Automated Freight Transport Market: Introduction
- Increase in consumers’ orders and developments in delivery systems, user interfaces, autonomous control and multimodal communications are estimated to propel the automated freight transport market during the forecast period
- Freight transport is the process of moving cargo, goods, and commodities via air, land or sea. Freight transportation is commonly connected with cargo shipping by huge ships container carriers, railroad, trucks, intermodal, and aeroplanes. Automation in freight transportation monitors all shipping activities and provides effective cost and mobility solutions. Moreover, automated fright services deliver goods to their destination safely and on time.
Key Drivers of Automated Freight Transport Market
- Rising integration of advanced technologies in cargo shipping including machine learning, artificial intelligence, multimodal communications, and user interfaces is expected to propel the market. These technological advancements make transportation systems completely automated and eliminating the vulnerabilities in shipping solutions of different sectors. Moreover, aerial freight has extensively deployed drones to send and receiving goods, which can carry between 4.5 pounds and 700 tons of weight. These drones are designed to deliver goods in intercontinental segments, and they can be remotely operated. Additionally, autonomous rails, trucks, and ships are equipped with several sensors that help mimic a detailed scenario of their surroundings. These scenarios are in real-time and help monitor the shipping, which provides high level of accuracy and security. Therefore, use of advanced technologies in shipping boosts the automated freight transport market.
- Rise in number of orders and use of e-commerce portals has also enhanced freight management solutions through fresh forms of mobility, optimizations, and better analytics. Increase in international trades has further fueled the demand for freight management services. Moreover, several companies offer third-party logistics (3PL) solutions that further contribute to freight management solution and services, which in turn also boost the automated freight transport market.
Challenges in Global Automated Freight Transport Market
- Implementing autonomous vehicles on road pose enormous challenges to solution providers, owing to the threat of data security. Governments need to implement regulations that can address concerns regarding data privacy and security. Furthermore, governments need to generate policies that can ensure the functionality and safety of autonomous vehicles.
- The COVID-19 pandemic prompted the announcement of lockdown by governments across the globe; consequently, all shipping, transportation, and delivery services were closed or shut down, which hampered the global automated freight transport market. Additionally, electronics and electrical component manufacturing processes where also stopped, which hindered the integration of advanced component solutions on transportation channels. This, in turn, further restrained the market.
Opportunities in Automated Freight Transport Market
- Rising delivery expectations by consumers is boosting delivery speeds, and solution providers are also focusing on enhancing their delivery solutions. Moreover, rise in parcel volumes, increase in population, urbanization, purchasing power, and shift toward e-commerce further contribute to the development of delivery systems and offers significant opportunities to integrate advanced technologies in transport services. For instance, in China, daily parcel deliveries tripled from 57 million units in 2015 to 145 million units in 2020, which also creates an opportunity for freight forwarding advancement.
- Increasing demand for energy-efficient solutions for freight transport is prompting governments and solution providers to upgrade their existing trucks, rails, and ships with advanced solutions. This, in turn, is expected to drive the automated freight transport market during the forecast period.
Automated Freight Transport Market in North America to Expand Significantly
- Popularity of freight transport is increasing in North America, due to well-established industrial standards, technological integration in the transportation channels and overstretched infrastructural development. In the U.S., the total miles traveled by a vehicle is increasing due to sustained acceleration in e-commerce platforms. Moreover, the U.S. delivery partners have initiated their deliveries with autonomous trucks (ATs), which further changes the utilization and cost structure of trucking. According to a report by McKinsey, in 2018, 65% of the U.S. region’s consumable goods were delivered via trucks to the market, whereas by automating these systems, the operating costs of delivery would decrease by around 45%, which saves between US$ 85 and US$ 125 billion. Furthermore, rising population in Asia Pacific countries including China, India, and Japan has fueled the demand for delivery and transport, which further propels the automated freight transport market.
Key Players Operating in Global Automated Freight Transport Market
The automated freight transport market is moderately consolidated. A few of the key players operating in the global automated freight transport market are:
- JDA Software
- FedEx Corporation
- Manhattan Associates
- SNCF Logistics
- Descartes System Group
- DHL International GmbH
- DSV Panalpina A/S
Global Automated Freight Transport Market: Research Scope
Global Automated Freight Transport Market, by Mode of Transport
Global Automated Freight Transport Market, by Deployment
Global Automated Freight Transport Market, by Solution
- Freight Transportation Cost Management
- Freight Mobility Solution
- Freight Monitoring System
- Freight Security Solution
- Freight 3PL Solution
- Warehouse Management System
Global Automated Freight Transport Market, by End-use Industry
- Aerospace and Defense
Global Automated Freight Transport Market, by Region
- North America
- Nordic Region
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
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- Asia Pacific and Japan
- Latin America
- Middle East and Africa
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- What are the major recent trends that can influence the product life cycle and the RoI?
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