Market Size of IoT in Transportation Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 14.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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IoT in Transportation Market Analysis
The IoT in the transportation market is expected to registering a CAGR of 14.5% over the forecast period of 2021 - 2026. Reduced cost of powerful sensor & controllers, extended and enhanced internet connectivity, rise in growth of information, communication, and technology industry, along with the surge in government initiatives for smart cities are the major factors that drive the growth of the global IoT in transformation market. For example, the United States Department of Transportation is working with car manufacturers to incorporate IoT technology to reduce the occurrence of crashes by 80%.
- Global trends, such as digitization, connectivity, sustainability, energy conservation, and integration of IoT, have led to the advent of the smart railway system. The global population is expected to reach 9.8 billion by 2050, out of which 75% will dwell in cities. Hence, it has become imperative for public agencies to ensure that the transportation sector (specifically the rail network) is geared to meet the growing connectivity needs.
- For instance, considering the case of DHL, one of the largest logistics companies worldwide, in June 2019, the company partnered with ALPS Electric Europe GmbH, a prominent manufacturer of electromechanical devices, and Sigfox, a French-based IoT service provider, to optimize supply chain processes of DHL's German parcel network using asset tracking systems and advanced networked sensors.
- Due to the recent shut down of businesses across the world owing to the influence of Coronavirus is expected to influence the IoT in Transportation market negatively, as prices of chips, sensors and other components used in IoT devices may increase over time due to no production and exhaustion of stocks maintained by the manufacturers in few months on short term basis but in long term transportation and other industries might adopt automation on a large scale which will in turn provide opportunities to IoT.
