IoT in Mobility Market Size (2024 – 2030)

The IoT in Mobility Market was valued at USD 4.8 billion in 2022 and is estimated to reach USD 17.56 billion by 2030, registering a CAGR of 17.6% during the forecast period of 2022 – 2030. The advancement in technologies like high-definition mapping, sensor processing technologies adaptive algorithms, and vehicle-to-vehicle communication technologies have played a vital role in vehicle tracking, safety management, predictive maintenance, etc. This has resulted in improving the overall operational efficiency and is acting as a key force driving the growth of the market.

INDUSTRY OVERVIEW

While the commercial and industrial sectors struggle to comprehend the impact and applications of IoT technology on their supply chains and production capacities, the transportation and logistics industries are paving the way. Transport and logistics firms, by their very nature, rely on massive amounts of data that must be adjusted in real-time over widely dispersed networks. The benefits of sensors and linked technology are instantly apparent when it comes to managing the data flows and modifications required to transport commodities by air, land, sea, and rail.

Automation has realigned how industries conduct their business across the world. Automation in industries has provided the business with safer, faster, and stronger solutions, which has empowered businesses with more key information and insights with more speed and depth than ever before. Automation of repetitive tasks is currently a concept that interests many industries. Thus, with the integration of the Internet of Things (IoT) with vehicles, the global transportation infrastructure is rapidly evolving.

Technological advancements in sensor-processing technologies, high-definition mapping, adaptive algorithms, and the deployment of infrastructure-to-vehicle and vehicle-to-vehicle communication technologies are promoting numerous companies to expand their production capacities and take vehicle automation to the next level. Automated vehicles are likely to improve vehicle efficiency, enhance travel comfort, and also improve remote vehicle monitoring. Businesses that are related to logistics and transportation are the major beneficiary of IoT technology as it helps businesses to maintain costs, fuel management, maximize profitability, and reduce fleet vehicle risk. Furthermore, it provides solutions regarding driver management and also enhances the safety of vehicles & drivers, and operational competency with real-time fleet tracking analysis. The risen e-commerce activities have boosted the IoT in the mobility automation market. As delivery is an important segment of this business and organizations are widely adopting the automation techniques that empower them with enhanced monitoring tools to improve overall fleet safety, customer services, and increase visibility & profitability with process management & research. However, factors such as cost sensitivity among local players and lack of uninterrupted & robust internet infrastructure may act as a decelerating factor to market growth around the world.

COVID-19 IMPACT ON IoT IN MOBILITY MARKET

The pandemic has not only created havoc in the healthcare sector but has also adversely affected the global economy and industries. The lockdown imposed by the government as a precautionary measure to curb the widespread of the virus led to supply chain disruptions that caused difficulty in the procurement of raw materials, shortage of laborers, and also price rise due to an increase in demand has affected the industry negatively. However, changing lifestyles like people preferring e-commerce for shopping, getting their food delivered from digital platforms, etc. have also caused companies to restructure their business operations and adjust accordingly to the changing landscape. Companies will need to increase operating capacity rapidly to support the increasing demand for delivery services and logistics. Therefore, deploying IoT solutions serves as a viable solution because it helps to reduce costs, enhances operational efficiency, and increases delivery network capacity. Thus, the aforementioned factors are strongly influencing the growth of IoT in the mobility market.

MARKET DRIVERS: 

The use of IoT in mobility has resulted in improving the overall efficiency of the mobility sector which is acting as a major factor driving the market growth

Direct benefits, such as making modes of transportation more accessible, flexible, and reliable for both customers and enterprises are propelling the IoT in Mobility market growth. Connecting drivers and customers for improved services is another aspect boosting the industry's growth. The adoption of e-commerce and digital platform for activities like shopping, dining, etc. has influenced the supply and logistics sectors to use advanced IoT solutions thus the enterprises are rapidly adopting IoT solutions. Automation features like fuel usage monitor, GPS tracking and geofencing, alarm systems, and asset trackers are being widely used for effective operations of the logistics sector. Adoption of automation features has resulted in reduced pilferage of items, increased fuel efficiency, and better tracking of the vehicles and products among others have encouraged businesses to opt for IoT solutions for their operations which is, in turn, fueling the market growth.

The use of IoT in business operations has enabled companies to obtain powerful predictions and rapid responses to any sudden stimulus are propelling the market expansion

Employees may take a stand to learn how to adapt swiftly or better to evolving market trends when organizational mobility is combined with IoT. Furthermore, assisting corporate staff in being more sensitive to the market in response to consumer wants or needs can lead to the development of more productive and effective business strategies. With the use of IoT in mobility, it will be easier to track and analyze the patterns of all client interactions. The data obtained through this capability is used by the business to obtain exact information that can be used to improve and enhance their services to better serve their clients.

MARKET RESTRAINTS:

Security and Privacy Issues related to the use of connected devices are a reason hampering the market growth

The increase in usage of digital features poses security and privacy issues. The high risk of hackers accessing the system data and unauthorized access to the vehicle can be exploited for carrying out malicious or criminal activities, including robberies and planned crimes. The business has confidential data with them and alarming growth in several cyber-attacks, data leakage, and false data injection in various industry verticals are hampering the adoption. However, significant investments in cyber security are set to offset this challenge and promote healthy growth during the later stages of the forecast period 2023 - 2030.

The integration of IoT solutions with different industry segments is still in a nascent phase and requires huge capital investment

IoT technology is still a developing industry and is still in the nascent stage. The use of IoT technology in any industry makes use of many technologies and high-end equipment which are expensive. Moreover, a large amount of data is generated while using IoT services. Managing and storing such data would be a meticulous and cumbersome process. This would further increase the input cost hence; this could affect the growth of IoT in the mobility segment negatively.

IOT IN MOBILITY MARKET REPORT COVERAGE:

This research report IoT in IoT in Mobility Market has been segmented and sub-segmented based on Components, By Vehicle Type, By feature, By Deployment Model, and By Region.

IoT IN MOBILITY MARKET – BY COMPONENTS

• Hardware

• Services

• Software

Based on components, the IoT in Mobility Market is segmented into Hardware, Software, and Services. Among these, the Hardware segment dominated the market share in 2021 and is projected to expand with a healthy CAGR over the forecast period. IoT technology solutions assist enterprises in integrating a variety of business operations, thereby accelerating the IoT in the mobility industry’s growth. With minimal infrastructure expenditure, integrating IoT-enabled technology with current processes is projected to improve the overall operational efficiency of the companies. An IoT device may be effortlessly deployed to wirelessly operate and monitor an E-scooter, E-bike, moped, or any other vehicle, allowing the user to transmit orders to the vehicle and have them executed, as well as monitor the vehicle's position in real-time and track any mistakes.

The services segment contributed the maximum market share and accounted for over 50% of revenue share in 2020.  The segment is expected to continue to capture the market over the forecast period. Factors attributing to this growth are the need for automation in the process to reduce the operational cost, minimize downtime, the need for real-time communication, and increased adoption of IoT-enabled control systems.  

IoT IN MOBILITY MARKET – BY VEHICLE TYPE

• E-Bike

• E-Scooter

• Cars

• Trucks

• Others

Based on vehicle type, the IoT as a technology is widely being used in modern transport facilities like E-bike, Trucks, Scooters, and cars among others. Among these, the trucking segment contributed significantly to the expansion of the market. Revenues in the trucking market are continuously expanding. Market expansion is fueled by factors such as thriving logistics firms throughout the world and rising digitalization and automation in the automotive industry. The latest technological advancements and widespread internet connection have made it possible for anyone to benefit from the convenience of IoT-enabled trucks. The trucks with enabled IoT technology provide data and analytics related to driver management. Driver management in the mobility sector provides a solution that includes, driver registration, insurance risk management, and analysis. The prime objective of driver management is to analyze drivers’ behavior and suggest necessary changes to driving styles, which will reduce fuel consumption and also reduce vehicle running costs. The logistics companies are putting a strong emphasis on asset management and are thereby using digital features for smart transportation.

The innovation of the E-bike has also contributed significantly to the market growth of the worldwide IoT solutions for the mobility industry. E-bikes are becoming more popular in numerous nations because they are dependable, easy to ride, affordable, and help people live and travel more sustainably.  They are gradually replacing bicycles, and in certain countries, such as China, they have already superseded fossil fuel-powered mopeds and small motorcycles thus propelling the IoT-enabled mobility market growth.

IoT IN MOBILITY MARKET – BY FEATURES

• Rider and operator Management

• Asset Monitoring & Management

• Telematics

• Safety & Security

• Analytics

• Others

Based on features, the IoT in Mobility Market is segmented into Rider and operator Applications, Asset Monitoring Management, Dashboard, Telematics, Safety & Security, and Analytics among others. Among these, the asset management sector contributed significantly to the market growth. The logistics companies are putting a strong emphasis on asset management and are thereby using digital features for smart transportation. Smart tracking solutions like Bluetooth tags and beacons have replaced the conventional RFID tags, which has helped in a better and wide range of functionalities. Furthermore, the integration of IoT in vehicles will aid in connectivity and monitoring of various business activities that would eventually help in promoting efficiency. The rider and operator management segment can also be credited for the market growth. The companies are widely using IoT-enabled devices to monitor and manage the operator. Adoption of automation features has resulted in reduced pilferage of items, increased fuel efficiency, and better tracking of the vehicles and products among others have encouraged businesses to opt for IoT solutions for their operations which is, in turn, fueling the market growth.

The Safety and Security features brought in by the use of IoT technology are also fueling the market expansion. The increased need for predictive maintenance technology from fleet operators to reduce downtime is largely responsible for this segment's rapid rise. The increase in the adoption of new and disruptive business solutions that felicitate industries in predicting and managing failures and better optimization of resources and assets is influencing the market towards a positive trend.

IoT IN MOBILITY MARKET – BY DEPLOYMENT MODEL

• On-Premise

• On Cloud

• Hybrid

Based on the deployment model Fleet, the IoT in the mobility market can be divided into three segments, On-Premise, On-demand, and hybrid mode. Of all the deployment types, the cloud-based segment registered over 5o% of the market share in 2020. Factors like growing demand for operational efficiencies among businesses, better management of fuel usage, and enhanced monitoring of the vehicles are accelerating the growth of the IoT in the mobility market.

IoT IN MOBILITY MARKET – BY REGION

By region, IoT in the mobility market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. The North American region contributed the maximum to the growth of the IoT in the Mobility market. North America dominated the IoT in the mobility market with over 35% of the market share in 2020. The market growth in the region is attributed to substantial users of the internet, the presence of a higher number of smart cities, and high investments in up-gradation towards the latest technology are the major driving force for the growth in this region. Canada has also been a major market for this industry and has witnessed significant growth, especially due to the policies pursued by the government to promote the adoption of IoT solutions in the country.

Europe and Asia pacific also depicted substantial growth in the market. Governments across the world are focusing on developing sustainable, safe, and connected transport, as the transport sector is the key contributor to its economic growth. A growing number of IoT-enabled mobility solutions will further improve asset monitoring and optimize logistics processes thereby boosting the economy. The sudden drift of consumers to e-commerce platforms from conventional retail stores has driven the demand for robust logistics support. Due to rapid urbanization, improved disposable income, and a shift towards digitalization Asia Pacific is also poised to be the fastest-growing market during the forecast period. The region is increasingly witnessing a strong adoption of advanced automation solutions, typically in Japan, China, and Taiwan, owing to the emerging competitive landscape, growing connected solution offerings, and high demand for online shopping platforms. Industries across the region are gradually realizing the benefits associated with the implementation of automation and are moving towards modernizing their operations.

IoT IN MOBILITY MARKET – BY COMPANIES

Some of the prominent players in the market include:

• Nxp Semiconductors N.V
• Precious Shipping Public Co.
• Robert Bosch GmbH
• Google (Alphabet Inc.) Cisco Systems
• IBM Corporation
• CalAmp
• Harman International Industries
• Intel Corporation DENSO Corporation
• Sierra Wireless
• Globecomm Systems

The presence of so many large corporations in this space, makes this industry fragmented and highly competitive. The level of competitiveness has been gradually increasing due to high market consolidation by market leaders. Big players have already been investing in cloud-based technologies owing to a larger amount of data generated by using IoT technologies. Companies are focusing on product launches, acquisitions, and R&D activities to capture the market spaces.

NOTABLE HAPPENING IN IoT IN MOBILITY MARKET

• PRODUCT LAUNCH- Siemens announced plans to launch a new fleet management model and app for the company cars used by its executives. This initiative has been taken to provide employees with greater access to vehicles equipped with eco-friendly drive systems and offer additional incentives to use EVs.
• PRODUCT LAUNCH- In December 2020, ZF launched telematics-based fleet management solutions for Light Commercial Vehicle. The TX-FLEX driver app offers improved operational performance, safety, and customer service levels, and also, enables operators or owners to manage all their commercial vehicles and drivers from this designed platform.
• COLLABORATION- In April 2019, SAP SE & Uber Cargo came together to restructure the logistics industry by incorporating smart automation and making easier access to the network. This collaboration will enable the users to obtain shipping pricing through Uber's electronically integrated carrier network and provide real-time offers and provide better asset management.