud services, data center solutions, telecommunications equipment, software-defined networking (SDN), and Internet of Things (IoT) devices. 

With a focus on driving digital transformation and enhancing connectivity, Yogesh ensures that the company’s offerings meet the evolving needs of both industrial and commercial sectors. His expertise in information and communication technology is instrumental in delivering innovative and reliable solutions to clients worldwide.

Archives, Global Trade Daily, International Trade

The World Moving Forward

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At the beginning of 2020, the world was upended with changes to its economics and social life by the arrival of COVID-19 – a virus that spread to countries like wild-fire that most were unprepared for. Fear and confusion led the way. Just like the early 2000s during the early stages of e-commerce, many of us stood still and watched certain industries use e-commerce to generate business and eat away at the expense of more traditional companies.

COVID-19 drastically changed the directions of normal activities. Social meetings, shopping habits, and business settings have now been reduced to online platforms. People are now forced to understand the role that internet technology will play in daily life.  Larger numbers of people working and shopping from home than ever before. There is so much difference in activities such as buying hot food or buying canned food from an online store. As a result, two key industries are expected to be extremely important aspects in supporting future daily life for many years to come: express last-mile delivery and logistics supply chain.

Express last-mile delivery has really been an important industry that we all have come to rely greatly upon lately. They deliver our hot-food order and all of our anticipated goods, sometimes even arriving at our front doors in less than an hour while the logistics business is taking a back doors approach in supplying a necessity to increase the productivity of many industries. Many independent logistics companies also help move a country’s raw materials, semi-finished goods, and finished goods into the domestic and international markets. This industry plays a key role in increasing the competitive power of corporations and revitalizing improvements in a country’s economics scales. However, competition in the logistics industry is extremely high. For it to survive and provide better services, companies should seek to consolidate and migrate their data into a cloud computing platform service.

With the adaptations into a cloud logistics platform, the traditional logistics roles can begin to expand, minimizing office and operating expenses, and reducing business risks. Imagine the number of logistics companies who have committed blocks of space to transporters but end up being unable to fulfill 12-24 hours before departure or a shipper who is looking to move shipments on a weekend due to a critical shortage in one of their key customers.

There are high penalty prices to be absorbed by all parties when shipment capacity is unable to be fulfilled due to a lack of communication and coordination among the companies. These unnecessary risks and wastes of business opportunities can be minimized if the information was cleverly integrated-communicated-distributed to its partners in a cloud logistics platform.

New trade and logistics solutions running through a cloud platform have begun with 4 billion smartphone global users. The notion for a business to have only one dedicated trade or logistics partner serving them for many years will need to be re-adjusted in order to provide transparency and better monitoring systems. People and business communities are now demanding convenience in purchasing items from their comfortable homes rather than calling to place an order. We are surrounded by technological inventions all around, created for the benefit of people, to improve our life by increasing productivity and efficiency. With 5G not too far away at a connection 100 times speedier than 4G, our social and business lives will be impacted even furthermore.

Almost all businesses will eventually need to operate on a cloud technology platform to make operations and decision making much more efficient. When trade and logistics are blended into a cloud technology platform, magical moments will definitely happen, with industries moving together with the same interest, we are seeing new ways of getting the job done.

cloud market
Archives, Global Trade Daily, Software

10 Things to Look for in an IaaS Tool

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Nearly 30 years after the emergence of its widespread use, the internet has evolved from a novel in-office communication tool to a sprawling information network that businesses can’t live without. We are practically swimming in data. Luckily, cloud computing – a technology service that offloads files to external servers located around the country – has stepped in to help ease the burden of terabytes of sensitive company data.

A new form of data management tech has also recently emerged onto the scene: Cloud Infrastructure as a Service, or IaaS. Compared to traditional cloud computing services, IaaS takes care of the nitty-gritty details normally located in your own office infrastructure, such as servers, software, data centers and security. To put things into perspective, traditional cloud computing is like having a big storage drive somewhere else in the country, while IaaS is the storage drive and your workplace’s nervous system safely stored miles away – but directly networked with your office nonetheless. This frees up your business to devote its resources to the tasks that matter while another company takes care of the heavy lifting.

Several major players have quickly taken up the IaaS mantle – namely, Microsoft Azure, Amazon Web Services and Google Cloud Platform. Choosing the right cloud IaaS for your business isn’t a clear-cut task. Once you’ve wrapped your head around how IaaS works, your brain will likely be swirling with a maelstrom of other questions: How can I guarantee that I’m getting the most storage out of what I’m paying? Should I invest in an IaaS provider that controls most of my data’s storage? How much do I want to customize my network?

These 10 tips will cover the key points to consider when choosing the cloud IaaS for you:

Public and Private Platforms

IaaS companies typically offer two different platforms for your business: public and private. Each offers its own distinct advantages for different types of businesses.

Public platforms give you and your team the opportunity to quickly access IT resources. This ease-of-use allows you to make changes to your work environment on the fly. Public platforms also come pre-configured, meaning that businesses with less IT experience or with teams that are already stretched thin might do better with this option.

Private platforms grant your business maximum security within your data center. These servers are also typically faster since they operate on a closed circuit. Moreover, private platforms allow you to customize your network and security features to a greater degree than public platforms. IT-savvy businesses can use a private IaaS platform for greater control over their data management.

Customization

Depending on how comfortable you are with IT, you’ll want your IaaS platform to have at least some degree of customizability. Your business might require multiple channels through which to exchange data, for example, or it might require the IaaS to act as a test server for a new website.

Other examples of customization features include website layout templates, user interface storage and the ability to upload your own HTML and CSS files, like those included with Microsoft Azure. The apps and operating systems that different IaaS platforms offer should play a role in determining how well they will serve your business.

User Friendliness

Above all, the IaaS you choose should be easy to understand for you, the end user, especially since third-party apps will take care of the hardest IT work for you. Responsive customer support is another factor to consider, as are transparent documentation and neatly organized client-side interfaces.

Relativity

Cloud computing may be a marvel of information management, but, for the time being, our networks are still bound to the physical limits of cable. Ensure that the IaaS you choose operates with an extensive infrastructure or at least manages servers located close to your business. This will ensure that you can easily and quickly transfer data to and from your IaaS servers.

Usage Charges

Ensuring that an IaaS will lower costs for your business is key. Though the prospect of placing your workplace’s vitals in the care of a trusted IaaS is attractive, keep in mind that each company offers different pricing models. An IaaS platform might require you to pay by the hour, week or month based on the number of gigabytes you use. Some charge only by data upload (hot storage), while others charge for data you aren’t currently using (cold storage). Still, others will charge you for each service you use. Be prepared to see many different entries for different services on your first IaaS bill.

Also consider scalability, or the IaaS’ ability to adapt to your changing data requirements, when deliberating on a company’s pricing model. Microsoft Azure, for example, forgoes an upfront charge for a pay-as-you-go model. Businesses that project rapid growth may wish to consider this pricing model.

Support

Even the best IaaS will pose problems at one point or another. Glitches, misaligned services or any number of issues may prevent you from fully managing your data. When researching IaaS providers, be sure that the services you choose offer friendly and responsive chat or call centers so that you can resolve issues quickly. Ask about what support is available as you get started with an IaaS and how you can resolve issues once you’ve started upscaling your use of the service.

Server Infrastructure

Similar to the relativity issue, an IaaS provider with many servers will also increase its computing power for quick data access. Make sure that the IaaS you choose can handle your data requirements. Also, keep in mind that you aren’t the only company using your IaaS’ servers – an even larger company than yours could require massive amounts of data use at any time, causing bottlenecks and slowdown for the entire service.

Data Security

At the end of the day, your IaaS of choice should be able to securely store your data. Remember that an IaaS server is your data center and your workplace’s nervous system; you wouldn’t hang either out in the open. Not only should it ensure that prying eyes can’t peek into your cloud-stored documents, but your IaaS should also have the capability to reliably back up your data in case of an outage. Microsoft Azure, for example, will migrate your virtual machine’s data to another physical machine if it detects a Microsoft software update or a malfunction in its original hardware through a service called Live Migration.

Service Levels 

Get to know your IaaS provider. Consider arranging to meet with a representative in person and aim to establish a strong rapport between your business and theirs. Doing so will allow you to familiarize yourself with the provider, determine their trustworthiness and receive more thorough support due to your established relationship.

Manageability

Every organization operates in its own unique way, but some require more niche infrastructures than others. Make sure that the IaaS you choose will be able to easily integrate with your workplace and that it addresses all of your unique needs. If you would like to tailor the IaaS to your specifications, ensure that the provider offers a great degree of flexibility. If not, ensure that the provider is willing to help you with every step of the integration process.

Choosing the Right IaaS For You

Once you’ve decided on an IaaS that you’d like to explore, the next step is finalizing your choice and integrating it with your workplace. With nearly 40 years of expertise in the computing industry, Ingram Micro is prepared to answer your questions and help you transition your business to cloud IaaS. For inquiries, please contact a representative at 800-705-7057 or uscloud@ingrammicro.com. To place an order or learn more, please visit our cloud marketplace here.

About the author

Jason has held sales, pre-sales engineering, business development, and sales leadership positions for resellers, professional services organizations, and distributors over the last 20+ years. Jason earned an undergraduate degree in International Finance and a MBA in pursuit of his educational goals. He has also earned many technical certifications including a Cisco Certified Network Associate (CCNA), Cisco Certified Network Design Professional (CCDP), Cisco Certified Network Professional (CCNP), and Citrix Certified Administrator (CCA) in additional to numerous sales and licensing focused certifications. In his current role, Jason is focused on developing sales enablement strategies designed to help channel sales professionals promote the adoption of Azure by focusing on the positive business outcomes unlocked by cloud computing.

Archives, Global Trade Daily, Software

Cloud Logistics & Raven Logistics Partner for Railroad Rule 11 Solution

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As the Rule 11 accounting regulation works to create efficiencies within interline shipment invoicing, Raven Logistics and Cloud Logistics by E2open take the compliance and resourcing process a few steps further through a recently launched Rule 11 compliance solution that can be integrated within the Cloud Logistics TMS.

The rail management solution is a partner-effort between Raven Logistics and is available through Cloud Logistics by E2open TMS. This solutions offers the shippers and rail carriers increased visibility, ultimately streamlining processes and minimizing wasted efforts and risks for mistakes – all while maximizing employee time.

“Cloud Logistics’ customers were looking for an efficient process around railroad Rule 11 compliance, and turned to us to incorporate this function into our TMS,” said Mark Nix, senior vice president of transportation and founder of Cloud Logistics by E2open. “We quickly identified Raven Logistics, with its exclusive solution designed to create efficiency and compliance around Rule 11, as an ideal partner.”

By further eliminating the risk for duplicate efforts and mismanagement on the administrative side, companies are enabled to redirect attention to other areas within operations without admin-level distractions. An article highlighted in the original announcement reiterates the importance of maximizing workflows through the utilization of market software solutions.

“Our customers need to be able to focus on the task at hand, not get bogged down with details of worrying about compliance. Our new relationship with Raven Logistics frees our customers up to focus on meeting business objectives and generating revenue,” said Mr. Nix.

Source: BSYA

Archives, Global Trade Daily, News

Cloud Logistics Selected to Support $340 million Pork & Poultry Processing Facility

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Privately held pork and poultry producer and handler, Prestage Foods, announced the selection and implementation of E2open’s TMS  platform, Cloud Logistics,  to support operations at the company’s new $340 million pork processing facility.
“We are opening a new $340 million pork processing facility and need a transportation management system to help us manage the logistics operations,” said Crystal Hill, director of supply chain and logistics at Prestage Foods. “We’re opening our new facility in less than a month, so we needed a TMS that we could deploy quickly. The system had to be easy to use so our carriers and our poultry logistics team could adopt it without much training. We work with dozens of carriers and add more all the time so having a TMS that carriers love to use is a key differentiator for Cloud Logistics. Finally, we required a TMS that will grow and scale with us as our needs change. We will start with a few truckloads per day but will grow to over 50 a day within the first year and double to over 100 trucks a day when a second shift is added. Whether it’s managing a few truckloads a day from one shipping location or hundreds across multiple locations, the Cloud Logistics TMS is a great fit that will support our business today and into the future at a great price point.”
Cloud Logistics combines automation features such as mobile and social technology. The platform provides Prestage with a seamless, comprehensive workflow well equipped to support current and future initiatives all at a reasonable price. With Prestage anticipating a 1,000% increase in overall daily shipments from the new facility, the company will heavily rely on the TMS from automation and carrier selections, to load tendering and invoice auditing.
“For the senior leadership team, the most compelling reason to partner with Cloud Logistics was to improve operational efficiencies and visibility,” said Jere Null, chief operating officer at Prestage Foods. “This is a business that requires accuracy, timeliness, and cost effectiveness, in order to scale rapidly. Prestage Foods is growing fast, and Cloud Logistics will enable us to handle significant volume growth without adding additional headcount to the pork logistics team. We are also excited about the advanced reporting capabilities that will give us greater control of our operations.”
Source: BSYA