A recent research report released claims that the digital supply chain and logistics tech market is expected to rise dramatically over the next few years. This growth is driven by rising automation, the continued growth of the ecommerce industry, and more. The report also touches on the market share of different regions, as well as various segmentation insights.
Report Projects Massive Growth for Digital Supply Chain and Logistics Tech Market
The report found that the digital supply chain and logistics tech market, which is currently valued at $72 billion in 2025, is expected to grow to nearly $147 billion by 2031. This is a 12.62% compound annual growth rate (CAGR) and highlights just how rapidly the industry is expected to grow.
It also mentions how the industry is highly competitive, with many large organizations (such as Oracle, SAP, Microsoft, and many others) all trying to implement various technologies and strategies to stand out and find success in the space.
Key Drivers of the Growth
The report identifies a couple of key drivers that are expected to contribute heavily to this growth over the next few years. First, this growth may be due to the rapid adoption of warehouse automation and robotics.
Many companies are using automated storage systems, robotic arms, autonomous robots, and AI-powered warehouses in general to streamline operations. These reduce the dependency on manual labor, increase inventory accuracy and optimization, and improve pickup speed, while reducing errors at the same time.
Next, the increase in collaborative logistics networks also contributes to the growth. These are logistics networks that involve multiple organizations (including shippers, carriers, and third-party logistics companies) collaborating on shared platforms to streamline operations and make the supply chain more efficient.
As 44% of brands are planning to increase the number of fulfillment centers they ship from in 2026, it becomes more important than ever for the supply chain and logistics network to be connected, to ensure effortless collaboration and real-time data sharing.
Trying to collaborate with so many different organizations and coordinate plans/share visibility across the supply chain becomes very difficult without these shared platforms in place.
Finally, the growth of the ecommerce industry in general also supports the need for efficient and modern supply chain solutions. As more people shop online, and as their expectations and demands shift, companies need digital platforms and solutions to help them meet these evolving customer needs and handle the increase in demand.
Simply relying on old and outdated systems doesn’t provide the speed, efficiency, and visibility that modern companies require.
North America Dominates the Market
According to the report, the North American region dominates this market, as it holds the largest global digital supply chain and logistics tech market share. In fact, it accounts for a share of more than 80% of the global market in 2025.
This is due to the presence of many of the major solution providers in the space, as well as the rapid expansion of both ecommerce and omnichannel retail in the area.
While Europe is also seeing an expansion of the digital supply chain and logistics tech market, it’s actually the Asia-Pacific (APAC) region that’s the fastest-growing market for these solutions. This is thanks to growing cross-border trade, faster fulfillment expectations, and rising automation.
The report also points out that countries like Brazil, Mexico, Argentina, Saudi Arabia, and the UAE are also investing in cloud-based supply chain platforms, automation, AI-driven logistics, and similar solutions to meet customer demands.
Segmentation Insights
The report ends with a couple of segmentation insights that break down the industry in more detail. First, while the market features software, hardware, and services, it’s the software segment that accounts for the largest market share, which is around 47%. This makes sense, as this software is often seen as the “digital backbone” of modern supply chains.
Also, the demand for things like real-time visibility, cost efficiency, planning, and advanced analytics is helping to fuel the adoption of these software platforms.
In terms of deployment, cloud-based solutions hold the largest market share, as companies continue to prioritize scalability, flexibility, and a lower upfront cost. Other reasons these cloud-based solutions are dominating the market are the real-time supply chain visibility they provide, their remote accessibility, and the fact that many integrate seamlessly within networks.
By application, the transportation and logistics management segment leads with the largest share. These solutions are used to manage shipping schedules, monitor the location of freight in real-time, optimize routes, and keep transportation costs low.
Finally, by end user, the retail and ecommerce segment leads the charge in terms of market share. These companies often use digital supply chain solutions to help manage their inventory, speed up order fulfillment, and boost last-mile delivery efforts.
Mistakes to Avoid When Using Digital Supply Chains
While a digital supply chain offers several benefits, such as lower costs, increased efficiency and fulfillment, and real-time visibility, there are also some potential mistakes to watch out for. This includes:
- Adopting digital supply chain technology without a plan or strategy.
- Ignoring data quality. These tools are only as good as the data you add to them, so simply adding a digital solution won’t solve all of your problems.
- Overlooking employee training.
- Ignoring the potential cybersecurity risks of connecting all of your systems and/or sharing data with other organizations.
Now, these potential mistakes don’t mean you shouldn’t use digital supply chains and logistics tech. They just outline that, despite the growth and numerous benefits of the technology, you still need to adopt and use it correctly to get the most out of it.
