How big is the Iot in Transportation Market | Size, Scope & Opportunities 2025

Q: What is the projected market size of IoT in transportation by 2031?

The IoT in transportation market is expected to surpass USD 200 Billion by 2031.

Q: What factors are driving the growth of the IoT in transportation market?

Key drivers include increasing demand for real-time vehicle tracking, growth in smart city projects, and the need for fuel efficiency and safety.

Q: Which regions dominate the IoT in transportation market?

North America leads due to advanced infrastructure and high technology adoption.

Q: What are the major applications of IoT in transportation?

Major applications include fleet management, traffic management, asset tracking, predictive maintenance, and autonomous vehicles.

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Code: MTA6551

Publication Date: Jul 2025

How Big Is the Iot in Transportation Market?

According to 6Wresearch internal database and industry insights, the Global IoT in transportation market was valued at USD 98 Billion in 2024 and is projected to reach USD 200 Billion by 2031, growing at a CAGR of 10.80% during the forecast period (2025–2031).

This growth is driven by increasing demand for real-time fleet monitoring, smart logistics, predictive maintenance, and connected vehicle ecosystems. Governments and private sectors are investing heavily in smart mobility solutions to enhance traffic management.

Key Growth Factors of the IoT in Transportation Market

Prevalent adoption of telematics and connected fleet management systems.
Rising emphasis on supply chain transparency and route optimization.
Expansion of smart cities and intelligent transportation infrastructure.
Demand for predictive maintenance to minimize downtime in public transport and logistics.
Integration of AI and big data analytics in traffic and transit systems.
Growing popularity of Mobility-as-a-Service (MaaS) platforms and electric vehicle integration.

IoT in Transportation Market Trends

IoT in Transportation Market is evolving with trends such as integration of 5G for high-speed data transmission and edge computing for faster decision-making at the source. There is also a rise in autonomous and semi-autonomous vehicle communication networks. Blockchain is being explored for secure freight data sharing, while AI-powered dashboards are improving incident detection and response in smart traffic systems.

Emerging Developments in the IoT in Transportation Market

Innovations in the IoT in Transportation Market include vehicle-to-everything (V2X) communication, usage-based insurance (UBI), and cloud-based traffic control. Logistics operators are adopting real-time cargo tracking using IoT sensors, while public transport systems are deploying smart ticketing and occupancy tracking for improved service efficiency.