Logistics Industry Trends 2022: Exploring The Possible Future

Like most of the other industries, logistics is currently confronting a whopping change, with new customer expectations, business models and numerous start-ups cropping up everywhere. There a zillion ways the industry could combat these challenges and pave way for the visible next. Let’s explore all those by looking at the logistics industry trends for 2022 and further.
artificial intelligence
cloud computing

Yeshwanth & Pavan

Chaos Engineering - Product Resilience - Techigai


Surviving the past couple of years has been a major accomplishment for almost every industry, and logistics, specifically, has been through an extraordinarily rugged road.

Here’s why:
  • Manufacturing has become too customized, which is actually a good thing for customers, but for the logistics industry, it has added layers of complexities.
  • The industry is under growing pressure to deliver faster at a very low cost.
  • New entrants are carving out more lucrative business models through crowd-sharing solutions.

But, as the unwritten rule goes, when destructive forces are at a constant play, the present reshapes itself for a hopeful new future.
From exploring the latest technologies to making a revamp to the existing strategies, the logistics industry must stay tuned to the emerging trends to remain competitive in this constantly growing market.
Before we delve deep into the key areas where the logistics industry trends are spreading out, let’s get a basic understanding of how big the industry already is.

How Big is the logistics industry?

The logistics market across the globe represents almost 12% of the entire GDP, that’s how big the industry is!

It is estimated that the logistics sector will have to cover 92.10 billion tons by 2024 growing at a CAGR of 6.2% from 2016 to 2024.

    Technically, logistics can be simply defined as, the management of the flow & process between the point of origin to the point of consumption. Putting in simple terms, in today’s digital era, logistics can be something as easy as making a transaction from an owner to a customer or as can be as complex as involving several third-party logistics providers along with brokered transactions.
    Moreover, with the increased popularity of online shopping and the rapid growth of the e-commerce industry, the global logistics market has attained a value of USD 9,525 billion in 2021, which was valued at 54.69 billion tons in 2015.

    Logistics Industry Trends 2022

    Logistics companies are set to shift their focus to ‘digital fitness’, cost efficiency, asset productivity, and innovation to meet changing customer expectations.

    Here are 5 key areas of palpable disruption that businesses in the industry need to focus on to make sure their consumers stick to them despite the market changes.

    1. Artificial and Augmented Intelligence

    The very first logistics industry trend will most definitely happen with ubiquitous artificial intelligence. With the use of AI and ML, logistics companies can identify every link within the supply chain and are poised to play a significant role in transforming the industry. This is the reason the industry players are all eyes on the ways artificial intelligence could be of help. AI in warehouse management is already making planning much easier with accurate predictions and speeding up processes & time.

    2. 3D Printing

    McKinsey Global Institute expects this sector to be worth $550 billion by 2025. 3D printing technology is driving up customer expectations by creating new opportunities for businesses to optimize their logistics operations in innovative ways by reducing the need for long-distance physical transportation of goods and parts. Upon adoption, local and regional supply chains could be redrawn or even eliminated.

    3. Blockchain

    Despite its strong potential & its incredible use cases both in and outside of logistics, there’s been an overall lack of real development. CargoX is one start-up dedicated to bringing blockchain to the logistics industry by using the public Ethereum Network to securely validate document transactions.

    4. Data Analytics & Real-Time Supply Chain Visibility

    With the changing times, new data standards and young start-ups are helping bigger companies to cleanse and digitize their data, allowing them to then use that data for advanced analytics and predictive optimization. With this, the data on traffic patterns, weather, road, and port conditions which are very valuable to take action and reshape demand or redirect supply becomes seamless. Data analytics will also aid in optimizing routes and providing accurate and predictive assessments of potential delays.

    5. RFID & IoT

    RFID and IoT technology are becoming more valuable assets in transportation and logistics. From vehicle tracking to streamlining cargo operations, the costs of inefficiencies caused by a lack of visibility are drastically decreased. Many companies are using RFID technology to reach near 100% shipping, receiving, and order accuracy; 99.5% inventory accuracy; 30% faster order processing, and 30% reduction in labor costs.

    Future of Logistics Industry

    The logistics industry already looks radically different than what it was 10 years ago. The question now is, how will it look like in another 10. 

    There are certain upcoming logistics industry trends such as the growing e-commerce industry coupled with a rise in reverse logistics operations, the emergence of last-mile deliveries coupled with logistics automation, and a rise in trade-related agreements. The following can be the Top 5 future trends of the logistics industry.,

    1. Emerging Business Models, Innovations, and VC Funding

    50% of the US’ largest importers still use spreadsheets to manage their complex international supply chain. With new technologies shaping the future day-by-day, companies are coming up with new business models and more innovations, and with the known potential of this industry, VCs and enterprises are actively investing in start-ups and Innovations.

    2. Sustainability

    Since people are becoming more aware of climate change, governments are setting their environmental goals which are inspiring businesses to adopt a more sustainable mindset. We believe the logistics industry can play a major role in archiving these milestones by implementing smarter solutions such as autonomous vehicles to technology that calculates the route with the lowest carbon emissions.

    3. Warehouse Robotics

    Warehouse operations have undergone a significant change in the past few years. Robotization is significantly improving the efficiency and speed of warehouse processes. Companies are already incorporating robots that autonomously move around the warehouse, Ensuring extreme accuracy with easy traceability.

    4. Growth of Self-Driving Vehicles

    Be it a truck, car, or a drone, autonomous vehicles are becoming a huge buzz. Which are indeed helping companies in increasing efficiency, reducing costs, automating delivery packages, and finally with driver shortages too.

    5. Last-Mile Delivery

    Last-mile delivery is a term used to describe the last leg in the process, which is from a transportation hub to the point of consumption. When it comes to online shopping, these days consumer shopping behavior has changed drastically. To sustain in the market, many companies are focusing on last-mile delivery to improve efficiency in this area and to provide customers with a more personalized experience.


    Technology and innovations along with intensifying consumer demand will shape the future of the logistics industry.

    Companies should think out-of-the-box and provide more value-added services which can strengthen agility, compliance, and increased access to emerging markets.

    Becoming future-ready requires a lot of strategic planning and that’s what our expert engineers at Techigai are renowned for. We help you unlock opportunities for the future by putting data and future-ready technology at the heart of your business. Contact us to learn how we can digitally transform your logistics business.

    “Today, all businesses must operate in an environment where they need to anticipate when the next disruption will occur because it will happen” 

    – Anthony Nuzio, CEO, ICC Logistics Services.

    Published Date: 16 March, 2022


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