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Transportation Industry: Key Trends to Look For in 2016

The dynamics of the transportation industry is changing rapidly. Technology has emerged as the key driving force to fuel growth in the transportation landscape.

Here Are 5 key trends that will define the industry in the coming years

1. The transportation industry will continue to witness major developments in terms of innovation and technology. A study conducted in 2015 by McKinsey & Company shows that by 2030, majority of the world’s population will be living in the urban areas. The automotive analysts predicted that by 2030, there will be 2.4 billion cars running on the roads. With an increased demand of infrastructure, autonomous vehicle technology will play a key role in the future of transportation industry. The industry will continue to be influenced by innovative developments such as sensor technology, big data & IoT.

2. Consultants for transportation companies believe that transportation disruptors like Getaround, Inrix, SpaceX, Uber and Waze will change the way we move around. Also, Uber, Google and Amazon are making big push into on-demand delivery. Uber’s already made an attempt to become a full scale logistics network that’ll use its drivers and couriers to deliver items ranging from flowers, clothes to groceries.

3. With latest innovations in the car sharing service, there will be a significant drop in the number of car ownership. A study by KPMG predicts a 15% drop in car ownership in the near future. A study by UC Berkley predicts that the car sharing service is likely to disrupt the conventional cab service. The car sharing service reduces carbon emission by 41% and will witness an increase in productivity with a faster service model.

4. The growth of the e-commerce industry will have significant impact on the transportation industry. The e-commerce business has complex requirements regarding shipments, tracking and transportation and demands greater level of transparency. The momentum, with which they are making inroads in the b2b arena, will create new demand patterns for the transportation industry. For instance, e-commerce giant Amazon will significantly change the 3PL concept of the logistics service. It has already developed a wide network of distribution facilities and vendor networks with the help of technology.

5. Electric cars are making inroads in the transportation landscape. From Tesla to Volkswagen, the biggest names in the car manufacturing industry are pinning their hopes on electric cars. According to Bloomberg New Energy Finance’s report in 2020s electric vehicles will be the transportation choice of the future. In 2015 less than half a million electric vehicles were sold, by 2040 that number will reach to 41 million.

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