The world is changing before our eyes. Everywhere we look, technology is transforming the way we live, do business, and interact—and transportation is no exception. From connected warehouses to automated last-mile delivery services, digital transformation is reshaping our industry, making it more efficient and increasingly customer-centric. But what does this truly mean for the near future, and with so many options available, how can we plan and prepare effectively?
The Logistics Trend Radar seeks to answer these questions by drawing on insights from over 10,000 transportation professionals and technology experts. This industry-recognized tool guides strategy and innovation by examining 28 key trends that will impact the transportation sector in the coming years.
The Evolution of Logistics: An Industry in Transition
Through extensive research and interviews with industry stakeholders, the Logistics Trend Radar examines major global trends such as digitalization, urbanization, an aging population, and sustainability—factors that will influence the entire industry. It also explores emerging business models and digital solutions from startups and industry partners, highlighting future needs and expectations.
Digital systems will continue to drive transformation across the industry, and four key elements—customer centricity, sustainability, technology, and workforce—will shape the future of transportation.
Customer-Centric Approach: Bringing Businesses Closer to Customers
The first element is customer centricity. For service providers, this is essential to meet increasing expectations for fast and convenient transportation. As e-commerce continues to grow, solutions that are fast, transparent, affordable, convenient, and offer quick returns will become the standard. To remain competitive, transportation providers must develop new business models and offerings that prioritize the customer.
Omni-channel transportation will remain a key trend in retail and beyond. With the B2B online retail market expected to grow twice as fast as the B2C online market by 2021, businesses must expand into new online channels. Key transportation innovations include flexible fulfillment networks like FLEXE, inventory visibility modeling, near-real-cost delivery solutions, and new last-mile delivery options.
As customer demands rise, we will see growth in time- and temperature-sensitive deliveries directly to consumers, known as the “Fresh Chain.” This will require innovations in packaging, storage, and delivery—for example, for groceries and pharmaceuticals. In everyday life, the “Connected Life” trend will integrate last-mile delivery services with smart home systems.
Sustainability: Moving Toward a Zero-Emission Industry
Over the past two years, the transportation industry has increasingly focused on reducing CO₂ emissions. Governments, industries, and companies worldwide are committed to lowering emissions and waste. Policies targeting the elimination of single-use plastics are driving a shift toward environmentally friendly packaging solutions. In some countries, sustainability efforts include phasing out gasoline and diesel vehicles within the next 10 to 20 years.
Major transportation companies are taking action. DHL, for example, aims to become a zero-emission logistics provider by 2050 and has made significant progress through its “Green Energy Logistics” initiatives, including production and delivery using StreetScooter electric vehicles.
With global trade on the rise, smart containerization is emerging as an important trend. Standard shipping containers are evolving into modular, intelligent units, improving operational efficiency. DHL is also testing new urban delivery solutions, such as the DHL Cubicycle.
Technology: Driving Cost-Effective Innovation
New technologies are emerging faster than ever. With cheaper sensors, seamless connectivity, predictive capabilities, and increased computing power, innovations are rapidly entering the transportation sector, making supply chains smarter, faster, and more predictable. A key enabler is the Internet of Things (IoT). With declining installation costs, IoT supports smart warehouses, real-time transportation visibility, and predictive delivery capabilities.
Another significant trend is next-generation wireless solutions. Beyond 5G, WiFi, and Bluetooth 5.0, these technologies expand connectivity and data access, enhancing content delivery, reducing latency, and enabling real-time processing through edge computing and cloud application management. Mobile internet usage further increases accessibility.
Artificial Intelligence (AI), now integral to daily life, is also playing a major role in transportation. Key applications include automated back-office processes, predictive supply chain management, and enhanced customer experiences.
Blockchain, best known for cryptocurrencies, can simplify complex processes when applied to global supply chains. Although still in its early stages, blockchain has the potential to add value by creating trust and transparency among stakeholders and supporting automated transportation and trading processes.
Workforce: Preparing Human-Machine Collaboration
Despite technological advancements, humans will continue to play a vital role in transportation. In fact, as human-machine interaction and collaboration increase, new opportunities emerge. Automation of repetitive, physically demanding, or labor-intensive tasks allows humans to focus on higher-value activities such as programming and management.
With labor shortages, aging populations, and growing demand, rapid fulfillment remains a challenge for transportation providers in many saturated markets. These solutions help the industry meet rising customer expectations. Technology advancements and affordability will enable critical transportation tasks to be automated while creating new roles for humans. This requires providers to adopt digital workflows that attract and retain a new generation of skilled talent while supporting the existing workforce.
