Transportation Industry Analysis
The transportation industry is the backbone of the US economy and an integral part of almost every business. It takes a major share of a nation’s GDP for investment, revenue generation, and employment creation. By investing in this sector, many multinational companies position themselves to better facilitate the flow of goods in the market. However, companies must analyze numerous distinct business models existing within the transportation industry that are reshaping the industry with the involvement of newer megatrends. Not only this, but they should also assess how the entry of new players is giving the desired momentum to the industry. To help companies analyze all such factors, we have highlighted the key factors impacting the transportation industry growth and market size.
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Key Factors Impacting the Transportation Industry Market Size
Fleet management system
The new age fleet management system now offers a variety of new features and functions. Managers can set up geofences to track the movement of vehicles, optimize routes by leveraging real-time data, and improve vehicle utilization. They can also track vehicle maintenance needed to avoid breakdowns. Additionally, they can track factors impacting the safety of vehicles and improve their services. This is improving the services offered by the industry and increasing the transportation industry market size.
Emergence of e-commerce alongside traditional channels
Growth of online-driven business (B2B) and business-to-consumer (B2C) has magnified the criticality of meeting customer expectations. This has increased pressure on the transportation industry to reformulate their e-commerce transportation strategy and enable delivery speed apart from delivering dependable and flexible services. Shippers can no longer rely on any shingle mode of transportation to improve their customer experience. Therefore, companies must focus on improving visibility, enhancing end-to-end transparency across the entire network, and delivering competitive services at profitable margins to increase the transportation industry market size.
Internet of Things
The IoT technology makes it possible for companies to monitor equipment, control devices by using sensors and network communications. It can up-stream in the ordering, processing and warehousing chains and make the supply chain more responsive. During transport, companies can gain better insight for shippers and receivers, capture information about the truck and environment, provide last mile visibility to cold chain logistics companies and improve the transportation industry market size.
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Drone delivery and driverless cars
While few big companies have announced their plan to use unmanned flying drones to deliver products to customers, cost factors are likely to postpone their operations for a few more years.
On the other hand, driverless vehicles can affect the logistics and transportation market size. Companies have already started testing driverless cars on open roads and working to improve the capabilities of such vehicles. Also, some manufacturers have introduced semi-autonomous driving capabilities in their vehicles. This will address the issue of labor shortage and improve safety while increasing the transportation industry market size.