As we moved into the second half of 2024, the transport and logistics sector continues to experience a profound transformation driven by rapid technological advancements. Those businesses leaning into the increasing demand of ecommerce and end-to-end shipping logistics need to keep one finger on the pulse of current and emerging trends to remain competitive. Everything from adopting IoT integrations inside vehicles to automotive telematics and cloud-based TMS (Transportation Management Systems) is shaving off miles and time so packages can arrive at the most accurate locations on time and within budget.
Here are the most significant logistics trends affecting the 2024 market and how telematics technology is posed to change everything.
2024 Transportation and logistics industry trends
Ecommerce continues to skyrocket
Even before the global pandemic, the increasing demand for online and digital point-of-purchase sales via ecommerce platforms has grown. The current projections for the end of 2024 have the market at around $4.117 billion USD, with a growth rate of 9.49% leading up to 2029.
The reason for this massive shift toward online shopping is primarily convenience and diversity. Shoppers love being able to relax on their couch and pick out this year's clothing trends, appliance replacement parts, and video games for birthdays.
All that demand requires logistics providers to adapt by introducing digitization within fleet management systems. Technologies like real-time GPS tracking to monitor vehicles backed with AI-driven route optimization allow for normalized estimated transportation times that can quickly workaround traffic, weather, construction concerns, and provide driver safety. For example, a recent Wialon case study resulted from an unexpected truck explosion. Without key tracking metrics, such accidents are a mystery to business owners. Using tech unlocks what information is needed to adjust for the future and eliminate risks.
The power of automation
Another crucial trend for anyone considering transportation and logistics sector is complimenting technology with automation. Utilizing autonomous vehicles that cut down on potential human medical bills due to accidents to fully mechanized warehouses, the global market for automated logistics is projected to exceed $217.26 billion over the next nine years. However, the current state of automation in 2024 is particularly noteworthy for several reasons.
We are witnessing a surge in the deployment of autonomous delivery vehicles, including drones and robotic couriers that overcome challenges in urban and rural settings transforms how we deliver goods during every phase of transportation. Additionally, utilizing systems with complete AI-backed innovations in logistical analysis improves how parcels are sorted, packed, and distributed.
When massive companies like Amazon transportation and fast food restaurants like Chick-fil-A introduce autonomous robotics that automate the entire ordering system, you know we’re on the verge of a trend breakthrough.
Sustainability & eco-friendly systems in logistics
The “green consumer” is a new market segment that requires brands to seek out eco-friendly systems that leverage sustainability. In the realm of logistics and transportation, this can be a serious challenge, given how many trucks and transportation vehicles require fossil fuel to operate.
One way companies are introducing green initiatives is by buying into government-run tax and bonus incentives for purchasing EV (electric vehicle) fleets. In 2023 alone, the U.S. saw a 60% surge in EV purchases compared to 2022. With such a surge, active tracking of location data helps improve green initiatives. GetGPS partnered with Gurtam's GPS-Trace for one such solution, using durable, low-powered GPS trackers that provide reflective signals for transmitting data like where an EV travels, how often it remains idle, and more – all through easy to monitor data accessible through the Ruhavik mobile application. The idea of green operations isn’t limited to EVs. Some other rising options in this trend include:
The idea of green operations isn’t limited to EVs. Some other rising options in this trend include:
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Vehicle Telematics: Using on-board and GPS-driven tracking to improve route optimization and driver behavior analysis that reduces fuel emissions.
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Alternative Fuels: Purchasing biodiesel, hydrogen, and natural gas options instead of regular unleaded/leaded fossil fuels.
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Energy Efficient Technologies: Seeking vehicles and other vehicle designs that lead to aerodynamic structures, high-efficiency tires, and anything else that reduces fuel demand.
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Fleet Maintenance Practices: Hiring managers to proactively maintain vehicles to cut down on expensive repairs that also affect emissions and fuel consumption.
Combining all of these efforts leads to a logistics industry using far fewer natural resources that end with carbon emissions. In some cases, these initiatives far outweigh purchasable carbon offsets, allowing a brand to market reduced fuel usage and greener logistical systems.
Data focused decision making for transport management
The best way to make decisions about any transportation or logistics company is to have all the information at your fingertips. Without that crucial data, knowing which vehicles to send on what routes becomes a significant challenge that can cripple a business overnight.
One of the more persistent trends marking a highly competitive logistics provider is using data-centric approaches to transport management. Being able to monitor vehicle health for maintenance planning or using automotive telematics devices to know when a driver isn’t following current driving conditions is crucial to future operations.
An emerging foundation for data-driven strategies is Transportation Management Systems, collecting all necessary data, effectively shifting through mountains of information for new insights and efficiencies. A modern TMS may include:
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Real-time tracking: knowing where your vehicles are in relation to transportation status and current environmental concerns like construction or traffic.
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Route optimization: adapting any current routes to the most efficient pathways to lower fuel consumption and transit times.
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Automated scheduling: planning proactive maintenance and repairs to avoid downtime and increase fleet readiness.
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Performance analytics: using current and historical data to unlock new projections and trends for stakeholder decision-making.
When used in combination with telematics and IoT solutions, TMS technologies allow logistics providers of all sizes more control over trackable parameters. A team will know when tire pressure is low, which could cause an accident, before the driver steps into the vehicle. A manager can automatically update customers on the location of crucial deliveries.
New operational standards with TMS improve how a company can meet demand and rising transportation complexity.
Asset tracking & IoT for logistics
Asset tracking is a trend many logistic providers are marketing due to the easy access to IoT tools like smart sensors, GPS trackers, and RFID tags. The global smart sensor market is expanding rapidly, with a projected growth rate of 18.30%, reaching $129.42 billion by the end of 2029. This surge in smart sensor adoption highlights the critical role these technologies play in modern logistics. These tools allow companies to safely and accurately know where items are along the supply chain for future analysis and to pass on updates to end customers.
Each of these devices safely monitors shipments so they maintain a “chain of evidence” that customers can trust. Smart sensors oversee environmental conditions like temperature and humidity. GPS tracks provide the location data crucial to more efficient deliveries. RFID tags track shipments in larger containers for international movements.
A comprehensive approach to asset tracking can bring new opportunities for software developers, as it is for Gurtam's GPS-Trace. This symphony of logistics is transforming the industry due to more accurate and instantaneous information access from all levels of stakeholders.
Digital twinning in logistics
The entire idea of digital twinning comes from government-backed research facilities like NASA and DARPA. The idea is simple. Use a digital replica (twin) of a location, item, or procedure to then run scenarios or interactions so you can perfect specific outcomes.
Digital twins are often used by engineers and architects to look at products or buildings for any weaknesses when outside factors are applied. In logistics, they allow businesses to stimulate supply chain operations and run scenarios based on data collected from IoT sensors. They unlock new opportunities to boost overall performance by viewing a system from a holistic approach.
Some of the ways you can see digital twinning being utilized by logistics providers include:
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Bluetooth Low Energy (BLE): BLE is a short-ranged data transmission perfect for smart sensors monitoring the condition of packages, equipment in place at a warehouse, or environments where parcels are kept. Gurtam created a low power, long term data transmission solution in BLE for flespi, providing accurate coordinates and positioning of employees and controlled access locations.
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Narrowband IoT (NB-IoT): NB-IoT maintains the same low power factor as BLE, but in high-density environments over a wide area. It gives you more access to data over large distances, including more remote locations rather than urban areas.
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Long Rage (LoRa): Again, using low power, you get a wide area network tech that helps maintain information connectivity with crucial deliveries and sensors. You often find these types of twinning technologies in more significant logistics hubs or supply chains with multiple steps and customer touchpoints.
Digital twinning is one of the emerging trends to empower businesses for improved asset condition monitoring. Now, shipments can be safely updated with current internal and external temperature, humidity, and vibration data points for everyone’s peace of mind.
Such asset replication through digital systems simulates numerous scenarios. Teams are able to predict how certain routes will work over others or what will happen when a sudden spike in demand places a larger-than-average toll on current fleet management. Even something as simple as improving the warehouse layout is more effective through this technology.
At the end of the day, you want digital twinning to help optimize operations without falling into any potential pitfalls that could have easily been detected through unforeseen events, given the digital replica of current supply chains. These contingency plans allow for proactive planning when things go in a less desirable direction.
Looking to the future of transportation and logistics
The trends affecting the transportation and logistics industry in the coming years are only going to grow in technological complexity. Drones and rapid AI evolution are likely to transform the industry, and having a modern fleet management system in place with IoT devices and automotive telematics will be crucial to maintaining current or growth market shares.
The fact is consumers are not going to slow online ordering and ecommerce demand anytime soon. If anything, that demand is becoming more varied due to the rapid adoption of B2B sales as much as B2C. The companies that will usher in this new era in the years to come must embrace new technology automation and advances now to build a foundation for later.