IoT use cases continue to grow as this report predicts that the IoT-enabled asset tracking and monitoring market will grow exponentially in the coming years.
When the Internet of Things first appeared on the tech scene, there was a level of uncertainty surrounding its use cases across industries. A few decades later, we are already seeing IoT applications in almost every industry.
Today, one of the major use cases for IoT solutions that is gaining a lot of attention and interest across multiple industries is IoT-based asset tracking and monitoring. The need to make industries smarter than they used to be has made asset tracking and monitoring a core feature of modern businesses. As a result, more and more companies are investing heavily in IoT-based asset tracking and monitoring.
In support of the above, a recent report by Research and Markets revealed that the global IoT-based asset tracking and monitoring market size is expected to reach $6.7 billion by 2028 with a CAGR of 10.7% over the forecast period. This report suggests that more and more technology companies are making huge financial investments in IoT-enabled tracking and surveillance solutions.
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IoT solutions leverage sensors, Wi-Fi, Bluetooth, and other technologies to help businesses monitor and manage their assets. In addition to geolocation and motion monitoring, the Research and Markets report also highlights that IoT-powered tracking and monitoring systems can generate data that can help companies optimize maintenance schedules and the use of assets. The report further pointed out that fleet management, inventory management, and security are just a few uses of IoT asset tracking.
Market Factors Driving IoT Solutions for Asset Tracking
The increasing 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 growing adoption of IoT has resulted in a vast amount of data being generated from connected devices across all industries.
However, despite the huge volume of data generated in IoT devices, their acquisition and maintenance have proven to be more cost effective. As a result, companies are realizing that it is now possible to generate and analyze greater amounts of data and further accelerate product deliveries, real-time tracking and monitoring without incurring heavy expense.
Based on this, more companies should acquire more IoT-enabled asset tracking and monitoring solutions for predictive analytics, real-time alerts, automatic warehouse inventory reporting, data insights, etc The major industries where IoT adoption is on the rise are agriculture, manufacturing, aviation, cold chain monitoring, and the automotive industry.
Another factor that will fuel the growth of the IoT enabled asset tracking and monitoring market is the growing adoption of 5G technologies and acceptance of data analytics in the automotive industry. Highlighting the huge impact of 5G and IoT technology on the automotive industry in recent years, a recent IMF report showed that the global 5G automotive and smart transport market is worth $1.49 billion. in 2022. $9.77 billion in 2030 with a CAGR of 26.5%.
This number further confirms information presented in the Research and Markets report that automakers are now using IoT in advanced planning and scheduling to collect real-time inventory and production data, reduce waste and shorten cycle times. Additionally, they also use IoT-based analytics in various applications, from improving on-hand inventory to implementing replenishment plans in manufacturing lines to quality testing with optical analytics.
Current market trend among competitors
As with all markets, certain key players will always be in a privileged position to grab a fair share of the market. Major players in the industry include Sony, Thales Group, Sierra Wireless, Telit, Analog Devices, and Semtech.
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The increasing instances of strategic collaborations and acquisitions are also driving the 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 found that the companies would collaborate to provide assets IoT-based integrated systems. worldwide tracking solutions 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 to help businesses monitor and manage inventory and equipment anywhere, anytime.
Issues that may affect market growth
Despite the positive growth in the global IoT enabled asset tracking industry market, one challenge that may hinder rapid adoption is the upfront cost of adopting IoT solutions for asset tracking and monitoring.
Several equipment and technologies currently used in many companies were not designed for the IoT. This situation makes it more difficult for these companies to apply IoT-based solutions to these technologies. While it is possible to refurbish these technologies in a way that makes IoT integration possible, this process comes at a high cost. Not all businesses can afford the cost of rewiring their machines to accommodate new technologies; therefore, these companies may never adopt IoT solutions during the forecast period.
IoT-Based Tracking Solutions Market by Region
In 2021, North America came out on top as the market leader in IoT-based asset tracking and monitoring, according to Research and Markets. Due to the growing preference for technologically enhanced products in North America, especially in the United States, the region is expected to lead the IoT-based asset tracking market over the forecast period.
Europe and Asia-Pacific are other regions that are expected to witness massive growth in the IoT enabled asset tracking and monitoring market over the forecast period.