IoT in Mobility Market Projection (2024 – 2030)

The market size for IoT in Mobility stood at USD 5.64 billion in 2023 and is forecasted to attain USD 17.56 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 17.6% within the forecast period spanning from 2024 to 2030. Key technological advancements such as high-definition mapping, sensor processing technologies, adaptive algorithms, and vehicle-to-vehicle communication technologies are pivotal in functions such as vehicle tracking, safety management, and predictive maintenance. These innovations have notably enhanced overall operational efficiency, serving as a primary catalyst for market expansion.

Industry Overview

While sectors like commercial and industrial continue to grapple with understanding the implications and applications of IoT technology within their supply chains and production capabilities, the transportation and logistics domains are leading the charge. These sectors inherently rely on vast amounts of real-time data spread across extensive networks. The advantages of sensors and interconnected technologies become readily apparent when managing the dynamic data flows required for transporting goods via air, land, sea, and rail.

The landscape of industries worldwide has been reshaped by automation. Automation has provided businesses with safer, faster, and more robust solutions, furnishing them with crucial insights and information with unprecedented speed and depth. The concept of automating repetitive tasks holds considerable appeal across various industries. Hence, the integration of the Internet of Things (IoT) with vehicles is swiftly transforming the global transportation infrastructure.

Advancements in sensor-processing technologies, high-definition mapping, adaptive algorithms, and the deployment of infrastructure-to-vehicle and vehicle-to-vehicle communication technologies are prompting numerous enterprises to expand their production capacities and elevate vehicle automation to new heights. Automated vehicles are poised to enhance vehicle efficiency, travel comfort, and remote vehicle monitoring capabilities. Businesses within the logistics and transportation spheres stand to gain significantly from IoT technology, aiding them in cost maintenance, fuel management, maximizing profitability, and reducing fleet-related risks. Moreover, IoT solutions offer avenues for driver management, bolster vehicle and driver safety, and enhance operational efficiency through real-time fleet tracking analysis. The surge in e-commerce activities has further propelled growth in the IoT in mobility automation market. With delivery being a pivotal segment, organizations are widely embracing automation techniques to leverage enhanced monitoring tools, thereby improving overall fleet safety, customer services, and bolstering visibility, profitability, along with streamlined process management and research. However, factors such as cost sensitivity among local players and the absence of uninterrupted and robust internet infrastructure may impede market growth on a global scale.

COVID-19 Impact on IoT in Mobility Market

The pandemic has not only disrupted the healthcare sector but has also cast adverse effects on the global economy and various industries. Government-enforced lockdowns, as a precautionary measure to curb the virus's spread, led to disruptions in the supply chain, resulting in challenges related to raw material procurement, labor shortages, and price escalations due to heightened demand. However, shifting consumer behaviors, such as a preference for e-commerce shopping and relying on digital platforms for food delivery, have compelled companies to restructure their operations in response to this evolving landscape. Companies are now required to swiftly increase operational capacities to meet the rising demand for delivery services and logistics. Consequently, deploying IoT solutions emerges as a viable strategy, aiding in cost reduction, enhancing operational efficiency, and augmenting delivery network capacities. These factors collectively contribute significantly to the growth of the IoT in the mobility market.

Market Drivers

The adoption of IoT in mobility has significantly boosted the overall efficiency of the mobility sector, emerging as a major driving force for market growth.

Immediate benefits, such as enhancing the accessibility, flexibility, and reliability of transportation modes for both consumers and enterprises, propel the growth of the IoT in Mobility market. Enabling connectivity between drivers and consumers to enhance services represents another aspect bolstering industry expansion. The surge in e-commerce adoption and the utilization of digital platforms for activities like shopping and dining have influenced the supply and logistics sectors to embrace advanced IoT solutions. Automation features such as fuel usage monitoring, GPS tracking, geofencing, alarm systems, and asset trackers are being widely embraced for efficient operations within the logistics sector. The adoption of automation features has resulted in decreased pilferage, enhanced fuel efficiency, and improved tracking of vehicles and products, among other benefits, thereby encouraging businesses to opt for IoT solutions for their operations, consequently fueling market growth.

The utilization of IoT in business operations empowers companies to access robust predictive capabilities and rapid responses to unforeseen stimuli, propelling market expansion.

The amalgamation of organizational mobility with IoT equips employees with the ability to swiftly adapt to evolving market trends. Furthermore, aiding corporate personnel in becoming more responsive to market demands or consumer preferences can lead to the development of more efficient and effective business strategies. The incorporation of IoT in mobility facilitates easier tracking and analysis of client interaction patterns. Businesses utilize the data gleaned from such capabilities to obtain precise insights that can be leveraged to enhance and refine their services for improved client satisfaction.

Market Restraints

Security and Privacy Concerns associated with the use of interconnected devices pose challenges hindering market growth.

The escalating adoption of digital features poses security and privacy risks. The heightened risk of unauthorized access to vehicle systems by hackers for malicious activities, including theft and planned crimes, is a significant concern. Businesses harbor sensitive data, and the alarming surge in cyber-attacks, data breaches, and false data injections across various industry verticals dampens adoption rates. Nonetheless, substantial investments in cybersecurity are poised to mitigate these challenges, fostering healthy growth during the latter stages of the forecast period spanning from 2024 to 2030.

The integration of IoT solutions across diverse industry segments remains in its nascent stage and necessitates substantial capital investment.

IoT technology remains a burgeoning industry, still in its developmental phase. The deployment of IoT technology within any industry entails the utilization of numerous technologies and sophisticated equipment, which often come at a considerable cost. Additionally, the substantial data generated while utilizing IoT services necessitates meticulous and comprehensive data management and storage, further escalating input costs. Consequently, this could potentially impede the growth of IoT within the mobility segment.

IoT IN MOBILITY MARKET – BY COMPONENTS

• Hardware
• Services
• Software

The segmentation of the IoT in Mobility Market by components includes Hardware, Software, and Services. The Hardware segment took the lead in market share in 2021 and is forecasted to experience substantial growth with a healthy CAGR. Enterprises benefit from IoT technology solutions by seamlessly integrating various business operations, thus propelling the industry's growth in mobility. The integration of IoT-enabled technology into existing processes, with minimal infrastructure investment, is expected to enhance overall operational efficiency for companies. Effortless deployment of an IoT device enables wireless operation and monitoring of vehicles such as E-scooters, E-bikes, mopeds, and others. Users can transmit commands to the vehicle wirelessly, monitor real-time vehicle positions, and track any errors.

The Services segment held the largest market share, accounting for over 50% of revenue share in 2020. This segment is projected to maintain its market dominance throughout the forecast period. Factors contributing to this growth include the necessity for process automation to reduce operational costs, minimize downtime, the demand 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

In the domain of vehicle types, IoT technology finds wide applications in modern transportation facilities such as E-bikes, trucks, scooters, and cars, among others. Among these, the trucking segment significantly fueled market expansion. Revenues within the trucking sector are continually on the rise, driven by factors like thriving global logistics firms, increasing digitalization, and automation in the automotive industry. Advancements in technology and widespread internet access have facilitated the widespread adoption of IoT-enabled trucks. These trucks equipped with IoT technology provide valuable data and analytics concerning driver management. Driver management solutions within the mobility sector encompass driver registration, insurance risk management, and analysis. The primary goal of driver management is to assess driver behavior, suggest necessary driving style adjustments to reduce fuel consumption, and lower vehicle operational costs. Logistics companies are emphasizing asset management, utilizing digital features for smart transportation.

The introduction of the E-bike has also made a significant contribution to the global market for IoT solutions in the mobility sector. E-bikes are gaining popularity in various countries due to their reliability, ease of use, affordability, and promotion of sustainable living and travel. They are gradually replacing traditional bicycles and, in some nations like China, have surpassed fossil fuel-powered mopeds and small motorcycles, thereby driving the growth of the IoT-enabled mobility market.

IoT IN MOBILITY MARKET – BY FEATURES

• Rider and Operator Management
• Asset Monitoring & Management
• Telematics
• Safety & Security
• Analytics
• Others

Regarding features, the IoT in Mobility Market encompasses Rider and Operator Applications, Asset Monitoring Management, Dashboard, Telematics, Safety & Security, and Analytics, among others. Among these, the asset management sector significantly contributed to market growth. Logistics companies are placing a strong emphasis on asset management, employing digital features for smart transportation. Smart tracking solutions such as Bluetooth tags and beacons have replaced conventional RFID tags, offering improved and wider functionalities. Moreover, the integration of IoT in vehicles facilitates connectivity and monitoring of various business activities, ultimately promoting efficiency. The rider and operator management segment also play a vital role in market growth. Companies are extensively utilizing IoT-enabled devices for monitoring and managing operators. The adoption of automation features has led to reduced pilferage, increased fuel efficiency, enhanced vehicle and product tracking, among other benefits, prompting businesses to opt for IoT solutions, thus fueling market growth.

The Safety and Security features introduced through IoT technology are also driving market expansion. The heightened demand for predictive maintenance technology among fleet operators to minimize downtime primarily contributes to the rapid growth of this segment. The rising adoption of new and disruptive business solutions aiding industries in predicting and managing failures, as well as optimizing resources and assets, is steering the market toward a positive trajectory.

IoT IN MOBILITY MARKET – BY DEPLOYMENT MODEL

• On-Premise
• On Cloud
• Hybrid

In terms of the deployment model for Fleet, the IoT in the mobility market can be categorized into three segments: On-Premise, On-demand, and Hybrid mode. Among these, the cloud-based segment secured over 50% of the market share in 2020. Factors such as the growing demand for operational efficiencies among businesses, better management of fuel usage, and enhanced vehicle monitoring are propelling the growth of the IoT in the mobility market.

IoT IN MOBILITY MARKET – BY REGION

The IoT in the mobility market is regionally grouped into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. North America made the most significant contribution to the growth of the IoT in the Mobility market, dominating with over 35% of the market share in 2020. The region's market growth is attributed to its substantial internet user base, a higher concentration of smart cities, and significant investments in technology upgrades. Canada, in particular, has been a major market for this industry, witnessing significant growth, especially due to government policies promoting IoT solution adoption.

Europe and Asia Pacific also experienced substantial market growth. Governments worldwide are focusing on developing sustainable, safe, and connected transport systems, as the transportation sector significantly contributes to economic growth. The proliferation of IoT-enabled mobility solutions is expected to enhance asset monitoring and optimize logistics processes, thereby boosting economies. The shift of consumers to e-commerce platforms from traditional retail stores has spurred the demand for robust logistics support. Asia Pacific, due to rapid urbanization, rising disposable incomes, and a move towards digitalization, is poised to be the fastest-growing market during the forecast period. The region is witnessing a strong adoption of advanced automation solutions, particularly in countries like Japan, China, and Taiwan, driven by a competitive landscape, growing connected solution offerings, and a high demand for online shopping platforms. Industries in the region are progressively realizing the benefits of automation implementation and are modernizing their operations accordingly.

IoT IN MOBILITY MARKET – BY COMPANIES

Some notable players in the market include:

1. Nxp Semiconductors N.V
2. Precious Shipping Public Co.
3. Robert Bosch GmbH
4. Google (Alphabet Inc.)
5. Cisco Systems
6. IBM Corporation
7. CalAmp
8. Harman International Industries
9. Intel Corporation
10. DENSO Corporation
11. Sierra Wireless
12. Globecomm Systems

The presence of numerous large corporations in this sector renders the industry fragmented and highly competitive. The level of competition has been steadily rising due to significant market consolidation by industry leaders. Major players are investing in cloud-based technologies due to the vast amount of data generated by IoT technologies. Companies are focusing on product launches, acquisitions, and research and development activities to capture market share.

NOTABLE DEVELOPMENTS IN THE IoT IN MOBILITY MARKET

• PRODUCT LAUNCH - Siemens announced plans to introduce a new fleet management model and app for the company's executive cars. This initiative aims to provide employees with increased access to vehicles equipped with eco-friendly drive systems and offer additional incentives for EV usage.
• PRODUCT LAUNCH - In December 2020, ZF launched telematics-based fleet management solutions for Light Commercial Vehicles. The TX-FLEX driver app enhances operational performance, safety, and customer service levels. It also enables operators or owners to manage all
• 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.