The global IoT in transportation market size reached USD 167.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 691.7 Billion by 2033, exhibiting a growth rate (CAGR) of 16.22% during 2025-2033.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024
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USD 167.4 Billion |
Market Forecast in 2033
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USD 691.7 Billion |
Market Growth Rate 2025-2033 | 16.22% |
The Internet of Things (IoT) refers to a technological solution that is used for connecting mechanical equipment, vehicles, and objects to the internet. It utilizes actuators, embedded sensors, and other devices to gather and transmit data regarding real-world activities, such as road conditions, traffic, vehicle diagnostics, driving behavior, fuel usage, and alerts for speeding. It is widely used for remote monitoring, traffic congestion control system, automotive telematics, security and surveillance system, reservation, and toll and ticketing systems. IoT in transportation assists in improving safety, enhancing operation performance, customer experience, and optimizing maintenance by reducing recurring complexities and providing remote diagnosis and real-time monitoring. As a result, it is widely used in airways, railways, maritime, and roadways.
Significant growth in the railway system due to the increasing need for urban connectivity across the globe is creating a positive outlook for the market. IoT in railways is commonly used to check the flow of passengers, timetable management, capacity optimization, and predictive maintenance. In line with this, the introduction of smart railway systems that is equipped with IoT enabled sensors and devices to monitor conveyance performance and environmental conditions is acting as another growth-inducing factor. This, in turn, is aiding the sector in improving operational efficiency and safety, while reducing delays. Additionally, the widespread product adoption in roadway vehicles due to the increasing need for interconnected mobility solutions that reduce commute time and road traffic is positively impacting the market growth. Other factors, including the rising spending capacities of consumers, particularly in emerging economies, enhanced internet connectivity, significant expansion in the information and communications technology (ICT) sector, and the implementation of various government initiatives for the development of smart cities, are anticipated to drive the market toward growth.
IMARC Group provides an analysis of the key trends in each sub-segment of the global IoT in transportation market report, along with forecasts at the global, regional and country level from 2025-2033. Our report has categorized the market based on type, mode of transport and application.
Breakup by Type:
Breakup by Mode of Transport:
Breakup by Application:
Breakup by Region:
The competitive landscape of the industry has also been examined along with the profiles of the key players being Alcatel-Lucent Enterprise (China Huaxin Post and Telecom Technologies Co. Limited), AT&T Inc., Cisco Systems Inc., DENSO Corporation, Garmin Ltd, International Business Machines Corporation, Microsoft Corporation, Sierra Wireless Inc., Software Aktiengesellschaft, Thales Group, TomTom N.V. and Verizon Communications Inc.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Segment Coverage | Type, Mode of Transport, Application, Region |
Region Covered | Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
Countries Covered | United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico |
Companies Covered | Alcatel-Lucent Enterprise (China Huaxin Post and Telecom Technologies Co. Limited), AT&T Inc., Cisco Systems Inc., DENSO Corporation, Garmin Ltd, International Business Machines Corporation, Microsoft Corporation, Sierra Wireless Inc., Software Aktiengesellschaft, Thales Group, TomTom N.V., Verizon Communications Inc. |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
The global IoT in transportation market was valued at USD 167.4 Billion in 2024.
We expect the global IoT in transportation market to exhibit a CAGR of 16.22% during 2025-2033.
The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations resulting in transportation restrictions, thereby negatively impacting the global market for IoT in transportation solution.
The increasing adoption of IoT in transportation solution in improving safety, enhancing operation performance and customer experience, optimizing maintenance by reducing recurring complexities, etc., is primarily driving the global IoT in transportation market.
Based on the type, the global IoT in transportation market can be categorized into hardware, software, and services. Currently, hardware exhibits clear dominance in the market.
Based on the mode of transport, the global IoT in transportation market has been segmented into roadways, railways, airways, and maritime. Among these, roadways currently hold the largest market share.
Based on the application, the global IoT in transportation market can be bifurcated into traffic congestion control systems, automotive telematics, reservation, toll and ticketing systems, security and surveillance systems, remote monitoring, and others. Currently, automotive telematics accounts for the majority of the total market share.
On a regional level, the market has been classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, where North America currently dominates the global market.
Some of the major players in the global IoT in transportation market include Alcatel-Lucent Enterprise (China Huaxin Post and Telecom Technologies Co. Limited), AT&T Inc., Cisco Systems Inc., DENSO Corporation, Garmin Ltd, International Business Machines Corporation, Microsoft Corporation, Sierra Wireless Inc., Software Aktiengesellschaft, Thales Group, TomTom N.V., and Verizon Communications Inc.