87%

agree that IIoT is essential for them to gain competitive advantage

Going places

By 2050 the world’s population is predicted to hit 9.8 billion. This increase in people will result in an explosion in the demand for goods and services. While the need for raw materials will put pressure on the producers in the agriculture and mining sectors, the movement of the components necessary for manufacture and the distribution of finished products will lead to unprecedented changes to global supply chains.

Factor in the increased mobility of urbanising populations, with more people moving, and in greater distances than ever before, and it is clear that digitalisation will be the fundamental enabler to the transport industry.

What is the transport sector's overall IIoT readiness? (%)

Laggards
Starters
Progressives
Leaders

What is the transport sector's overall IIoT readiness? (%)

Laggards
Starters
Progressives
Leaders

Driving efficiencies

One major concern for the transport industry as it carries more goods across greater distances is its growing impact on climate change; our research found that monitoring environmental parameters was the highest rated driver for IIoT deployments in the transport sector. In addition, as demand grows in developing economies for more goods to be transported along multi-modal logistics networks, and these countries further develop their own mass transit networks, the impact of the transport sector on the environment will increase.

While innovations, such as electric vehicles, will offset this somewhat, transport organisations must make radical changes to their operations to ensure that they operate with optimum efficiency. IIoT will play a central role in these efforts.

The transport sector clearly recognises the value that IIoT, in conjunction with other technologies such as Big Data, automation and robotics, can bring in helping to move people and goods across the planet more sustainably.

Emissions in the transport sector are exacerbated by faulty equipment, engine damage and poor route planning, but IIoT can address this. Smart telematics devices and diagnostic sensors can automatically gather vehicle data, including engine management, emission monitoring and driver behaviour to instantly notify fleet managers with damage alerts, faults or inefficient driving alerts.

By proactively improving driving efficiencies, limiting engine wear-and-tear and increasing average miles-per-gallon (MPG), wastage can be minimised, and overall emissions can be further reduced. IIoT will also provide the building blocks for intelligent traffic systems and real-time route planning, enabling drivers to adapt to poor weather, road closures and traffic density to ensure all vehicles take the quickest and most efficient route to reach their destination.

IIoT sensors, meanwhile, can monitor shock detection, heat and moisture, as well as location and security tags, providing logistics managers with an all-encompassing, granular view of how their cargo moves across their supply chains, enabling them to identify friction points and optimise the flow of global trade.

The transport sector is well ahead of its counterparts in agricultural and extractive industries when it comes to IIoT readiness

Roadblocks ahead

We surveyed the freight, logistics, mass transit, rail and container sectors, and while there is still some progress to be made before global supply chains resemble connected networks, there is good headway being made in IIoT adoption across the sector. With over half of respondents categorised as leaders or progressives in their readiness for IIoT, the sector is well ahead of its counterparts in other industries, using data and technology to move towards more digitally-oriented operations.

While it is encouraging that the transport sector is well ahead of its peers in other industries, this may present challenges when managing global supply chains. If a shipment of iron ore can’t be tracked from the moment it is extracted in Western Australia to when it arrives in the form of steel pilings at a construction site in Guangzhou, then friction points and inefficiencies will remain in the supply chain, costs will continue to be higher than necessary and global trade will suffer.

With transport taking an early lead on IIoT innovation, the other industries surveyed in the report, chiefly mining, energy and agriculture, which are showing lower rates of adoption, must catch up if they are to form a seamless global supply chain.

The transport sector is a fundamental driver of economic development, encompassing businesses that move people, in mass transit and rail, as well as goods, in freight, logistics and containers. Over the following pages we will explore how the transport sector is deploying IIoT to optimise these operations, the challenges it faces in doing so, particularly around a lack of skills and cybersecurity threats, how businesses are using and collecting data, and the level of capital they are investing in IIoT.

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

RESEARCH DEMOGRAPHICS

The transport findings in this research project are based on responses from 125 senior IIoT decision-makers from businesses with over 500 employees in the transport sector. Respondents came from a range of different businesses to provide a complete view of IIoT trends in the transport industry. This included mass transit businesses, freight and logistics companies, and businesses in the containers, taking in businesses that own shipping containers and lease them to freight and logistics operators.

The research surveyed transport businesses from around the world, though particular focus was given to Mexico, Australia and the UK.

 

 

 

 

 

 

 

 

 

 

 

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