Connected Logistics Market
After exhaustive research, we could not directly determine the current market size and growth rate of the US connected logistics market. However, using the logistics industry as a proxy, we were able to triangulate an estimated size of the US connected logistics. This figure stands at $4.87 billion. Also, assuming that the US will grow similarly with regional growth figures, the market is projected to grow with a CAGR of 6.7%, between 2017-2023. Below, is our key findings and research strategy detailing why and how we came up with these estimated figures.
- Based on our estimations, the size of the US connected logistics market is $4.87 billion, with a projected growth of 6.7%.
- The North American connected logistics market size was $5.87 billion in 2017 and is projected to grow at a rate of 6.7% between 2017 and 2023.
- According to Transparency Research, the global market size of the connected logistics industry was $10.21 billion in 2016 and will be $55.17 billion by 2025, growing with a CAGR of 17.8%.
- Accounting for 40% of the global connected logistics market, North America holds the dominant share.
- The size of the North American logistics market was $1.684 trillion while that of the US was $1.4 trillion.
To address this request, we commenced by searching through market research companies for the size of the connected logistics market and its growth rate but found no relevant information. While there were lots of reports on the connected logistics market, they all had a global focus. After reviewing these reports, we found that none of them provided any hard data on the market segmentation by region or country, not even for the US. We also searched through the US government database on logistics but there was no relevant information. Despite that the database provided various statistics and segmentation data for the US logistics industry, there was no mention of "connected logistics." We also searched through media platforms and news aggregators but they only provided information on the global connected logistics.
Next, we shifted our approach by searching for information on the US logistics industry. We surmised that there should be industry reports that provide the segmentation of the US logistics market for the connected logistics segment. To this effect, we scouted for industry reports from market research companies, government database, industry stakeholders/associations, and media outfits. While these sources (Statista, as an example) provided varying levels of information on the US logistics industry, none of them provided any relevant information on the US connected logistics market.
Again, we shifted our approach but this time, we sought for any relevant market share data, regional market size data and/or any supporting data that could be used to estimate the requested information. We wanted to take this approach since our first strategy provided information on the global market size, and when combined with any relevant market share/segmentation based on a region (US), we could arrive at an answer. However, after searching through credible, relevant industry-related sources, we could not find any supporting data. The best we could find was the market share, market size, and the growth rate of the requested market for North America (consisting of the US, Canada, and Mexico). Even when armed with this regional data, there was no further ratio that could aid us in narrowing down the size to the US.
ESTIMATING THE US CONNECTED LOGISTICS MARKET SIZE
With no other information available, we embarked on triangulating the market size by proxy. Since we have the size of the connected logistics market in North America (consisting of the US, Canada, and Mexico), we correlated the US size of the logistics market with that of North America. We chose the logistics market as it is a superset of the connected logistics market. We then used the US share of the North American logistics market size as a proxy to the US share of the North American connected logistics market size. To do this, we found that the size of the North American logistics market was $1.684 trillion while that of the US was $1.4 trillion. Therefore, the share of the US logistics market to that of North American is:
Using this share (83%) of the US logistics market to the North American logistics market as a proxy to the US connected logistics market, we estimated the size of the connected logistics market in the US. Knowing that the size of the North American connected logistics market was $5.87 billion, we then estimated the US size as follows:
83% * $5.87 billion = $4.87 billion
This figure broadly follows multiple reports that revealed that the US holds the dominant share in North America.
ESTIMATING THE US CONNECTED LOGISTICS MARKET GROWTH
As already highlighted, we could not find the true growth rate nor any growth rates for the US connected logistics market, however, we found the projected growth rate for the connected logistics market for North America. Thus, we assumed that the U.S. will grow in alignment with this growth rate, given that the U.S. makes up the majority of North America, both in terms of population and GDP. Therefore, it is assumed that the US connected logistics market will grow between 2017 to 2023 with a CAGR of 6.7%.