Shift Magazine - Issue 1 2018 - 19

Industrial mobility:
Moving

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The future of autonomous passenger vehicles is already in our midst, as
more carmakers unveil their visions of a world of automated travel.
Meanwhile, however, another road is being paved: the automation of
how we move things.
Robotics, 3D camera systems, sensors, software and artificial
intelligence and the industrial Internet of Things (to name a few
advancing technologies) are converging to open a new era of
transport and logistics acquiring human-like capabilities abilities to
see, learn, predict and decide.
Moving 16 billion tons Indeed, autonomous transport could have
staggering implications on transport and logistics networks
and revolutionize how some 16 billion tons of goods and commodities
are moved in the US1. Not surprisingly, stakeholders of all stripes-
from multinational industrials, start-ups and local and state
governments-are ramping up efforts to pilot and deploy increasing
degrees of autonomous transportation modes to move goods,
including raw materials, parts and finished product.
Advancements in what PwC calls "industrial mobility" are being
carried out on several fronts--both via private, in-plant applications,
as well as on public land and space. And they include semiautonomous and autonomous long-haul trucks, industrial drones
(with ever-increasing payloads), mobile robots, and, increasingly,
automated rail and marine transport.

Of course, these are prognostications, and the future is always a tricky
thing to see. Naturally, much needs to be done before widespread
adoption of industrial mobility is a reality, and it will likely play out
incrementally and at different paces, depending on the transport
mode. Certain modes, especially those used on privately-owned
territory (such as hauling material mine pits, or inspecting of assets,
inventory and facilities) will likely advance more quickly along the
adoption curve. On public roads, the adoption of autonomous vehicles
continue to be piloted, advances in reliability and safety will sure dictate
the pace, breadth and locals of adoption. States, including Michigan,
California, Florida and Utah now permit automated trucks on public
roads. Truck-makers including Peterbilt, Volvo and Daimler are
developing autonomous truck technology. Meanwhile, Caterpillar has
autonomous vehicles toiling away in mining pits.
Investments pouring into non-auto mobility start-ups
Such benefits in streamlining logistics have not been lost on investors
in the industrial mobility space. A PwC analysis of US investments in
private mobility companies over the last five years (2012-2017) found
that a total of $6.8 billion has been invested in mobility start-ups, of
which $4.2 billion targeted companies focused on broad-use, nonauto autonomous mobility technologies (e.g., mobile robots,
unmanned aerial vehicles, autonomous forklifts, freight trains,
marine vessels, etc.)2.
1 The
2, 3

Smarter infrastructure-and workforce-key to smart mobility
deployment Looking ahead, it's not just the vehicle-makers and
legislators who will pave the road toward industrial autonomy. The
infrastructure needed to support it-especially in
the case of self-driving long-haul trucks-will need to be built out
as well. As trucks-and autos, train and ships-rise up the maturity curve,
smart transportation infrastructure will also need to advance on parallel
tracks-most notably vehicle-to-infrastructure communications, including
fitting roads, tolls, weighing stations, bridges, locks and docks, for example,
with communications technology to "speak" to the vehicles. Indeed,
according to a recent PwC survey, US manufactures believe that investing
in "smart infrastructure" is the most important technological initiative
needed to operationalize autonomous transport of goods-followed by
sensor, laser and radar technology, vehicle-to-vehicle technology and
artificial intelligence.
As we move closer to a world of automated logistics, a burning question
will persist: are our drivers/operators ready to adapt to the new
technology? And what will the future look like for the 3.5 million truckers
now on our roads? As autonomous systems first assist-then, in many
cases, replace-humans, companies pivoting to industrial autonomy will
need to prepare for a momentous talent shift-and in some casesdisplacement. The learning curve will likely rise for drivers and operators
as they become accustomed, by degrees, to driver-assisted technologies
(already the case with some forklifts). Workforce skills to keep a forwardlooking eye on would include safety skills, new workflow management
software programming and human-robot collaboration. A diminished need
for humans at the wheel, for example, could very well usher in a new
generation of logistics technicians to oversee the software and algorithms
that may be in the proverbial drivers' seat of the future.
Autonomous vehicles: gaining traction in-and outside the factory
To get a closer look at how industrial mobility is being embraced by the
manufacturing sector, PwC recently surveyed US manufacturers. What we
found is that automated movement of goods is well on its way, with about
one in ten manufacturers already having adopted some type of semiautonomous or autonomous mobility within their operations, and another
10% expecting to do so in the next three years.3
While the current adoption is still in nascent stages, manufactures seem
bullish on the future of autonomous transport, with 65% believing that selfdriving trucks will be mainstreamed within the next decade. While most
manufacturers currently cite cost as the principal barrier to adopting
autonomous transport technology, they nevertheless grasp future cost benefits.
Nine in ten manufacturers believe fully autonomous vehicles could potentially
slash 25% of their trucking costs, according to the PwC survey. A PwC analysis
aligned with this estimate, forecasting that the mainstreaming of self-driving
long-haul trucks could cut manufacturers' transport costs by 30% through
2040, assuming aggressive adoption of autonomous trucking.
Access PwC's Industrial Mobility report and other mobility publications,
videos and blogs at www.pwc.com/mobility

US Bureau of Transportation Statistics: //www.bts.dot.gov/bts-publications/freightfacts-and-figures/freight-facts-figures-2017-chapter-2-freight-moved

PwC, "Industrial Mobility: How autonomous vehicles can change manufacturing," 2018; https://www.pwc.com/us/en/industries/industrial-products/library/industrial-mobility.html
© 2018 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is
a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute
for consultation with professional advisors.

https://www.pwc.com/us/en/industries/industrial-products/library/industrial-mobility.html?WT.mc_id=CT11-PL1000-DM3-TR1-LS2-ND2-TTAT3-CN_SHIFT-Auto-Industrial-Mobility2 http://www.bts.dot.gov/bts-publications/freightfacts-and-figures/freight-facts-figures-2017-chapter-2-freight-moved https://www.pwc.com/us/en/industries/industrial-products/library/industrial-mobility.html http://www.pwc.com/structure

Table of Contents for the Digital Edition of Shift Magazine - Issue 1 2018