Cloud Logistics Market: Shaping the Future of Logistics 

It has been estimated that nearly 60% of small and mid-sized businesses report losing up to 15% more revenue due to supply chain delays. Logistics is the backbone of business success. It is estimated that in 2022, global logistics costs will reach USD 11 trillion. 

Entrepreneurs are amalgamating various technologies in the logistics sector to make them efficient for the current environment. Cloud logistics is becoming a go-to choice for market players to excel in the business. In this blog, we will delve deep into the various aspects associated with the cloud logistics market and its usage across various verticals. 

Why Numerous Market Players are Opting for Cloud Logistics?

Management of logistics is a herculean task for the market players. However, cloud logistics is making the act a piece of cake for the market players. Opting for cloud logistics offers numerous benefits to entrepreneurs. Some of the prominent benefits are as follows:

• Cost saving 

With the help of cloud computing logistics, market players can enhance scalability. This further helps in scaling operations and resources up or down based on demand. With the use of cloud logistics companies can streamline their processes and reduce their hardware and infrastructure costs. For instance, a recent survey found that businesses that migrated to the cloud with AWS reported almost 51% lower cost of logistics operations. 

• Inventory Information in Real Time 

The inclusion of cloud logistics allows logistics professionals to avail real-time location of every shipment. Cloud logistics platforms render real-time transparency into the entire supply chain. 

Market players can easily be vigilant to check inventory levels, and analyze data from different touchpoints in real time. 

• Enabling Connected Supply Chain and Logistics Management 

The prominent benefit of cloud computing in logistics is that it offers an overall view of the supply chain through detailed analytics and information. Some of the below-written data is testimony that cloud computing logistics is an impeccable tool for streamlining supply chains. 

• Almost 27.4% of the supply chain executives have deployed cloud-enabled capabilities across the entire supply chain. 
• 41.2% of all supply chain executives said that the desire to increase supply chain efficiency was among the top 3 reasons for migrating supply chains to the cloud. 
• Cloud logistics is helpful in a 26.3% increase in demand forecast accuracy, a 5.1% rise in revenue growth, a 16.3% reduction in supply chain costs

Analysts suggest that market leaders will continue to invest more in cloud technologies in logistics in the coming 2 years. Let us take a glance at various verticals that are extensively using cloud logistics. 

• Retail 

The cloud services in logistics are revolutionizing the retail sector by acknowledging diverse requirements. It has been estimated that by 2027, more than 71% of retail enterprises are projected to utilize industry cloud platforms to fuel their initiatives. Some of the benefits of cloud computing in the retail industry are:

• Inventory optimization 
• Supply chain visibility management 
• Disaster recovery 
• Better customer experience 
• Improved data security 

• Consumer electronics 

Cloud-based logistics in electronics offers multiple benefits such as quick and accurate quoting, easy access to multiple manufacturers, simplified procurement, supply chain resilience, etc. Some of the other domains are healthcare, automotive, and food and beverages. 

Cloud Logistics Market Analysis:

The cloud logistics market garnered USD 21.51 billion in the year 2024 and is projected to reach USD 107.81 billion by 2037. The factors acting as catalysts for the growth of the market are as follows:

• Transitioning pattern in logistics and transportation management systems 
• Product innovations led by a highly competitive landscape 
• The rising integration of AI and machine learning
• Surge in demand for transparency from consumers. 
• Rising demand for real-time visibility 
• Exponential growth of the e-commerce 

However, issues such as service outages, service offering changes, and vendor lock-in are hindering the market’s growth. Also, unexpected expenses are associated with cloud logistics services. 

The cloud logistics market in the United States is anticipated to be the most attractive in the coming period. The United States is a pioneer in technological innovation and companies are willing to adopt cloud-based solutions for logistics. 

Some prominent players in the market are Bwise, Oracle Corporation, IBM Corporation, SAP SE, Thomson Reuters Corporation, and Trimble Transportation.  

Wrapping up,

It is quite discernible that the market is offering lucrative growth opportunities. However, the market players who are willing to dive into the cloud logistics market are required to understand the intricacies of the market. Availing an all-embracing market research report is key to making a substantial impact in the market. It contains parameters such as regional analysis, growth drivers, market constraints, key market players, etc. Understanding these factors helps in making judicious business decisions. Market research reports for cloud logistics can also help the market player make an impeccable strategy.

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