Connected Logistics Market

Part
01
of two
Part
01

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.

KEY FINDINGS

  • 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.

RESEARCH STRATEGY

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:

($1.4 trillion / $1.684 trillion) = ~ 0.830 or 83% (i.e., 0.830 * 100 = 83%)

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%.
Part
02
of two
Part
02

Connected Logistics Market: E-commerce Segment

Even after extensive research, we were not able to present the current market size and CAGR of the US e-commerce/online retail segment of the connected logistics market. It was found that the global market size for the connected logistics market was estimated to be $14.39 billion in 2018. We have presented other helpful findings, along with an outline of the research methodology below.

USEFUL FINDINGS

Global Connected Logistics Market: Current Size (2018) and Growth (2016–2018)

  • According to a market research report published by Markets and Markets, the global connected logistics market was valued at $10.04 billion in 2016.
  • The global market size for connected logistics was estimated at $14.39 billion in 2018.
  • Therefore, the CAGR of the global connected logistics market for 2016 to 2018 was calculated to be 19.72%.

North America's Connected Logistics Market: Current Size (2018) and Growth (2016–2017)

  • The market size of the connected logistics market in North America was estimated to be $5.87 billion in 2017.
  • North America had a 42% share in the global connected logistics market in 2016.
  • The market size of the connected logistics market in North America in 2016 was $4.22 billion (42% of $10.04 billion).
  • The North American connected logistics market witnessed a growth of 39.1% from 2016 to 2017.

E-commerce Logistics Market in the United States:

  • The market size of the e-commerce logistics market of the US was estimated at $117.2 billion in 2017.
  • The market was expected to achieve a market size of $168.2 billion in 2019.
  • The CAGR of the e-commerce logistics market of the US for 2017 to 2019 was calculated to be 19.8%.

RESEARCH STRATEGY

Your research team applied the following research strategies:

We started the research by searching across multiple market and industry reports published by agencies and websites such as Markets and Markets, McKinsey, Deloitte, and more. These databases contained reports on the required topic. However, we were only able to access the information related to the global market from the reports. The information for the US market was not publicly available. Thereafter, we looked into some articles published by business publications such as Forbes and Business Insider. The articles on these databases contained information on the global market size of the connected logistics market. However, we still did not find any US-related data. We then searched across some quantitative information and reports on sources such as Statista and Research Gate. Most of the information on these sources had already been presented in the primary sources mentioned earlier. Hence, this strategy did not work.

Therefore, we decided to take the triangulation approach and started looking for alternative data points. We already had information on the global market size. We looked for the share or size of the e-commerce segment in the global market. We planned to apply the share percentage of the e-commerce segment in the global market on the connected logistics market of the US to obtain the required information. Apart from looking into reports, we also looked into some articles published by Tech Crunch, Tech Radar, and more. However, none of these sources contained the required information. To find the market scoping-related data, we then looked into the information prepared by agencies such as Nielsen and KPMG. We also looked for similar information on sources such as Mintel and IBIS World. However, none of these databases contained information specific to the US. We also searched for some appropriate resources under a paywall. We looked into sources that publish information on new reports released by report agencies. Such sources include PR Newswire, Business Wire, and more. In this way, we were able to provide some paywalled sources in this research. The report by Markets and Markets had information on several segmental aspects. Similarly, a report by Transparency Market Research also provided segmental information.

In the absence of the US-specific information, we decided to expand the scope of this research. We decided to present the information related to North America. However, we only found information on the connected logistics market. No information on the e-commerce segment was available.

CALCULATIONS:

Global Connected Logistics Market: Growth CAGR Calculation

North America's Connected Logistics Market: Current Size (2018) and Growth (2016–2017)

Sources
Sources

From Part 02
Quotes
  • "The connected logistics market is estimated to grow from USD 10.04 billion in 2016 to USD 41.30 million by 2021, at a Compound Annual Growth Rate (CAGR) of 32.7% during 2016–2021. "
Quotes
  • "This report predicts that the connected logistics market revenue is estimated to be $14,392.2 million in 2018."
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  • "North America was the highest revenue contributor in 2016, accounting for around 42% share. "
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  • "We estimate U.S. e-commerce logistics costs reached $117.2 billion in 2017. "