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Logistics Companies Adopting IoT Solutions for Low Operational Costs

IoT in Logistics Market Size Analysis

by PramodKr

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.

In the coming years, the blockchain for supply chain management (SCM) category is set to experience the fastest IoT in logistics market growth. By using blockchain for SCM, the distributed ledger technology is utilized for making logistics sustainable and ethical. Connected devices (IoT in the physical form), radiofrequency identification (RFID) tags, and quick response (QR) codes are being used with SCM and enterprise resource planning (ERP) solutions to track the journey of the product from the raw material stage to the final product being disposed of after use; blockchain makes this process more reliable.

IoT solutions can be deployed for all the above-mentioned logistical purposes via the cellular network, local area network, and low-power wide-area network (LPWAN). Of these, the provision of IoT solutions to logistics companies via cellular networks is expected to witness the fastest rise in the immediate future. The rapid expansion of the 5G network around the world is set to be instrumental in the preference for cellular network for IoT solution deployment for logistics purposes. 5G promises faster data transmission speeds and reduced latency, which would result in real-time traffic updates for drivers, allowing them to pick the best alternative route to cut delivery times.

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.

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