The Growth of IoT Technology in the Transportation Industry

The Internet of Things (IoT) is a term used to describe the system of interconnected computer devices that are embedded in various machines, appliances, wearables, vehicles, homes and other items. IoT technology gives these items the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. A variety of industries are investing in IoT implementation, bringing rapid innovation across the board, but certain segments are definitely embracing this new technology more than others.

Of all of the industries implementing IoT into their operations, the transportation industry is the second-largest, spending approximately $78 billion in IoT upgrades since 2016. The industrial application of IoT technology allows everyone from individual drivers to operations managers to monitor systems in real time, quickly access important data and utilize predictive technologies to bring more safety and efficiency to the industry and even improving the profitability of trucking companies as well as the transportation liability market. Below are just some of the ways IoT technology is being used within the transportation industry.

Fleet Management

Improvements in fleet management technology help transportation companies improve their bottom line in an industry where profit margins are not very large. Real-time information assists fleet managers in making timely decisions that can improve maintenance costs, fuel consumption and operational efficiency among other things.

Predictive Maintenance

Predictive maintenance analytics can help drivers and fleet managers proactively address mechanical issues before they occur. This type of IoT technology can help measure and determine the real-time state of equipment to help identify possible breakdowns before they affect productivity.

Transit Schedule Management

IoT has made it possible for vehicles to be tracked in real-time, allowing operations managers to pinpoint the time a vehicle is set to arrive at its designated designation to an almost exact degree. Geo-fencing captures the location of an asset or device with the coordinates of a particular area. It allows operations managers to receive alerts if a driver were to deviate from their schedule route, which can bring delays in delivery times. The increased transparency and accountability brought on by geo-fencing and real-time tracking has already helped a number of trucking companies improve their performance and has even helped cut down on emissions from trucks due to the increased efficiency.

Smarter Inventory Management

Another facet of IoT in the transportation industry is smart inventory management. Real-time information across warehouses, distribution centers and production centers can reduce inventory management errors and losses and improve predictive maintenance.

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