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The blockchain technology market in the transportation and logistics industry is estimated to increase by USD 6.91 billion, growing at a CAGR of 60.82% between 2023 and 2028. The market's growth hinges on key factors such as the increasing adoption of blockchain technology in trucking, driven by its ability to enhance transparency and efficiency in logistics operations. The booming e-commerce sector further fuels demand for streamlined and secure transportation solutions, benefiting from blockchain's capabilities in tracking and managing shipments. Additionally, the rising incidence of cargo thefts underscores the need for robust security measures, where blockchain's immutable ledger can provide enhanced traceability and security throughout the supply chain. These dynamics collectively propel the integration of blockchain in transportation and logistics, promising to reshape industry standards and operational practices to meet evolving demands effectively.
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Blockchain technology is revolutionizing the transportation and logistics industry by addressing control challenges through smart contracts and secure exchanges. Companies like LeewayHertz are integrating technical skillsets to enhance customer experience and streamline manufacturing supply chains. Blockchain ensures transparent documentation and efficient record management across data registries, enhancing public service and compliance with patents. It offers robust solutions for digital identity verification and secures contract information throughout the supply chain, promoting trust and reducing fraud. In conference, blockchain's role in logistics is highlighted for its ability to improve banking transactions and optimize operational workflows. As blockchain adoption grows, its impact on the transportation sector underscores its potential to drive efficiency and innovation in global logistics networks. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing use of blockchain technology for trucking is notably driving growth. Trucking is one of the largest industries in the world. The growing number of infrastructure projects rise in demand from the logistics sector, and the increasing demand for an efficient supply chain to transport goods are boosting the demand for trucks.
Blockchain technology stores information in incorruptible blocks across a shared digital network. This can revolutionize the trucking and logistics industries, as the technology can help trucking companies track shipments, manage fleets, and complete transactions. It can also help trucking companies maintain records of all trucks in their fleet, besides keeping a specific record of maintenance provided or damages incurred throughout the life of the trucks. In addition, the blockchain will also increase the efficiency of business operations in the trucking industry by reducing the need for checking business transactions and enhancing visibility by ensuring that capacity planning is operating smoothly. This will lead to an increase in the adoption of blockchain technology in the transportation and logistics industry, thereby leading to market growth and trends during the forecast period.
The rise in strategic alliances is a major trend in the market. The increasing demand for blockchain technology from the transportation and logistics industry is encouraging companies to form strategic alliances to improve their market reach and customer base. Furthermore, intense competition in the market is expected to compel established companies to increase their market presence through strategic alliances during the forecast period.
Companies offering blockchain technology are investing extensively in joint ventures and acquisitions to capture a major share of the global blockchain technology market in the transportation and logistics industry and expand their presence in new regions. Through this technology, forwarders, shippers, truckers, carriers, and customs agencies can collaborate efficiently for a single version of the truth and an immutable audit trail with low latency. Such factors will lead to an increase in the adoption of blockchain technology in the focused industry, thereby helping the market to grow during the forecast period. Additionally, blockchain technology is revolutionizing warehousing and storage operations by enhancing transparency, traceability, and security in inventory management and supply chain logistics. These advancements streamline operations, reduce errors, and improve overall efficiency, making blockchain an integral tool for modern warehousing practices amid increasing demands for reliability and scalability.
The high cost of implementing and maintaining blockchain technology is the primary challenge impeding growth. With the adoption of blockchain technology, the transportation and logistics industry is expected to have long-term benefits per productivity, security, and efficiency during the forecast period. However, the initial implementation of the technology is capital-intensive. This is because the software that is required to run the blockchain technology is typically developed for a specific firm, and hence, it is expensive to purchase or develop in-house. The implementing cost is very high, as enterprises in the transportation and logistics industry have to incur expenses for implementing servers and nodes to hold the exponentially increasing amount of data that will be added to the blockchain.
A blockchain database is designed in a way to store data indefinitely, so the recurring payment model does not work. As every transaction is stored in the ledger, the amount of data will increase rapidly in the blockchain, depending on the frequency and number of transactions. Therefore, enterprises in the transportation and logistics industry that are planning to implement the blockchain need to carefully analyze the high cost of implementation associated with it. Also, the number of individual processing nodes in the blockchain in an enterprise increases from time to time as the network grows. This will further add to the cost of implementing the blockchain, thereby affecting the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Capgemini Service SAS - The company's key offerings include blockchain technology in the transportation and logistics industry.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the land segment will be significant during the forecast period. The land mode segment of the global market includes transportation and logistics through railways and roadways. Rail transportation is one of the major influencing factors for trade operations within a country. It is mostly used for bulk/neo-bulk cargoes such as coal, ores, cement, petroleum, naphtha, salt, bitumen, grains, and polymers to be transported across long distances. Additionally, it provides more reliable service than other modes of transportation.
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The land segment showed a gradual increase in the market share of USD 101.90 million in 2018. In road transportation, trucking is the best way to carry goods, as it is a necessary step in the transportation of goods from the place of arrival to the destination, even if logistics companies implement another mode, such as sea, air, etc. Transportation by road has the advantage of door-to-door service when compared with the other modes, which means that the receiver does not need to collect goods from any other place. Additionally, road transportation is a cost-efficient method for short and medium distances when compared with other modes of transportation. Therefore, the land segment is expected to grow, leading to the growth of the market in focus during the forecast period.
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North America is projected to hold a share of 46% by 2028. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is expected to grow during the forecast period due to the increase in the adoption of the technology among enterprises for securely exchanging the bill of lading information, as well as for settling freight, repair, and lease costs. Enterprises are adopting the technology in the supply chain to create more visibility of information for their customers and users, which, in turn, leads to the improvement of the efficiency of the enterprise. Blockchain technology will enable a secure sharing of information among trading partners and enhance end-to-end transparency by digitizing the supply chain.
In addition, the implementation in the pharmaceutical supply chain is a new trend in the North American market. As a result, many pharmaceutical companies are now outsourcing their logistics operations to companies to reduce the overall cost and increase the distribution network. The growth in this market is increasing, which is posing a challenge for warehousing and logistics companies in adjusting to the greater capacity and inventory costs. Therefore, the increase in the production of new drugs among local and major companies is expected to result in the entry of new companies into the market, which, in turn, will benefit logistics service providers. Therefore, these factors will lead to increased adoption in the region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Blockchain technology is reshaping the transportation and logistics industry, drawing attention from venture capitalists and policymakers alike due to its potential for capital inflows and transformative impact on asset markets. Innovations like Web3 and DeFi are enhancing interoperability across verticals such as Blockchain IoT, ensuring secure and efficient logistics operations. Companies like Diamond Standard and Left Lane are leveraging blockchain for transparent transactions and streamlined supply chain management. Regulatory frameworks at national and international levels are adapting to blockchain's technological advancements, clarifying its regulatory status and fostering growth in cryptographic asset markets. Collaborations with firms like Horizon Kinetics explore blockchain's role in improving webinar materials and informational resources, highlighting its integration into industry conferences and educational platforms. As blockchain continues to evolve, its impact on logistics promises continued innovation and efficiency in global supply chains.
In addition, blockchain technology is revolutionizing the transportation and logistics industry, attracting attention at conferences and from regulators at national level and international level seeking regulatory acceptance. Its decentralized nature and distributed ledger ensure transparency and security in transactions and supply chain management. Companies are investing in technical skillset to leverage blockchain's potential in improving payments efficiency and reducing costs. Initiatives like ICOs drive innovation by funding blockchain projects, while efforts towards standardization aim to unify practices across the industry. Blockchain's role in logistics extends to enhancing operational efficiency and trust through secure data management and real-time tracking. As blockchain adoption grows, collaborations with regulatory bodies and industry stakeholders are crucial for shaping policies and frameworks that support its integration into mainstream logistics operations.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 60.82% |
Market Growth 2024-2028 |
USD 6.91 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
43.05 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 46% |
Key countries |
US, China, Germany, Japan, and Switzerland |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Amazon.com Inc., Amcon Soft, Ara Soft Group LLC, Capgemini Service SAS, Cargoledger, Deloitte Touche Tohmatsu Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., Koopman Logistics Group BV, Microsoft Corp., modum.io AG, OpenLedger, Oracle Corp., PixelPlex Ltd, SAP SE, Slync Inc., Sweetbridge Ltd., Tencent Holdings Ltd., and Wipro Ltd. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Transportation
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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