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Trends Transforming The Transportation Industry Outlook in 2023

Transportation plays a big role in how people live their lives. Progress and development hinge in part on transportation. Just imagine if the Wright brothers did not invent the airplane, travel to other countries will require spending tedious and long hours on a boat in the middle of the turbulent ocean. Transportation is crucial because it paves the way for growth and exchange. Because of international shipping lines and air freight services, the world is now a global village because collaboration between various businesses worldwide is made possible and a lot more feasible with transportation. Take a look at the top ten trends and interesting statistics in the transportation industry for 2023:

The Buzz About Transportation Digitalization

Digitalization is not a new trend because it has been a buzzword for several years. But the thing is, digitalization continues to progress each year. Transportation business processes from administration, contracting, production, and other operations continue to evolve digitally. Studies indicate that more than half of transportation companies expect digitalization to improve their profitability. Companies can produce better vehicles, air crafts, and ships by redesigning services and modifying products. On top of that, simplifying processes and tapping into new talents educated with the latest engineering concepts help boost the transportation industry. Digitalization has forever been present since Henry Ford crafted the first model T Ford car that made travel faster, saving time, effort, and money. Digitalization will always be a trend in the transportation industry year after year.

Begin Reliance on Data Analytics

Transportation supply chain professionals rely on data analytics to examine, analyze, and interpret consumer trends. Studying the data ensures that they can make informed choices so that decisions about issues like the risk and costs of tariffs, suppliers to get, manufacturing issues, and logistical requirements are grounded on facts and not conjectures. These details help transportation companies make better decisions, and it helps them craft strategies to tap more clients and improve their product base.

Persistent Shifts in International Trade

International trade has never been flat and one-dimensional. It is multi-dimensional and rests on many outside factors. In the transportation industry, the persistent shifts in international trade have the capacity to influence local markets, such as what products will be imported, what will be sellable, and what needs more marketing work. For instance, China’s One Belt One Road (OBOR) trade project shows them investing in Africa and the Middle East. They have invested in roads, rail lines, ports, and bridges. Just as the US’s influence is beginning to wane, China’s economic expansion with the development of trade routes shows the country’s might and influence. These massive shifts have impacted the transportation industry, with many manufacturers choosing to focus their attention on the developing countries backed by China,

Damaged Infrastructure

If there’s one thing anyone cannot predict nor stop, it is natural disasters. Countries worldwide have been suffering immensely from natural disasters they have no control over. Hurricanes in the United States, massive earthquakes in Japan, or tsunamis in Indonesia have impacted transportation infrastructure, which these countries have difficulty recovering from. As a result, there has been a wane in transportation production in these affected areas because they are more focused on recovery. These areas that have undergone a recent natural disaster are considered huge financial risks.

Environmental Considerations

With the pressing issues of global warming and climate change that have impacted all the nations around the globe, people have become more environmentally aware. People are now known to take the environment into consideration in their transportation decisions. Electric cars that are seen as better for the environment because they emit fewer carbon emissions and consume fewer fossil fuels have increased sales. People have also made conscious efforts to lessen their carbon footprint by carpooling or taking public transport. Wanting to do their part for dear mother earth has had many people resort to walking, ride-sharing, taking their bikes, and the like to work, school, or other areas.

Telecommuting and Working from Anywhere

Thanks to technological advancements, anyone can work from home or anywhere else. Computers and the Internet have made it possible for people from around the globe to interact and engage in business. Connecting with digital resources and accessing work from anywhere is now a trend in the new generation. As a result, most people who engage in this nomadic lifestyle do not need transportation. In some areas, sales have dropped because people who can telecommute to work no longer need them. With apps like Uber and Lyft, owning their car is no longer a priority. On top of that, using the ride-sharing option allows people to socialize in what would have been a long and boring commute.

Software Driven Changes

The improvement of software has affected many things in the transportation industry. Apps like Uber and Lyft allow people to hire cars easily, so they can dispense with the hassle of owning and maintaining one. On top of that, there are apps for private jets like JetSmarter, which is considered the Uber for private flying. Apps have made it easy for people to book flights, bus tickets, and boat trips. Checking of schedules can also be done with this various software. Aside from that, automobile software built into the vehicles has also evolved. Now, many options are built into the vehicle to protect the driver and occupants. Examples are road collision sensors and built-in GPS, which can be optimally used with the app Waze, parking navigator, and the like.

Safety Considerations

Transportation has always been built with safety as the number one priority. After all, these modes of transport are mere machines that can fail from time to time. Aside from human error, things from within the machines themselves can fall apart, causing accidents that result in injury or fatality. For boats, airplanes, buses, and trains, there are standards for these public transport services to be given accreditation and the necessary permits. Because they are tasked to carry thousands of passengers, transportation laws impose heavy penalties on operators who are non-compliant. Manufacturers are always hard at work in delivering quality products and improving their technology.

Even for private cars, maintenance and compliance with certain regulations are required. Because of the importance of safety, car manufacturers are working double-time to improve their products. Modern cars have many features that keep the occupants safe. Aside from the standard seat belts and airbags, there are now high-speed alerts, temperature checks, remote start for climate control, pedestrian and bike detection, hill start and hill descent assist, backup cameras, blind-spot monitors, push start button, anti-lock braking system, and many more. As the saying goes, safety first. The safety of all human beings is the number one consideration in the transportation industry because the goal is the safe transport of people from point a to point b.

Next-Generation GPS Services

GPS systems are not an innovation because they have been present and functional for quite a few years now. However, the old GPS cannot hold a candle to the new and modern GPS devices that add functionality through its many updated features. In the past, GPS services for many transport systems were very limited. They could only calculate mileage, estimate arrival time, and point in the right direction. The new GPS models offer so much more versatility. Aside from the basic old functions, they can make adjustments for your trip by factoring in weather conditions, traffic reports, and road conditions on the chosen route. These truly high-tech capabilities are only made possible with advancements in technology. In terms of the aviation, locomotive, and shipping industries, the GPS system has allowed each trip to be much safer and more precise in calculating arrival dates. Some of these transport schedules can be tapped and accessed with a mobile device, which practically everyone carries in their pockets.

Machine Driven Process Changes

Airplanes and boats have long been able to cruise on auto-pilot mode. In this modern world, aside from the prominence of smart cars that offer a compact size, good fuel efficiency, and high safety rates for the occupants, there have been discussions about automated cars or driverless vehicles. This has been a major project for the car industry. Self-driving automobiles are already here and are consistently being tested to make them market-ready. Developers and manufacturers remain very optimistic about fully autonomous vehicles’ progress, development, and growth. After all, if things progress the way they do, these cars will be the ones running in the future.

There are many other trends in the transportation industry that have a great impact on consumers worldwide. After all, this industry is massive, with manufacturing plants in different countries worldwide. There are many factors that can influence the global supply chain of transportation. Being aware of existing trends is helpful for manufacturers and dealers, so they can make proper marketing strategies and forecasts. As for the consumers, it is also vital that they become aware of the existing trends and statistics because, as the old adage goes, knowledge is power. Keep safe, keep smart, and keep informed no matter your transportation.