Market Trends of Cloud Logistics Industry
Consumer Goods and Retail Segment Contributes Significantly to the Market Share
- Logistic solutions are essential for maintaining timely and cost-effective product deliveries in retail management. This supports the demand for cloud logistic solutions due to their application in inventory management, transportation, warehousing, and order fulfillment in the retail sector, which would fuel the market growth in line with the development of the retail industry worldwide.
- The e-commerce growth, in line with the increasing consumer spending for online purchases and the enhancement of omnichannel sales channel expansions by the retail vendors, is fueling the cross-border transactions in the retail landscape, which has been fueling the demand for 3rd party logistic providers, freight providers, and others in the industry, supporting the demand for the cloud logistic software adoptions during the forecast period.
- Freight forwarders in the retail supply chain have started to adopt cloud-based solutions, mainly because they need a SaaS model of logistic software to streamline their supply chain activities over the Internet without needing internal infrastructure or hardware, fueling the market growth in the retail industries. Additionally, the dependency of online retailing and the selling of consumer goods products on logistic providers and shippers support the demand for the market in the retail sectors.
- Stationery and office supplies retailers are increasingly using cloud-based warehouse management systems to streamline their online store inventories, highlighting the sector's growth potential during the forecast period. Advancements like cloud computing in e-commerce logistics bolster efficient deliveries and cost-effective supply chain management, further propelling market expansion.
- Cloud logistics empowers retailers with real-time, accurate information on their shipment locations, enhancing their ability to address delays or disruptions. Automating the supply chain through cloud computing increases efficiency by saving valuable time and resources. Additionally, modular cloud logistics platforms allow a business to integrate its existing data infrastructure with logistics provider platforms via APIs, ensuring a streamlined and seamless flow of data on every link in the supply chain, which supports the growth of cloud logistic solutions in the small scale retailers due to their increasing demand for low-cost logistic management software for business efficiencies.
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Asia Pacific Expected to Witness Significant Market Growth
- The transportation and logistics industry in the Asia Pacific has been becoming dynamic and complex, with changes driven by economic growth, increasing consumer demands, and technological advances. Additionally, with some of the world's most important ports, airports, and critical manufacturing zones, the Asia-Pacific region has transformed into a hub for global supply chains, which would raise the demand for the cloud logistics market in the future.
- The region includes developing economies, such as India and other Southeast Asian countries, and significant global manufacturing countries, such as China, South Korea, and Japan, among others, supporting the manufacturing, retail, and other sectors' growth in the region, which would fuel the demand outsourced logistic providers for the transportations of raw materials, semi-finished and finished goods across the value chains of different end-user industries operating in the region, which would fuel the market growth.
- The growth of SMEs and the governmental support for in-house manufacturing capabilities expansions in the emerging economies in the region, such as the Make in India initiatives and others, are increasing the number of logistic providers and supply chain activities in the area, creating an opportunity for market growth in the future.
- Supply chain and logistic automation are gaining traction in the region in line with the growth of digitalization strategy among enterprises. In December 2023, Fujitsu introduced a cloud-based service in Japan, focusing on standardizing and visualizing logistics data. This service caters to shippers, logistics firms, and vendors, increasing sustainability by leveraging logistics data. This initiative would facilitate the safe and easy sharing of insights with internal stakeholders, showing a rising demand for cloud-based logistics solutions in the APAC region during the forecast period.
- Cloud service providers are expanding their data center footprint in Asia to cater to the surging demand. Increasing their regional infrastructure allows these providers to offer their customers faster and more secure cloud services. Additionally, this would ensure compliance with stringent local data privacy laws and pave the way for increasing acceptance of cloud logistics solutions across the Asia-Pacific.
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