The transportation and logistics industry is in a time of rapid transition characterized by evolving shopping and transit trends.
E-commerce is becoming the shopping channel of choice for consumers, putting pressure on logistics companies to process higher volumes of goods and ship them faster.
New transportation models are reducing the need for consumers to buy cars, requiring automakers to find new ways to recoup revenue from lower sales.
Every industry becomes a global industry with the integration of the Internet. First technology revolutionized the way send and receive information, and now it’s fundamentally transforming the way people and goods are physically moving around the world.
With innovations like self-driving vehicles, drone and robotics delivery, mobility apps, and artificial intelligence, the transportation and logistics industry has been rapidly developing to keep up with rising consumer demand — and the next five years will only accelerate this transformation.
But to successfully navigate a changing landscape, individuals and organizations must understand the full extent to which digital transformation will affect the transportation industry, the key drivers of this growth, and how it all relates to the work they do every day.
Business Insider Intelligence, Business Insider’s premium research service, has forecasted the future of the changing transportation ecosystem in the Transportation & Logistics Forecast Book 2018. Here’s where to expect some of the biggest shifts:
E-Commerce: Online purchases – including a growing number of cross-border sales – have been steadily increasing every year for the last decade. The number of packages delivered daily has skyrocketed, and the proliferation of Amazon Prime’s “free shipping” perk has created high expectations among consumers — putting pressure on other retailers and their logistics partners to offer same-day shipping at competitive prices.
Autonomous vehicles: By 2023, 1 in new 7 vehicles will be semi- or fully autonomous, and nearly all will be connected with internet access for data transmission — presenting a huge opportunity for other digital providers to integrate with this new “platform” and offer consumers more services.
On-demand mobility: Ride-hailing and ride-sharing services such as Uber and Lyft comprise a growing percentage of total miles driven in the US — and will only continue increasing with the adoption of self-driving cars. The uptick in these services is stifling car sales, however, as consumers feel less of a need to own their own vehicles. Automakers will need to find ways to adapt and drive revenue.
Want to Learn More?
People, …read more
Source:: Business Insider