Guidehouse Insights expects Global spending for IoT on transportation to grow at a compound annual growth rate of nearly 15% through 2031
Market drivers include concerns around CO2 emissions, the safe movement of passengers and cargo, and increasing demand for trucking amid shortage of drivers
A new report from Guidehouse Insights discusses how Internet of Things (IoT) technology is being deployed in the transportation sector, focusing on passenger travel and logistics.
IoT technology in transportation is relatively well-established, though different sectors are at different stages of penetration and use cases vary. One consistent theme is the use of IoT sensors and analytics to improve processes involved in moving passengers and cargo. Governments and transportation operators want to increase cost efficiency, offer a differentiated user experience, and generate new revenue streams through IoT in transportation. According to a new report from Guidehouse Insights, global spending for IoT on transportation is expected to grow at a compound annual growth rate (CAGR) of 14.6% through 2031.
“As customer-facing settings are well-prepared for IoT deployments, thanks to existing Wi-Fi network deployments in airports and train stations, non-customer-facing settings such as an airport’s airside operations will present an important opportunity for growth,” says Francesco Radicati, senior research analyst with Guidehouse Insights. “However, the most important constraint to growth will be ensuring that any new deployments adhere to safety protocols, particularly in passenger settings.”
Among the factors driving the deployment of IoT technology in the transportation industry are concerns around CO2 emissions and the environment, the safe movement of passengers and cargo, and increasing demand for trucking amid a shortage of drivers. While the early phases of the COVID-19 pandemic led to a decrease in transportation-related emissions, the travel and logistics industries are expecting demand to return to pre-pandemic levels. However, they will have to address that demand with fewer resources after two years of cost-cutting to remain afloat.
The report, IoT in Transportation Overview, discusses how IoT technology is being deployed in the transportation sector, focusing on passenger travel (primarily aviation and rail) and logistics (primarily trucking and ports). This report describes IoT use cases in airports, rail stations, shipping ports, and trucks and provides information on key players targeting transportation. It also provides forecasts for the expected investment in each sector by global region through 2031.
