IoT in logistics market seen hitting $130.5 billion by 2035

Market Research Future says the global IoT in logistics market will grow from $37.8 billion in 2025 to $130.5 billion by 2035, driven by demand for real-time visibility, automation and regulatory traceability. Healthcare and pharmaceutical logistics are among the fastest-growing uses as serialization rules and vaccine distribution needs push more connected tracking.

Why it matters: - IoT tools are becoming core infrastructure for logistics, not optional add-ons. - The market is expanding as shippers, carriers and warehouses need real-time visibility, automated tracking and better asset use. - Regulatory pressure in healthcare and emissions reporting is accelerating adoption across supply chains.

What happened: - Market Research Future estimates the global IoT in logistics market at $37.8 billion in 2025. - The firm projects the market will reach $130.5 billion by 2035. - That implies a 13.2% compound annual growth rate from 2026 to 2035. - Healthcare and pharmaceutical logistics are projected to grow at a 14.6% CAGR.

The details: - The market covers connected devices, sensors and analytics software used to optimize supply chain operations. - Core hardware includes GPS trackers, RFID tags, temperature and humidity sensors, and gateways. - Software includes fleet management, warehouse automation and data analytics platforms. - Hardware makes up about 40% of the market, reflecting the cost of instrumenting fleets and warehouses. - Software is the fastest-growing component, with a projected 15.8% CAGR. - Services, including consulting, integration and managed services, are also expanding as deployments get more complex. - Fleet and transportation management is the largest application segment. - Warehouse management is the second-largest segment by revenue. - Supply chain visibility is growing at a 14.9% CAGR. - Last-mile delivery was valued at $4.5 billion in 2025. - Retail and e-commerce is the largest end-user vertical at about $9.5 billion in 2025. - Manufacturing is expected to grow at a 14.2% CAGR. - North America holds a 34% revenue share. - Europe has a 27% share. - Asia-Pacific is projected to post the highest regional CAGR at 15.4% through 2035. - The market is moderately fragmented, with a top-five vendor share of about 22% to 26%. - Key vendors include Cisco Systems, Siemens, IBM, Samsara, FourKites, project44, Zebra Technologies, Sensitech, HID Global and Bosch Connected Industry. - The report includes a free sample at the sample report and a purchase page at the full report.

Between the lines: - The shift from paper-based proof-of-delivery and manual warehouse counts toward cloud-connected sensor networks signals a broader digitization of logistics. - AI-driven predictive analytics and digital-twin systems are moving the market from tracking assets to anticipating failures and rerouting shipments. - Government and regulatory programs are helping fund and force adoption, including U.S. broadband and digital infrastructure spending and EU transport digitization plans. - In healthcare, electronic package-level tracing requirements and value-chain disclosure rules make connected tracking a compliance issue as much as an efficiency upgrade. - The competitive landscape is shifting toward hardware-as-a-service and monthly subscriptions instead of upfront equipment purchases.

What's next: - Growth is likely to continue as e-commerce expands and delivery expectations stay high. - More logistics operators are expected to adopt edge computing, LPWAN and 5G standalone for lower-latency applications. - Further consolidation and product expansion are likely as vendors push integrated AI, analytics and tracking platforms. - Smart-container standards, digital product passports and electronic bills of lading are set to increase demand for connected logistics tools.

The bottom line: - IoT in logistics is moving from a niche upgrade to a compliance-driven, efficiency-focused market with long runway for growth.