Investments in Real-time Tracking Technologies Steer the US Transportation and Logistics Market

SANTA CLARA, Calif., Feb. 26, 2018 /PRNewswire/ -- Frost & Sullivan's recent analysis, Transportation and Logistics Market Insights—The United States, finds that distribution and e-commerce facilities need new technologies to keep up with the fast-paced demand while maintaining inventory balance. With regards to the growing pressure on road transportation, the Freight Development Plans by the Department of Transportation are expected to focus on the development of a multimodal freight network to improve the efficiency of the transportation system.


"Limited availability and high land prices are making urban facilities more expensive while neighboring submarkets are becoming more land-constrained in many top markets," explained Debanjali Sen, Mobility Research Analyst at Frost & Sullivan. "The cost and difficulty of widening highways in urban areas have provoked discussions about alternative measures for moderating congestion. One of the alternatives encouraged by the Department of Transportation is a diversion of truck freight to rail and water modes." 

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Additional highlights include:

  • Technological innovation for e-commerce is one of the key factors expected to support growth and open up opportunities in the logistics industry;
  • Mobile tracking, biometrics, big data analytics, smart inventory management, real-time tracking of goods, cloud computing, IoT, robotics, drones and 3D printing are among the most prominent technological innovations;
  • The US warehousing rents are predicted to grow more than 10% in 2018;
  • Innovative supply chain solutions in today's next-generation warehouse include pick/put-to-light, auto-guided vehicles (AGVs) for storage and retrieval, voice-directed technology, wearables, radio frequency identification (RFID) scanning, and robotic applications;
  • Amazon is clearly making the largest e-commerce impact. In a move to compete with Amazon, Walmart is now investing heavily in the build-out of its own e-commerce fulfillment network;
  • In the transportation industry, trucks, rail, and multimodal transportation account for more than 75% of the freight moved across the United States.

"Opportunities exist for advances in robotics, automation, and sensor technology, which are expected to provide more efficient and comprehensive inspections and asset-management programs, resulting in improved reliability, safety, and longevity of infrastructure. Several end-user verticals, especially retail (general merchandise, clothing, grocery), fast-moving consumer goods (FMCG), are using third-party logistics services to maintain focus on the core business, and this provides another growth opportunity," concluded Sen.

Transportation and Logistics Market Insights—The United States is part of Frost & Sullivan's global Mobility Growth Partnership Services Program.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. 

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