Can IoT drive digital transformation in European transport?
Thanks to fierce competition and high operating costs, European transport operators are under tremendous pressure to evolve. The collapse of Monarch Airlines and AirBerlin shows how serious the challenges are that the transport sector faces. New disruptors are entering the market with Uber-like business models which makes retaining customers and keeping customers happy more challenging than ever. It is imperative for transport incumbents across all sub segments to invest in operational efficiency while at the same time improving the customer experience.
It comes as no surprise that an appetite for Internet of Things (IoT) based solutions within the industry is high and adoption is well beyond proof of concept stage in some of the transport sectors. PAC – a CXP Group has just published the results of a new study in which it surveyed over 200 senior decision makers within transport industry from airline, railway, maritime and road transport companies which explores the strategic directions they are taking with IoT investments and initiatives.
The study found out that large transport companies are more advanced than their smaller peers when it comes to progress with IoT initiatives and perception of its importance for the future strategy and growth. Airline companies stand out from companies in other sectors as the most advanced when it comes to adoption of IoT as 63% of them already generate business impacts with IoT.
The study also looks at what types of IoT solutions have already been, and will be of interest to transport companies in the near future. We found out that of particular importance were smart ticketing and payment solutions, telematics and predictive maintenance solutions, as well as security and theft protection IoT based solutions. Also, the fact that 83% of European transport companies plan to increase their IoT investments in the near future means that IoT becomes a boardroom topic and is seen as one of the key drivers of digital transformation within the sector.
You can find out more about IoT investment plans, major drivers and challenges in moving forward with IoT strategies in an executive summary of the study “IoT in the Driving Seat of Digital Transformation in Transport”, which also includes an overview of key findings. The executive summary can be found here.