The transport industry tracks slightly ahead of other sectors when it comes to investing in IIoT. With 57 per cent of the industry identified as progressives or leaders, the transport sector is clearly stepping up its investment in IIoT, at a seemingly commensurate rate with the level seen across the other sectors examined in this report.

Transport businesses expect to invest an average of $3.5million in their IIoT development over the next three years, accounting for approximately 8 per cent of their total IT budget. Leading the field is the rail sector, expecting to spend 11 per cent of its total IT budget on IIoT development and deployment, with the logistics sector not far behind with an expected 9 per cent spend, above the industry average of 8 per cent.

HOW WILL THE TRANSPORT SECTOR INVEST IN IIOT? (%)

Laggards
Starters
Progressives
Leaders

HOW WILL THE TRANSPORT SECTOR INVEST IN IIOT? (%)

Laggards
Starters
Progressives
Leaders

Transport businesses expect to invest an average of $3.5million in IIoT over the next three years

The complexity of operations in the rail and logistics sectors perhaps goes some way to explaining why businesses are investing heavily in IIoT monitoring to optimise their operations.

While the container industry is prioritising asset tracking-related IIoT deployments, the  rail and logistics industries are pursuing a wider range of applications.

With more staff put into potentially dangerous situations such as railway lines and ports, rail and logistics businesses can use IIoT to monitor and track staff health and safety.

Monitoring vehicular energy consumption and environmental impact is also a key priority for rail and logistics firms’ IIoT deployments, and we should expect to see already high deployment rates (79 and 76 per cent have already deployed this to some extent) grow even further.

WHAT PROPORTION OF YOUR IT BUDGET DO YOU EXPECT TO SPEND ON THE FOLLOWING TECHNOLOGIES OVER THE NEXT THREE YEARS (%)

Cloud computing
Big data analytics
IoT-based solutions
Next generation security
Machine learning
Cognitive AI
Augmented reality
Virtual reality

WHAT PROPORTION OF YOUR IT BUDGET DO YOU EXPECT TO SPEND ON THE FOLLOWING TECHNOLOGIES OVER THE NEXT THREE YEARS (%)

Cloud computing
Big data analytics
IoT-based solutions
Next generation security
Machine learning
Cognitive AI
Augmented reality
Virtual reality

The wide range of use cases for IIoT in rail and logistics is further underlined in their expectations for how IIoT will help them to reduce their costs over the same three-year period. Businesses within the rail sector reported that they expected to save approximately 12 per cent of their costs, and logistics business 10 per cent. While this is still a relatively impressive figure, the industry should step up its level of investment if it is to reap the full benefits of IIoT solutions.

The expected growth in turnover from the use of IIoT also shows the mass transit and rail sector to be leading the way in the transport sector. The sector expects to grow its turnover by 8 per cent by using IIoT, well above the industry average of 6 per cent, leaving sectors like freight and logistics (5 per cent) and containers (6 per cent) with much ground to make up.

WHAT OPERATIONAL COST SAVINGS DO YOU EXPECT TO ACHIEVE WITH IIOT? (%)

Mass transit and rail
Freight and logistics
Containers

WHAT OPERATIONAL COST SAVINGS DO YOU EXPECT TO ACHIEVE WITH IIOT? (%)

Mass transit and rail
Freight and logistics
Containers

FOR MORE INFORMATION ON THE RESEARCH, DOWNLOAD THE REPORT - INDUSTRIAL IOT ON LAND AND AT SEA: TRANSPORT

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