The rise of machine learning, artificial intelligence, and the improvements in self driving technology is set to revolutionize the transportation and logistics industries.
BI Intelligence has put together several research reports covering the key opportunities and statistics you need to take advantage of this growing market trend in our brand new Transportation & Logistics vertical.
We’ll explore topics including autonomous freight trucking, connected cars, drone delivery, crowdsourced same-day shipping, machine learning and AI in logistics and how they are poised to transform their industries.
It’s one of the most exciting areas in tech today and it’s going to have an impact on all of our coverage areas. BI Intelligence subscribers will automatically be upgraded to include new Transportation & Logistics coverage, reports, charts, and updates.
Jonathan Camhi is the Senior Research Analyst at BI Intelligence who put together the market reports. We interviewed him about the importance and impact of these new technologies on the world at large. Read the short Q&A below:
What is Transportation & Logistics?
Transportation & Logistics (T&L) is the newest coverage area from BI Intelligence. It covers how digital is revolutionizing transportation and delivery.
In our coverage, we are looking at how new and developing technologies and business models, including connected and autonomous cars, ride-hailing, on-demand delivery, drones, and AI, are changing freight and B2B logistics, e-commerce fulfillment, fleet management, and the auto manufacturing business.
It’s something that we covered in our Internet of Things (IoT) coverage previously, but we wanted to provide more thorough coverage based on feedback from our clients and because the pace of innovation in the space is speeding up.
Why launch the T&L vertical? Why now?
Self-driving cars and trucks, drones, the future of mobility — these are some of the most talked-about topics in tech today. But their real impact on businesses is still not well understood. These aren’t just novelty innovations. They will change the way businesses operate every day.
These disruptive technologies and new business models will have massive ripple effects across many of the industries that we already cover.
In retail, for example, free and fast shipping are the two most important features that drive US consumers to shop online more frequently. That, in turn, means suppliers in manufacturing, agriculture, and other industries are all under pressure to get their goods to market faster.
And, of course, automotive and logistics companies that enable this faster and cheaper transportation stand to win more business and revenue. Being right on the cusp of this shift, this is the perfect time for us to launch this product.
How will this disruption impact businesses?
As we’ve seen in other industries, there will be winners and losers. That will mean massive shifts in value and profits. In the auto industry, new digital entrants could capture up to 20% of the industry’s annual profits — totaling $120 billion per year — from traditional automakers and suppliers by 2030, according to Strategy&.
The shift will be even greater in logistics, where digital technologies could create $1.5 trillion in additional economic value through 2025, according to The World Economic Forum. That additional value will be up for grabs between new digitally driven companies and legacy providers.
It will also impact the bottom lines of companies that rely on logistics operators to move their goods. Retailers, for instance, could see up to $600 billion in additional profits through 2025 from digital logistics and supply chain platforms, The World Economic Forum says.
Who will be endangered by this transformation?
Across industries, legacy players risk being left behind if they fail to get ahead of this transformation. We’re already seeing this shift in retail, where Amazon has leveraged digital tools to make free and fast shipping a competitive advantage. The same will play out in other areas, including auto, trucking, freight brokerage, and last-mile delivery.
Companies that leverage digital technologies to move people or goods faster and cheaper will be future winners. Those that don’t can look to the example of struggling legacy companies across the retail sector to see what trouble lies ahead for them.
Source: Business Insider, “A look into the future of freight shipping, autonomous trucking, connected cars, AI in logistics & consumer deliveries“. (http://www.businessinsider.com/transportation-shipping-logistics-market-reports-2017-11). November 8, 2017.
Image Source: businessinsider.com