Real-time automation is transforming the transport and logistics sector – and growth in demand for enabling technologies such as edge, AI and IoT is expected to be faster than in any other vertical. In this report, we outline strategies geared towards enabling ecosystem players to capitalise on the opportunity by addressing critical challenges and opportunities.

Real-time automation drives momentum in the transportation and logistics sector

What is real-time automation?

Real-time automation instantly performs tasks without human input through two key processes:

• Real-time decision-making: Uses data analytics, AI, and machine learning to analyse large datasets as they are generated, offering immediate insights for rapid, informed decisions. For example, it can detect delays or route inefficiencies in transport networks in real time.
• Intelligent automation: Acts on these insights to reduce downtime and improve efficiency by autonomously adjusting processes, such as rerouting vehicles to avoid traffic congestion or optimising warehouse operations to prevent bottlenecks, surpassing traditional rule-based systems.

The market for real-time automation in transport is projected to be the fastest-growing sector by 2030, with an estimated value of USD20 billion, second only to manufacturing. This makes transport and logistics an increasingly attractive market for solution providers seeking to capitalise on the potential of automation.

Solution providers will be pivotal in enabling enterprises to overcome adoption barriers

Despite technological advances, transport enterprises face several barriers to adoption, including those listed in figure 2. Owing to their depth of expertise in edge, AI and IoT, solution providers such as system integrators (SIs) and indepenent software vendors (ISVs) will be critical for enterprises looking to overcome those barriers. For example, SIs have the capabilities to upskill enterprise customes and mitigate integration complexities, while ISVs can design platforms and applications that maintain performance at scale.

Barriers to adoption for transport enterprises

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Table of contents

• Executive summary
• Real-time automation is gaining traction in the transport and logistics sector
  • What is real-time automation?
• Key challenges facing the transport and logistics sector
• Case studies of real-time automation use cases
• Minimising latency is a pre-requisite for transport & logistics automation
  • 1. Impact on IoT and AI systems
  • 2. Safety and compliance
  • 3. Efficiency and cost-effectiveness
• Partnerships and collaboration: Essential for scaling IoT adoption in transport enterprises
  • Benefits of collaboration
• Next steps for key players in the ecosystem
• A message from our research partner

Related research

• Real-time automation for manufacturers: How providers can scale the market
• Applying the platform mindset: STL Partners’ enterprise manifesto
• SMBs: How telcos should approach them
• Transforming telcos’ role through managed cloud services

Author

Ela Eren

Consultant

Ela Eren is a Consultant at STL Partners, specialising in sustainability and telco cloud.