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Infrastructure Development and Digitalization will Transform the Logistics Market
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Spain’s economy is on the road to recovery, mainly driven by internal demand and the revival of the exports sector. The country is likely to perform well due to export and domestic demand growth. Infrastructure investment is likely to play a key role in driving investment growth. In 2016, GDP expanded by 3.2%, making Spain one of the fastest-growing countries in the Eurozone. Spain's major trade destinations are France, Germany, Italy, and Great Britain. The key exports include machinery, motor vehicles, fruit, wine, food products, and pharmaceuticals. Madrid has been chosen as the 5th most-desired logistics location in Europe. It scores well in the Labor and Government and Real Estate categories. Augmented reality (AR) can give logistics providers quick access to anticipatory information, anytime and anywhere. Test versions have proved that the use of wearables and AR technology will reduce turnaround time and picking operations by as much as 20%. Infrastructure developments, economic diversification initiatives, and e-Commerce growth are some of the key factors expected to support growth and open up opportunities in the logistics space. Transportation infrastructure development is given high priority, leading to the modernization of airports and seaports. Free trade zones and logistics parks will stimulate the growth of modern warehouse facilities.Transport management systems, warehouse management systems, and Big Data and analytics are expected to be adopted by large service providers to remain competitive in the market. Companies need to invest in and adopt technologies to remain competitive in a fast-changing logistics ecosystem. A consortium comprising Alstom, Siemens Rail Automation, and CAF Signalling will install the European Rail Traffic Management System (ERTMS) on the La Coruña-Santiago and the Santiago-Vigo links in Spain's Atlantic Corridor.Automation, digitalization, and a data-driven approach will improve operational efficiency in the transport industry. The government provides tax incentives and subsidies for vehicles using renewable energy as well as for electric vehicles. Companies are investing in the Internet of Things (IoT) and Big Data to achieve fleet efficiency and an enhanced driver experience. Telematics provides the logistics industry with accurate information on location, fuel levels, delivery status of goods, and driving behavior. Many companies are also working on virtual reality (VR) technologies, and AR has been deployed for warehousing and service operations.
The aim of this study is to research and analyze key developments and trends relating to economy and trade and the freight and transportation and the logistics and warehousing sectors in Spain.
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