Companies within transport and logistics are prioritising Internet of things (IOT) to improve environmental sustainability and enhance their operational success.
This is according to a report commissioned by Inmarsat, which surveyed 100 large global transportation companies throughout Europe, the Middle East and Africa (30%), the Americas (30%) and Asia-Pacific (40%).
The research conducted by Vanson Bourne, titled The Future of IoT in Enterprise, says IOT will play a pivotal role in enabling the transport and logistics sector to reduce its carbon footprint and minimise any negative impact on the environment.
A revolution in the transportation sector that will increase efficiency is fast approaching, spearheaded by the three technological forces of IOT, big data, and automation, it notes.
At a time when fast-rising travel demands, fuelled by population increases, urbanisation and globalisation, could see carbon dioxide emissions from transport increase by 60% by 2050, the transport industry needs to become radically more efficient if it is to be a sustainable part of the global economy, says Inmarsat. The World Bank says transport represents 23% of global energy-related CO2 emissions.
The data from UNFCCC, published in 2014, notes the energy used in transportation contributed 8.8% of South Africa's greenhouse gas emissions (excluding emissions from agriculture, forestry and land use).
The survey says 44% of companies surveyed are prioritising environmental monitoring as a key area for IOT deployment. Moreover, 15% stated that they had increased their environmental sustainability as a direct result of their IOT deployments, and a further 65% expected to do so in future, highlighting the effectiveness of the technology in this area, it adds.
The importance of adopting IOT solutions in enabling the transport and logistics sector to reduce its carbon footprint, says Mike Holdsworth, director of transport at Inmarsat Enterprise.
In recent years, globalisation and population growth have greatly elevated the demand for mobility in the movement of passengers and goods, resulting in more vehicles filling roads and skies, leading to more complexity and more pollution, notes Inmarsat.
The transport industry needs to get smarter if the sector is to successfully limit its impact on the environment, notes Holdsworth, adding it is clear that many companies are putting their hopes in IOT.
"IOT could have an immediate and considerable impact on the emissions of logistics companies today. For example, CO2 emissions can be exacerbated by faulty equipment, engine damage and poor route planning, but IOT can address these issues by utilising smart telematics devices, diagnostic sensors and accelerometers to gather engine status data and automatically notify fleet managers with instant alerts of damage or faults.
"This information can be used to limit engine wear-and-tear and increase average miles-per-gallon, indirectly reducing overall emissions and minimising wastage by extending the lifespan of each vehicle."
The McKinsey Global Institute estimates that IOT technologies could generate up to $11 trillion a year in economic value by 2025, says Inmarsat. But, unlocking this value will be contingent on businesses' ability to leverage the data that connected things will generate, it says. The transport sector in particular stands to be one of the primary beneficiaries from the windfall of data coming its way from the IOT, notes Inmarsat.
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