Transport industry's love affair with IT to deepen further


Analyst sees intensifying reliance on computers to keep firms afloat and ahead

April 30, 2012

The transport and logistics industry’s search for savings and efficiency will see still more reliance on information and communications technology (ICT), according to market intelligence firm International Data Corporation (IDC).

The company’s Australian arm, which recently released a report, Transport and Logistics ICT Market Forecast and Analysis 2011 to 2015, on the issue, says the industry contributes 3.5 percent of ICT spending in the total Australia market, representing $1.63 billion in this year.

It expects ICT spending within this sector will grow to $1.75 billion by 2015, or 2.8 percent compound annual growth rate between 2010 and 2015.

Telecommunications and particularly mobility continues to dominate ICT spending in this sector, with telecommunication representing 38.7 percent of spending in 2012, according to the company.

"The transport and logistics sector has a heavy focus on those technologies that can either contribute to reducing operational costs or increase productivity of staff," IDC Research Manager, Emilie Ditton says.

"The technology deployment plans within the sector reflect this.

"The top technology areas that are to be deployed in the transportation and logistics sector in the next 12 to 24 months are: business analytics, new business applications based on Web 2.0 platform and technologies; desktop virtualisation; service oriented architecture; business as a service (e.g. business processes in the Cloud); Cloud computing platforms; and mobile business applications."

Ditton notes that the transport and logistics sector is a critical industry for ensuring the continued competitiveness and growth of the Australian economy.

"The efficiency and productivity that this sector operates with directly impacts the profitability and competitiveness of the customers it serves," she says.

 

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