When the Internet of Things first appeared on the technological stage, there was some level of uncertainty surrounding its use cases across industries. A few decades later, we’re already witnessing IoT applications in about every industry.
Today, one of the prominent use cases of IoT solutions that’s generated a lot of attention and interest across several industries is IoT-based asset tracking and monitoring. The need to make industries smarter than they were has made asset tracking and monitoring an essential feature of modern enterprises. As a result, more companies are investing heavily in IoT-based asset tracking and monitoring.
Backing up the above is a recent report by Research and Markets which revealed that the global IoT-based asset tracking and monitoring market size is expected to hit $6.7 billion by 2028 at a CAGR of 10.7% during the forecast period. This report suggests that more tech companies are making huge financial investments in IoT-enabled tracking and monitoring solutions.
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IoT solutions leverage sensors, Wi-Fi, Bluetooth and other technologies to help companies monitor and manage their assets. Apart from geolocation and movement monitoring, the report by Research and Markets also points out that IoT-powered tracking and monitoring systems can generate data that can help businesses optimize maintenance schedules and asset usage. The report further pointed out that fleet management, inventory management and security are just a few uses for IoT asset tracking.
Market factors driving the IoT solutions for asset tracking
The growing adoption of cost-effective IoT devices and sensors will serve as a catalyst for the growth of IoT-based tracking and monitoring solutions during the forecast period. This rising adoption of IoT has resulted in high data generated from connected devices across industries.
However, despite the huge volume of data generated in IoT devices, acquiring and maintaining them has proven more cost-effective. As a result, enterprises realize that it is now possible to generate and analyze data in larger quantities and still speed up product deliveries, real-time tracking and monitoring without incurring heavy expenses.
Based on this, more enterprises are projected to acquire more IoT-enabled asset tracking and monitoring solutions for predictive analytics, real-time alerts, automatic reporting of warehouse inventory, data insights and more. The major industries where IoT adoption is on the rise include agriculture, manufacturing, aviation, cold chain tracking and the auto industry.
Another factor that will fuel the growth of the IoT-enabled asset tracking and monitoring market is the increasing adoption of 5G technologies and acceptance of data analytics in the automotive industry. Underlining the huge impact of 5G technology and IoT on the automotive industry in recent years, a recent FMI report showed that the global 5G in Automotive and Smart Transportation Market is worth $1.49 billion in 2022. The market analysis projects that it is estimated to surge to $9.77 billion in 2030 with a CAGR of 26.5%.
This number further supports the insights presented in the Research and Markets report that automakers now use IoT in advanced planning & scheduling to collect real-time inventory and production data, reduce waste and shorten cycle times. In addition, they are also utilizing IoT-based analytics in various applications, from improving in-hand inventory to implementing replenishment plans in manufacturing lines for quality testing with optical-based analytics.
Current trend in the market among competitors
As with every market, some key players will always be in a prime position to grab a fair share of the market. Among the key players in the industry are Sony, Thales Group, Sierra Wireless, Telit, Analog Devices and Semtech.
The growing cases of strategic collaborations and acquisitions are also driving competition in the market. For example, a recent study by Mordor Intelligence reports that Wyld and TrakAssure formed a partnership to provide a global LoRaWAN satellite-based IoT connectivity solution for asset tracking in February 2022. The report revealed that the firms would collaborate to provide integrated IoT-based asset tracking solutions worldwide that will improve operational efficiency in industries.
In a similar development, Link Labs, an end-to-end IoT platform for tagging, finding, and tracking assets, supplies and equipment, announced a partnership with Wirepas earlier this year. The partnership aims at assisting businesses in monitoring and managing inventory and equipment anywhere and anytime.
Issues that may affect the market growth
Despite the positive growth in the global IoT-enabled asset tracking industry market, one challenge that may hinder speedy adoption is the initial cost attached to the adoption of IoT solutions for asset tracking and monitoring.
Several equipment and technologies currently used in many enterprises were not built with IoT in mind. This situation makes it more difficult for these enterprises to apply IoT-driven solutions to these technologies. While there is a possibility of refurbishing these technologies in a way that will make IoT integration possible, this process comes at a high cost. Not every enterprise can afford the cost of rewiring their machines to accommodate new technologies; thus, there is a chance that these businesses may never adopt IoT solutions during the forecast period.
IoT-based tracking solution market by region
In 2021, North America came first as the leader in the IoT-based asset tracking and monitoring market, according to Research and Markets. Due to the growing preference for technologically enhanced products in North America, especially in the U.S., the region is projected to be in the lead in the IoT-based asset tracking market during the forecast period.
Europe and Asia Pacific are other regions expected to experience massive growth in the IoT-enabled asset tracking and monitoring market during the period covered.