Smart logistics refers to the automation, controllability, intelligence and networking of logistics operations through scientific and rational management methods. Under the current environment, enterprises are required to digitize all elements of logistics and achieve efficient allocation across every logistics link through intelligent data application and optimized integration. This analysis examines the smart logistics industry from four dimensions: development environment, industry status, case analysis and future insights.

 I. Development Environment of Smart Logistics in China

 1. Policy Environment: Policies Drive Multi-dimensional Development of Smart Logistics, and the Industry Enters an Intelligent Upgrade Phase

Against the backdrop of "Industry 4.0" and "Internet Plus", China's logistics industry has also embarked on intelligent upgrading and transformation. In recent years, the state has issued a series of policies to promote the rapid development of "smart logistics". Overall, these policies guide and facilitate the development of China's smart logistics from multiple aspects, including logistics infrastructure and equipment, supply chain construction, service models and information technology application.

 2. Economic Environment: Steady Growth of Online Retail, and the "Stay-at-Home" Economy Infuses New Momentum into Logistics

Under the impact of the pandemic, China's online retail market reached 11.8 trillion RMB in 2020, up 10.9% year on year, with 780 million users, a year-on-year increase of 9.9%. Both market size and user base grew steadily. Meanwhile, the online retail penetration rate reached 30% in 2020, up 4.2 percentage points year on year.

Accelerated by the pandemic, the "stay-at-home" economy was further catalyzed, residents' online shopping habits were consolidated, and express delivery demand remained strong. According to data from the State Post Bureau, the national express delivery volume and revenue in 2020 reached 83 billion parcels and 875 billion RMB respectively, up 30.8% and 16.7% year on year. To a certain extent, the "stay-at-home" economy has driven the rapid development of the logistics industry.

 3. Infrastructure: Logistics Infrastructure Gradually Improves, and Multimodal Transport Enters a Full Development Phase

In recent years, with sustained growth in government and corporate investment in infrastructure construction and fixed assets, China's supporting infrastructure for smart logistics has developed rapidly.

In 2020, the number of railway freight wagons and air cargo aircraft reached 912,000 units and 187 aircraft respectively, up 3.99 and 8.09 percentage points year on year. In recent years, to improve shipping speed, many enterprises have gradually shifted from road transport to rail or air transport, resulting in 11.103 million road freight vehicles in 2020, down 18.1 percentage points year on year. Overall, however, logistics infrastructure is gradually improving, and the construction of multimodal transport transfer facilities is being strengthened.

 4. Technology Environment: Smart Warehousing Accelerates Deployment, and RFID Technology Elevates Logistics Digitalization

With the wide application of emerging technologies such as 5G and the Internet of Things, warehousing systems are gradually evolving toward digitalization and intelligence. To reduce warehousing costs, improve operational efficiency and enhance warehouse management capabilities, major enterprises have increased R&D and application of smart warehousing. Among them, RFID technology is a key component of smart warehousing, and its application has elevated the digitalization level of logistics.

 5. Technology Environment: Digital Twin Empowers Supply Chain Management and Elevates Logistics Supply Chain Standards

Supported by big data, digital twin has established close connections across five major logistics branches, including warehouse management and packaging equipment management, enabling full-lifecycle tracking of physical products and services. Meanwhile, this technology improves logistics efficiency, reduces logistics costs, and enables intelligent management and decision-making based on data, further accelerating the development of logistics and supply chain management.

 II. Current Status of China's Smart Logistics Industry

 1. Financing Scale of Smart Logistics Increases Significantly, and Logistics Technology Evolves Toward Refinement

As indicated by financing frequency and amount, although the number of financing rounds in 2019 dropped significantly compared with 2017, the total financing amount increased year by year, reaching 13.2 billion RMB in 2019, up 15.8% year on year. Investors have increased their investment in smart logistics, supporting its rapid development.

In the  logistics technology sector, investment is concentrated in areas such as intelligent warehousing, SaaS systems, autonomous driving, logistics informatization, sorting technology and unmanned forklifts, reflecting that domestic investment in logistics technology is mainly focused on unmanned operations, SaaS and improved resource utilization efficiency. Amid the current investment boom, China's logistics technology is evolving toward refinement.

 2. Logistics Parks Enter a Rapid Construction Phase, and the Industry Prosperity Index Maintains Steady Growth

Over three years, the number of logistics parks in China grew at an average annual rate of 10.7%, reaching 1,638 in 2018, up 35.4% year on year. According to data from the China Federation of Logistics & Purchasing, the top three provinces by number of logistics parks were Shandong (117), Jiangsu (102) and Henan (97).

However, with accelerating economic growth in recent years, the western region has entered a rapid planning and construction phase for logistics parks, with planned and under-construction parks accounting for 15.9% and 22.8% respectively, higher than other regions.

In 2021, most of China's logistics industry prosperity indices maintained positive growth compared with the same period in 2020. Affected by the pandemic, online consumption has gradually gained importance among users, driving the express and fast-freight sector with strong growth momentum. Analysys believes that with the continuous improvement and development of smart logistics, the logistics industry prosperity index will grow further.

 3. Logistics Supply Chains Move Toward Full-Chain Digital Transformation, Creating an Industrial Ecosystem

Leveraging various advanced information technologies, logistics enterprises collect data throughout the logistics process, achieving full Internet-of-Things integration of different logistics elements such as people, vehicles, cargo, equipment, stations and stores.

On this basis, combined with the specific business scenarios of logistics enterprises, interconnection among various business entities and logistics networks and digitalization of logistics operations are realized, thereby forming a large-scale smart logistics ecosystem.

 4. Deep Integration of the Internet and Logistics Industry Drives Innovation in Logistics Operation Models

In the Internet era, the integration of the logistics industry with the Internet has transformed traditional logistics operation models and given rise to new logistics models and formats, such as truck-cargo matching, crowdsourced capacity and multimodal transport.

The improvement of basic transport conditions and further development of informatization have stimulated the rapid growth of the logistics industry. New operation models are taking shape, and correspondingly, smart logistics is growing rapidly.

 5. Smart Logistics Market Size Continues to Expand, with Beijing, Shanghai and Shenzhen as Key Hubs for Logistics Companies

According to data from the China Federation of Logistics & Purchasing, the current demand for smart logistics from logistics enterprises mainly covers three areas: logistics data, logistics cloud and logistics equipment. From 2016 to 2019, China's smart logistics market maintained double-digit annual growth, reaching 571 billion RMB in 2020, up 17.5% year on year.

In recent years, with the development of IoT, artificial intelligence and other technologies, as well as higher logistics requirements from new retail and smart manufacturing, the smart logistics market will continue to expand.

In terms of regional distribution, China's logistics technology companies are currently concentrated mainly in Beijing, Shanghai and Shenzhen, with companies in these three cities accounting for 64% of the total. This shows that at the current stage of smart logistics development, most technology companies are still based in first-tier cities.

 III. Development Trends and Recommendations for China's Smart Logistics

 1. Development Trend: Bulk Commodity Logistics Is Expected to Become a Key Direction for Smart Logistics

In recent years, compared with e-commerce and express logistics, logistics for production materials represented by bulk commodities has faced issues such as relatively slow development, low industry attention and backward logistics technology.

However, bulk commodities include over a thousand categories and form the cornerstone of the national economy, closely linked to national welfare and people's livelihoods. Therefore, unlocking the development potential of bulk commodity logistics and driving it toward intelligence is an inevitable trend for both bulk commodity logistics and smart logistics as a whole.

 2. Development Trend: Building a Full-Chain Digital Smart Logistics System Based on Green and Low-Carbon Principles

With the rapid growth of China's logistics industry, the development direction of smart logistics is shifting from point-based informatization to full-chain digitalization. At the same time, since carbon emission growth is strongly correlated with logistics operations, concepts such as sustainable development, green logistics and low-carbon emissions need to be integrated into every 环节 of full-chain digitalization. While improving the utilization efficiency of supply chain elements, continuous attention must be paid to the environmental impact of carbon emissions.

 3. Development Recommendations: Smart Logistics Still Requires Multi-dimensional Improvement, and Efficient New Logistics Models Should Be Developed

High intelligence, full coverage and high flexibility represent the future direction of the smart logistics industry. However, China's smart logistics still faces issues including insufficient government support, imperfect regulatory mechanisms, limited technology application and a shortage of professional talent. To make smart logistics more mature, corresponding recommendations need to be put forward across development direction, talent cultivation and policy support to promote the healthy development of smart logistics.