by The IoT in transportation market consists of components such as IoT platforms, services, and solutions that help enable connectivity between vehicles and infrastructures to collect, analyze, and share data. IoT solutions help enhance real-time fleet management, vehicle diagnostics, automate toll payments, and streamline parking and transit ticket purchases. IoT also enables autonomous and connected vehicles by gathering data from technologies like onboard computers, sensors, and GPS. The rising demand for autonomous and connected vehicles due to advantages like enhanced safety, reduced emissions, and improved mobility is driving the growth of the IoT in transportation market.
The global IoT in transportation market is estimated to be valued at US$ 758.45 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the IoT in transportation market are Amazon Web Services (AWS), ARM Holdings, Dell, Ericsson, Google, Huawei, IBM Corporation, Intel Corporation, Microsoft, Oracle, Qualcomm, RTI, SAP, Siemens, and Telefonica. Key players are focusing on developing advanced IoT platforms and solutions to effectively manage fleet, vehicles, and transportation infrastructure.
The rising demand for smart mobility solutions represents a huge opportunity for players in the IoT in Transportation Market Growth . Technologies like connected vehicles, autonomous driving, EV charging infrastructure, and predictive maintenance create the need for advanced IoT platforms. Additionally, IoT enables new revenue streams through applications like in-vehicle payments, infotainment, and insurance telematics.
North America dominated the global IoT in transportation market in 2020. However, Asia Pacific is expected to witness the fastest growth during the forecast period owing to rising IoT investments and pilot projects for smart cities in countries like China and India. Additionally, increasing electronic vehicle adoption and focus on developing connected infrastructure will drive the Asia Pacific IoT in transportation market.
Market Drivers
The growing emphasis on reducing vehicular emissions and road accidents are major drivers for adopting IoT solutions in transportation. IoT enables technologies like predictive analytics, telematics, and fleet optimization which can significantly enhance transport efficiency and sustainability. Furthermore, rising disposable incomes are increasing consumer demand for advanced mobility services which rely on IoT networks. This in turn is anticipated to propel the IoT in transportation market during the forecast period.
PEST Analysis
Political: The growing preference for connected and autonomous vehicles by governments worldwide will drive the adoption of IoT solutions in the transportation sector. Transportation regulatory bodies are formulating policies to support innovations leading to enhanced vehicle and traffic management.
Economic: Falling costs of connectivity solutions and sensors along with declining average selling price of electronic components facilitate incorporation of IoT technologies in transportation infrastructure and vehicles. IoT offers an opportunity for transportation companies to reduce operating costs and enhance revenue through value-added services.
Social: Rising consumer inclination toward connected vehicles and transport on-demand services also augments the social acceptance of IoT-enabled transportation systems. Growing smartphone usage provides an interface for passengers to access real-time travel updates and commute preferences.
Technological: Continued advancements in areas of network technologies, edge computing, big data analytics, cloud platforms, low-power wireless technologies, and sensors enable new IoT-driven use cases in transportation services pertaining to fleet management, predictive maintenance, smart traffic control, autonomous driving, and more.
Geographic concentration
In terms of value, the IoT in transportation market in the North American region is concentrated in the United States led by large scale pilots and production of connected commercial vehicles. The country is an early adopter of IoT technologies and home to prominent technology companies.
Fastest growing region
The Asia Pacific region, especially countries like China and India, is expected to witness the fastest growth in the IoT in transportation market during the forecast period. This can be attributed to burgeoning urban infrastructure development, supportive government initiatives for smart transportation, and presence of large automobile manufacturers in these countries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Alice Mutum
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn
