Transport leads M2M market down growth path

Vodafone report sees industry continuing to gain through integration

Transport leads M2M market down growth path
Vodafone’s report recognises T&L’s M2M strength


Transport and logistics (T&L) is ahead of other major adopting industries on machine-to-machine (M2M) applications in use, according to a survey for Vodafone by research company Ovum.

The survey indicates the growing M2M market – one that provides a significant productivity growth tool and which is at a "crucial turning point" – is expected to be worth more than $530m by 2019.

"The research found the transport and logistics sector has the highest level of M2M adoption in Australia, with 44 per cent of businesses having applied at least one solution while a further 22 per cent are considering their use of the technologies," Vodafone Australia general manager of M2M Justin Nelson says.

"We estimate the value of M2M in the transport and logistics sector will grow to around $81 million in five years and to be focused on fleet management, supply chain and safety applications."

The report, Connected Nation: M2M in Australia 2014-2019, states that T&L "has one of the oldest M2M heritages, with deployments of solutions such as telematics and asset tracking.

"These are often integrated into overall solutions, enabling logistics and transportation companies to gain deeper insights into their operations."

As a percentage of the total market the report forecasts T&L will remain the second largest in five years’ time, at 14 per cent, 1 per cent down on its present slice as take-up grows elsewhere.

"By 2019, transport and logistics is expected to be the second largest vertical. Fleet management applications will be widely deployed to improve the supply chain, increase safety, and enhance productivity. The market for this vertical is expected to be worth approximately $81m per year by 2019," the report says.

Deployed applications centre on security and safety along with asset management, with the latter including:

  • fleet and field service team efficiency
  • supply chain optimisation equipment location
  • anti-theft
  • real-time inventory
  • track and equipment  location.

"Industrial automation and supply chain monitoring are the next two most widely adopted applications in Australia," the report says.

"Remote monitoring is one of the main features of industrial automation, used to reduce downtime and increase operational efficiency via its alerting capabilities and automatic data exchange.

"Industrial automation systems give manufacturers and logistics companies better control of operations in a cost-effective way.

"Supply chain solutions focus on operational management capabilities.

"The benefits include customised dashboards with real-time monitoring and analytics.

"They help users address specific business requirements, including asset loss reduction, and CapEx, labour and transportation management.

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