- Business

European transport industry looks upon IoT and AI to cut through fierce competition

The European transport industry is witnessing a cut-throat competition and high operating costs, which means the need to evolve is more than ever. Although some of them have adopted a low-cost ticket model to come good, the method isn’t working due to the thin margins associated with it. The challenges are only increasing with new businesses improvising to find their feet in the market.

At this juncture, it is very difficult to stay afloat. The need for innovation is increasing day by day as enhancing customer experience and improving the overall services has become paramount.

Taking a leaf out of the book of thriving sectors, transport incumbents are investing in technology solutions based on IoT and AI to make their operations efficient. IoT is seen as the enabler of smart transport solutions to address challenges like customer experience, development of new services and business models, apart from the improvement of operational efficiency. 

As per the report of PAC, which evaluated consulting and system integration services, the most advanced offering not only comes from global system integrators, but also from transport specialist system integrators and the ones with telco background.  

The PAC also evaluated the state of IOT adoption and developments. It surveyed more than 200 decision makers from airline, railway, maritime and road transport companies who are intending to explore with IoT investments and initiatives. The evaluation proved that the enthusiasm for IoT-based solutions in the transport industry is higher than other industries.

Around 63 per cent of the airlines are generating business impacts with IoT, while 83 per cent of the companies across the subsectors are planning to increase IoT investments in the future. 

The European transport industry can also look upon artificial intelligence to address the business challenges.  According to data compiled by the Paris-based venture capital firm ISAI, there are now at least 180 AI startups in the country. Various funds in Europe like the Rajat Khare founded bridge fund: Boundary Holding, has have actively invested in the AI landscape in and outside EU in the past few years.

A number of accounts like easyJet, British Airways, KLM, Lufthansa and Transavia railway are already working on innovations with IoT and AI and have been doing pretty good in the recent times. 

As new projects are growing in the smart cities, IoT and AI are expected to have a bigger impact on the European Transport industry. AI and IoT-based solutions companies will look to become a vital cog in the ecosystem of smart cities.