IoT In Transportation Market Size To Attain USD 498.47 Bn By 2030

Published Date : 02 Jan 2023

The global IoT in transportation market size accounted for USD 103.69 billion in 2022 and is expected to attain around USD 498.47 billion by 2030 with a noteworthy CAGR of 21.69% over the forecast period 2022 to 2030.

The Internet of Things (IoT) for transportation refers to the networking of items using embedded sensors, actuators, and other devices that collect and communicate data on actual activities. The transportation industry is evolving as a result of the use of IoT-enabled technology.

Powerful sensors and controllers are becoming more affordable, and this is driving the market's expansion. The development of information, communication, and technology (ICT) also stimulate the market. But it's anticipated that the lack of adequate internet infrastructure in undeveloped countries will stifle market expansion. The adoption of cloud computing and analytics is also anticipated to offer attractive potential for market expansion.

Report Highlights

  • On the basis of type, the hardware segment is the leading segment and is expected to make the largest contribution to the IoT in transportation market. IoT hardware encompasses a wide range of gadgets, including sensors, bridges, and routing devices. These Internet of Things (IoT) devices control important processes and features such as system activation, security, action definitions, communication, and the detection of support-specific objectives and actions. 
  • Low-power boards and single-board processors like the Arduino Uno, which are essentially smaller boards that are plugged into mainboards to improve and increase their functionality by bringing out specific features or functions like GPS, light and heat sensors, or interactive displays, are examples of IoT hardware components. To secure devices or endpoints on the network, hardware is essential. Hence, the hardware segment is more demanding in the IoT in transportation market.
  • On the basis of transport, the airways and maritime are the fastest growing segment in the IoT in the transportation market. IoT is a cutting-edge technological advancement that just began to replace traditional technology in a number of industries. This is built on data monitoring and sharing technologies, which opens up a variety of options for arriving at effective services and findings. 
  • This is being used in the airways to promote a variety of services, from the safety of the aircraft itself to the improvement of the traveling experience for the passengers. Baggage monitoring, cabin climate management, and even emergency alerts are other key milestones that are being employed in the aviation industry as it continues to incorporate IoT techniques and devices. These span from passengers to personnel.

IoT In Transportation Market Report Scope

Report Coverage Details
Market Size in 2022 USD 103.69 Billion
Market Size by 2030 USD 498.47 Billion
Growth Rate from 2022 to 2030 CAGR of 21.69%
Base Year 2022
Forecast Period 2022 to 2030
Segments Covered By Source, By Components, By Transport and By Application
Regions Covered  North America, Europe, Asia-Pacific, Latin America and Middle East & Africa


Regional Snapshots

North America held a dominant position in 2021 due to favorable government policies and the availability of a large number of vendors. Additionally, owing to the region's strong manufacturing, transportation, and logistics sectors, which have made significant technological improvements in the region. Moreover, Due to the region's strong manufacturing, logistics, and transportation sectors and the numerous technical developments made there, it is anticipated to dominate the IoT in the transportation market. 

Market Dynamics

Drivers

A favorable outlook for the industry is being produced by the significant expansion of the railway network as a result of the growing need for urban connections worldwide. IoT is frequently utilized in the train industry to monitor passenger flow, manage timetables, maximize capacity, and perform preventative maintenance. 

A further aspect driving expansion is the advent of smart railway systems, which are outfitted with IoT-enabled sensors and gadgets to monitor the performance of conveyances and environmental conditions. As a result, the industry is able to increase operating efficiency and safety while cutting down on delays. Additionally, the market growth is being positively impacted by the extensive product usage in highway cars as a result of the growing need for interconnected mobility solutions that cut commute times and traffic. 

The market is expected to grow as a result of a number of other factors, including rising consumer spending power, particularly in emerging economies, improved internet connectivity, significant ICT sector expansion, and the implementation of numerous government initiatives for the creation of smart cities.

Because of benefits including improved IT services, better flexibility of data access, and operational speed, manufacturers in the automotive, shipping, and aviation industries are increasingly adopting analytics and cloud computing. 

IoT, cloud computing, and analytics give transportation companies an advantage in running their businesses quickly and effectively. Additionally, cloud-based analytics aid the transportation sector in lowering infrastructure and storage expenses as well as operational costs. Additionally, the market for intelligent transportation systems is being driven by an increasing focus on data collection related to vehicle performance, tire wear and tear tracking, telematics feedback, user driving behavior, and vehicle efficiency that can be used to apply analytics for better logistics operations. 

Due to the rise in demand for cutting-edge technical solutions like robotics, drones, and self-driving cars, which drive the need for an advanced wireless communication solution, increased wireless technology penetration stimulates the growth of the IoT in the transportation industry. These factors are driving the IoT in the transportation market.

Restraints

IoT is experiencing grave security problems that are dangerous and disturbing for the people and government who have embraced the technology. Smart devices are being modified by hackers who have access to them. This problem puts the IoT's future at risk. This is the major obstacle that IoT businesses must overcome if they want a promising future and see the technology advance. 

The fact that businesses are continually introducing new technologies is one factor contributing to this problem. They only pay attention to functionality and ignore security. Therefore, it needs to be addressed in order to safeguard IoT devices.

Opportunities

IoT has the potential for an infinite future. Increased network agility, integrated artificial intelligence (AI), and the ability to install, automate, coordinate, and protect a variety of use cases at hyper scale will expedite the development of the industrial internet. A developing technique that connects devices with minimal bandwidth utilization and low bit rates over wider areas is called low-power wide-area network connectivity. 

It's a suitable option for IoT devices because it enables machine-to-machine communication. Because LPWANs use less energy, they are more economical. LPWAN technology is a fantastic option if you need to use many devices across a big area.

Challenges

The statistics generated by the algorithms are sometimes inaccurate. It is occasionally conceivable that the sensor's data is not accurate. Thus, inaccurate data will lead to inaccurate results. The analysis the results is flawed. Consequently, it is a significant problem for IoT to acquire the necessary analytical capabilities to eliminate these errors. Hence, these factors are supposed to harm the market growth.   

Recent Developments

As the global use of existing and upcoming Internet of Things (IoT) solutions grows, AT&T and Nokia have announced a partnership to deliver a Munich-based innovation studio. Through this collaboration, AT&T will be able to aid with business issues related to IoT solutions, such as asset tracking, and get access to the European ecosystem.

Key Market Players

  • Alcatel-Lucent
  • AT&T Inc.
  • Garmin International Inc.
  • IBM Corp.
  • Denso Corp.
  • Thales Group
  • General Electric
  • Verizon Communications Inc.
  • Cisco Systems, Inc.
  • TomTom N.V.

Market Segmentation

By Source

  • Hardware
  • Software
  • Services

By Components

  • Semiconductor
  • Wireless
  • Others

By Transport

  • Roadways
  • Railways
  • Airways
  • Maritime

By Application

  • Traffic Congestion Control Systems
  • Automotive Telematics
  • Reservation, Toll, & Ticketing Systems
  • Security & Surveillance Systems
  • Remote Monitoring
  • Others

Buy this Research Report@ https://www.precedenceresearch.com/checkout/2003

You can place an order or ask any questions, please feel free to contact at sales@precedenceresearch.com| +1 9197 992 333