Asset Tracking Market was valued at USD 17.14 billion in 2020 and is expected to reach USD 34.82 billion by 2026 at a CAGR of 13.45% during the forecast period 2021 - 2026.
Given the high price of enterprise and industrial assets, especially fleet equipment, the need for monitoring and tracking these assets is paramount. Furthermore, in a bid to determine the total cost of ownership, managers across industries are finding the need for a centralized system that provides critical information, such as location, maintenance history, and contract (if any), for all assets, in real time.
By using a combination of hardware software and network services, managers are being able to incur lower administrative costs and better accountability and cost savings. Moreover, with information on the asset condition, they are able to plan for maintenance and future growth, thus, resulting in overall efficiency.
GPS tracking, in contrast to the traditional barcode and spreadsheets, has emerged as one of the common practices to accelerate productivity gains, reduce operational costs, and streamline compliance.
Additionally, the adoption of RFID-based asset tracking solutions has also been on the rise. For instance, according to Zebra Technologies, which specializes in RFID and location technology for shop floors, across industries, such as automotive and electronics, managing assets has simplified with the implementation of IoT technology.
Manufacturers are adopting Industry 4.0 practices and converting/setting up smart factories, wherein the workers use a combination of technologies, such as RFID, wearables, and mobile automated systems, to monitor the physical processes on the shop floor, thereby, enabling them to make decentralized decisions.
On the other hand, with the increasing need for just-in-time shipments (owing to the e-commerce boom), the need for tracking assets has increased further.
Overall, technologies, such as RFID, sensors, location-based technologies, and integrating software, and the recent IoT implementation have been serving the needs of asset management. Factors, such as e-commerce and the increasing industrial assets due to Industry 4.0, have been promoting the asset management market.
Key Market Trends
The Transportation and Logistics Sector is Expected to Hold a Strong Market Demand
The transportation and logistics sector is greatly driven by the shifting economic conditions and strong consumer confidence. Such factors, along with the growing popularity of e-commerce, have radically changed the fundamental distribution patterns. Therefore, for logistics companies, asset management has more utility beyond reduced costs, i.e., increased customer satisfaction (retention).
According to Verizon's 2019 Fleet Technology Trends Study, 64% of fleets reported having used GPS fleet tracking software, up from 59% in the previous year (2018). Such statistics indicate the increased use of asset management technologies.
Although different forms of trailer/truck tracking technologies have existed for many years, advances in the IoT and connected devices have greatly expanded the capabilities of asset monitoring systems. Currently, IoT across the transportation space offers a much broader range of information, in addition to the location and status of the trailer, but also the cargo inside.
According to Cisco, over the next decade, the logistics industry, with the implementation of IoT, is likely to generate USD 1.9 trillion, as a result of unlocking higher levels of operational efficiency. This is considering the fact that IoT connects millions of shipments in real time.
North America is Expected to Hold a Strong Market Share Over the Forecast Period
According to Cisco, over the next decade, the logistics industry, with the implementation of IoT, is likely to generate USD 1.9 trillion, as a result of unlocking higher levels of operational efficiency. This is considering the fact that IoT connects millions of shipments in real time.
With its strong manufacturing and transportation and logistics base, North America offers significant potential to asset management technology providers. F...
Read More
(All Rights Reserved)