Sensors And Asset Tagging in Logistics Market Size (2024 – 2030)

In 2023, the Global Sensors and Asset Tagging in Logistics Market was valued at $22.06 billion, and is projected to reach a market size of $53.36 billion by 2030. Over the forecast period of 2024-2030, market is projected to grow at a CAGR of 13.45%.Given the high cost of business and industrial assets, particularly fleet equipment, the necessity for asset monitoring and tagging is critical.

Market Overview

Managers across sectors are discovering the need for a centralised system that delivers crucial information, such as location, maintenance history, and contract (if applicable), for all assets in real-time to establish the total cost of ownership. Managers can incur lower administrative costs, better accountability, and cost savings by combining hardware, software, and network services. Furthermore, companies may plan for maintenance and future growth using the information on asset status, resulting in total efficiency.

In contrast to traditional barcodes and spreadsheets, GPS tracking has become one of the most frequent strategies for increasing productivity, lowering operating costs, and streamlining compliance.

In addition, the use of RFID-based asset tracking technologies has grown in popularity. According to Zebra Technologies, a company that specialises in RFID and location technology for shop floors, asset management has become easier in industries like automotive and electronics as a result of the use of IoT technology. Manufacturers are implementing Industry 4.0 principles and converting/establishing smart factories, in which employees use a variety of technologies, such as RFID, wearables, and mobile automated systems, to monitor physical processes on the shop floor and make decentralised choices. On the other hand, as the need for just-in-time shipments grows (because of the e-commerce boom), so does the requirement for asset tracking.

Overall, asset management has been served by technologies such as RFID, sensors, location-based technologies, integrating software, and the new IoT application. The asset management sector has been boosted by factors such as e-commerce and the growing number of industrial assets as a result of Industry 4.0.

Covid-19 Impact on Sensors and Asset Tagging In Logistics Market

While the logistics and transportation sectors will surely survive and grow during and after the COVID-19 epidemic, there has never been a greater need to be agile and adapt to the difficulties at hand. Entire supply chains have gone out of function, causing businesses to seek alternatives; transportation costs have increased, making efficiency important; and a supply-demand imbalance is irritating consumers.

While GPS asset trackers can't solve all of these problems, integrated end-to-end solutions can help fleets improve efficiency and predictability by allowing them to optimise the route, connect with shippers, maximise loads, and provide customers with more precise delivery forecasting.

COVID-19's extraordinary influence, as well as the resulting demand for social separation, has pushed digital tools and technology to the forefront like never before. Running operations with a large portion of the staff working remotely have increased the speed of digitalization, especially in the logistics sector, which has been a laggard in adopting new technology in the past.

It is now up to all actors in the logistics ecosystem to take advantage of this paradigm change and collaborate effectively to reduce inefficiencies and optimise delivery at every level of the logistics supply chain using digital tools and technology.

MARKET DRIVERS

Growing Adoption of Internet of Things (IoT)-Enabled Connected Devices to Boost Market Growth

The rising cost of gasoline, as well as related environmental challenges such as carbon emissions and pollution, are driving a transition away from traditional transportation techniques and toward connected logistics solutions powered by the Internet of Things. Sensors, cloud technologies, and Internet of Things connectivity are used to remotely manage, monitor, and control supply chain activities. The logistics and transportation industry's supply chain platform has become more efficient as a result of the implementation of IOT. It enables effective and rapid decision-making by providing total visibility and faster detection of network faults. Improved supply chain visibility also results in long-term cost reductions. As a result, demand for Internet of Things-enabled solutions is growing across a variety of industries, including manufacturing, transportation, and automotive.

The Market's Growth Will Be Driven by the Emergence of High-Tech Vehicles

Autonomous trucks and vehicles have significant advantages in a variety of industries that are trying to meet the demand for faster delivery times. As a result, the demand for tagging logistics solutions is expanding across industries such as food and beverage, healthcare and pharmaceuticals, and manufacturing for the flow of goods. The rising need for mobility has highlighted issues such as changing energy prices, large-scale investment, and dealing with pollutants. As a result, important players are involved in building high-tech cars that can meet the economy's and society's future needs. The high-tech vehicles employed in supply chain and logistics services improve both the efficiency and the safety of the supply chain and logistics. Furthermore, the expanding availability of linked drones is boosting this demand for more high-tech automobiles.

MARKET RESTRAINTS

Lack of logistical support Market expansion is being hampered by standardisation.

Due to significant disparities in business norms, infrastructure, culture, and government legislation, logistics standardisation could pose some issues. Furthermore, to maintain a high degree of global competitiveness, governments must lower domestic logistics costs by implementing logistics standardisation that is comparable to global standards such as the European Union (EU) standards and ISO 150 standards. In comparison to the United States and European Union countries, for example, the amount of logistical standardisation in both China and Korea is minimal. This was due to the Chinese and Korean governments' lack of promotion and enforcement, as well as the lack of regional organisations capable of actively initiating and unifying multi-national logistics standardisation activities. These efforts involve developing and implementing local and international standards for logistics equipment, tools, packaging, storage, transportation, loading/unloading, and ICT that are consistent with widely used worldwide logistics standards like ISO standards. As a result, the lack of logistics standards raises the cost of the entire supply chain process, stifling the market's growth.

The market's expansion is being hampered by a lack of linked assets.

The market is nevertheless restricted by a scarcity of enterprise-connected assets across several key asset classes. Leading asset tracking solution providers are focused on the asset's worth to a company or government agency rather than the asset's book value. A consultative marketing/sales approach is required to inform businesses of the value of interconnected corporate assets, as well as demonstrable asset monitoring outcomes that add value to the bottom line.

This research report based on Sensors and Asset Tagging In Logistics Market is segmented and sub-segmented by component, deployment, end-use and region.

Sensors And Asset Tagging In Logistics Market by component

• Hardware
• Solution
• Services

The market is divided into three categories based on the component: hardware, solutions, and services. The solutions segment held the biggest market share in 2021 and is projected to do so again in the coming years. The increasing demand for mobility and effective supply chain management is driving the market's expansion.

Warehouse management, freight management, fleet management, asset tracking and management, device management, connectivity management, and others are all part of the solutions area. Due to the rising usage of asset tracking systems for GPS location and real-time asset management, the asset tracking and management category held the biggest market share in 2022. The gateway, RFID tags, and sensor node are all part of the hardware portion. Due to the increased necessity to monitor the location and speed of shipping objects, the sensor node category maintained the biggest market share in 2020. Furthermore, Internet of Things-based connected sensing technology aids in maintaining temperature stability and reducing perishable product waste, hence improving supply chain visibility.

During the forecast period, the service sector of the market is estimated to develop at the quickest rate. The leading players are now providing professional and managed services in addition to the solutions. Professional services have the biggest market share, owing to the increasing demand for digital and analytics, as well as R&D services, among businesses looking to acquire a competitive advantage.

Sensors And Asset Tagging in Logistics Market by deployment

• Cloud
• On-premise

The expansion of the sensor and asset tagging Logistics market is fuelled by the increased acceptance of cloud-based technology, as well as the use of logistics 40, Bluetooth 5, and the Internet of Things. At this time, cloud technology is widely used by all industries, providing logistical firms with cost-effective solutions. Cloud installation allows organisations to combine supplemental data. The model may now work from anywhere and at any time thanks to cloud computing. 

Sensors And Asset Tagging in Logistics Market by end-use

• Transportation & Logistics
•  Aviation
•  Healthcare
•  Manufacturing
•  Food & Beverage

Manufacturing, automotive, food and beverages, consumer goods and retail, travel and hospitality, healthcare, aviation, and others are among the market's verticals. Due to the increased requirement to improve the tracking of pallets and packages during transportation, the manufacturing category maintained the highest share in 2021. Due to the rising adoption of time-sensitive shipping and temperature regulated road freight, the consumer products and retail sector demonstrated the highest CAGR during the predicted period.

Sensors And Asset Tagging in Logistics Market by region

• North America
•  Europe
• Asia-Pacific
•  Latin America
•  The Middle East and Africa

North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America are the five primary regions covered and analysed in the research. These territories are further subdivided into their own countries.

During the forecast period, North America is expected to add to the market. North America earned USD 4.71 billion in sales in 2021 and is predicted to reach USD 23.97 billion by 2030. The adoption of connected logistics solutions that leverage advanced technologies such as machine learning, IoT, cloud computing, big data, data analytics, deep learning, and artificial intelligence is driving this profitable growth in North America (A) Connected logistics technologies are being used by businesses in this region to improve operational efficiency and supply chain management. Due to the existence of a significant number of prominent firms, the United States has the greatest market share in North America.

Europe has the second-largest market share, with a spectacular CAGR projected over the forecast period. The rapidly expanding logistics business in Europe is driving up demand. Additionally, increased government and private sector investments in the transportation sector are fuelling regional market expansion.

In terms of CAGR, Asia Pacific is expected to be the fastest-growing region in the worldwide sensor and asset tagging logistics market. In this area, solution providers are aiming to build Internet of Things (IoT) enabled solutions for better supply chain management, which is driving the market growth.

The Middle East and Africa are expected to continue to grow at a healthy rate. Increased demand for more energy- and cost-efficient solutions, as well as a desire to save operational costs, will help the market growth across the area.

Sensors And Asset Tagging in Logistics Market by company

Given the presence of several suppliers offering various asset tracking solutions, the asset tracking industry is fragmented. Solution providers are engaging in a variety of R&D efforts to improve existing solutions and create new ones by incorporating the most recent technological advancements. Furthermore, businesses see global expansion as a way to gain the most market share. The top players in the sensor and asset tagging market are Zebra Technologies Corp. (US),

Stanley Black & Decker, Inc. (US), SATO Holdings Corp. (Japan), Impinj, Inc. (the US), Honeywell International Inc. (US), Datalogic S.p.An (Italy), Trimble Inc. (US), TomTom International BV (Netherlands), and Topcon Corp.

T-Mobile introduced the first Narrowband IoT asset tracking solution in the United States in July 2020. The business expects to market its first asset tracking system this year.

NOTABLE HAPPENINGS IN THE SENSORS AND ASSET TAGGING IN THE LOGISTICS MARKET IN THE RECENT PAST:

PRODUCT LAUNCH

• In March 2021, the Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) solution, which combines shippers' supply networks with an integrated suite of cloud business applications, received additional improvements in March 2021.
• In July 2021, Snow Atlas, the first comprehensive platform developed to help enterprises identify, manage, and optimise their technology investments both on-premises and in the cloud, was released. SAM, SaaS management, and ITSM integrations, which were previously supplied as a service, are now available on the new cloud-native platform.

MERGERS AND ACQUISITIONS

• In January 2021, Trimble agreed to buy Kuebix, a leading transportation management system (TMS) provider, to bring its private fleet and commercial carrier networks together for customers. The former's complete transportation technology portfolio will be bolstered by this acquisition.