TRANSPORT MONITORING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Transport Monitoring Market Size and Trends

The transport monitoring Market size is valued US$ 17.43 Bn in 2024 and is expected to reach US$ 34.17 Bn by 2031, growing at a compound annual growth rate (CAGR) of 10.1% from 2024 to 2031.

The transport monitoring market is segmented into component, transportation mode, application, end user, and region. By component, the market is segmented into hardware, software and services. The hardware segment accounts for the largest share due to wide scale use of sensors, cameras, GPS and other systems that are used to monitor different transport vehicles.

• IoT and telematics integration: Integration of internet of things (IoT) devices and telematics systems into transportation monitoring has continued to grow. This enables real-time tracking of vehicles, cargo, and assets, thereby improving overall efficiency and safety. In 2021, the Ministry of Road Transport and Highways of India reported that IoT tracking of over 50,000 buses helped identify over 80,000 cases of risky driver behavior, thus aiding road safety measures. The growing use cases of IoT and telematics across industries as well as governments underscores the rapid growth of the transport monitoring market.

• Predictive analytics: Transport monitoring systems are increasingly utilizing predictive analytics and machine learning algorithms to anticipate issues such as vehicle maintenance needs, traffic congestion, and delivery delays. This proactive approach helps in optimizing routes and reducing operational costs. The European Union's Directorate-General for Mobility and Transport published a study in 2021, analyzing over 5 years of traffic data from 15 major EU cities. Their predictive models helped identify bottlenecks and formulate plans to enhance road safety and traffic flow and reduce emissions. Similarly, transport authorities in Singapore used hyper local weather and traffic predictions during major flooding events in 2022 to redirect vehicles away from low-lying roads and minimize traffic jams.
• 5G connectivity: The rollout of 5G networks has expanded the capabilities of transport monitoring systems, providing faster and more reliable data transmission. This allows for seamless communication between vehicles, infrastructure, and control centers. According to a report by the United Nations in 2020, 5G technologies can help reduce traffic congestion in cities by 15-20% through mechanisms like adaptive traffic signal control. Similarly, according to a report published by the Department of Transport, in 2020, U.K. showed that 5G-powered smart parking solutions helped citizens locate vacant spots 30% faster in cities like London and Manchester. As 5G connectivity proliferates across more regions, it will strengthen the ability of transport authorities to streamline operations, optimize infrastructure usage and improve commuter experiences through active monitoring solutions.
• Environmental monitoring: Growing environmental concerns have led to increased focus on monitoring emissions and environmental impact within the transport sector. Monitoring systems are being used to track fuel consumption, emissions, and vehicle efficiency to meet regulatory requirements and reduce the carbon footprint. In 2021, California Air Resources Board published revised emissions reporting protocols for medium-duty and heavy-duty trucks operating in the state requiring deployment of telematics tools. Such policy developments and compliance needs across major economies are driving billions in annual revenues for transport monitoring solution vendors globally. Advanced data-driven solutions to lower emissions and minimize environmental impact will continue growing in importance.