All You Need to Know About How to Use IoT in this Sector


Internet of Things (IoT) technology has made significant advancements and is being successfully implemented across various industries.

According to Statista, the total Internet of Things (IoT) market worldwide was worth around $251 billion in 2022 and is forecast to rise to more than $621 billion in 2030.

With such growth, numerous industries, including healthcare, power engineering, and transportation, have embraced IoT to enhance their operations.

In this article, we will focus on the role of IoT in transportation and explore how companies are effectively utilizing it to meet their transportation requirements while improving fleet management, supply chain logistics, and other related aspects.

Role of IoT in transportation

The Internet of Things (IoT) plays a crucial role in transforming the transportation industry by enabling intelligent data exchange between vehicles, infrastructure, and various stakeholders.

Here are some key ways in which IoT is revolutionizing transportation:

  • Smart and connected vehicles: IoT enables vehicles to be equipped with sensors, communication devices, and embedded systems that collect and transmit real-time data. This connectivity allows vehicles to communicate with each other and the surrounding infrastructure, improving road safety, traffic management, and efficiency.
  • Intelligent traffic management: IoT helps optimize traffic flow by collecting data from various sources, such as GPS devices, traffic sensors, and surveillance cameras. This data can be used to monitor traffic conditions, identify congestion areas, and improve overall traffic management.
  • Fleet management and logistics: The integration of IoT in fleet management enables operators to track and manage their vehicles with exceptional efficiency. By utilizing sensors and GPS devices, fleet managers can receive real-time information on vehicle location, fuel consumption, engine performance, and maintenance requirements.
  • Intelligent infrastructure: IoT technology can be integrated into transportation infrastructure, such as roads, bridges, and traffic lights. This integration enables real-time monitoring of infrastructure conditions, including structural health, traffic patterns, and environmental factors. By collecting and analyzing this data, authorities can make informed decisions regarding maintenance, repairs, and infrastructure improvements.
  • Passenger experience and safety: IoT technology plays a crucial role in enhancing the passenger experience by providing real-time information on arrival and departure times, delays, and alternative routes. In addition, passengers can stay consistently informed and up-to-date with the help of user-friendly mobile apps or convenient in-vehicle displays.

How IoT is improving the transportation industry

The Internet of Things is a mature technology used as the backbone of intelligent digital solutions in many industries, including transportation.

For example, FedEx and UPS companies use GPS-enabled IoT apps for delivery tracking and fleet management; Tesla, BMW, Audi, and many others manufacture IoT-enabled connected cars; Amazon, Maersk Line, DART, and others transform their supply chains using the Internet of Things.

There are many more large and small businesses that implement IoT for their transportation needs. Let’s have a look at some key examples of how IoT is improving the transportation industry.

IoT-enhanced railways

Railways have long been used for cargo transportation as a cheaper option than road transport due to their ability to transport larger and heavier loads over greater distances. However, railway systems have long been using older technologies in transportation management, making many processes slower.

Internet of Things systems can significantly improve railway performance, monitoring, and control. That’s why the UK company NetworkRail has launched an Intelligent Infrastructure (II) program aimed at improving services for passengers and freight customers using IoT technology.

Another example is the Dutch railway company NS, which uses IoT for data analytics to improve work between departments, resulting in 92.6% of Dutch trains arriving on time.

Transport monitoring and management system

A wide range of businesses heavily relies on their supply chains. This means that for effective goods and materials delivery, they have to manage and maintain a complex system of manufacturing, packing, storing, delivery, and more. All these activities can be considerably enhanced with IoT.

On top of that, with the help of IoT, companies can gather, process, and analyze supply chain data from storage availability in warehouses and inventory management using RFID tags, to fleet management with GPS and onboard diagnostics (OBD) to trip planning when IoT technology is combined with Artificial Intelligence solutions.

Connected cars

Empowered with IoT technology, vehicles can establish an internet connection with each other and road infrastructure.

This improved monitoring helps to better arrange passenger and freight transportation on the roads, making it much safer and faster. The primary ways of using IoT monitoring systems in connected cars include:

  • Driver behavior monitoring and adjustment of driving style to less risky
  • Alerting of overspeeding, braking, etc.
  • Traffic jam monitoring and route planning through less busy roads
  • Road infrastructure adjustment to the traffic, e.g., adjustment of traffic lights, parking times, etc.
  • Smart emergency assistance for the uninterrupted movement of ambulances, police cars, fire engines, etc.
  • Toll and ticketing when drivers can automatically pay for parking or road traveling without the necessity to queue at toll booths on highways

Commercial transportation

Public transport empowered with the Internet of Things can gather much data about improving passenger satisfaction and providing automated services.

For example, passengers can buy travel tickets using integrated ticketing systems, obtain passenger information through information display systems, and more.

Apart from offering in-transport data and services, public transport providers can use IoT to deliver to passengers the latest data on transport scheduling and arrival via mobile applications or bus stops and station displays.

Some of the examples of how IoT is used in public transport today include:

  • Movia, the public transport authority in East Denmark, used IoT sensors to improve passenger travel during the Covid-19 pandemic. The sensors counted the number of smartphone devices connected to the Internet and, based on this data, determined whether the transport was packed.
  • MITT & Trentino Trasporti in Italy implemented IoT devices for real-time monitoring of public transport arrival and management.
  • A London safety project and Abellio equipped cab drivers with fit drives to monitor the level of fatigue in drivers and changes in driving behavior to reduce the risk of accidents.

IoT in smart traffic management system: How does it work?

Intelligent traffic management systems are systems equipped with the latest innovations in the Internet of Things technology for improved traffic management. They allow for solving many traffic issues and represent the first step for the development and expansion of Smart City infrastructure.

With Smart traffic management systems, transport professionals can :

  • Detect and manage traffic jams – IoT sensors and cameras installed at intersections and along the roads can monitor the city streets 24/7 and collect all the data in one city traffic controller hub
  • Road adjustment to the current traffic situation – when an IoT system detects any congestion, the controlling road system can perform some traffic lights and bus lanes adjustments or even temporarily close some roads to alleviate the traffic
  • Connected cars interaction – IoT-empowered road infrastructure can send street state notifications to the drivers to restore the traffic; moreover, smart vehicles can directly connect to intersections and change/suggest vehicle speed on the roads
  • Emergency routing – IoT systems can notify connected vehicles and clear up the roads for police, ambulance, and fire services, giving them priority in the streets
  • Smart parking – equipped with IoT sensors, parking lots can notify cars of available places so that drivers don’t have to spend time going around a car park searching for a free parking lot

What to expect in the future?

The Internet of Things (IoT) continues to evolve rapidly, and several trends are expected to shape its future. Here are some key future trends in IoT that are worth your attention:

  • AI and machine learning integration: The integration of artificial intelligence (AI) and machine learning (ML) with IoT devices will enhance their capabilities. AI algorithms can analyze large amounts of data generated by IoT devices, extract meaningful insights, and enable intelligent automation and decision-making.
  • Blockchain for IoT security: Blockchain technology can potentially enhance security and privacy in IoT networks. By decentralizing data storage and utilizing cryptographic algorithms, blockchain can provide secure and tamper-proof transactions, identity verification, and data integrity.
  • Expansion of industrial IoT (IIoT): The Industrial Internet of Things (IIoT) will continue to expand, enabling increased automation, optimization, and efficiency in industries such as manufacturing, energy, transportation, and agriculture. IIoT applications can include predictive maintenance, asset tracking, supply chain optimization, and smart grids.
  • Enhanced privacy and data protection: With the proliferation of IoT devices and the vast amount of data they generate, ensuring privacy and data protection will be a significant concern. Stricter regulations and advanced security measures will be implemented to safeguard personal information and prevent unauthorized access.
  • Sustainable IoT solutions: The growing awareness of environmental concerns will drive the development of sustainable IoT solutions. Energy-efficient IoT devices, renewable energy integration, and smart environmental monitoring systems will contribute to sustainability efforts and help reduce the carbon footprint.

Bottom line

Effective traffic management and improvement of transportation infrastructure are vital for metropolitan cities as well as business development. One of the effective ways to make a change for the better is to implement IoT technology on the roads.

There are many ways IoT can be used in transportation, from traffic monitoring to route planning to supply chain management. Many companies have already adapted IoT technology for their transportation needs. As a result, they’ve significantly improved their business efficiency and performance.

If you’re also considering integrating Internet of Things technology into your transport management systems, you need a team of experts who know how to handle complex IoT technology effectively.

SCAND offers highly-qualified teams of professional IoT developers. We have more than 20 years of experience in the international software development market and are ready to help you with the custom development of IoT transportation projects.

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