Asset Tracking Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asset Tracking Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asset Tracking Market was valued at USD 17.75 billion in 2021 and is expected to register a CAGR of 13.91% during the forecast period (2022-2027). Asset management and tracking solutions are increasingly critical to achieving greater operational efficiencies in the current market scenario of rapid digitalization in manufacturing environments and office spaces.

Key Highlights

• Recent advancements in IoT technology have enabled several end users, such as transportation and logistics, manufacturing, food and beverage, and others, to acquire economical and efficient asset tracking hardware. Compared to standard traditional asset tracking systems, modern IoT equipment that uses minimal electricity and infrastructure drives the sales of asset tracking systems.
• Asset tracking as an add-on service allows third-party logistics vendors to compete on a technological front, ensuring high product differentiation. Many third-party logistics players are moving toward mobile asset tracking solutions. Considering the rapid growth of the omnichannel retail industry and e-commerce sector in North America, especially in the United States, the demand from third-party logistics vendors is expected to increase further as they play a key role in the omnichannel and e-commerce retail supply chain.
• Organizations that deal with transporting different equipment, supplies, and material from one site to another or over long distances face significant difficulty in asset tracking and management. Trillions of dollars in losses are caused by losses, theft, and destruction of assets for businesses worldwide. An efficient way to avoid such accidents and safeguard priceless assets during transport and storage is to convey telemetric information using IoT sensors to monitor assets for their health and state. IoT sensors and digital visibility software are used by asset tracking solution vendors to address this issue.
• Asset tracking solutions have high initial costs with limited functionality, and the cost varies per asset per month for a feature-packed tracking system. A feature-rich asset tracking system might cost anything from USD 50 to USD 150 per asset each month. An asset monitoring system for a business will have a defined cost. Costs vary depending on various variables, including the supported features, the number of assets tracked, the level of vendor support provided, and the cost of licensing and maintenance fees paid to the vendor, which are included in the overall price. Hence, in the case of a high number of assets, the cumulative asset tracking cost will be increased, thereby hindering the growth of the market studied.
• The COVID-19 pandemic significantly increased the demand for e-commerce, especially online groceries, due to the changing consumer consumption patterns and the rapid adoption of omnichannel distribution models, which are expected to create a demand for efficient logistics and warehouse management systems, especially due to a substantial decrease in the workforce during the pandemic.

Key Market TrendsIncreasing Adoption of IoTDevices For Asset Tracking to Drive the Market

• Asset tracking solutions with enabled IoT help connect multiple processes, workforce, and assets across the business value chain into a single "integrated strategic system." Asset tracking delivers real-time data contributing to a bottom line, and IoT devices and systems make asset tracking more accurate and reliable.
• Organizations that deal with transporting different equipment, supplies, and material from one site to another or over long distances face significant difficulty in asset tracking and management. Trillions of dollars in losses are caused by losses, theft, and destruction of assets for businesses worldwide. An efficient way to avoid such accidents and safeguard priceless assets during transport and storage is to convey telemetric information using IoT sensors to monitor assets for their health and state. IoT sensors and digital visibility software are used by asset tracking solution vendors to address this issue.
• Furthermore, new IoT technologies, including advanced wireless modules and SIMs designed explicitly for IoT use cases, enable a new generation of asset tracking devices to allow tracking even in challenging environments. It is now easy to monitor business assets and make smarter decisions using IoT-based solutions. Various new technologies, like asset tracking intelligence, aid smarter decision-making at all business levels and reshape infrastructure strategies that ensure protection and safety for different company assets with IoT asset tracking systems.
• Several strategic collaborations are taking place to boost the adoption of IoT-enabled asset-tracking solutions. For instance, in February 2022, Wyld and TrakAssure formed a partnership to provide global LoRaWAN satellite-based IoT connectivity for asset tracking. The hybrid LoRaWAN satellite IoT connectivity solution Wyld Connect will be integrated into TrakAssure's asset-tracking IoT sensors for the supply chain market by Wyld Networks and TrakAssure LLC. The firms will provide the integrated end-to-end solution worldwide in more adjacent IoT areas. TrakAssure combines specialized IoT sensors with a scalable and secure customized private and public platform infrastructure to provide enterprise-level visibility across the fragmented supply chain. This results in an improved customer experience, increased operational efficiency, and significant cost savings.
• In February 2022, Link Labs, the industry's prominent end-to-end IoT platform for tagging, finding, and tracking assets, supplies, and equipment, announced a partnership with Wirepas. Through this partnership, Link Labs' flagship product, Airfinder OnSite, can more efficiently assist businesses in nearly every industry locate, monitoring, and managing work-in-process, inventory, equipment, tools, packages, and personnel anywhere at any time, whether they are indoors or outdoors. Wirepas Massive is a connectivity software suite built for the large-scale IoT needs of industries. These growing collaborations to meet the end-user demand are further boosting the adoption rate of advanced technologies, thereby driving the growth of the market studied.

North America is Expected to Register the Largest Market

• North America is expected to account for a significant market share of the asset tracking market, owing to the high adoption rate of advanced technologies in countries across the United States and Canada.
• Canada and the United States have recently suffered similar supply chain logistics challenges, such as road and rail bottlenecks near borders and key ports. The necessity of redundancy and planning has been further underscored by significant weather disasters, worker shortages, security interruptions, work stoppages, and the consequences of Russia's continuing invasion of Ukraine. In June 2021, the White House announced the formation of the Supply Chain Disruptions Task Force, which has since started a pilot to improve digital information exchange between private businesses operating logistics supply chains to address these concerns for the United States.
• Adding to this, the significant growth in the food and beverage sector in the United States and Canada, alongside the adoption of advanced technologies, contributes to the market growth rate. The food and beverage sector is vital to the US economy. The industry accounts for around 5% of the nation's GDP and 10% of employment, including agriculture, manufacturing, retail, and food service. The US Committee for Economic Development reports that the food and beverage sector includes nearly 27,000 businesses and employs around 1.5 million people.
• Canada is also setting up its independent Supply Chains Task Force to confer with business leaders, employees, and industry experts to develop recommendations for both immediate and long-term solutions to logistical supply chain issues. A long-standing cooperative agreement between Canada and the United States in transport logistics is supported by their shared determination to address supply chain logistics issues. This partnership ranges from joint management of the Great Lakes St. Lawrence Seaway System to the implementation of Intelligent Transportation Systems, which allows commercial vehicles access to real-time border delay information.
• Through the Canadian Agricultural Partnership, the federal and provincial governments of Canada and Ontario are contributing over CAD 4.5 million to more than 100 projects that will enhance the agri-food supply chain in the province by assisting food and beverage processors in enhancing their operations, boosting their competitiveness, and preparing for new challenges.

Competitive Landscape

The Asset Tracking Market is fragmented, considering the presence of multiple vendors providing different solutions. The solution providers are investing in multiple R&D activities in order to improve the existing solutions and launch new products by integrating the latest technological developments in their solutions. Furthermore, companies are viewing global expansion as a path to attracting maximum market share.

• March 2022 - Spireon helped Summitt Trucking to optimize asset visibility, streamline operations, transform data into actionable business insights, and realize an annual savings of USD 644,000 annually.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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