About the Internet of Things (IoT) Market in the Transportation Sector
The transportation sector experiences challenges to manage commercial and passenger transportation systems. These systems are the backbone of global supply chain and logistics management for the distributions of manufactured products. Commercial vehicles require real-time information systems to transmit data to track consignments in the supply chain systems. The rapid increase in number of passenger and commercial vehicles worldwide has led to numerous transport challenges, such as traffic congestions. Organizations widely adopt numerous modes of transportation, such as air, roads, railways, and marine transportation systems, for the movement of consignments from one place to another.
Technavio’s analysts forecast the global internet of things (IoT) market in the transportation sector to grow at a CAGR of 16.9% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global internet of things (IoT) market in the transportation sector for 2016-2020. To calculate the market size, we consider the global IoT spending on public, private, and commercial transportation systems. The IoT spending also includes revenue generated by vendors from the sales of software, hardware, cloud-based IoT solutions, smart devices and components used in the transportation sector to construct an IoT environment.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Internet of Things (IoT) Market in the Transportation Sector 2016-2020
Technavio recognizes the following companies as the key players in the global internet of things (IoT) market in the transportation sector: Alcatel-Lucent, AT&T, Cisco Systems, IBM, and Intel.
Other Prominent Vendors in the market are: Amazon Web Services (AWS), ARM Holdings, Dell, Ericsson, GE, Google, Huawei, Microsoft, Oracle, Qualcomm, RTI, SAP, and Telefonica.
Commenting on the report, an analyst from Technavio’s team said: “A trend influencing market growth is the emergence of M2M communication systems. M2M enables machines to connect and interact securely over a network. It also keeps track of safety and security measures by providing remote access, 24/7 monitoring, and automated emergency response. M2M is an important feature in the telecom and IT landscape as it helps connect remote sensing, monitoring, and actuating devices. M2M communications systems in the transportation sector is gaining prominence quickly in the market. These systems enable communication among smart devices over a wired or wireless networking infrastructure.”
According to the report, a key growth driver is the need to automate transportation management systems. Automation of the transportation management system for advances in transportation system is a major factor behind the increased adoption of IoT solutions. Automated transport management solutions increase safety, security, and visibility, efficiency of tracking systems, as well as reduce transportation costs. IoT-enabled smart devices help manage logistics systems by monitoring and tracking real-time vehicle position in the supply chain management system.
Further, the report states that one challenge that could restrict market growth is the complexity associated with IoT integration.
Alcatel-Lucent, AT&T, Cisco Systems, IBM, Intel, Amazon Web Services (AWS), ARM Holdings, Dell, Ericsson, GE, Google, Huawei, Microsoft, Oracle, Qualcomm, RTI, SAP, Telefonica.