How Is the IoT in Transportation Market Growing Due to Advances in Smart Infrastructure and Connected Vehicles?"

Market Overview

The global IoT in Transportation Market was valued at USD 167.38 Billion in 2024 and is projected to reach USD 691.65 Billion by 2033. It is expected to grow at a CAGR of 16.22% during the forecast period of 2025-2033. Growth is driven by advancements in smart infrastructure, fleet management, connected vehicles, and IoT applications like real-time monitoring, predictive maintenance, and autonomous systems.

Study Assumption Years
• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Market Key Takeaways
• Current Market Size in 2024: USD 167.38 Billion
• CAGR (2025-2033): 16.22%
• Forecast Period: 2025-2033
• North America dominated the market with over 42.2% share in 2024.
• Hardware was the largest segment by type with around 46.9% market share in 2024.
• Railways led by mode of transport with approximately 44.7% share.
• Remote monitoring was the top application segment, comprising about 33.2% of the market in 2024.
• Major growth drivers include demand for real-time tracking, fleet management, advances in 5G and LPWAN, safety regulations, and autonomous vehicle adoption.

Request for a Free Sample Report: https://www.imarcgroup.com/iot-in-transportation-market/requestsample

Market Growth Factors

The market for IoT in transportation is driven by demand for real-time tracking and fleet management to optimize operations and cost. The rollout of 5G, LPWAN, and other advanced connectivity technologies is expected to substantially increase the value of IoT by providing faster data transfer, better device communication, and improved operations. In addition, stricter safety regulations and the emergence of smart cities with smart transport systems are also driving IoT adoption in the transportation sector.

The market is further driven by the rise of autonomous vehicles and the need for predictive maintenance systems to improve reliability and performance through IoT devices that monitor the health of the vehicle and help to avoid costly breakdowns. Reliance Retail has also launched JioMotive, an IoT device, providing real time tracking and diagnostics, focusing on user experience and connected vehicles.

In the United States, connectivity and interoperability are encouraged through government programs for connected vehicle technologies, and smart traffic systems. Vehicle-to-Everything (V2X) communication will allow optimizing the traffic and safety, and enable the development of autonomous vehicles and a smart transportation system in the near future.

Market Segmentation

By Type:
• Hardware: Largest segment in 2024 (46.9%), connecting physical assets to networks with sensors, GPS, and communication modules enabling real-time tracking and monitoring.
• Software: Not provided in source.
• Services: Not provided in source.

By Mode of Transport:
• Roadways: Not provided in source.
• Railways: Lead the market with ~44.7% share in 2024, using IoT for efficiency, safety, real-time tracking, predictive analytics, and enhanced passenger experience.
• Airways: Not provided in source.
• Maritime: Not provided in source.

By Application:
• Traffic Congestion Control Systems: Not provided in source.
• Automotive Telematics: Not provided in source.
• Reservation, Toll, and Ticketing Systems: Not provided in source.
• Security and Surveillance Systems: Not provided in source.
• Remote Monitoring: Leading segment with about 33.2% share in 2024; allows real-time oversight of vehicles, fleets, and infrastructure, supporting predictive maintenance and operational optimization.
• Others: Not provided in source.

Regional Insights

North America, dominating the global IoT in transportation market with more than 42.2% share in 2024, attributes this growth to rising investments in smart infrastructure, technical processing innovations, and government-led initiatives towards connected cars, autonomous vehicles, and real-time data analytics. The U.S. with 82% of North America revenue in 2024 is the largest growth contributor in the region due to smart highways, traffic management and autonomous vehicles developments.

Recent Developments & News

• October 2024: Kia India partnered with Airtel Business to embed Airtel's IoT technology in connected vehicles, integrating Airtel eSIMs with improved telematics, infotainment, safety features, and over-the-air firmware updates.
• September 2024: Ericsson launched the Cradlepoint R980 and S400 routers, designed for secure and scalable 5G connectivity in IoT networks supporting AI, data analytics, and vehicle endpoint management.
• August 2024: Salesforce introduced the Connected Vehicle application within its Automotive Cloud for safer, tailored driving experiences, integrating data from IoT and cloud services for optimized vehicle operations.
• February 2024: Soracom, Inc. and Suzuki Motor Corporation agreed to explore advanced IoT technologies in mobility services.

Key Players
• ALE International
• AT&T Inc
• Cisco Systems, Inc.
• Denso Corporation
• Garmin Ltd.
• International Business Machines Corporation
• Semtech
• Telstra Enterprise
• Thales Group
• TomTom International BV
• Verizon

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

Ask Our Expert & Browse Full Report with TOC & List of Figures: https://www.imarcgroup.com/request?type=report&id=5059&flag=E

Contact US:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No:(D) +91 120 433 0800
United States: +1-201971-6302

About Us:
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services.

IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

This release was published on openPR.