Why Is It High Time to Introduce Digital Technologies in Logistics?

Evgeny Kuznetsov

Evgeny Kuznetsov

Technical writer

Logistics
Feb 8, 2022
8 minutes to read
views
  1. Brief market overview
  2. Reasons for logistics digitalization
  3. Digital development areas in logistics
  4. Digital technologies in logistics
  5. Benefits of digital transformation in logistics
  6. Conclusion

The world has become digital. Businesses introduce innovations in order to meet market demands and withstand their more advanced competitors. The logistics industry is also aspiring to implement IT solutions for managing orders, vehicles, warehouses, or inventories. Let’s take a look at what technologies underpin digitalization and why it is worth investing in custom logistics software development.

Brief market overview

Over the past two years, digital transformation in logistics has been fueled by a pandemic. Logistics companies have been suffering due to flight cancellations, social distancing, and quarantine measures. It took time to adapt to the new working conditions, update the rules for employees, and open the borders.

Covid-19 has boosted digital sales. There has been an uptick in the demand for medical products and pharmaceuticals. These demands have helped the industry get back on track and even ramp up. In 2020, the global logistics market was estimated at $205.44 billion, and Grand View Research predicts its Compound Annual Growth Rate will be 11.8% by 2028.

Business executives report that Covid-19 has accelerated the digital transformation in logistics by an average of 5.3 years.

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Global spending on the digital transformation of the industry will grow from $45.6 billion in 2020 to $75.5 billion