The trend of Smartification refers to the process of retrofitting or producing previously disconnected analog assets with sensor and wireless technologies, making them ‘smart’ and connected, bridging the analog-digital divide. Smartification enables users to collect a variety of sensor data for analysis, performance measurement, simulations, and data-based decisions. This involves the transformation of information into data, allowing for more efficient and effective operations.
Being connected has become a basic human need for large parts of the world’s population and this is reflected in the average number of devices and connections per person globally, which is expected to grow from 2.9 in 2022 to 5.4 in 2028. By the end of 2024, there are projected to be more than 207 billion "things" connected to the worldwide network of tools, assets, devices, and appliances that make up the Internet of Things (IoT). However, many “things” remain unconnected and this is why it is increasingly important for companies to retrofit assets with sensors, achieving a comprehensive data-based view of operations.
Retrofitting will become more easily scalable as the cost of sensors falls and as they become smaller while improving accuracy and efficiency. And smartification will accelerate with developments in IoT, edge computing, and next-generation connectivity such as 5G. With these technologies, a powerful ecosystem emerges in which IoT devices can seamlessly communicate, process data at the edge, and utilize high-speed wireless networks for efficient and rapid transmission.
The Smartification trend will have moderate impact on the logistics industry as it drives visibility and transparency for optimization and enables data-driven decision making. However, it takes time to retrofit equipment and assets as well as integrate IT systems. Therefore, here at DHL we anticipate a few more years will pass before widespread adoption of smartification applications across industries.
