Published Date : 02 Jan 2023
The IoT in transportation market size was evaluated at USD 77.07 billion in 2022 and is expected to be worth around USD 806.69 billion by 2032, growing at a CAGR of 27% over the forecast period 2023 to 2032.
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
IoT In Transportation Market Report Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 94.03 Billion |
| Market Size by 2032 | USD 806.69 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 27% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| 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
Market Segmentation
By Source
By Components
By Transport
By Application
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