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Tech to drive growth for the transportation and logistics sector in the U.K.


Cape Town, South Africa — The freight, transportation, logistics and warehousing sectors in the United Kingdom have experienced a challenging business environment with high operating costs and increased competition. Despite the challenges; however, there are significant growth opportunities to increase margins by taking advantage of new technological developments in order to achieve long-term business sustainability and create new avenues for revenue growth.

Frost & Sullivan’s recent market insight, Transportation and Logistics — The United Kingdom, explores the impact of key developments and trends relating to economy and trade in the freight, transportation, logistics, and warehousing sectors in the United Kingdom.

“Technological advancements like mobile based tracking, biometrics, big data analytics, and smart inventory management is expected to bolster the logistics sector within the next five years,” said Mobility Industry Analyst Debanjali Sen. “Therefore, market players looking to adopt new technologies and develop innovative business model solutions should see improved operating margins by 2023.”

Key insights and growth opportunities for the sector include:

  • Autonomous vehicles and platooning for transportation, cloud computing, Big Data, the Internet of Things, robotics, drones and 3D printing are among the most prominent technological innovations that will play more significant roles in the future of the logistics sector.
  • OEMs will focus on connected and autonomous vehicle technologies like GPS and smartphone fleet tracking, Big Data analytics, robotics, automation, and the internet of things (IoT), which will be used for predictive services in the future.
  • Shared warehouses with vertical structures will begin to emerge due to a shortage of warehouse space.
  • As road is the most commonly used mode of freight transportation substantial investments into transportation infrastructure upgrades will improve efficiency of the logistics sector in the United Kingdom

“Road congestion remains a challenge,” noted Sen. “However, in order to address this challenge, Government is undertaking investment projects like the Road Investment Strategy which will roll out in two phases from 2015-2020 and 2020-2025, and it is expected to reduce congestion.”