IoT Chip Market In Transportation Size, Share, Opportunities, COVID-19 Impact, And Trends By Connectivity (Cellular, Wi-Fi, Bluetooth, ZigBee, NFC, MQQT, Others) And Geography - Forecasts From 2022 To 2027

The Internet of Things (IoT) Chip Market in Transportation was valued at US$365.261 million in 2020.

Companies are combining IoT with artificial intelligence, predictive analytics, and big data to revolutionize the fleet management industry, thus positively impacting market growth. The Internet of Things (IoT) in the transportation industry helps to assist in improving road safety while easing traffic congestion and averting road accidents. According to the WHO (World Health Organization), approximately 1.5 million people globally die each year due to road traffic crashes. Road traffic accidents cost the majority of countries 3% of their GDP. The 2030 Agenda for Sustainable Development has a set target of reducing the global number of deaths and injuries from road traffic crashes by almost half by 2020. The United States Department of Transportation, for example, is working with car manufacturers to incorporate IoT technology to reduce the occurrence of crashes by 80 percent. The declining cost of IoT components, better and enhanced internet connectivity and the growing communication and technology industry are other factors that are spurring the market’s growth. Increasing investments in smart cities, both public and private, in city projects in different countries is another factor that is driving the growth of the IoT chip market in transportation.

Growing energy consumption has also led to a surge in the adoption of IoT technology across the transportation sector, thus fuelling the demand for IoT chips. IoT allows efficient optimization and efficient routing management, which can reduce overall energy consumption while reducing carbon emissions.

Growing international trade volume coupled with the booming e-commerce industry is also escalating the demand for IoT chips in the transportation sector. Advancements in technology such as mobile computing, faster and more widespread wireless connectivity, and the evolution of cloud and big data are boosting the adoption of IoT across this sector. IoT is very useful for warehouse management solutions as it is a part of the transportation stage of logistics. The technology helps to yield comprehensive data about warehouse operations, such as inventory, temperature, and performance of each piece of equipment. Companies use this data to predict equipment failures and reduce the associated risks and delays in inventory transportation.

Growing investments in the autonomous fleet will further continue to bolster the growth of the IoT chip market in transportation during the next five years. In October 2019, the Swedish autonomous vehicle startup Einride raised US$25 million in a Series A round that was used to fund its expansion in the United States. Recently, in March 2020, autonomous driving technology manufacturer Waymo (owned by Alphabet) received a significant external investment of US$2.25 billion, with a major portion coming from the Canada Pension Plan Investment Board (CPP). In November 2019, Iteris Inc., the supplier of applied informatics systems for the transportation industry, entered into a Solution Technology Integrator (STI) agreement with Cisco Systems as part of the transportation IoT solutions segment.

North America holds a notable market share

 The IoT Chip market in transportation is divided into five regions: North America, South America, Europe, the Middle East and Africa (MEA), and Asia Pacific (APAC). North America accounted for the major market share in 2019 and will remain at its position until the end of the forecast period. The early adoption of new technologies and high investments in incorporating these technologies across the transportation sector, especially in the United States.  According to the American Trucking Association, the trucking industry accounts for nearly 70% of all freight transportation in the United States. Rising investments in the autonomous fleet are, thus fuelling the growth of the IoT Chip market in transportation in the United States. Digital inclusion is paving the way for smart city development in Mexico, which, in turn, will propel the growth of the IoT chip market in transportation.

The APAC regional market is projected to witness a substantial CAGR during the forecast period owing to rising initiatives regarding smart cities in countries like India and the growing focus on digitizing the transportation sector across various APAC countries. Many companies are launching pilot projects across this region to develop IoT solutions, especially for the transportation sector in the region. For instance, in 2018, DHL, the world’s largest mail and logistics company, announced the launch of DHL SmarTrucking, which is an innovative trucking solution leveraging IoT technology.  The solution was first implemented across Indian road networks, and it outfits trucks with IoT sensors to provide real-time data analysis for route optimization while reducing transit times by up to 50% and providing over 95% reliability for real-time tracking. DHL SmartTrucking IoT solution aims to build a fleet of 10,000 IoT-enabled trucks by 2028.

Recent Developments and expansions

• In April 2022, an indigenous Onboard Driver Assistance and Warning System (ODAWS), Bus Signal Priority System, and Common SMART IoT Connectiv (CoSMiC) software have been launched as part of the Ministry of Electronics and Information Technology's (MeitY) Intelligent Transportation System Endeavor for Indian Cities Phase-II effort.
• Qualcomm Technologies unveiled a collection of CPUs and platforms in June 2021 for Internet of Things devices in a variety of markets, including retail, logistics, transportation, and healthcare. A better link between IoT & digital transformation programs has been made possible by the addition of 5G to enterprise networking for businesses like Qualcomm.

COVID-19 Impact on the IoT Chip Market in Transportation

COVID-19 is anticipated to have a negative impact on the transportation IoT chip industry as the pandemic has decreased the demand for several IoT applications. For instance, decreased usage and postponed purchases of new vehicles resulted in a decline in demand for linked vehicles. According to the ACEA, in the first nine months of 2020, demand for automobiles in the EU decreased by 28.8%. Additionally, according to OICA, auto figures indicate a 16 percent reduction in output for 2020, to less than 78 million vehicles, which is similar to sales levels from 2010. Production fell by more than 20% in the NAFTA zone, and manufacturing in the United States fell by 19%. South America fell by more than 30%, with Brazil falling by about 32%. Therefore, it is projected that the aforementioned constraints will limit market expansion for IoT chips.  

Segmentation

• By Connectivity
  • Cellular
  • Wi-Fi
  • Bluetooth
  • ZigBee
  • NFC
  • MQQT
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Others