IoT in the transportation sector: Key market research findings
- Need for automation in the transportation system drives market growth
- Americas dominate the market geographically
- Key vendors – Alcatel-Lucent, AT&T, Cisco, IBM, and Intel
Technavio’s market research analysts predict the global IoT market in the transportation sector to grow at a CAGR of around 17% between 2016 and 2020. Much of this market’s growth is fueled by the growing need for automation in transportation management systems. Automated transport management solutions enable improved safety, security, and visibility, efficiency of tracking systems, as well as reduce transportation costs. IoT-enabled smart devices aid in the management of logistics systems through monitoring and tracking real-time vehicle position in the supply chain management system. During 2015, the Americas dominated the global Internet of things (IoT) market in the transportation sector by accounting for almost 41% of the overall market share and is expected to show substantial growth during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the IoT segments in the transportation sector based on the technology.
“The increasing popularity of intelligent transportation systems (ITS) is the latest trend in the market. ITS makes use of a set of integrated technologies such as communication systems, sensors, and smart devices to connect the transportation system in a real-time environment. It reduces complexities of the transportation sector and enhances the safety features for road transport safety and security. ITS integrated with IoT applications enable sensing the data and information from surroundings to improve the mobility and safety of passenger and commercial vehicles,” says Amrita Choudhury, Lead Analyst, ICT, Technavio Research.
The radio frequency identification (RFID) segment dominated the global IoT market in the transportation sector in 2015 by accounting for around 23% of the market share. RFID enables the automatic identification of any product and finds application in the air, roads, railways, and marine transport systems to identify aircraft and vehicles as well as toll roads. The data captured from RFID systems is used for the automation of the transportation system.
The key vendors in the market include Alcatel-Lucent, AT&T, Cisco, IBM, and Intel. The market is characterized by the presence of several large and medium-sized vendors. The major players in the market are focusing on M&A strategies to improve their global presence and customer reach. The market will also witness the entry of many new players in the coming years with the emergence of the IoT concept. Vendors compete on the basis of technical expertise, total offerings, and the degree of superiority of their product offerings.
A more detailed analysis is available in the Technavio report, Global IoT Market in the Transportation Sector 2016-2020.
We can customize reports by other regions and specific segments upon request.
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