IoT in Transportation Market By Product Type (IoT Hardware, IoT Software, IoT Services), By Application (Fleet Management, Traffic Management, Vehicle Tracking and Monitoring, Passenger Information Systems, Roadside Assistance), By End-User Industry (Automotive, Logistics and Transportation, Public Transport, Aviation, Marine), By Technology (Connectivity Technologies, Cloud Computing, Data Analytics, Artificial Intelligence and Machine Learning, Edge Computing), and By Deployment Mode (Cloud-Based, On-Premises, Hybrid); Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the IoT in Transportation Market was valued at USD 78.6 Billion in 2024-e and will surpass USD 240.6 Billion by 2030; growing at a CAGR of 17.3% during 2025-2030.

The Internet of Things (IoT) in transportation is revolutionizing the way systems and vehicles operate, driving improvements in efficiency, safety, and sustainability. IoT-enabled solutions are being deployed to enhance various transportation-related processes, such as fleet management, vehicle monitoring, and traffic management, offering real-time insights into the entire ecosystem. The growing adoption of connected vehicles, smart infrastructure, and advanced data analytics in transportation systems is creating significant opportunities for innovation in the sector. As global urbanization continues, IoT in transportation is expected to play a crucial role in shaping the future of mobility.

IoT Hardware Segment is Largest Owing to Rising Demand for Connectivity

The IoT hardware segment leads the market, driven by the need for advanced connectivity solutions across the transportation sector. Essential hardware components such as sensors, RFID tags, GPS trackers, and onboard devices are critical for enabling communication between vehicles, infrastructure, and management systems. These devices collect and transmit data related to vehicle performance, traffic conditions, and other key parameters, making them indispensable for real-time decision-making. The increasing adoption of connected vehicles and smart transportation systems is fueling the demand for IoT hardware in this segment.

Hardware plays a pivotal role in ensuring that transportation systems are interconnected. With the growing demand for vehicle tracking, monitoring, and fleet management, the need for robust hardware solutions is expected to remain strong. Additionally, the integration of new technologies such as 5G connectivity and edge computing will further drive innovation and the need for advanced IoT hardware across all transportation modes. As more vehicles and infrastructure become connected, hardware will continue to be at the forefront of the IoT in transportation market.

Fleet Management Segment is Fastest Growing Due to Increased Demand for Optimization

Fleet management is the fastest-growing application segment, as more companies seek to optimize their vehicle operations through IoT technology. Fleet management systems enable businesses to monitor and control their vehicles in real time, providing critical insights into vehicle location, fuel efficiency, driver behavior, and maintenance needs. The demand for these systems has surged as logistics companies, transportation providers, and even public services seek to enhance operational efficiency, reduce costs, and improve service delivery.

With advancements in data analytics and real-time monitoring, fleet management has become a key area of focus in the transportation sector. The integration of IoT solutions such as predictive maintenance, route optimization, and fuel consumption tracking allows fleet operators to reduce downtime and increase productivity. As the logistics and transport sectors continue to evolve with growing demand for efficient operations, fleet management powered by IoT will remain the fastest-growing segment in the transportation market.

Automotive End-User Industry is Largest Owing to the Expansion of Connected Vehicles

The automotive industry is the largest end-user of IoT in transportation, driven by the growing trend of connected vehicles. The integration of IoT technologies into vehicles has transformed the way drivers interact with their cars, enabling features such as real-time traffic updates, remote diagnostics, and enhanced safety features like lane-keeping assist. Automotive manufacturers are increasingly incorporating IoT solutions into their vehicles to improve driver experience and meet the demand for smarter, safer, and more efficient transportation.

With the rise of electric and autonomous vehicles, the automotive sector’s need for IoT technologies is expected to increase further. The continuous evolution of vehicle-to-everything (V2X) communication and the increasing integration of advanced driver assistance systems (ADAS) are reshaping the market. As the automotive industry continues to lead the way in connected mobility solutions, the demand for IoT solutions in the sector will only continue to grow.

Connectivity Technologies Segment is Key to Market Growth

Connectivity technologies such as 5G, LTE, and Wi-Fi are at the heart of IoT in transportation, facilitating seamless communication between vehicles, infrastructure, and operators. 5G, in particular, is expected to play a pivotal role in transforming the transportation industry by enabling ultra-fast data transmission and low-latency communication. These advancements are crucial for applications such as real-time traffic management, autonomous vehicles, and vehicle-to-vehicle (V2V) communication.

As IoT devices require constant and fast connectivity to function effectively, the adoption of advanced connectivity technologies is integral to the success of the entire ecosystem. The deployment of 5G networks and the expansion of LTE coverage are expected to drive further growth in this segment. This, in turn, will support the development of new IoT-powered applications in the transportation sector, leading to more efficient, secure, and intelligent transportation systems.

Cloud-Based Deployment Mode is Dominant in IoT Transportation Solutions

Cloud-based deployment is the dominant mode for IoT solutions in transportation, enabling seamless access to data, real-time analytics, and remote monitoring. Cloud computing allows transportation companies to centralize their data storage and management, offering significant cost savings and scalability. Cloud platforms also facilitate the integration of various IoT devices and technologies, enabling smarter decision-making through the analysis of vast amounts of data collected from vehicles and infrastructure.

As the demand for real-time insights and data-driven decision-making increases, cloud-based solutions are becoming the preferred choice for IoT in transportation. The ability to scale operations quickly, ensure data security, and reduce hardware investments are key factors driving the growth of cloud-based IoT deployments. The transportation sector's reliance on cloud computing will continue to grow, especially as businesses seek to leverage big data analytics and machine learning algorithms for improved operations.

Fastest Growing Region in the Market: North America

North America is the fastest-growing region in the IoT in transportation market, with the United States and Canada leading the charge. The region has seen a rapid adoption of IoT technologies, driven by the strong presence of major automotive manufacturers, logistics companies, and smart city initiatives. The region is also at the forefront of developing and deploying advanced connectivity technologies like 5G, which is expected to revolutionize the transportation sector.

With a high demand for connected vehicles and IoT-powered fleet management systems, North America is poised to continue leading the way in market growth. Additionally, government investments in infrastructure and smart transportation projects are further fueling the demand for IoT solutions in the region.

Competitive Landscape and Leading Companies

The IoT in transportation market is highly competitive, with numerous global players offering a wide range of solutions tailored to different segments of the market. Leading companies such as IBM, Microsoft, Cisco, and Intel are at the forefront of developing and deploying IoT-powered solutions, focusing on innovation and partnerships to expand their market share. These companies are leveraging their technological expertise to offer advanced connectivity, data analytics, and cloud-based solutions to transportation providers.

The competitive landscape is also shaped by the growing number of startups and regional players that are bringing new and innovative IoT applications to market. As the demand for connected and autonomous vehicles continues to rise, companies in the market will need to stay ahead by developing scalable, secure, and high-performance IoT systems to meet the evolving needs of the transportation sector. The ongoing trend of mergers and acquisitions (M&A) in the sector is also contributing to increased consolidation, helping key players enhance their capabilities and expand their reach.

List of Leading Companies:

  • IBM
  • Microsoft Corporation
  • Cisco Systems, Inc.
  • Intel Corporation
  • Bosch
  • GE Transportation
  • SAP SE
  • Verizon Communications Inc.
  • Honeywell International Inc.
  • Siemens AG
  • Qualcomm Technologies, Inc.
  • AT&T Inc.
  • PTC Inc.
  • Trimble Inc.
  • ZF Friedrichshafen AG

Recent Developments:

  • Microsoft and SAP have expanded their partnership to provide more advanced IoT solutions for fleet management, aiming to enhance predictive maintenance and operational efficiency.
  • Verizon introduced a new IoT-enabled fleet management platform, allowing businesses to track vehicles, optimize routes, and reduce fuel costs through real-time data analytics.
  • Bosch unveiled new IoT-based services to support smart cities and transportation, focusing on vehicle-to-everything (V2X) communication and urban mobility.
  • Intel and Siemens have teamed up to develop IoT solutions for smart transportation systems, aiming to improve safety and efficiency in urban mobility through advanced data analytics.
  • ZF Friedrichshafen completed its acquisition of Wabco, strengthening its position in the connected vehicle and fleet management space, with a focus on IoT-enabled solutions for transport companies.

Report Scope:

Report Features

Description

Market Size (2024-e)

USD 78.6 Billion

Forecasted Value (2030)

USD 240.6 Billion

CAGR (2025 – 2030)

17.3%

Base Year for Estimation

2024-e

Historic Year

2023

Forecast Period

2025 – 2030

Report Coverage

Market Forecast, Market Dynamics, Competitive Landscape, Recent Developments

Segments Covered

IoT in Transportation Market By Product Type (IoT Hardware, IoT Software, IoT Services), By Application (Fleet Management, Traffic Management, Vehicle Tracking and Monitoring, Passenger Information Systems, Roadside Assistance), By End-User Industry (Automotive, Logistics and Transportation, Public Transport, Aviation, Marine), By Technology (Connectivity Technologies, Cloud Computing, Data Analytics, Artificial Intelligence and Machine Learning, Edge Computing), and By Deployment Mode (Cloud-Based, On-Premises, Hybrid)

Regional Analysis

North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Australia, India, and Rest of Asia-Pacific), Latin America (Brazil, Argentina, and Rest of Latin America), Middle East & Africa (Saudi Arabia, UAE, Rest of Middle East & Africa)

Major Companies

IBM, Microsoft Corporation, Cisco Systems, Inc., Intel Corporation, Bosch, GE Transportation, SAP SE, Verizon Communications Inc., Honeywell International Inc., Siemens AG, Qualcomm Technologies, Inc., AT&T Inc., PTC Inc., Trimble Inc., ZF Friedrichshafen AG

Customization Scope

Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements

1. Introduction

   1.1. Market Definition

   1.2. Scope of the Study

   1.3. Research Assumptions

   1.4. Study Limitations

2. Research Methodology

   2.1. Research Approach

      2.1.1. Top-Down Method

      2.1.2. Bottom-Up Method

      2.1.3. Factor Impact Analysis

  2.2. Insights & Data Collection Process

      2.2.1. Secondary Research

      2.2.2. Primary Research

   2.3. Data Mining Process

      2.3.1. Data Analysis

      2.3.2. Data Validation and Revalidation

      2.3.3. Data Triangulation

3. Executive Summary

   3.1. Major Markets & Segments

   3.2. Highest Growing Regions and Respective Countries

   3.3. Impact of Growth Drivers & Inhibitors

   3.4. Regulatory Overview by Country

4. IoT in Transportation Market, by Product Type (Market Size & Forecast: USD Million, 2023 – 2030)

   4.1. IoT Hardware

   4.2. IoT Software

   4.3. IoT Services

5. IoT in Transportation Market, by Application (Market Size & Forecast: USD Million, 2023 – 2030)

   5.1. Fleet Management

   5.2. Traffic Management

   5.3. Vehicle Tracking and Monitoring

   5.4. Passenger Information Systems

   5.5. Roadside Assistance

6. IoT in Transportation Market, by End-User Industry (Market Size & Forecast: USD Million, 2023 – 2030)

   6.1. Automotive

   6.2. Logistics and Transportation

   6.3. Public Transport

   6.4. Aviation

   6.5. Marine

7. IoT in Transportation Market, by Technology (Market Size & Forecast: USD Million, 2023 – 2030)

   7.1. Connectivity Technologies (5G, LTE, Wi-Fi)

   7.2. Cloud Computing

   7.3. Data Analytics

   7.4. Artificial Intelligence (AI) and Machine Learning

   7.5. Edge Computing

8. IoT in Transportation Market, by Deployment Mode (Market Size & Forecast: USD Million, 2023 – 2030)

   8.1. Cloud-Based

   8.2. On-Premises

   8.3. Hybrid

9. Regional Analysis (Market Size & Forecast: USD Million, 2023 – 2030)

   9.1. Regional Overview

   9.2. North America

      9.2.1. Regional Trends & Growth Drivers

      9.2.2. Barriers & Challenges

      9.2.3. Opportunities

      9.2.4. Factor Impact Analysis

      9.2.5. Technology Trends

      9.2.6. North America IoT in Transportation Market, by Product Type

      9.2.7. North America IoT in Transportation Market, by Application

      9.2.8. North America IoT in Transportation Market, by End-User Industry

      9.2.9. North America IoT in Transportation Market, by Technology

      9.2.10. North America IoT in Transportation Market, by Deployment Mode

      9.2.11. By Country

         9.2.11.1. US

               9.2.11.1.1. US IoT in Transportation Market, by Product Type

               9.2.11.1.2. US IoT in Transportation Market, by Application

               9.2.11.1.3. US IoT in Transportation Market, by End-User Industry

               9.2.11.1.4. US IoT in Transportation Market, by Technology

               9.2.11.1.5. US IoT in Transportation Market, by Deployment Mode

         9.2.11.2. Canada

         9.2.11.3. Mexico

    *Similar segmentation will be provided for each region and country

   9.3. Europe

   9.4. Asia-Pacific

   9.5. Latin America

   9.6. Middle East & Africa

10. Competitive Landscape

   10.1. Overview of the Key Players

   10.2. Competitive Ecosystem

      10.2.1. Level of Fragmentation

      10.2.2. Market Consolidation

      10.2.3. Product Innovation

   10.3. Company Share Analysis

   10.4. Company Benchmarking Matrix

      10.4.1. Strategic Overview

      10.4.2. Product Innovations

   10.5. Start-up Ecosystem

   10.6. Strategic Competitive Insights/ Customer Imperatives

   10.7. ESG Matrix/ Sustainability Matrix

   10.8. Manufacturing Network

      10.8.1. Locations

      10.8.2. Supply Chain and Logistics

      10.8.3. Product Flexibility/Customization

      10.8.4. Digital Transformation and Connectivity

      10.8.5. Environmental and Regulatory Compliance

   10.9. Technology Readiness Level Matrix

   10.10. Technology Maturity Curve

   10.11. Buying Criteria

11. Company Profiles

   11.1. IBM

      11.1.1. Company Overview

      11.1.2. Company Financials

      11.1.3. Product/Service Portfolio

      11.1.4. Recent Developments

      11.1.5. IMR Analysis

    *Similar information will be provided for other companies 

   11.2. Microsoft Corporation

   11.3. Cisco Systems, Inc.

   11.4. Intel Corporation

   11.5. Bosch

   11.6. GE Transportation

   11.7. SAP SE

   11.8. Verizon Communications Inc.

   11.9. Honeywell International Inc.

   11.10. Siemens AG

   11.11. Qualcomm Technologies, Inc.

   11.12. AT&T Inc.

   11.13. PTC Inc.

   11.14. Trimble Inc.

   11.15. ZF Friedrichshafen AG

12. Appendix

 

A comprehensive market research approach was employed to gather and analyze data on the IoT in Transportation Market . In the process, the analysis was also done to analyze the parent market and relevant adjacencies to measure the impact of them on the IoT in Transportation Market . The research methodology encompassed both secondary and primary research techniques, ensuring the accuracy and credibility of the findings.

Research Approach -IoT in Transportation Market

Secondary Research

Secondary research involved a thorough review of pertinent industry reports, journals, articles, and publications. Additionally, annual reports, press releases, and investor presentations of industry players were scrutinized to gain insights into their market positioning and strategies.

Primary Research

Primary research involved conducting in-depth interviews with industry experts, stakeholders, and market participants across the E-Waste Management ecosystem. The primary research objectives included:

  • Validating findings and assumptions derived from secondary research
  • Gathering qualitative and quantitative data on market trends, drivers, and challenges
  • Understanding the demand-side dynamics, encompassing end-users, component manufacturers, facility providers, and service providers
  • Assessing the supply-side landscape, including technological advancements and recent developments

Market Size Assessment

A combination of top-down and bottom-up approaches was utilized to analyze the overall size of the IoT in Transportation Market . These methods were also employed to assess the size of various subsegments within the market. The market size assessment methodology encompassed the following steps:

  1. Identification of key industry players and relevant revenues through extensive secondary research
  2. Determination of the industry's supply chain and market size, in terms of value, through primary and secondary research processes
  3. Calculation of percentage shares, splits, and breakdowns using secondary sources and verification through primary sources

Bottom Up and Top Down -IoT in Transportation Market

Data Triangulation

To ensure the accuracy and reliability of the market size, data triangulation was implemented. This involved cross-referencing data from various sources, including demand and supply side factors, market trends, and expert opinions. Additionally, top-down and bottom-up approaches were employed to validate the market size assessment.

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