From the security of passenger and fleet management to processes and delivery time, the transportation and logistics industry needs a smart solution to move its people and cargo efficiently and safely.
The market for IoT in Transportation is expected to reach $143.93 billion by 2020 at an estimated compound annual growth rate (CAGR) of 8.95% from 2014 to 2020.
Ever-increasing urbanization is a clear indication of the rising complexities around the globe, creating major challenges for transportation and logistics requirements.
Resolving these complexities was one of the crucial challenges faced by the transportation industry. Usage of connected devices is increasing day by day, thus demanding more devices from the semiconductor industry.
The market for IoT in Transportation can be segmented into these 6 segments:
- products and software services
- industry verticals
- solutions
- applications
- components
- geography
The adoption of IoT in transportation businesses has eradicated various problems related to asset management, supervision, operations, passenger information, traffic, ticketing, and maintenance.
Market Analysis Reports state that with all the opportunities, restraints, and driving factors, IoT in transportation has helped in identifying trends and key points for IoT as a whole.
In the year 2017, the smart transportation market was valued at $67.15 billion USD and is expected to reach a market value of $189.28 billion USD by 2023 at a CAGR of 18.68%.
The rapid urbanization and ever-increasing population demand sustainable solutions. The emergence of connected vehicles or Vehicle-to-Vehicle and cloud technologies has brought smart transportation into reality.
Internet of Things (IoT) technology has contributed to making feasible solutions for almost every industry.
IoT solutions have resolved most of the complexities that the transportation industry was facing. In fact, the growth rate of smart cities worldwide and numerous innovations have unlocked more opportunities in the smart transportation market.
Market Drivers:
A fleet management solution is what which reduces most of the avoidable operational overheads in the transportation industry. The fleet management market size is expected to grow from $13.78 billion USD in 2017 to $28.66 billion USD by 2022 at a CAGR of 15.8%.
Transportation and logistics have been the major driver for global fleet management. Fleet Management solutions provide benefits such as vehicle performance, maintenance planning, route management, and tracking of driver behavior.
The adoption of cloud computing and the declining hardware and connectivity costs streamlined fleet management operations, thus leading to increased deployment of fleet management solutions.
The exponential growth of connected devices and driverless cars is driving the market on a very large scale. Moreover, a rise of connected cars with IoT features has boosted the market of various integrated technological systems in the market.
These connected features exchange real-time data and thus offer better safety, comfort, reliability, and security. Various automobile manufacturers including Mercedes, BMW, and General Motors have started implementing the Internet of Things to eradicate the complexities.
Europe Holds the Largest Share of the Smart Transportation Market
According to Mordor Intelligence, by 2020 there will be approximately 233 million connected cars on the road. Europe produces the majority of the percentage of connected cars. By 2020, the connected cars market is expected to increase by four times over.
Apart from this, urban transportation has been an important building block for the better quality of the citizens in a city. And public transportation in many cities is the primary mode of commuting.
However, the absence of quality and safety in public transportation, the increasing cases of theft, and non-availability of parking slots has boosted the market for smart transportation powered by IoT.
Application of IoT in Commercial Transportation
Smart Sensors, GPS tracking, and other IoT devices have unlocked various applications for the transportation industry. Let’s take a deep dive into how IoT technology has provided the trucking businesses with an intelligent transportation system which is cost-effective, provides better safety and improved operations.
- IoT sensors used in vehicles and trucks collect, send, and receive data. After a deep analysis of this data, truck drivers are sent real-time alerts to avoid hazardous conditions and traffic congestion.
- Trucks can be monitored in real-time such that potential problems can be addressed well before a vehicle breakdown occurs. IoT data received from sensors is analyzed very carefully by using smart analyzing tools. This, in turn, reduces the repair cost – thus making preventive maintenance cheaper than a replacement.
- Throughout the driver’s journey, freight real-time condition can be tracked. There are many types of cargo that are sensitive to particular changes in temperature. For example, pharmaceutical cargo needs to be maintained at a particular temperature during transport. Sensors alert drivers to avoid unacceptable variances to resolve any problems immediately.
- IoT sensors have made cargo handling more secure and efficient. Real-time monitoring of cargo identifies whether any tampering has occurred or the cargo has been opened. Pharmaceutical or hygiene products which are sensitive need to be monitored properly.
- Real-time alerts about unsafe driving are sent to managers who then take appropriate action. Drivers are monitored for physical condition and performance. For example, IoT devices can detect whether they are speeding, which could endanger cargo and themselves.
- IoT in transportation allows companies to know the real-time location of every truck in their fleet and estimates when they will arrive at their destination. They provide the optimal route based on traffic and weather conditions. And drivers can be re-routed then in real-time.
- Cargo embedded with sensors makes loading and unloading faster. Drivers are equipped with smartphones and are in continuous communication with their headquarters who are immediately informed about changes during loading and unloading.