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Friday, July 17, 2020

Commercial Asset Tracking Market will Reach $33 Billion

Intelligent fleet tracking of commercial vehicles requires online connectivity tools and management software, which enables fleet managers to track driver behavior, as well as vehicle location and route.

Asset tracking solutions enable enterprises to track cargo from dispatch to final destination -- with increased transparency and more accurate delivery dates. Commercial logistics is the activity of transporting those goods to customers and involves the tracking of related assets.

The Fleet Tracking and Logistics market is now driven by the introduction of new technologies. Edge computing brings computation and some data storage closer to the location where it is needed, therefore improving response times and reducing communication network latency.

Fleet Tracking and Logistics Market Development

Edge computing is the fusion of cloud-based storage and local computing, where the cloud stores centralized data assets, while locally-connected devices can perform the real-time compute function. However, edge computing could create increased security concerns, as cybercriminals may try to steal the data stored on endpoint devices.

The number of businesses using asset tracking solutions will reach 90 million in 2020, and exceed 114 million by 2025 -- that's a growth rate of 27 percent over the next five years, according to the latest worldwide market study by Juniper Research.

Their new study found that this growth in adoption will be driven by the need to increase resilience in supply chains, as the ongoing COVID-19 pandemic highlights the need for real-time data on location and delays to logistics operations.

The study findings identified low-cost connectivity technologies, such as Radio-Frequency Identification (RFID) and Low-Power Wide-Area (LPWA) networks as critical technologies that will enable logistics operations to achieve this desired business outcome.


That said, China will lead the asset tracking market, generating $3 billion of spending in 2020. This investment will increase to $11 billion by 2025 -- representing 34 percent of the total global spend.

China’s dominant role as a global exporter, combined with a strong base of the internet of things (IoT) deployments, means that China will strengthen its position during the increasing acceleration to eCommerce as a result of COVID-19.

Expectations from Western consumers on the traceability of assets will drive Chinese manufacturers and logistics operators to implement asset tracking solutions.

According to the Juniper assessment, failure to provide up-to-date asset tracking information will lead customers to source alternative suppliers, even if this comes at a higher price.

Outlook for Fleet Tracking and Logistics Application Growth

The analyst findings now forecast that $33 billion will be spent on asset tracking in 2025 globally -- that's up from $10 billion in 2020. Investment in tracking solutions provides enterprises with a compelling return on investment, through the improvement of customer experiences and reduction of attrition.

Furthermore, smaller enterprises that rely on customer retention to offset initial onboarding costs will find these intelligent fleet tracking solutions particularly beneficial and financially rewarding.