2021 Put Logistics Technology On the Map

2021 put Logistics Technology is On the Map Featured Image

Globalization has significantly expanded in the past few decades, converting the supply chains and logistics industries into an intricate system, leaning more towards networks designed for efficiency rather than resilience. 

But the pandemic has led to a massive change: the e-commerce door was wide open to the end consumer when in prolonged lockdowns everyone understood the comfort and convenience of ordering by a few clicks and having anything delivered to their own door. Demand growth, had and continues to have multiple implications and is partly responsible for the supply chains disruptions and making the news constantly throughout 2021. It has for sure given a strong push to the digital transformation of the logistics industry, making way for an emerging industry sector called LogTech striving to improve logistics through the use of technology.

New technologies such as Artificial Intelligence, Digital Twins, and Robotics Process Automation, created the perfect setup for out-of-the-box business models with vast cost-saving potential innovations for the logistics industry.

To have an idea of the magnitude of the logistics industry and how LogTech sector measures against it, here is a quote from Forbes article Why Logistics Technology Matters:

“The logistics industry is so big that it is measured as a percentage of GDP. Global logistics is 12% of the GDP, or $9.6 trillion (estimated). Yet, logistics tech is a mere $17.4 billion market worldwide. That’s a paltry 0.18% of investment in tech, and one-fourteenth of the 2.43% tech investment on the front-end.”

There is for sure an increasing trend and the LogTech sector’s potential should not be neglected. End consumer demand for efficient and sustainable e-commerce, are new drivers for LogTech widespread solutions and offerings. The same article cited above concluded with predicting that logistics tech will become larger than marketing tech in this decade. “As digital commerce comes of age, strengthening its largest muscles will be the key to good health, prosperity, and the longevity of companies.”

Are these only predictions? Capstone Partners November 2021 article, called Capital Raises in Logistics Technology on Fire, Focus on Early Stage Rounds is offering insights via infographics and assessments on investment into the LogTech industry sector being at historic levels in 2020 and the first three quarters of 2021.


Alcott Global, Cambridge Capital & BGSA, The Journal of Commerce (JOC) & IHS Markit, Thetius, and REFASHIOND Ventures & The Worldwide Supply Chain Federation released a market map of technology innovations for the global supply chain and logistics market, which was released on November 23, 2021.

Specialists agree that LogTech will continue to evolve and will be seen along the supply chain verticals with more practical applications of technologies to increase visibility, efficiencies, cost, sustainability in the years to come. We are looking forward to seeing what 2022 brings to this space!




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