Capitalizing on the Value of IoT in Transportation

February 3

More and more companies are embracing IoT technology as a way to refine their business models to operate with greater efficiency based on data analysis. The growing use of IoT in transportation accentuates this digital revolution that empowers companies to maximize profit margins. Here are ways IoT adoption is transforming various aspects of transportation.

Catering to the Smart Transportation Market

Modern technology keeps producing new terms to go along with the latest trends. "Smart transportation" refers to the use of IoT technology in transportation systems. There are several advantages for transportation operators who adopt smart technology to integrate with emerging intelligent infrastructure. IoT devices that contain sensors can alert fleet managers when vehicle wear and tear calls for maintenance, leading to a longer life span and safer conditions.

Many trucking companies have already made the transformation to a digitally-interconnected infrastructure that collects high volumes of data from fleet vehicles. Recommendations to improve operations by fixing vulnerabilities can now be generated from machine learning tools. But human analysts are also still needed to evaluate the data to make real-time decisions for system improvements.

The smart transportation market is expected to exceed $130 billion by 2024 as it will revolutionize the rail and air industries. IoT adoption will affect the following components of the transportation industry:

Improved Fleet Management - Fleet managers will have access to real-time data on truck locations so that they can make quicker decisions when adjustments are practical. Data analysis will further help reduce inefficiencies to make travel more economical.

More Reliable Transit Management - Real-time tracking solutions are constantly evolving to allow for greater data collection from diverse sources, including mobile units. Today's tracking technology helps route vehicles more efficiently.

Smarter Inventory Management - The use of IoT devices can track the status of any fleet vehicle in real-time. Tracking can include a wide range of parameters such as temperature and humidity.

Asset Leveraging and Tracking - The transportation industry can use IoT devices to leverage and track assets. Organizations can use the tracking information to predict arrival times and confirm government compliance. Tracking can also be done by suppliers to monitor cargo conditions to ensure perishable items are well protected.

Geo-Fencing and Drones - As an advancement from GPS technology, geo-fencing sends an alert to the organization when assets deviate from assigned routes to avoid loss and delivery delays.

The use of IoT in transportation will create greater customer loyalty as airlines and rail services will develop a closer connection with passengers. Ticketing to pay for transport will increasingly involve smartphones as transactions become more seamless.

How IoT Benefits Transit Systems

Improve the traveler's journey - Passengers can receive more personalized services, as well as reliable transportation, thanks to IoT. Direct communication between the transportation firm and consumers helps nurture a positive relationship.

Create a safer environment - Monitoring vehicle speeds and making sure journeys are compliant with traffic laws will contribute to a safer environment. Tracking other data, such as road conditions, can help make trips go more smoothly by avoiding interruptions.

Use less energy and reduce congestion - Collecting data on gas mileage, traffic patterns, and driving behavior help determine energy costs. Traffic control officials can use advanced tracking tools to reduce traffic congestion through rerouting strategies.

Boost operational performance - Monitoring fleet data for each vehicle at a central location helps a transportation company know the exact status of every vehicle in real-time. This knowledge empowers the company to make necessary changes in scheduling to cut waste.


The growing use of IoT in transportation is a strong signal that society is moving toward omnipresent digital interconnectivity. Transportation companies will increasingly feel the pressure to accept IoT as a new norm to remain competitive and maintain customer loyalty. Ultimately, the use of data-collecting sensors will be the key to a more efficient and personalized environment in the transportation industry.

Johannes Beekman

About the author

After 25 years in engineering, Johannes Beekman founded IoT Marketing with the goal of helping companies bring wide-scale awareness to their inventions. He received a Master of Science in Physics degree from the Eindhoven University of Technology, and a Master in Business Administration degree from the Wharton School of the University of Pennsylvania, and started his career in the semiconductor field. Johannes pioneered two successful wafer fab startups for Philips Electronics; one in Europe and the second one in Asia. And served as Senior Program Manager for Sematech, where he provided solutions for semiconductor industry-wide product improvement and cost reduction challenges. Johannes has also published articles on several trade-focused websites.


fleet management, IoT transportation, reliable transit management, smart transportation, transportation systems

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