Introduction: Navigating the Competitive Landscape of the Physical Internet Market
The physical Internet is undergoing a revolutionary change in competition, driven by the speed of technology adoption, the evolution of regulations and the rise in consumers’ demands for efficiency and sustainable practices. These factors are driving the entry of new players into the market, including the original equipment manufacturers, IT systems integration companies, suppliers of the physical Internet, and new AI start-ups. They are all bringing with them their own unique differentiators, which not only improve operational efficiency but also change customer relationships and the way services are delivered. The evolution of the market has also created new opportunities for growth in the regions, especially in Asia-Pacific and Europe, where strategic deployments are focused on greener buildings and smart logistics. This new competitive landscape is key to navigating the complex and strategic challenges of the physical Internet, and for taking advantage of the transformational potential of the new logistics and supply chain.
Competitive Positioning
Full-Suite Integrators
These vendors offer comprehensive logistics solutions, integrating various aspects of the supply chain.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Amazon.com Inc. |
Extensive logistics network and technology |
E-commerce logistics and fulfillment |
Global |
| UPS |
Robust global delivery infrastructure |
Parcel delivery and logistics |
Global |
| DHL |
Strong international presence and expertise |
Express and freight logistics |
Global |
| FedEx Corporation |
Innovative shipping solutions and technology |
Express transportation and logistics |
Global |
Specialized Technology Vendors
These companies focus on specific technological innovations that enhance logistics and supply chain efficiency.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| MIXMOVE |
Advanced logistics optimization platform |
Supply chain management software |
Europe |
Infrastructure & Equipment Providers
Vendors in this category provide the necessary infrastructure and equipment to support logistics operations.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Mercedes-Benz Group AG |
Innovative vehicle solutions for logistics |
Automotive logistics solutions |
Global |
| AmeriCold Logistics LLC |
Specialization in temperature-controlled logistics |
Cold storage and logistics |
North America |
| SF Express Co. Ltd. |
Strong domestic logistics network in China |
Express delivery services |
China |
| Yamato Logistics Ltd. |
Comprehensive domestic delivery services |
Parcel delivery and logistics |
Japan |
| Velove Bikes AB |
Sustainable urban logistics solutions |
Cargo bikes for last-mile delivery |
Europe |
Emerging Players & Regional Champions
- LogisticX (United States) specializes in decentralized logistics, using the transparency and efficiency of blockchain technology, and has recently teamed up with a major e-commerce platform to improve last-mile delivery. This is a direct challenge to the established supply chain by offering a more agile and cost-effective alternative.
- The Internet of Things is the backbone of smart containers that optimize routes and monitor cargo in real time. A contract has been signed with a major shipping company to equip its entire fleet with the system, which will complement the services of traditional logistics companies.
- Ecofreight (Australia): Ecofreight offers sustainable logistics solutions which combine the use of renewable energy with the transport network. They recently started a trial with a local government to reduce the carbon footprint of freight transport and position themselves as a challenger to conventional logistics companies.
- A Singaporean company called TransNet is developing a cloud-based platform for real-time tracking and management of cargo, and has recently launched a system for the management of a regional supply chain. Its technology is designed to complement existing systems by providing greater visibility and information. It is also forcing the established players to come up with new ideas.
Regional Trends: In 2023, there will be a notable increase in the use of the physical Internet in North America and Europe, driven by the need for more sustainable and efficient logistics. Companies will increasingly rely on the IoT, the blockchain and artificial intelligence to improve supply chain visibility and responsiveness. The Asia-Pacific region will be the most active, mainly by integrating smart logistics into its existing logistics framework.
Collaborations & M&A Movements
- DHL and IBM entered a partnership to develop blockchain solutions aimed at enhancing supply chain transparency and efficiency in the Physical Internet market, positioning themselves as leaders in logistics innovation.
- Maersk acquired a minority stake in a startup focused on IoT solutions for real-time cargo tracking, aiming to strengthen its competitive edge in the digital transformation of shipping logistics.
- FedEx and Google Cloud collaborated to leverage AI and machine learning for optimizing logistics operations, enhancing their service offerings and improving customer experience in the rapidly evolving PI landscape.
Competitive Summary Table
| Capability | Leading Players | Remarks |
|---|
| Biometric Self-Boarding |
Clear, SITA |
The biometric boarding gate, which is already in use at many airports, improves the flow of passengers and reduces waiting times. SITA’s Smart Path solution uses facial recognition technology which is already in use at over 100 airports. |
| AI-Powered Ops Mgmt |
IBM, Siemens |
Operations management is based on IBM's artificial intelligence technology, which predicts maintenance needs and optimizes logistics, resulting in a 20 percent reduction in downtime. And in the area of transport, Siemens uses artificial intelligence to make decisions in real time, to optimize efficiency and availability. |
| Border Control |
Gemalto, Thales |
Biometric border control systems from Gemalto are used in many countries, enhancing security and speed of border crossing. Thales has developed border control systems which combine artificial intelligence and machine learning to speed up border crossing and improve security. |
| Sustainability |
DHL, Maersk |
DHL is aiming for zero emissions by 2050, and it is introducing electric vehicles and reorganizing routes to reduce carbon dioxide emissions. And Maersk is investing in sustainable shipping with biofuels and wind-assisted propulsion. |
| Passenger Experience |
Airbnb, Expedia |
Travelling by airbnb.com is a great experience. The traveller gets a personal recommendation and a smooth reservation process. Expedia uses artificial intelligence to offer tailored travel packages and improve customer satisfaction and engagement. As the high customer retention rate shows, this is working. |
Conclusion: Navigating the Competitive PI Landscape
The Physical Internet market in 2023 will be characterized by intense competition and considerable fragmentation, with both established and newcomers competing for market share. A trend towards greater sustainability and flexibility is expected to develop as companies react to the changing needs of consumers and to new regulatory requirements. The main players are relying on their established networks and resources to maintain their positions, while the new entrants are investing in new features such as artificial intelligence and automation to establish their positions. The ability to integrate advanced technology and maintain operational flexibility will be key to success for companies aiming to maintain their leadership positions. Consequently, these are the two areas where the decision-makers should invest their money to ensure effective operation in the PI market.
