According to a report by ResearchAndMarkets, the Global Logistics Market is estimated to become 12.68 Billion USD by 2023 growing at a CAGR of 3.49 percent. Increasing global trade activities, improvements in the global logistics infrastructure and advancement in information technology are some of the key factors contributing to the market growth.   

As technology continues to evolve, it is also creating unprecedented impact on the logistic sector. Particularly Internet of Things and 5G are assumed to transform the sector by optimizing the supply chain operations. “The use of 5G and IoT would deliver live information to systems that could, for the first time, follow most items from factory to customer. The real bonus here is the actual tracking of packages with 5G connectivity, low latency, high speed and wide availability. The information available would be real time in its nature, whereas currently we rely on scan points. The real-time tracking would give accurate data,” says Richard Blown, Head of Innovation at Hermes.

Better Real-time Insights

Not just logistics and supply chain, every industry today is incorporating IoT, however, logistics finds wider use cases when compared to other industries given its variety of supply chain operations. IoT through inventory tracking helps in the warehouse management and helps to optimize the resources and eliminates inventory wastage. IoT also helps to locate any item at any given point of time in the warehouse. IoT enabled trucks provide owners with real-time information about the status of the vehicles along with predictive analytics such as distance the truck has travelled and the fuel consumption etc.    

Speeding-up Transportation of Goods

Though 5G is still making inroads, its impact could definitely be a noteworthy thing as it is set to open new avenues of connectivity.  “One of the challenges with 5G is its few early adopters and pockets of full connectivity. We will probably see a greater uptake by 2022 and full influence of 5G by 2025,” says Richard Blown. The adoption of 5G-enabled IoT devices offer new functions to logistics industry such as accurate real-time tracking etc and helps to speed up the transportation of goods.