Logistics innovation: in 2025, the priorities in the logistics industry will be automation, digitization of processes, application of artificial intelligence, and cybersecurity.
In an ever-changing world, a leading U.S. market research and business intelligence firm (Expert Market Research) found that in 2023 alone, the global logistics market was worth $10.59 trillion. The significant contributor to this growth is the rise in popularity of online shopping and, consequently, from the growth of the e-commerce industry.
Not only that, thanks to the growing demand for green logistics solutions and the gradual adoption of automated material handling equipment, this figure is set to reach a Compounded Average Growth Rat (CAGR) of 6.3 percent during the period of 2024-2032, thus reaching $18.35 trillion by 2032.
Logistics innovation: what future for the industry?
What will be the future of logistics with the advent and increasingly widespread introduction of new technologies?
How much influence will digitization and artificial intelligence have in logistics?
Let’s take a look together at what we are certain will be the trends in logistics in 2025.
Digitization
As in 2024, digitization will be one of the undisputed protagonists of the logistics industry in 2025. In particular, there will be much focus on the process of digitization encompassing all internal and external activities of logistics facilities.
Recent studies have shown that logistics operators are investing heavily in technology in recent years in order to:
- increase the productivity of warehouses and transportation networks;
- reduce costs;
- ensure sustainable change over time.
However, the technological landscape is becoming increasingly complex, so operators will need not only to be able to understand its potential, but also to understand the extent to which digitization will impact their organization, operating models and logistics processes.
In addition, product tracking will become increasingly sophisticated, contributing to shorter delivery times, faster localization of items, increased competitiveness and greater customer satisfaction.
You might also be interested in the article Port logistics digitization: new perspectives and opportunities.
Warehouse automation
In recent years, the logistics and contract management industry has experienced a global labor shortage, which has inevitably contributed to rising delivery and production costs, affecting the accessibility and affordability of goods. This is why recent studies have predicted that by 2025, logistics operators will increasingly turn to automation.
In addition, automation to date is one of the best tools not only for speeding up logistics operations, but also for integrating automated systems into internal goods storage, handling and transportation operations.
Finally, to cope with seasonality-related peaks in demand, many operators are increasingly considering the use of robots that can position and pick products autonomously and with great precision.
Blockchain
Another of the logistics trends for 2025 concerns the increased use of blockchain.
Within a blockchain system, information is recorded in blocks. Each block in turn contains a certain group of data. The moment a new data set is added, it will form a new block concatenated with the previous block.
The blockchain system thus ensures the immutability and integrity of transaction records. In this way, the need for secure and tamper-proof documentation in the supply chain can also be addressed in the logistics sector, improving efficiency, transparency and security.
Through blockchain, logistics operators can access accurate information regarding the movement and status of goods in real time. In addition, smart contracts (a typical element of any blockchain system) will automate and simplify various aspects of logistics, such as payment processing and customs clearance.
Greater adoption of blockchain in 2025, will enable reduced processing times at checkpoints and faster approvals, helping to significantly speed up the entire supply chain.
Cybersecurity
To infiltrate supply chains, cybercriminals have employed more sophisticated strategies in recent years. It is therefore no coincidence that according to Deloitte, 88% of companies are concerned about their cybersecurity.
For this reason, logistics operators will increasingly need to ensure their cyber resilience in 2025. Doing so will require:
- invest in cybersecurity solutions;
- ensure adequate corporate training;
- adopt a risk-based approach;
- spread a culture of cyber risk awareness.
Logistics innovation: what impact in 2025?
In today’s constantly evolving logistics environment, maintaining competitiveness requires a high degree of adaptability, innovation and strategic vision.
In 2025, logistics operators will necessarily need to embrace technological advances, process automation and environmental sustainability, elements that will tend to make the industry more agile and reliable.
In particular, the focus will be on digitization and automation in order to monitor operations in real time and optimize processes.
Ultimately, the logistics industry of 2025 will be increasingly driven by data-driven decision making, following a risk-based and resilient approach. This will involve the adoption of risk management, business continuity and cybersecurity principles to ensure compliance with current regulations and improve the industry’s ability to withstand and adapt to future challenges.
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