To remain in business in the face of intensifying competition in the transportation industry, companies must implement new technologies and significantly enhance the quality of their services. In this article, we’ll discover the current trends reshaping the transportation industry’s outlook, some fascinating statistics, and the forthcoming successful strategies that dominate the entire transport sector.
12 Latest Transportation Trends
Listed below are the top 12 transportation business trends that are expected in 2023.
1. Cloud-based system usage
One of the noteworthy advancements in the transportation industry is the implementation of cloud-based systems. These systems use a software-as-a-service (SaaS) model that provides businesses with unlimited scalability and creative utilization of digital resources.SaaS support provides better profitability and returns compared to on-premise systems. All business operations, such as sales, marketing, finance, and legal benefit from the efficiency and cost savings introduced by SaaS.
2. Free-flowing, integrated travel
The increasing popularity of mobility-as-a-service (MaaS) highlights the demand for more convenient and hassle-free travel. This significant change towards integrated travel and transportation results from various other essential trends in the transportation sector that aim to reduce delays and inconveniences.
There are some minor trends worth noting in the transportation sector. These include
- improving infrastructure
- creating platforms for ticketless travel
- setting up mobility centers for different modes of transportation
- introducing new ideas for last-mile connectivity and micro-mobility
3. Visibility & GPS theft prevention
One of the biggest trends in the transportation industry this year is tracking technologies to improve provenance. This is especially important for e-commerce, retail, and logistics companies that want to prioritize visibility. Anti-theft GPS, for instance, is a method for determining the locations of moving fleets and individual products. Also, additional security measures aid in the prevention of general losses.
4. Automated trucks
The technology for self-driving trucks is still in development. It must surmount several obstacles, including improving autonomous software to operate effectively on urban roads with heavy traffic. However, this is one of the impending transportation trends. In preparation for upcoming technological advancements, transportation companies need to equip their vehicles with self-navigating management systems that learn from actual drivers.
A vehicle equipped with artificial intelligence (AI) and multiple sensors precisely evaluates road conditions. Also, it learns from how truck drivers respond to unusual situations on the road. Through vehicle-to-vehicle (V2V) communication, trucks share newly acquired information with other automobiles, thereby enhancing the latter’s intelligence. In addition, the proliferation of 5G technology accelerates the deployment of self-driving fleets. In terms of driving proficiency, these algorithms ultimately surpass human drivers.
Insurance coverage for trucks
Insurance coverage is still necessary for automated trucks. While drivers handle unexpected situations on the road, being insured provides them peace of mind, especially when transporting large containers or refrigerated vans. Learn more about insurance for refrigerated trucks to get a customized plan for your business.
5. Regulation compliance
Rather than labeling regulatory compliance a trend in the transportation industry, it’s more accurate to name it a necessity. Local, state, and federal governments must inform commercial and public transportation companies of new, revised, or repealed laws and regulations. Electronic logbooks, overtime, and safety procedure requirements are typical examples of timely monitoring regulations.
6. Effect of network connectivity
The network effect is a significant transportation trend that improves the effectiveness of the supply chain by integrating all parts of the technology ecosystem.
A public cloud application for transportation communication creates a network effect. The more partners, the better the efficiency. The app matches loads with capacity, predicts ETAs, optimizes routes, and improves loading and unloading. It also supports sustainability by consolidating loads and reducing vehicles on the road. Moreover, it influences the remaining trends, particularly transportation and period management.
7. Innovation in the transportation management system
Transportation management systems (TMS) are gaining popularity in the transportation industry for their ability to provide a high return on investment. TMS is primarily used to save on freight costs through
- simulation and network design
- cargo consolidation
- selection of less expensive modes
- optimization of multi-stop routes
As freight costs continue to rise, companies are turning to TMS to combat this trend. With technological advancements, TMS has seen significant development, with three influential innovations.
a. Artificial intelligence (AI)
Manage your parking system with the use of AI. It helps to learn about limitations and plan shipments effectively, improving delivery times and optimizing processes while maintaining high service levels.
b. Real-time visibility solutions
These are crucial for tracking product locations and ensuring positive experiences. This has led to significant growth in the transportation industry, particularly for over-the-road shipments. Transportation methods also require visibility tools, including vehicle carrier systems and air cargo. Ocean shipments have unique challenges due to factors like currents and wind velocities.
c. Internet of Things (IoT)
IoT improves TMS by increasing fleet visibility and flexibility. It boosts performance and reduces wait times and maintenance costs.
8. Time slot management
Time slot management is gaining importance and interest as a trend in transportation. Management of time slots assists in organizing warehouse resources in preparation for an oncoming vehicle. The warehouse must know who is arriving and when which begins with the estimated arrival time (ETA).
In addition, warehouse employees require information on
- which port the vehicle arrives
- when is it going to be loaded
- what documents do they need to pick up
- when they must be signed
- when are they leaving the warehouse or yard
There are factors beyond your control that often affect shipments. It’s merely a question of how much impact is to be felt. Applications for period management reduce the effects of alterations. On any given day, loadings and unloadings must be rescheduled due to traffic congestion, missing appointments, or other factors.
9. Autonomous last-mile deliveries
The culminating trend in the future is last-mile delivery transportation. Last-mile and residential delivery is one of the most complex and expensive aspects of supply chain management. However, from the consumer experience perspective, it’s also the most memorable and arguably the most significant. As the e-commerce industry expands, we consider autonomous last-mile delivery a potential solution.
In the past few years, several businesses have conducted drone delivery trials. The use of last-mile drones remains challenging for several factors, including
- FAA regulations
- public perception
- the nature of the technology itself
However, many businesses are investigating using last-mile drones to reduce delivery costs and improve customer service.
Autonomous mobile robotics is the opposite of autonomous residential delivery. However, the term autonomous seems to be somewhat deceptive for many of these businesses. A team of human trackers constantly monitors the vehicle’s location throughout the entire delivery procedure. While behind-the-scenes employees primarily watch the robot, a human employee uses a remote control to operate or troubleshoot the vehicle if the robot encounters problems. Moreover, if the robot becomes trapped or unable to complete the delivery, these employees intervene and finish it themselves.
10. The rise of electric vehicles
It’s predicted that the use of electric vehicles (EVs) continue to increase in the transportation industry, becoming one of the biggest trends by 2023. Developments in battery technology and a growing concern for sustainability are leading more consumers to choose EVs over traditional gas-powered vehicles. Major car manufacturers are investing heavily in EV development and production, which is expected to further drive this trend in 2023.
The rise in EV use poses opportunities and challenges for transportation companies. On the positive side, businesses providing EV charging infrastructure or services benefit from the increasing demand for EVs. However, traditional gas stations and mechanics need help as the market moves towards non-gas-powered vehicles.
11. Big data analytics
Big data analytics is revolutionizing the transportation industry by gathering and interpreting vast amounts of data. This offers transportation businesses valuable insights into customer behavior, market trends, and operational performance. In the coming years, we expect a surge in investment in big data analytics technology as businesses strive to enhance their operations and maintain their competitive edge.
The transportation industry is expected to prioritize sustainability in 2023 due to growing concerns about its environmental impact. Transportation companies must adopt more eco-friendly practices and reduce their carbon footprint. While this presents challenges, it also offers opportunities for businesses that effectively implement sustainable solutions. However, companies that ignore this trend tend to suffer reputational damage and lose customers who prioritize environmental consciousness.
Transportation businesses need to remain current with the latest industry trends and technologies
The industry is shifting towards equity, accessibility, sustainability, and collaboration. Experts predict a bright future where consumers in this market prefer a shared economy and support environmentally friendly logistics.
The transportation and logistics industry is undergoing significant changes that do have a transformative impact, while some elements remain the same. These shifts benefit fleet managers by making their job less demanding and positively impacting sustainability, cost reduction, productivity, security, and safety. Although it’s impossible to predict what 2023 brings, these trends indicate where the industry is heading. These changes lead to improvements in efficiency and convenience and a reduction in the need for physical labor, which requires adaptation for survival. Despite the challenges, these exciting times of advancement hold great promise.