ICT makes headway in transport and logistics sector: IDC

ICT makes headway in transport and logistics sector: IDC

Analyst firm find that mobility is a key driver of ICT growth in the sector

The transport and logistics sector has already been using ICT to improve productivity and operating costs, but this will continue to grow in coming years, according to IDC.

The observation comes the way of IDC's recent report, titled Transport and Logistics ICT Market Forecast and Analysis 2011 to 2015,, which looks at the role of ICT in the transport and logistics vertical and what the growth expectations are for the future.

While the Transport and logistics sector only forms 3.5 per cent of the overall ICT spending in Australia, based on $1.629 billion spent in 2012, IDC research manager, Emilie Ditton, expects this to grow in the next few years.

“Predominantly, it will be driven by productivity, efficiency and collaboration needs,” she said.

As such, IDC has forecasted that spending in the sector will grow to over $1.749 billion by 2015 based on a CAGR of 2.8 per cent.

Telecommunications, as well as mobility, is expected to form the brunt of ICT spending in the sector, a prediction that Ditton is not surprised with, as it has “been the case in the transport and logistic sector for some time.”

“The dependency on mobility within the sector is increasing, and the transport and logistic sector is subject to a number of legislative requirements, that basically drive the way that drivers, predominantly those with trucks, are monitored,” she said.

“There are a lot of automated systems that use mobility networks to feed back information to centralised systems.”

Thus, IDC has pegged telecommunication comprising 38.7 per cent of spending in 2012.

When looking at whether technology vendors have capitalised on opportunities in the transport and logistics sector up to now, Ditton admits that they have in the mobility space.

“As it is a well known opportunity, particularly mobile computing devices in the logistic side of the sector and automated systems in the transport part of the sector has been a well understood opportunity for a number of years,” she said.

However, Ditton pointed out that on the unified communications and collaborations side, there are still some growth and opportunity that have yet to be served fully by the vendor community.

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