The use of IoT in the transportation industry is growing at a fast pace. As per the Allied Market research, the market of IoT in transportation will be valued at $328 billion. IoT devices are used for several applications in the transportation sector to provide security and efficiency in urban areas, especially in security, surveillance, ticketing, and telematics.
The Internet of Things has revolutionized the industry. It immensely impacts logistics, with a market size of $34 billion in 2019, globally. According to some experts, it is estimated to grow at a CAGR of 12.4% which will be valued at $63.7 billion in 2026.
In this blog, we will explore key statistics, the importance of IoT in transportation, and the benefits, challenges, and regulatory compliances required in the industry.
Waiting for a long time for a bus to arrive and bus overcrowding are just a few of the issues that daily commuters face. Other issues include traffic jams or poor ticketing systems. With IoT for transportation can help solve this, businesses can develop new technologies and produce positive results. Numerous companies are investing in IoT transportation platforms to enhance the customer experience and increase ROI. According to Cisco’s forecast, there will be a significant increase in the number of connected devices in the next few years.
Additionally, the use of IoT in transport will improve visibility and lower the risk of injuries. Transportation authorities can leverage technology capabilities and IoT devices to offer superior service.
Anyone who manages a warehouse or runs a transportation business knows that their business relies heavily on infrastructure. A new sub-branch, IoT (Internet of Things), is gaining momentum and creating waves.
The technology is integrated with all equipment, including electrical forklifts, HVAC systems, etc. In addition, companies can collect real-time information about mechanical and electronic assets.
Thus, swift actions can be taken whenever a part or machine ceases to function. The information helps reduce interruptions and delays to the business process.
If the public transport system is effective and punctual, commuters may want to change to a public system. If commuters are more likely to increase their use of public transport rather than private transportation (cars), this could result in lower pollution and traffic congestion.
Traveling with inconveniences and delays can frustrate commuters. Providing live information to commuters about delays on trains or buses can be helpful and this is possible because of IoT. IoT tracking systems offer real-time updates on smartphones using exclusive applications.
Car breakdowns and build issues can cause delays and leave commuters in limbo. Incorporating IoT devices into vehicles makes it easy to assess their condition and health and proactively manage maintenance.
Tracking things like train speed and temperatures on the roadway or the condition of aircraft parts with IoT technology can help enhance the security of transport systems.
The supply chain manager is accountable for ensuring that each container arrives at its final destination in good working order at the appropriate time between the manufacturing facility and the storage area.
You can swiftly reach this goal by utilizing technologies like big data analytics, machine learning, and IoT.
By better monitoring traffic congestion, these systems can respond quickly to changing traffic patterns and provide live data that can assist commuters in planning their journey more efficiently. Technology has the potential to be beneficial to the environment, with less pollution and energy use.
As per a report from ABi, here are some interesting insights about how the IoT is growing in the transportation industry:
Take a look below to know the IoT statistics for 2024:
Let us now look at the future statistics per the market data reports.
The Internet of Things is the next phase of technological development. It’s about optimizing and connectivity for management, smart, and more. Let’s take a look at the various use cases of IoT in transportation and how it is revolutionizing the transportation industry.
The most important use for IoT Applications in transportation and logistics is managing fleets. By using sensors and other devices embedded in automobiles, we can collect data on the car’s state, the amount of fuel used, and the driver’s behavior.
Checking the overall health and condition of crucial vehicle components, such as the level of coolant, tire pressure, and more, can lower the likelihood of sudden breakdowns. The ability to access these data can make maintenance easier and more efficient.
Supply chain managers can keep track of the movements of their vehicles by using location management tools. Furthermore, by using Geofencing as well as GPS tracking technology, they can keep track of;
If you are not satisfied with the current warehouse administration but looking for IoT solutions to monitor your goods or vehicles, you should consider this. Utilizing cutting-edge methods like RFID (radio-frequency detection) and AIDC (automatic recognition and collection of information), you can track and manage your assets like a professional.
What is RFID? These tiny microchips utilize radio waves to notify you of where your products are, where they’re supposed to go, and what they’re used for! But that’s not all. All wireless! You no longer have to worry about traditional scanning. The data is immediately transmitted to the database. This means that you have access to any time!
Warehouse Management Systems (WMS) or Inventory Management Systems are additional IoT solutions for logistical management. Implementing this kind of system will improve the efficiency of the warehouse overall.
It is essential to control the warehouse space efficiently to ensure swift and easy delivery of your goods. Furthermore, using smart systems can help you increase the efficiency of your space and locate packages in the right place.
Integrating smart sensors into the warehouse is an ideal method of automating the process of making orders in the event of a shortage of remaining inventory. This is a fantastic way to manage the limited space available in the warehouse.
The old toll system is prone to mistakes made by hand and needs to be more reliable in the face of the increasing road traffic. These devices have RFID tags and IoT connectivity, which can identify vehicles from far away and break down obstacles.
Smart parking is an important use case in IoT for transportation sector. Whether you’re camping on the road or have a small parking area, smart parking solutions can help. Wireless sensors detect the presence of vehicles and transform the data gathered into real-time occupancy information. Software for image detection transforms photos captured by cameras into valuable information.
One kind of sensor currently in use uses electromagnetic induction to detect the presence of vehicles. This type of sensor is typically located beneath parking lots. They are ideal for parking areas because they are remarkably resistant to environmental changes and can transmit real-time information. However, they can be expensive and IoT sensors offer cheaper alternatives. Thanks to this IoT sensors are to be among the latest trends in logistics technology. They are comparatively cheap and last for a long time frame with a minimal power source.
IoT solutions for monitoring drivers’ behavior are essential to supply chain IoT applications that improve the security of logistics activities on the road. Businesses can pinpoint areas that need improvement by collecting data about unsafe driving behaviors. This allows for training programs that focus on safe driving and traffic laws. It also means accidents will occur less frequently, which results in safer drivers.
Additionally, better driving methods can result in lower insurance costs, which will allow companies to save money and promote the safety of their fleet.
Using streamlined data communication, smart ports allow for improved efficiency and reduced costs through an intelligent network of security, infrastructure, and asset management features for networking.
The most cost-effective, simple internet-of-things technology could improve inventory, track containers, offer data-driven logistics, and improve security and security. Cloud-based reports give instantaneous information on the assets that have been tagged. With these reports, the processes can be enhanced.
The sophisticated cold chain monitor is classified as one of the best transportation IoT use cases. It aids in monitoring temperature, humidity, and other environmental conditions in refrigerated vehicles and storage facilities. This is why Walmart uses IoT sensors to check how safe perishable items are while in transit, which helps prevent spoilage and ensure products’ high quality and safety.
Electric vehicle usage is on the rise, and more people are becoming aware of their impact on the environment. This is an important transportation IoT application that could lead to technological advancement in the electric infrastructure for vehicles. Through the use of IoT sensors and software, you can collect information about your vehicle.
If you’re a company or manufacturer, you can alter the system that your electric automobile is running in a matter of minutes. You can mainly modify the charging capabilities of your electric vehicle or incorporate an alert function that informs drivers about the nearness of charging stations.
In today’s fast-paced environment, which includes shopping online and delivery-on-demand, the final stage in the supply chain is known as logistics last mile. It is essential to customer satisfaction and business success. Old logistics models had difficulties in the form of delays, inefficiencies, and an absence of visibility.
However, with the advent of technology, such as IoT, there is an exciting revolution that is changing the logistics landscape. IoT-powered solutions have enabled incredible efficiency that ensures goods are delivered on time, improving customer satisfaction and transforming the way goods are transported.
We’ve all heard about driverless cars. they seem to be quickly gaining popularity. elf driving cars can be used as ridesharing vehicles that operate within certain geographical regions, in conjunction with smart transportation networks, or as part of the public transportation system. At present, it is most likely that self-driving vehicles will be part of solutions for managing fleets offered by private businesses that are aware of their financial value and their role in improving the efficiency of the supply chain.
Security is equally important in the logistics. IoT greatly increases security. Cameras, sensors, and access control systems are utilized to check the security of buildings, vehicles, and cargo. They ensure that unauthorized access or suspicious activity can be detected quickly to guard against vandalism and theft.
IoT also permits compliance with security regulations, as security protocols are continually used. It allows full control and monitoring of critical assets and increases operational efficiency, resulting in an additional safe and stable environment for logistics.
Automation of the unloading and loading process of the cargo out of warehouses and ports is highly efficient. IoT-connected systems simplify freight handling by allowing you to monitor the cargo’s current status of the cargo as well as equipment availability and information about workflows for operational use in real-time. They can also help optimize loading schedules to cut down on wait times and reduce the costs of labor and time involved in manual tasks.
In addition, IoT technology enables the safe transport of goods, which is controlled by the equipment utilized and monitored. With the help of automated solutions, companies can reduce turnaround time to improve resource management and create supply chains that respond quickly to market requirements and operational issues.
Above, we have discussed the IoT Use Cases in Logistics. Take a thorough look and get ready to integrate IoT in transportation.
IoT can disrupt every business by enhancing efficiency, specifically logistics and freight management. Business Insider estimates there will be more than 41 billion active IoT devices in 2027. If this is the case, that’s much technology. If you’re not investing in the latest technology, you’re not reaping the many advantages of IoT and are lagging behind the competition.
Safety is a significant benefit of IoT technology for the transportation industry. This means ensuring that vehicle maintenance is done promptly and taking proactive steps to improve drivers’ behavior. The latest AI camera technology is at the forefront of proactive safety programs, using advanced AI-driven systems to capture critical information and deliver real-time, audible alerts to drivers. These systems help monitor actions like speeding, mobile phone use, tailgating, and seat belt violations, supporting safer driving practices.
In addition to facilitating more efficient resource management, the IoT helps to improve logistics’ environmental responsibility. Improved utilization of warehouses, waste reduction through more precise inventory management, and elimination of empty run usage all make for a more environmentally sustainable operation.
These initiatives impact the circular economy, reducing environmental pressures and encouraging the reuse of goods. Incorporating the use of IoT in logistics operations is thus related to the development of an increased eco-friendly approach to the business.
IoT allows the automation of various supply chain processes, from managing inventory in warehouses to reducing paperwork. This can lead to improved efficiency and time savings. The vast amount of data generated by IoT devices can provide insights that enable smarter decision-making. It results in more efficient operations and lower costs.
For smart traffic control, IoT sensors are installed in various vehicles and integrated into street lights, traffic signals, and so on. Sensors allow continuous monitoring and reduce accidents. In addition, IoT technology enhances the effectiveness and quality of services by allowing traffic control experts to analyze the data collected from sensors in real-time.
Transportation safety is enhanced through IoT technology. This is because information like the number of vehicles at an intersection or junction can be monitored to take necessary actions to avoid accidents.
Traffic control specialists can optimize their processes to minimize operating expenses based on information from sensors. IoT sensors can also detect changes in traffic patterns and offer live data to drivers, allowing them to pick routes that reduce congestion in traffic.
The significant challenges the transportation industry faces while integrating IoT are as below.
One of the major problems facing the logistics industry is reducing the rising cost of transportation. In certain industries, logistics can easily be 50% of the total expenses, and rising fuel costs increase the burden.
Higher fuel and diesel prices directly affect the cost of transportation. In addition, the rising cost of fuel increases the cost of freight.
The high cost of freight and fuel, along with other factors like growing global demand, the advancement of technology, the rise in labor costs, and rising commodity prices, have increased logistics’ operating expenses.
Warehouse workers and truck drivers will require extensive training to handle networks. Explaining the security policies and guidelines for using company platforms requires a lot of effort. Because there is no specialized IoT training, locating the right team with the capabilities to design an appropriate solution for a business’s needs is a problem.
Supply chain managers must be aware that hiring and retaining skilled workers could take a long time, especially given the current technological talent shortage.
The number of devices connected to networks and sensors continues to increase exponentially. Precautions must be taken to safeguard sensitive information and networks. Assuring the security of all IoT devices in transportation that comply with an organization’s security guidelines and are registered into the Enterprise Mobility Management (EMM) solution is an excellent starting point. Other aspects to consider are encryption of data transmissions, user access control, and device security.
There are a variety of aspects to consider when it comes to ensuring security compliance with IoT equipment.
The device component of security includes the following security elements:
To ensure integrity and security of data, the following security measures are essential:
Securing the networks that are compatible with IoT systems must meet these requirements:
To protect yourself, it’s necessary to have constant surveillance and response processes.
Understanding the benefits of digital transformation and the need for IoT is vital to increasing operational efficiency. However, finding skilled employees from a company that develops logistics software to set up IoT systems is equally crucial.
The A3Logics team is here to assist with your request to learn more about the possibilities that IoT technology could make possible. The Internet of Things puts technology to work or gets assistance developing an IoT-based system.
This connected system is well-known to our group, composed of IoT developers. We incorporate speed and security with the ability to scale into all aspects of our IoT development services, as we are aware of how vital it is to maintain unbeatable efficiency in these areas.
A3Logics has established itself as the leading provider of IoT app development services. We provide IoT solutions for transportation that boost productivity and profit by streamlining internal and external processes.
Internet of Things has ample benefits for the logistics and transportation sector. From optimizing routes and inventory management to safety for employees, numerous IoT in transportation use cases can improve operations.
But we know it’s challenging to figure out what to do first. Our team has worked for years developing various IoT-powered solutions for businesses worldwide. We’d love to lend our expertise to any project you plan to undertake.
Using technologies like AI, IoT, and smart transportation can make city travel faster, more efficient, and safer. Rapidly developing new technologies like IoT or 5G technology opens new possibilities.
IoT in supply chain and logistics management can provide a range of applications, including improved fleet management and real-time tracking. It also improves logistics automation and many more. Key advantages include inventory management, reduced operating costs, and improved overall efficiency.
The elements of IoT in Transportation & Logistics consist of various gadgets, including self-installing and controlled sensors, mobile apps, and AI-equipped cameras. These elements form an information-rich environment that is changing traditional logistics processes. Advanced analytics and cloud computing are crucial in processing the data, providing actionable insights to enhance efficiency and increase innovation.
Let’s look at the main developments that will determine the future of IoT in the transportation industry by changing it digitally.
