FREIGHTTECH TRENDS: ACCELERATING THE TRANSPORTATION INDUSTRY
The trend of digitalization and tech-reliance in freight shows no signs of stopping. Technology allows freight forwarders to optimize their coordination and maximize control, and it is clear that the future of logistics will belong to the companies who can keep up with the times.
ReportLinker mentions the global freight transportation market will reach $7.8 trillion by 2027. This market research stresses that in the coming years, we’ll face a global shift in the vision of freight technologies as demand for transportation agility increases, as does the creation of integrated logistics services accessible on demand.
- The market has become more and more challenging:
- Web-based retail channels are changing the nature of demand
- Personalization and customization of services is rising
- Growing investments in road infrastructure is pushing the efficient use of transit
These developments encourage logistics providers to innovate, accelerate digital transformation, and stay aligned with the latest freight tech market trends.
FREIGHT TRANSPORTATION MARKET OVERVIEW
In an overview on the GrandViewResearch website, “urbanization” and “communication innovations” are shown to be the key global factors amplifying the freight market by 2025. Substantial market growth is pushed by:
- Innovations in freight delivery processes
- New networks with secure contacts and speedy transaction times
- Demand for more reliable shipments that comply with international regulations
- Freight transportation revenue covers one-third of logistics costs, yet barely influences the logistical software system’s performance
- Local and small players hoping to compete in the global arena by using efficient high-tech freight transportation management systems (TMS)
- Clients trying to deliver freight on time at a lower price.
DataBridge, an e-science collaboration environment tool for big data analyses, performed research where they forecast freight market growth at a rate of 6.6% in the period of 2021 up to 2028.
Every transportation sector; air, truck, rail, ocean, and other grows – and this proves the growth of the entire freight industry.
For example, Allied Market Research evaluated the global air freight market at $270.2 billion in 2019 and its expected growth up to $376.8 billion in 2027 with a CAGR of 5.6%. This mode of transportation is evolving from the old mainframe systems to more adaptable interfaces utilized for flight operations management, revenue accounting, and networking planning.
Airfreight transportation providers offer charter, standard, deferred, and consolidated delivery options. The technological shift is more apparent in consolidated deliveries serving fast and efficient logistics with a full aircraft load at lower costs. The focus in this freight industry segment is on flexible transportation to meet specific customer’s needs.
The road freight transportation market is driven by the necessity to boost operational efficiency by a factor of freight tonnage expanding as well as by development shifts in the automotive industry (e.g., self-driving cars). The North American market is now projected to grow by $103.29 billion during 2021-2025 at a CAGR of 2.31%.
The global truck transport market seems to be even more dynamic and is expected to reach $215 billion in 2025 at a CAGR of 8%. We can explain this boost by the faсt that the industry has started to recover from the pandemic.
WHAT ENCOURAGES SUCH HIGH MARKET GROWTH AND MAKES FREIGHT COMPANIES IMPLEMENT INNOVATIVE TECHNOLOGIES?
The necessity to cover wider markets and ship safely and quickly has pushed the freight industry to undergo some changes. Companies have started to empower their operations with smart technologies to be able to satisfy extraordinary demands and preserve customer loyalty. Let’s see some of the measures the global giants have taken to innovate and become technology-driven.
Mobility-As-A-Service
Lukas Neckermann, an expert, author, and speaker for the mobility revolution outlines that modern “zero” demands drive changes and make freight companies implement innovative technologies.
In his book, The Mobility Revolution, he identifies three zeros shaping the innovations:
- Demand for zero emissions to be sustainable and prevent pollution
- Zero accidents to deal with the transportation risks
- Zero ownership to optimize delivery costs
Companies have huge budgets for sustainable transportation. JBF said many of their customers have a $100+ million annual budget for transportation. Because of such large investments, they tend to buy and own transportation systems that are empowered by innovative technologies.
Source: INNOVECS
CATEGORY: Outsourcing News
