Cybersecurity in Logistics Market Size & Share, By Security Type (Network Security, Cloud Security, Application Security, Endpoint Security, Identity and Access Management, Data Security); Deployment Mode; Organization Size; Application; End use - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

  • Report ID: 6497
  • Published Date: Oct 01, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

Cybersecurity in Logistics Market size is evaluated at USD 8.4 billion in 2024 and is set to reach USD 36.6 billion by the end of 2037, expanding at around 12% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of cybersecurity in logistics is assessed at USD 9.4 billion.

The cybersecurity in logistics market is rising at a rapid pace as the operations of logistics and supply chains have become more complex and vulnerable to evolving cyber threats. With digitization, the integration of technologies such as IoT and cloud computing, logistics today has transformed greatly, and the threat of cyber-attacks has increased multifold, paving a wide avenue for cybersecurity solution providers to innovate more developed tools to protect sensitive data and assure continuity in operations. In May 2022, Hitachi launched its logistics industry solution called Lumada Inspection Insights. This AI-powered platform gives the facility to monitor real-time data originating from sensors and IoT devices deployed over logistics networks, which can identify signs of potential vulnerabilities and cyber-attacks before they can become malignant. 

Various governments across the globe are also taking crucial steps toward strengthening cybersecurity in logistics. These factors are influencing regulatory changes as governments pose tighter compliance requirements for logistics firms. In June 2024, a report described increased vulnerability to cyber threats in U.S. federal systems and critical infrastructure, especially in strengthening their security systems. Meanwhile, all over the world, governments increasingly work toward making cybersecurity better in logistics. The rise in cyber threats is among the leading causes of regulatory changes. Many governments adapt and change to include more stringent compliance regulatory requirements for logistics firms, which are to protect against potential disruptions and data breaches.   


Cybersecurity in Logistics Market
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Cybersecurity in Logistics Market: Growth Drivers and Challenges

Growth Drivers

  • Increased digitalization of logistic operations: With the increase in IoT devices, cloud platforms, and automation technologies, logistics companies become more susceptible to these threats. This is reflected in July 2024, when Google decided to acquire Wiz cloud security company for USD 23 billion in an all-cash transaction, which may indicate that among logistics operations, demand for cloud-based cybersecurity solutions will increase.
  • Increasing incidence of cyberattacks on logistics: Companies are investing heavily in cybersecurity solutions as cyberattacks on logistics firms have gone up gradually. One of the key recent cases was the November 2023 cyberattack on DP World Australia, leading to a three-day suspension that affected more than 30,000 containers. This high-profile incident sheds light on the dire need in the field of logistics for modern threat detection and response tools. This then cemented the need for effective cybersecurity measures.
  • Government initiatives for supporting cybersecurity: With the advent of government regulations and initiatives, logistics firms are being driven toward better cybersecurity. For example, Japan Economic Security Promotion Act put forward a new set of guidelines for cybersecurity in May 2024 to protect its key infrastructures, including logistics. Such regulatory frameworks create the right ecosystem for the growth of the cybersecurity market as firms try to comply with fresh standards.

Challenges

  • Difficulty in the implementation of cybersecurity across diverse systems: The logistics operations are so intermingled with different technologies and multiple platforms that it becomes very difficult to implement one cybersecurity strategy comprehensively. A report released by CISA in April 2024 itself testifies to this fact, which states that there has been a growth of 50% in cyber incidents from 2020 to 2023. Many logisticians are using fragmented security solutions, thus making them highly vulnerable on all accounts of operations.
  • Evolving cyber threats: The evolving dynamic of cyber threats is difficult for any logistics company to trace and stay ahead of. This includes anything from a January 2024 report published by the Japan National Police Agency on the rise in ransomware attacks, including a new variant identified as "No-ware ransom." This underlines an upward spiral of challenge for logistics companies in efforts to keep pace with the latest methods of cyberattacks.

Cybersecurity in Logistics Market: Key Insights

Base Year

2024

Forecast Year

2025-2037

CAGR

12%

Base Year Market Size (2024)

USD 8.4 billion

Forecast Year Market Size (2037)

USD 36.6 billion

Regional Scope

  • North America (U.S., and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Cybersecurity in Logistics Segmentation

Deployment Mode (On-premises, Cloud-based, Hybrid)

Cloud-based segment in the cybersecurity in logistics market is estimated to exhibit CAGR of around 11.5% till 2037. Cloud-based deployment is finding more acceptance as logistics enterprises are engaging in cloud platforms for information sharing and collaboration on real-time data supply chains across the globe. These solutions are much more attractive to logistics companies for scalability, cost-effectiveness, and better security. For example, in September 2024, FedEx invested in AI-driven cybersecurity solutions due to its enhanced threat detection and response in real-time across FedEx cloud-based logistics. Such advancements by companies are likely to push the demand for cloud-based deployment of cybersecurity solutions in the logistics industry.

Application (Supply Chain Management, Warehouse Management, Transportation Management, E-commerce Logistics, Maritime Logistics, Aviation Logistics, Others)

Supply chain management segment is set to capture cybersecurity in logistics market share of over 68% by 2037. This is driven mainly by the complexities within global supply chains and reliance on converging digital systems. SCM (supply chain management) involves a lot of stakeholders and requires real-time data exchange, hence becoming a prime target for cyberattacks. In May 2024, ESET reported that a China-linked group had been using malware to target commercial shipping companies, underlining the very critical supply chains and pointing toward cybersecurity with great urgency. 

Our in-depth analysis of the global cybersecurity in logistics market includes the following segments:

Security Type

  • Network Security
  • Cloud Security
  • Application Security
  • Endpoint Security
  • Identity and Access Management
  • Data Security

Deployment Mode

  • On-premises
  • Cloud-based
  • Hybrid

Technology

  • Large Enterprises
  • Small and Medium-sized Enterprises (SMEs)

Application

  • Supply Chain Management
  • Warehouse Management
  • Transportation Management
  • E-commerce Logistics
  • Maritime Logistics
  • Aviation Logistics
  • Others

End use

  • Retail and E-commerce
  • Manufacturing
  • Healthcare and Pharmaceuticals
  • Automotive
  • Aerospace and Defense
  • Food and Beverage
  • Oil and Gas
  • Others

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Cybersecurity in Logistics Industry - Regional Scope

North America Market Analysis

North America in cybersecurity in logistics market is likely to dominate around 37% revenue share by the end of 2037. The strong technological infrastructure in the region, blended with a highly developed logistical sector, has driven the adoption of digital technologies like AI, IoT, and cloud computing. Digital transformation requires equally sophisticated cybersecurity measures that can protect sensitive data and operational integrity. Besides, with increasing cyberattacks on supply chains and logistics companies, there is now an urgent need for innovative security solutions. Due to this, key players in North America are increasing their investments, propelling cybersecurity in logistics market growth.

In the U.S., the number of cyber-attacks is continuously growing, due to which logistics companies are increasingly strengthening their cybersecurity defense. For example, in March 2024, Radiant Logistics fell victim to a cyberattack that impacted its Canadian operations; however, the company's timely response via incident protocols minimized the damage due to preparedness and proper cybersecurity posture. Certainly, this incident is an explicit indication of how U.S.-based logistics firms are getting serious with advanced cybersecurity solution adoption to avoid similar disruptions at all costs.

Meanwhile, Canada is also aggressively enhancing its cybersecurity posture in the logistics sector through government activities and private-sector investment. Since the rise of digitalization has grown in logistics, firms are increasingly adopting AI-driven cybersecurity tools to improve their detection and response to emerging threats. Furthermore, at a more macro level, the government of Canada has been dedicated to the development of cybersecurity with the involvement of logistics companies through the partnerships deemed vital and required for securing the country's logistics operations.

Asia Pacific Market Analysis

Asia Pacific cybersecurity in logistics market is projected to witness growth rate of around 9.6% till 2037, due to the rapid digitalization of logistics operations in the region, especially in countries such as China, India, and Japan. The thriving e-commerce business increases the cloud platforms and IoT technologies in logistics, making the region a target for cyber-attacks. Therefore, the need to ensure security has put pressure on investment in cybersecurity solutions across different business levels to protect logistical operations from disruption and breach, thus offering several opportunities for growth among cybersecurity providers.

In China, the present concerns of both the government and the private sector are likely to make logistics operations secure, especially amidst the continuously growing cyber threats. Logistics companies are responding by doubling down on cybersecurity investments, mainly in advanced threat detection and mitigation tools that would also prevent such attacks from happening again. In May 2024, the global logistics expansion of Shein drew U.S. cybersecurity experts' attention. Having just started beta testing its proprietary software to manage those logistics, analysts sounded warnings of potential espionage risks tied to its connections with China. This could give the platform unparalleled access to sensitive supply chain data and, therefore, make a stronger case for cybersecurity.

In India, the demand for cybersecurity solutions in logistics is increasing rapidly. The country-wide expansion of e-commerce and logistics operations has made it more susceptible to cyber exposure, leading to growing need for cybersecurity in logistics. Moreover, several logistics firms are partnering with cybersecurity services providers that can offer supply chain risk assessments and incident response planning. This further emphasizes the rising awareness of cybersecurity as an integral factor in the growth of India logistics market, as multiple companies strive to achieve secure supply chains from evolving cyber threats without compromising operational efficiency.

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Cybersecurity in Logistics Market Size
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Companies Dominating the Cybersecurity in Logistics Market

    Competition in the cybersecurity in logistics market is increasing, as many key players are competing for a significant market share through innovative solutions and partnerships. The leading companies in this space include Google, FedEx, DHL, Fujitsu, ESET, and Cyberowl. These companies are investing in advanced technologies such as AI, cloud computing, and machine learning to strengthen their threat detection and response capabilities for further enhancement of market positions.

    In August 2024, Toshiba announced the release of the English version of the Cyber Security Report 2024, which shows the company's cybersecurity policies and measures. With a high emphasis on enhancing cyber resilience, especially in logistics, the company is working on controlling vulnerabilities and strengthening security through activities like phishing drills for executives, according to Toshiba. Such moves by companies are anticipated to strengthen their position in the cybersecurity in logistics market.

    Here are some leading players in the cybersecurity in logistics market:

    • IBM Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Check Point Software Technologies Ltd.
    • Cisco Systems, Inc.
    • CrowdStrike Holdings, Inc.
    • Darktrace Ltd.
    • Fortinet, Inc.
    • Palo Alto Networks, Inc.

In the News

  • In July 2024, Gerardo de la Torre from Nissan addressed the audience at the Automotive Logistics & Supply Chain Digital Strategies North America event. His presentation focused on cybersecurity and digital innovation within automotive supply chains. De la Torre emphasized Nissan's strategy to enhance supply chain resilience by increasing visibility and adopting proactive digital security measures to safeguard against potential threats.
  • In April 2024, Whiz Hack Technologies, a cybersecurity company in India, signed a Memorandum of Understanding (MoU) with Vietnam's Total Solutions and Logistics. This partnership aims to strengthen Vietnam’s IT and manufacturing sectors by deploying AI-driven security products, offering managed security services, and providing comprehensive cybersecurity training to build a more secure digital infrastructure.

Author Credits:  Abhishek Verma


  • Report ID: 6497
  • Published Date: Oct 01, 2024
  • Report Format: PDF, PPT
Cybersecurity in Logistics Market Report Scope
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