Digital transformation spending in logistics to reach $82 bn by 2027

May 22, 2021: A new market study published by Global Industry Analysts (GIA) titled "Digital Transformation Spending in Logistics - Global Market Trajectory & Analytics" reports that the global market for digital transformation spending in logistics estimated at $45.6 billion in the year 2020, is projected to reach a revised size of $82.4 billion by 2027, growing at a CAGR of 8.8 percent over the analysis period 2020-2027.

Hardware, one of the segments analyzed in the report, is projected to grow at 8.2 percent CAGR to reach $38.3 billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the software segment is readjusted to a revised 8.9 percent CAGR for the next 7-year period. This segment currently accounts for a 29.1 percent share of the global digital transformation spending in the logistics market.

The digital transformation spending in the logistics market in the U.S. is estimated at $13.2 billion in the year 2020. The country currently accounts for a 28.98 percent share in the global market. China, the world second-largest economy, is forecast to reach an estimated market size of $15.1 billion in the year 2027 trailing a CAGR of 10 percent through 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.7 percent and 8.5 percent respectively over the 2020-2027 period.

Within Europe, Germany is forecast to grow at approximately 7.8 percent CAGR while the rest of the European market (as defined in the study) will reach $15.1 billion by the year 2027.

In the global services segment, the USA, Canada, Japan, China and Europe will drive the 9.9 percent CAGR estimated for this segment. These regional markets accounting for a combined market size of $8.1 billion in the year 2020 will reach a projected size of $15.7 billion by the close of the analysis period. China will remain among the fastest-growing in this cluster of regional markets.

Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach $8.8 billion by the year 2027.