Insight:
- Secure logistics market to grow from $49.3B (2020) to $123.9B (2028) at 12.2% CAGR, driven by security needs and tech adoption.
- Major players like DHL, FedEx face rising competition from tech-driven startups.
Secure logistics market: Key insights and analysis
With the rise of globalization, secure logistics has become the key in international trade. Companies depend on secure logistics that enables the movement of goods and the confidentiality of information. This is vital for sectors such as, pharmaceuticals, electronics, or other high-value industries. Let’s take a closer look at secure logistics: market sizing, development, trends and growth factors.
Market size
The market for secure logistics is booming. As per the care_bridge_market_research, this market reached USD 49.342.20 million in 2020. In 2028, it would reach USD 123,925.69 million, growing at 12.20% CAGR. This tremendous growth is fueled by two key attributes, namely:
- Rising security concerns among corporations and banks
- Growing adoption of advanced technologies in logistics
Market share
The secure logistics market combines large players and innovative new entrants but is flush with startups. DHL, FedEx, and UPS became big players with their large networks and trusted names. However, the market is being influenced by technology-based start-ups. These companies implement high-tech tools like blockchain and IoT to make them more secure. As such, the market continues to grow increasingly competitive with companies going head-to-head on next-gen security functionalities and customer service.
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The evolution of secure logistics
The secure logistics industry has changed significantly over the years. Initially, logistics focused on speed and cost. However, globalization and events like the September 11 attacks and high-profile cargo thefts in the early 2000s highlighted the need for better security.
Businesses began prioritizing security, which led to the creation of specialized logistics solutions. Since then, technology has transformed the field further. Tracking systems, surveillance technologies, and advanced cargo security solutions enable real-time monitoring and better protection.
Regulations have also played a key role in shaping secure logistics. Companies must comply with various safety standards, pushing them to adopt secure practices to meet these benchmarks.
Key market trends
Several trends are shaping the secure logistics market:
- Technology adoption
AI, machine learning, and big data analytics are rapidly gaining favour among companies looking to improve security. Such self-sufficient systems allow for continuous oversight and evaluation of risk factors, minimizing the chances of a breach.
- Sustainability
Environmental concerns are influencing logistics. Secure logistics providers are adopting eco-friendly practices, like using electric vehicles and optimizing routes to reduce emissions. These steps appeal to environmentally conscious consumers and meet regulatory standards.
- Digitalization post-COVID-19
Digitalization in logistics gained momentum during the pandemic. The pandemic pushed contactless deliveries and efficient digital processes as new standards to adhere to to stay safe.
Growth drivers
The secure logistics market is expanding due to several factors:
- Global trade and eCcommerce
Companies that enter new markets require safe logistics to safeguard goods. eCommerce has become even more widespread, meaning there is a higher demand for secure transport – customers now assume that their orders will arrive safe and sound.
- Rising awareness of security risks
Concerns over cargo theft and counterfeiting have put companies on guard. Secure logistics leads not only to the protection of assets but also to brand reputation. Businesses are motivated by some of the biggest ones, and the cost of security breaches can be quite high, motivating them to spend more on secure solutions.
- Regulatory requirements
Countries are mandating stricter safety standards for goods while in transport. This necessitates companies to employ secure logistic solutions, further nurturing the market’s growth.
- Technological advancements
Logistics operations have transformed due to integrating IoT devices, GPS tracking, and advanced surveillance systems. These technologies enhance security and efficiency, serving as a significant growth driver.
Conclusion
Market for secure logistics is developing greatly due to factors such as global trade, security issues, regulation, and technological advancement. As of 2020, the market was valued at 49342.20 million USD and will likely grow to 123925.69 million USD by 2028, with a CAGR of 12.20 per cent. With companies looking for safety, secure logistics solutions will always be necessary to ensure a smooth and safe flow of goods across the world.
