|Although there is a high level of interest in leveraging Internet of Things (IoT) technologies by many in the Transport and Logistics industry, Frost & Sullivan warn that there are several factors slowing the adoption of the technology, including the realisation that IoT is about managing and extracting value from data—an area where many organisations are still grappling.
IoT is in the early stages of growth, with many organisations implementing and testing proofs of concepts. In particular, government agencies are taking the lead in the region by deploying IoT solutions to address immediate concerns about public safety, border control, tracking and traffic management, as well as to improve basic access to healthcare, education and other social programs.
“While IoT has the potential to optimise efficiency for many companies, many managers remain unsure of its return of investment and how the technology can be incorporated and integrated into business processes,” said Ajay Sunder, Vice President, Information & Communication Technologies. “However, for organisations that have already embarked on their journey, many have indicated that they have seen improvement in their financial, business process efficiency, employee productivity, and customer metrics.”
Frost & Sullivan’s recent analysis, Asia-Pacific Internet of Things Market 2018, noted that the APAC IoT market is expected to reach US$95.7 billion by 2022, led by the transport and logistics sector, both in IoT adoption and spending. Other emerging growth opportunities include:
· Manufacturing plants: IoT-enabled predictive maintenance reduces equipment failure, improving employee productivity and a plant’s ability to meet productivity targets;
· Fleet operations: Telematics provide operators with the means to track and trace locations of their trucks, mileage and fuel utilisation, all of which help overcome the challenges of employee safety, theft, and improved customer service; and
· Brick-and-mortar retailers: Applicable IoT technologies, including RFID, AR and tracking footfall patterns, can help retailers compete with ecommerce companies by offering better customer experiences and tools to analyse their behavioural patterns inside the store.