2025 is here. The world keeps turning and the field of material logistics, too, is developing and adapting to changes such as the megatrend of sustainability and the ever-growing use of artificial intelligence. On a global scale, things happening in the world, such as wars, conflicts and the declining economy have, of course, taken their toll on logistics, and will continue to do so.
Every year has its turning points and peak seasons in retail, construction, tourism, as well as logistics. In addition to the normal yearly cycle of seasons, holidays, etc., here are some predictions on what will be this year’s hot topics in material logistics.
Technologies; Artificial Intelligence and Robotics
This trend has been conquering industries for some time now, and in 2025 it is all but slowing down. According to DHL, “we can say that AI is no longer a separate trend, but an indispensable component of almost all logistics trends”.
AI is increasingly being used in route and supply chain planning. It is said the it will minimize risks and the possibility of delays, among other things. While the use of autonomous vehicles is still scarce in mega-scale projects, groundbreaking developments are being made and it will be interesting to see what the future holds. In B2C logistics, last-mile deliveries are already being conducted by robots, and in warehouses all over the world, robotics and machine learning are being used, mitigating the chances for human errors. Robots are being utilized for the mechanical chores, thus freeing human time and energy for more challenging tasks. The move to warehouse robotics and automation is particularly important in markets with high labor costs.
On top of this, artificial intelligence tools offer a lot of data that can be utilized in project planning and implementation. According to Global Trade, “companies use AI to analyze vast amounts of data, providing insights that lead to better decision-making. This technology enhances visibility across the supply chain, improving coordination from production to delivery. With AI, companies can also respond quicker to market changes and reduce operational costs”. The rise of AI is also applying pressure on companies in many fields, including logistics. Failure to adopt the new technology will likely result in financial losses, as stated by McKinsey’s report: “Successfully implementing AI-enabled supply-chain management has enabled early adopters to improve logistics costs by 15 percent, inventory levels by 35 percent, and service levels by 65 percent, compared with slower-moving competitors.”
Cybersecurity
The adoption of AI, robotics, Internet of Things and other new technologies does not, however, come without its risks. When implemented more and more broadly, these new forms of technology bring with them new targets for cyber threats. In mega scale projects, materials are transported from all over the world, which makes their logistics chains a large and vulnerable target.
With these all-new technology threats, all parts of supply chains need to stay more alert. Cybersecurity is no longer only related to computers, but all things digital, which these days include components of the logistics chains from packaging robots to QR-code readers at the receiving end. Luckily, new forms of technology also include systems through which data transfer, especially with sensitive documents, can be done more securely than with the traditional Excel sheet attachments over email. LogiNets’ MHS solution could be listed as one.
Cybersecurity needs to be taken seriously, and employees throughout supply chains need to have adequate training in the matter. Cyware Technical Director Dan Bridges stated in Supply Chain Strategy blog that “breaches in one part of the ecosystem can quickly ripple through to other areas, making collective defense strategies more vital than ever to maintain business resilience”. New regulations concerning cybersecurity are also being implemented, and operating in the frames set by these regulations is important in keeping data safe.
Decarbonization and Sustainability
As in all fields in life and industry, material logistics companies and experts, too, are working for a greener, more sustainable future. As stated by BDO, “many businesses are committing to achieving significant reductions in CO2 emissions by 2030, and sustainable procurement has to be a factor in achieving these ambitious net-zero targets and timeframes”. In logistics and mega projects, this megatrend can be seen in the following ways, for instance:
- Net-Zero and Carbon-Neutral Goals: Increasing emphasis on energy-efficient designs, renewable energy integration, and sustainable materials like recycled concrete and cross-laminated timber (CLT).
- Smart Cities: Large-scale projects incorporating renewable energy systems, smart grids, and water recycling technologies to create sustainable urban ecosystems.
- LEED and BREEAM Certifications: Stricter compliance with green building standards to meet environmental regulations and investor demands.
Sustainability in material logistics is no longer only about decreasing transport emissions. Companies have turned their gaze into the future, and safer and more sustainable building materials are being sought after. Large-scale projects, such as energy plants don’t look the same as they did a few decades ago, now that renewable energy is being implemented at a fast pace. The same goes for car factories now producing hybrid and electric vehicles.
The need for sustainable solutions is very visible also when whole new cities are being constructed from scratch, and the infrastructure of old ones in being renewed. Such large urbanization projects are particularly prominent in Asia, Middle-East and Africa, which can be viewed as rising markets for many industries.
Supply Chain Transparency
The days when materials in mega-scale projects could be lost at sea for weeks on end are long gone – well, at least we all hope so. Suppliers, construction managers and procurement experts alike require more and more transparency on how things are progressing and at what speed.
Modern technology, such as the aforementioned artificial intelligence and robotics, offer a sea of possibilities to be used to benefit in supply chain planning and implementation. On top of this, sophisticated software solutions, such as LogiNets’ MHS, are developing at high speed to better answer the needs of the industry. These specialized systems can ease documentation, not to mention that all information can be found centralized in one system. Cloud-based systems bring projects to the 21st century and help run operations in a fast way, without the back-and-forth sending of Excel files.
As Mercury Gate put it: Your supply chain’s success depends on having crystal-clear visibility from start to finish. Transparency also enhances collaboration across the supply chain, which, in turn, makes operations run more smoothly.
Resilience and Planning Ahead
With conflicts in the Middle-East, the Red Sea threats, Russia’s attack in Ukraine and the United States’ presidential election, the global economy has been in turmoil. We have also seen sanctions, strikes and questions of ethics, to name just a few.
From logistics’ point of view, we have witnessed delays in shipments, port congestions and unstable fees. It seems that this trend will carry on well into 2025 with no end in sight. All this makes identifying and managing risks in supply chains more important than ever before.
Supply chain resilience is a rising trend that companies and professionals are aiming for. This can be seen in the preference for nearshoring, for instance; USA has already started to prefer imports from Mexico instead of China. As stated by MercuryGate in their forecast for 2025: “Already, 86.2% of manufacturers have started de-risking their supply chains, and there’s a clear trend toward nearshoring, with Mexico recently overtaking China as the top trading partner with the United States.”
One factor that greatly improves the agility of supply chains is multimodality, as stated by DHL. When cargo can be taken form waterways to rails to highways, and route alternatives are carefully planned in advance, this also eases transportation in case one way is blocked by e.g. a strike or an accident. New technologies also help in planning, as they enable data-driven decision making.
Employee Safety
AI and IoT are also being used to improve safety in warehouses and construction sites that are traditionally high-risk workplaces. Also, the fact that employers are becoming more aware of risks helps to prevent accidents in workplaces. According to a list drawn together by SDC Exec, rising topics in discussions about warehouse safety are using the right equipment, incorporating automation, noise-reduction and safety best practices training.
Wearable technologies have also brought about a selection of new smart safety equipment, “like smart helmets and vests, are equipped with sensors that track vital signs and location”. Such IoT applications can save lives in risky work conditions. In addition to wearables, the Chas blog post on work safety lists real-time monitoring and data analysis, virtual and augmented reality technologies, drones and automated equipment and building information modelling (BIM) as the top trends.
Conclusion
In 2025, material logistics is at the forefront of transforming large industrial projects through technological innovation, sustainability, and enhanced collaboration. With so much going on in the world, environmentally, politically and technologically, the material logistics landscape is forced to adapt. New technologies offer massive eases to supply chains, but also whole new kinds of risks.
Be that as it may, AI is definitely here to stay and can be used to massively ease many formerly problematic operational particles of material logistics. The main focus should be on training employees in all parts of supply chains to make use of AI in a way that benefits them the most. And of course, the needed skills in cybersecurity measures.
Sustainability takes center stage with eco-friendly packaging and greener transportation methods, significantly reducing the environmental impact of logistics activities. The adoption of electric, hybrid, and rail transport, alongside predictive analytics and strategic contingency planning, underscores a commitment to resilience and risk management in an unpredictable business environment.
These trends not only advance operational capabilities but also position material logistics as a critical driver for sustainable, efficient, and resilient global supply chains, marking a new era in industrial project management.
Did you enjoy this post? You might also be interested in our blog posts on
- Material efficiency in capital projects
- Review from material suppliers on modern materials management tools in capital projects
- Implementing new software in capital projects- how to get supplier buy-in?
References
- https://www.bdo.co.uk/en-gb/insights/advisory/risk-and-advisory-services/sustainable-procurement-reducing-scope-3-emissions
- https://www.chas.co.uk/blog/technology-enhance-construction-site-safety/
- https://dhl-freight-connections.com/en/trends/logistics-trends-2025-ai-makes-its-way-into-everyday-operations/
- https://www.globaltrademag.com/ai-in-supply-chain-industry-booms-usd-157-6-billion-revenue-by-2033/#:~:text=The%20Global%20AI%20in%20Supply,chain%20solutions%20across%20various%20industries?utm_source=Blog&utm_medium=Media&utm_campaign=Logistics-Landscape&utm_content=2025-Supply-Chain-Forecast
- https://www.maersk.com/logistics-explained/freight-seasons/2024/12/13/peak-periods-in-logistics-2025
- https://www.mckinsey.com/industries/metals-and-mining/our-insights/succeeding-in-the-ai-supply-chain-revolution
- https://mercurygate.com/blog-posts/supply-chain-forecast-6-predictions-for-2025/
- https://www.sdcexec.com/warehousing/automation/article/22926584/caster-concepts-ensuring-workplace-safety-in-warehouses
- https://supplychainstrategy.media/blog/2024/12/03/in-2025-10-predictions-from-supply-chain-experts/
- https://www.trinetix.com/insights/logistics-and-supply-chain-trends