We are living in a world of numbers, which are stacked on a flashy screen of Nasdaq. The ups and downs could be because of disruption among nations or an invention that is promising enough to roll over the figures worth $12,256 billion by 2022? Hold your hearts as this blog is bringing you the overview of transportation business growth while technology, economy, solutions & trends in the upcoming blog series.
Well, above we were referring to: ‘The Wheel.’ Yes, you read it right! The invention of the wheel has helped us establish a strong presence of the transport network in Railways, Roadways, Airways, and Waterways. The multiple modes of transport paved the way for the Transportation Business Growth.
The invention not only propelled personal transportation but also gave rise to the logistics. It influenced global trade activities, trade-related agreements, and building infrastructure (warehouses) to support logistics. All these lead to the massive growth of the Global Transport & Logistics Market.
|Question: Do you think Science fiction has influenced the present and future of the transportation industry?|
Later about science fiction. Over the years, transportation business growth has provided essential socio-economic benefits. Transportation & Logistics are the backbones of the economy and an integral part of almost every business. In such a wake, it becomes quite essential to understand how strategic is Transportation Business Growth.
The Rise of Transportation As Business Growth
Let alone be any industry sector from healthcare to entertainment, the customers have realized the vital role played by transportation. When managed effectively & efficiently for a company, it can play wonders as a strategic component for transportation business growth.
Companies are willing to explore and pay additional fees for certain value-added services. For an emerging economy, this could mean on-time, safe & secure delivery while, on the other hand, for the mature developed market, it could be network transport optimization.
In either case, the evolution of transport is market dependent, meaning; its face-value differs based on market and geographic region. The expectations are doubled when it is merged with technology-based industry solutions such as using IoT, Big Data, AI, Autonomous Vehicles, etc.
The digital transformation in the transportation industry has pushed the capability to deliver greater visibility, streamlined reporting, real-time issue resolution, optimization, last-mile solutions, and more. A bit more in-depth about it in our further parts but as for now, to cite the leading Transport & Logistics (T&L) industry sectors below is the data graph showing the significant market share capture:
The logistics or trucking sector is sitting on the top spot at $800 billion shows transport growth in the trucking industry. Furthermore, it is growing steadily over the past five years. And has accounted for 75% of the total freight revenue generated. Let’s see a brief about each sub-sector of the transport and logistics sector.
Trucking Industry Growth
Trucking has always been the backbone and has digested the maximum share of the country’s freight. Unchallenged dominance proves that it can reach the heart of every city with its networking capacity and deliver reliable services. Though at a steady rate, the trucking industry sector is getting more active in intermodal logistics operation and small package delivery.
Over some time, the trucking industry growth has faced backlash and needs to find a workaround for the long-haul portion of the trucking industry, better pay, optimal use case of transportation & logistics software stack, etc. The deregulation has left the market door open for many new players to compete.
The air transport industry is quite active in adapting to market trends to deliver efficient services via express packages or air freight carriers. This makes it more capital, labor, and technology-oriented area of transport and logistics. The air cargo industry is seeming to stop at nowhere with an incredible 110% rise since 1980.
The railroad industry is in the midst of some high transition phase. It provides significant awareness opportunities that intermodal containers provide to the transportation industry. The intermodal traffic makes up about 28% of total rail car loadings. On the contrary, container handlings have increased by nearly 300% since the same period.
(A piece of $12,256 bn?)
|IBEF (India Brand Equity Foundation) speculates an investment requirement of over $777 billion in infrastructure by 2022 for the nation to walk on the path of ‘Sustainable Development Goals’ (SDGs) defined by the UN, with a major part of that investment directed to the transportation sector in the country.|
How Far Is Your Current System In-Line To Utilize The Full Potential To Grow Your Transport & Logistics Business?
How Transportation Business Growth is Empowering the Globe?
Below is a gist of how the entire transport industry investment structure based on world geography. The report shows an average annual Transport Business Growth rate, which is predicted for the investment pattern until 2025. Based on the figures, the highest that is the Asia-Pacific region is inversely proportional in relation to its counterpart, i.e., the lowest Sub-Saharan African region. The former will grow at the average rate with investment in transport infrastructure from $557 to $900 bn per year by 2025. Whereas, the African region is going to grow with the fastest average annual growth rate of over 11%. The figure makes one thing quite clear that there is a huge potential in the future of the transportation industry. The credit for the rush in the transportation business growth is also due to the current upbeat in the digital transformation in the transportation industry.
On the contrary, it is also interesting to go through a summary of the ‘Global Infrastructure Investment’ report for the period till 2040 that has forecasted the figure to be the US $94 trillion. This is 19% higher than the current trends and is an average of $3.7 trillion per year.
Why Risk Not Being Part of the Trillion $ Transport Industry?
The below-shown study primarily reflects the spending capacity on infrastructure until 2040, keeping in mind the economic and demographic changes. The research was broadly based on the two sets viz., infrastructure investment to continue as per current trends & the ‘investment needs’ by all the countries if all of them were to up the ante of performance. However, that void between the two generates an ‘investment gap’ and throws in a few challenges of the Global Infrastructure Investment for the sectors Electricity, Road, Telecoms, Rail, Water, Port, Airways (see below figure). Circling back to the topic, the road sector single-handedly accounted for the investment of US $586 Billion for the period 2007-2015.
Do stay on this dial to know more about such insights & how to be a part of Transportation Business Growth in our upcoming blogs.
The transport voyager of the USS Enterprise from the science fiction Star Trek is a giant auxiliary starship designed to travel at warp-speed. Irrespective of being fictional, it showed mindful innovation in the field of human transportation technology. So does science fiction influence our future of the transportation industry?
Let’s now focus on what are the current challenges encountered by the transportation & logistics industry.
Challenges Faced By Transport & Logistics Industry
- Changing Customer Expectations
- Supply Chain Integration
- Digital Transformation
- Evolving Technology Requirements
- Core System Enhancements
Changing Customer Expectations
In the data-driven economy, customers are now data-enabled and demand a service where they are informed or aware of their goods, packages, etc. Additionally, today’s tech-savvy business gen is varying with whom and how their business is communicated. This level of sophistication has set an expectation bar for service providers. Primarily to understand their clients’ business and provide feedback or updates as close to real-time as possible. There is an urge to understand all aspects of the transport and logistics process.
Supply Chain Integration
Changing policies, monitoring trade, geopolitics, and following compliance aren’t enough when it comes to matching flexibility in shipping. Technology is pitching whatever it can. However, the major contribution has to come from organizations to integrate with the entire supply chain.
Digital transformation in transport & logistics is raking in huge investments. It has opened a new perspective on how the collected data can be beneficial to the business. This transformation has differentiated by bringing in innovations in products and services in the niche market.
Evolving Technology Requirements
Merely half of the transport and logistics companies are still unclear with the silo service approach, especially when it comes to their IT system. Business owners need to upgrade their traditional system by incorporating and integrating modern solutions into their process.
Core System Enhancements
Overlapping of system architectures and applications is a common sight among organizations when they undergo mergers and acquisitions. Above all, this requires the utmost attention and investment to manage & maintain such mission-critical systems.
We will be discussing region-specific challenges in detail & more insights in our next blog. But for now, let’s check the answer!
|The answer is – Yes, Science Fiction has influenced the present and future of the transportation industry.|
Yes, science fiction has determined our future and especially the transport industry. But moreover, science fiction brings the imagination and out of the box ideas on a single platform. The transportation industry has experienced the closest adaptation of technology advancements depicted in science fiction.
Evolutionary technologies like driverless cars, personal space travel, flying taxis, etc. have been tried & tested with the prototypes, and a few ones are now in production. In conclusion, it is undoubtedly going to change the way we commute.
Click here to see the correlative infographic on science fiction influencing transport technology.
Stay tuned to us for our continued next blog series to know more about the impact & growth of the logistics industry. We will also present a detailed analysis by the geography of the U.S logistics market report as well as Europe and Africa. Not to mention the insights on logistics trends, challenges, solutions, and growth opportunities in the logistics business.