16 July, 2015
In previous posts we have discussed the importance of having a smarter public transportation system that uses resources efficiently. In this post we list some trends that, in our view, will allow for a smarter transportation system in the upcoming future.
– Increase in demand for public transportation: from 2000 to 2012 public transportation for the 28 countries in the EU increased from 45.6 to 49.5 billion passengers. This demand sustained growth every year except for 2009 (the year the economic crisis was at its worst). Post-2009 increases in the number of passengers transported have caused the levels of ridership to revert to pre-crisis levels and even surpass them in 2012 (1).
– Several studies have shown the existence of a growing level of environmental awareness amongst the general population. A report called Values and Worldviews by the BBVA Foundation(3) indicates that people who live in the EU consider environmental problems one of the biggest challenges, giving it a score of 7 out of 10.
– Companies are becoming more aware of the benefits of data-driven decisions. According to a report published by the Online Business School(1), 73% of global companies invested in Big Data during 2014 or plan to so it in the next couple of years. Some explanations of this are:
a) Online business: since its inception, online business has provided innumerable benefits to companies that use it. Companies are quickly realizing that online business is becoming a necessity as it allows managers to monitor the company’s KPI 24/7.
b) Technological Leap: The reduction in computer costs and the ability to sense and process the environment are causing the current explosion of Big Data. Companies know that it is possible to have more information and are trying to get it.
c) Accountability: In the context of a recession, it has become more necessary than ever to have objective information in order to justify an investment. This has been evident in organizations that depend financially on the public sector, such as public transportation.
– More well-informed users generate more data and have higher expectations when it comes to be informed. According to the Information Generation report by EMC(4), 93% of companies think that recent advances in technology have transformed customers’ expectations. Among these, 53% say that customers want 24/7 access and connectivity and 38% also demand greater transparency.
(1) Source: Mobility in Cities Database – Synthesis Report