Global IoT Market in the Transportation Sector 2016-2020
Market overview of IoT in the transportation sector
Technavio’s market research analyst predicts the global IoT market in the transportation sector to grow at a CAGR of almost 17% by 2020. One of the primary drivers for this market is the rising need to automate transportation management systems. Automated transport management solutions increase safety, security, and visibility, the efficiency of tracking systems, and also reduce the transportation costs. The IoT-enabled smart devices help to manage the logistics operations by monitoring and tracking real-time vehicle position in the supply chain management system. The increasing adoption of intelligent transportation management solution in the transportation sector will augment growth in this market during the forecast period.
Another interesting trend that is anticipated to have an impact on this market is the growing use of intelligent transportation systems (ITS). The ITS use a set of integrated technologies such as communication systems, sensors, and smart devices to connect the transportation system in a real-time environment. The incorporation of intelligent systems and IoT solutions in the transportation sector enables vehicles to transfer message and signals to other vehicles for tracking and monitoring on a real-time basis. The integration of ITS with IoT applications help to sense the data from surroundings and increases safety in passenger and commercial vehicles.
Segmentation by modes of transport and analysis of the IoT market in the transportation sector
- Road transportation
- Railway transportation
- Air transportation
- Marine transportation
The IoT market in road transportation system dominated the market in 2015 and accounted for around 29% of the overall market revenue. IoT solutions help to provide real-time data about transport vehicles. Vendors are integrating connected vehicles with IoT applications to track vehicle location. IoT solutions enhance road transportation system through intelligent IT solutions for transit management and smart traffic management systems. IoT applications integrated with analytics solutions are used to gather and analyze data collected from smart and connected devices with the help of telematics and sensor technology.
Geographical segmentation and analysis of the IoT market in the transportation sector
The Americas was the largest region in the IoT market in the transportation sector and occupied around 40% of the total market share during 2015. Transportation issues such as an increase in traffic congestion, environmental threats from vehicle pollutions, and passenger safety have resulted in the high adoption of IT solutions in the transportation sector in the region. Growing investments in vehicle safety applications will propel this market’s growth in the region over the next four years.
Competitive landscape and key vendors
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 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.
Key vendors in this market are –
Other prominent vendors in the IoT market in the transportation sector are Amazon Web Services (AWS), ARM Holdings, Dell, Ericsson, GE, Google, Huawei, Microsoft, Oracle, Qualcomm, RTI, SAP, and Telefonica.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global IoT market in the transportation sector?
- What are the key market trends impacting the growth of the global IoT market in the transportation sector?
- What are the challenges to market growth?
- Who are the key vendors in the global IoT market in the transportation sector?
- What are the market opportunities and threats faced by the vendors in the global IoT market in the transportation sector?
- Trending factors influencing the market shares of the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global IoT market in the transportation sector?
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