January 31, 2023

Uncovering the Potential of IoT in Transportation: Market Stats, Benefits, and Applications

The Internet of Things (IoT) is a rapidly growing technology that involves the integration of connected devices, sensors, and actuators. IoT in transportation industry enables the real-time tracking, monitoring, and control of vehicles and other assets, leading to numerous benefits, including cost savings, improved efficiency, and enhanced safety.

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According to a market research report by Mordor Intelligence, the global IoT in the intelligent transportation systems market is expected to grow at a compound annual growth rate of 21.2% from 2020 to 2025, reaching a market value of $50.81 billion. The growth of the application of IoT in travel and transportation is driven by factors such as increasing urbanization, rising demand for efficient and reliable transportation services, and the growing adoption of connected and autonomous vehicles.

According to the Precedence Research report, in 2021, the global IoT in transportation market size was already estimated at USD 85.21 billion, and it is estimated to hit around USD 498.47 billion by 2030. Such data come as no surprise as the implementation of IoT in intelligent transportation systems brings a lot of value to businesses as well as customers.

IoT technology helps provide customers with more accurate, up-to-date, and real-time data that significantly improve trip planning. Additionally, IoT integration in transportation has the potential to improve the safety of our transit systems around the world, for example, by measuring things like train speeds, roadway temperatures, and the number of vehicles at a crossroads.

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One of the main IoT applications in transportation is asset tracking and monitoring. Sensors installed on vehicles can track their location, speed, and other metrics, such as fuel consumption and maintenance needs. This information is transmitted to a central hub, where it can be analyzed and used to optimize routes, reduce fuel consumption, and schedule maintenance.

In addition to asset tracking and monitoring, IoT in transportation and logistics can also be used to improve traffic flow and reduce congestion. For example, connected traffic lights can communicate with each other and adjust their timing based on the current traffic volume, reducing the time vehicles spend idling at intersections. Similarly, connected vehicles can communicate with each other and with traffic infrastructure, such as road signs and traffic lights, to improve safety and efficiency.

IoT can also be used to improve public transportation systems, such as buses and trains. Sensors can be installed on these vehicles to track their location and performance, enabling real-time tracking and updates for passengers. Additionally, IoT can be used to optimize routes and schedules, improving the efficiency and reliability of public transportation systems.

Advantages of IoT in Transportation

IoT integration in transportation has numerous advantages for businesses, including the following ones:

Cost savings

By tracking and monitoring vehicles in real-time, businesses can optimize routes and reduce fuel consumption, leading to significant cost savings. IoT can also be used to track and monitor other assets, such as containers and cargo, enabling businesses to optimize their utilization and reduce downtime.

Improved efficiency

IoT can be used to optimize routes and schedules, reducing the time and resources required to complete deliveries. IoT in transportation can also be used to track and monitor maintenance needs, enabling businesses to schedule maintenance in a timely manner and reduce downtime.

Enhanced safety

By enabling real-time monitoring of vehicles and other assets, businesses can detect potential problems, such as maintenance issues or accidents, and take timely action to prevent them. IoT used in transportation can also improve traffic flow and reduce congestion, enhancing safety on the roads.

Increased customer satisfaction

IoT can be used to provide real-time tracking and updates to customers, improving their experience and satisfaction with transportation services.

Better asset utilization

By tracking and monitoring assets in real-time, transportation companies can optimize their usage and reduce downtime.

In conclusion, by leveraging IoT technology, businesses can optimize their operations and improve the efficiency and reliability of their transportation services. So, it’s totally worth investing in IoT, - and in case you are wondering about IoT in transportation cost, it greatly depends on the complexity of the software development, your particular business needs, and the location of software developers. For example, developers from one country can charge less than their counterparts, so the cost range may be between $15 000 - $60 000. Feel free to contact A-Team Global, and we will estimate your project. We specialize in providing custom IoT solutions based on customers’ requirements. 

IoT Applications in the Transportation Sector

There are numerous applications of IoT in the transportation and logistics sector, including:

Source

Fleet management

IoT can be used to track and monitor vehicles, optimize routes, and reduce fuel consumption. In addition to tracking and monitoring vehicles, IoT can also be used to improve traffic flow and reduce congestion. For example, connected traffic lights can communicate with each other and adjust their timing based on the current traffic volume, reducing the time vehicles spend idling at intersections. Similarly, connected vehicles can communicate with each other and with traffic infrastructure, such as road signs and traffic lights, to improve safety and efficiency.

Public transportation

IoT can be used to improve the efficiency and reliability of public transportation systems, such as buses and trains, by tracking and monitoring vehicles and optimizing routes. Sensors can be installed on these vehicles to track their location and performance, enabling real-time tracking and updates for passengers. Additionally, in this case, IoT used in transportation can help optimize routes and schedules, improving the efficiency and reliability of public transportation systems.

Last-mile delivery

IoT can be used to track and monitor delivery vehicles and optimize routes for last-mile delivery, reducing costs and improving customer satisfaction.

Logistics

IoT can be used to optimize logistics operations by tracking and monitoring assets, such as containers and cargo, and improving the efficiency of supply chain management.

Autonomous vehicles

IoT is a key technology for the development of autonomous vehicles, as it enables real-time communication between vehicles and their surroundings. Sensors installed on autonomous vehicles can gather data from their surroundings and transmit it to a central hub, enabling the vehicle to make decisions and navigate its environment safely.

IoT application in the transportation field is numerous and varied, and this technology has the potential to revolutionize the industry. Yet, although there is a ton of promise for IoT in transportation and logistics, it also greatly depends on how quickly businesses adopt new technologies and overcome challenges. Among the main IoT in transportation challenges is the need for hardware that is compatible with the software, the lack of cloud storage and big data analytics, the lack of universal regulations for devices, need for constant maintenance, especially for advanced software.

IoT use cases in transportation

Most common IoT use cases in transportation and logistics are vehicle tracking, predictive maintenance, delivery tracking and customer order, drone-based delivery, supply chain management, and inventory tracking.

A-Team Global can help you extend your business possibilities with our custom IoT solution tailored to your specific needs. With Metrix, our custom IoT solution, we helped the Joint Stock Company “Ukrainian Railway,” a major transport service company in Ukraine, reduce the annual operational cost of 100 000 USD. 

As a result of our work, the company not only saved a significant amount of money but also got the following benefits:

  • In-depth reporting system helped prevent a lot of delays and find the solution quicker
  • The customer’s satisfaction rate as well as the level of trust to the company significantly improved
  • More people started using trains instead of cars, which had a great social effect

The company boosted its performance by having better control of train traffic plans and introducing a convenient notification system for all customers.

No matter what challenges your business has, we will help you overcome it with Metrix, our custom IoT solution.

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Conclusion: Why It is Useful to Use IoT in Transportation

IoT is transforming the transportation industry by enabling intelligent transportation systems through the integration of connected devices, sensors, and actuators. By tracking and monitoring assets, optimizing routes, and improving fleet management, IoT integration in transportation can help transportation companies reduce costs, enhance safety, and increase customer satisfaction. In the future, IoT is likely to play an even greater role in the transportation sector, particularly in the development of autonomous vehicles.

Overall, IoT is a powerful technology that is transforming the transportation industry by enabling the real-time tracking, monitoring, and control of vehicles and other assets. By leveraging IoT, transportation companies can optimize their operations, reduce costs, and enhance the efficiency and reliability of their services.

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