Physical Internet Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 17.56 Billion |
| Market Size (2030) | USD 36.96 Billion |
| CAGR (2025 - 2030) | 16.05% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Physical Internet Market Analysis
The Physical Internet Market size is estimated at USD 17.56 billion in 2025, and is expected to reach USD 36.96 billion by 2030, at a CAGR of 16.05% during the forecast period (2025-2030).
- The Physical Internet (PI) revolutionizes logistics by merging digital and physical networks, boosting supply chain efficiency and sustainability. By optimizing freight transit and minimizing carbon footprints, PI champions zero-emission logistics, echoing global sustainability aspirations. This emphasis on eco-friendly solutions resonates as businesses pivot towards greener practices.
- With e-commerce surging, consumers now demand swifter deliveries and real-time tracking. The Physical Internet meets these expectations, offering agile logistics that keep pace with the fast-evolving online retail landscape.
- Standardized, modular containers, dubbed π-containers, are gaining momentum. This method not only optimizes space but also streamlines handling across diverse transport modes, akin to digital data packet management.
- Transport accounts for a quarter of the EU's greenhouse gas emissions, with road transport leading at 71%. This underscores the urgent need for a logistics solution that balances freight efficiency with economic and environmental considerations – a balance the Physical Internet promises. When paired with automated storage and retrieval systems (ASRS), warehouse efficiency could soar, hastening goods readiness for transport. Notably, the European Union aims to weave PI into its logistics framework by 2030.
- In terms of market challenge, the transition from numerous independent logistics networks to a unified, universal system is complex. Unlike digital data that can be easily transmitted over the internet, physical goods require a more intricate coordination of transportation methods and routes, which complicates the establishment of a cohesive network.
- The covid pandemic exposed vulnerabilities in existing supply chains, leading to disruptions and delays. As businesses strive for recovery and resilience, there's a pronounced shift towards systems that refine logistics processes. Moreover, the post-COVID landscape sees an amplified focus on sustainability. The Physical Internet not only champions this ethos but actively facilitates it by streamlining freight transit and curbing carbon emissions.
Physical Internet Market Trends
Retail and E-commerce to Hold Significant Share
- In the realm of e-commerce, the transportation of goods is currently lagging in efficiency. Vehicles, on average, operate at less than 50% of their full capacity, and trucks often return empty after deliveries. A primary challenge in the industry is this low fill rate. To address this, the initial step is digitizing all available information.
- As e-commerce sales surge, so does the demand in the market. Carriers typically face a deadhead rate, driving 15% of their total miles empty, translating to 50-100 miles without cargo. For every ton-mile, heavy vehicles release 161.8 grams of carbon dioxide. Aggregated data suggests that empty trucks alone contribute to an annual emission of nearly 67 million metric tons of carbon dioxide. Compounding the issue, not only trucks but also large distribution centers often sit underutilized for extended periods. Thus, for logistics operations to be deemed sustainable, companies must embrace a commitment to the triple bottom line, which encompasses social objectives.
- Participating companies in the physical internet will incur start-up and fixed costs. While savings are anticipated throughout the supply chain, equitably distributing these benefits among all stakeholders may prove challenging. A focal point can be logistics hubs like ports, airports, and freight villages, where companies in the logistics sector are in close proximity yet remain largely unengaged with one another.
- Blockchain technology presents a significant opportunity for the logistics sector. Recently, over 20% of logistics providers have piloted the technology, with an equal segment already adopting it. The fusion of blockchain's potential with IoT's capabilities is poised to revolutionize e-commerce, transforming the entire supply chain into a globally interconnected digital enterprise.
North America is Expected to Hold a Major Share of the Market
- In North America, the Physical Internet (PI) market is witnessing a steady uptick in demand, driven by the quest for more efficient logistics and transportation solutions. The burgeoning e-commerce landscape has intensified the focus on refining supply chain operations to cater to the evolving needs of online shoppers.
- The PI concept offers a promising solution by optimizing the movement of goods through interconnected networks, similar to how data flows through the internet. This approach can significantly reduce transportation costs, improve delivery times, and minimize environmental impact, making it an attractive option for businesses seeking to enhance their logistics capabilities.
- The ascent of omnichannel retailing and the intricacies of contemporary supply chains further fuel the PI market's demand. As consumers increasingly seek fluid shopping experiences, straddling both online and offline realms, retailers face mounting pressure to fine-tune their logistics networks for swift and precise order fulfillment. Presently, over half of U.S. consumers have availed themselves of the "order online, pickup in-store" service from major retailers.
- Additionally, evolving regulatory landscapes and shifting consumer inclinations are shaping the PI market's trajectory. In a bid to curtail carbon emissions and lessen transportation's environmental footprint, governments are rolling out stringent regulations, nudging companies towards greener practices. Multiple laws and court cases give the U.S. Environmental Protection Agency (EPA) the legal authority to monitor and regulate greenhouse gas emissions. Overall, the market is expected to grow with increasing logistics demand.
Physical Internet Industry Overview
The Physical Internet market is competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Amazon.com Inc., UPS – United Parcel Service, AmeriCold Logistics LLC, and others.
The Physical Internet market is poised for substantial growth as it adapts to changing consumer demands, technological advancements, and sustainability initiatives. By leveraging these trends, businesses can enhance their logistics operations, reduce costs, and improve service delivery in an increasingly interconnected world.
Physical Internet Market Leaders
-
Amazon.com Inc.
-
UPS – United Parcel Service
-
AmeriCold Logistics LLC
-
SF Express Co. Ltd.
-
Yamato Logistics Ltd.
- *Disclaimer: Major Players sorted in no particular order
Physical Internet Market News
- August 2024: SEALCOIN AG, established by WISeKey, has secured a USD 50 million token investment commitment from GEM Digital to develop a Decentralized Physical Internet Network (DePIN). The project aims to revolutionize the Internet of Things (IoT) using Hedera's decentralized ledger technology (DLT), enabling autonomous transactions among IoT devices through its utility token, SEALCOIN.
- May 2024: ITOCHU Corporation announced that it has signed a memorandum of understanding (MOU) with four partners—KDDI Corporation, Toyota Industries Corporation, Mitsui Fudosan Co., Ltd. and Mitsubishi Estate Co., Ltd.., agreeing to joint considerations for the creation of a Physical Internet business by the end of FY2024. The five cross-industry partners will work together to drive logistics reforms aiming to achieve sustainable logistics, including a solution to Japan's 2024 logistics problem.
Physical Internet Industry Segmentation
The Physical Internet refers to the combination of digital transportation networks that are deploying to replace actual road networks. It is based on applying the technologies and methodologies of the digital internet to the physical world.
The physical internet market is segmented by type (logistic nodes, logistic network), by component (solution, services), by enterprises (SMEs, large enterprises), end-user (retail and e-commerce, manufacturing, healthcare, aerospace and defense, other end-users), geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Logistic Nodes |
| Logistic Network | |
| By Component | Solution |
| Services | |
| By Enterprises | SMEs |
| Large Enterprises | |
| By End-user | Retail and E-commerce |
| Manufacturing | |
| Healthcare | |
| Aerospace and Defense | |
| Other End-users | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Latin America | |
| Middle East and Africa | |
| Australia and new Zealand |
| Logistic Nodes |
| Logistic Network |
| Solution |
| Services |
| SMEs |
| Large Enterprises |
| Retail and E-commerce |
| Manufacturing |
| Healthcare |
| Aerospace and Defense |
| Other End-users |
| North America |
| Europe |
| Asia |
| Latin America |
| Middle East and Africa |
| Australia and new Zealand |
Physical Internet Market Research FAQs
How big is the Physical Internet Market?
The Physical Internet Market size is expected to reach USD 17.56 billion in 2025 and grow at a CAGR of 16.05% to reach USD 36.96 billion by 2030.
What is the current Physical Internet Market size?
In 2025, the Physical Internet Market size is expected to reach USD 17.56 billion.
Who are the key players in Physical Internet Market?
Amazon.com Inc., UPS – United Parcel Service, AmeriCold Logistics LLC, SF Express Co. Ltd. and Yamato Logistics Ltd. are the major companies operating in the Physical Internet Market.
Which is the fastest growing region in Physical Internet Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Physical Internet Market?
In 2025, the North America accounts for the largest market share in Physical Internet Market.
What years does this Physical Internet Market cover, and what was the market size in 2024?
In 2024, the Physical Internet Market size was estimated at USD 14.74 billion. The report covers the Physical Internet Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Physical Internet Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Physical Internet Industry Report
Statistics for the 2025 Physical Internet market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Physical Internet analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
