IoT Chip Market in Transportation Report, Size, Share, Opportunities, And Trends By Connectivity (Cellular, Wi-Fi, Bluetooth, ZigBee, NFC, MQQT, Others) And Geography - Forecasts From 2025 To 2030

IoT Chip Market in Transportation Size:

The IoT Chip Market in Transportation is estimated at US$352.503 billion in 2025 and is anticipated to grow at a CAGR of 7.62%, attaining US$508.950 billion by 2030.

Companies are combining IoT with artificial intelligence (AI), predictive analytics, and big data to revolutionize the fleet management industry, thus positively impacting market growth. The Internet of Things (IoT) in the transportation industry helps to assist in improving road safety while easing traffic congestion and averting road accidents. According to the WHO (World Health Organization), approximately 1.5 million people globally die each year due to road traffic crashes. Road traffic accidents cost the majority of countries 3% of their GDP.

For example, the United States Department of Transportation is working with car manufacturers to incorporate IoT technology to reduce the occurrence of crashes by 80 percent. The declining cost of IoT components, better and enhanced internet connectivity, and the growing communication and technology industry are other factors that are spurring the market’s growth. Increasing investments in smart cities, both public and private, in city projects in different countries is another factor driving the IoT chip market’s expansion in the transportation sector.

IoT Chip Market in Transportation Growth Drivers:

• Growing energy consumption

Growing energy consumption has also led to a surge in the adoption of IoT technology across the transportation sector, thus fuelling the demand for IoT chips. IoT allows efficient optimization and routing management, reducing energy consumption and carbon emissions.

Growing international trade volume and the booming e-commerce industry are also escalating the demand for IoT chips in the transportation sector. Technological advancements such as mobile computing, faster and more widespread wireless connectivity, and the evolution of cloud and big data are boosting the adoption of IoT across this sector. IoT is very useful for warehouse management solutions as it is a part of the transportation stage of logistics. The technology helps to yield comprehensive data about warehouse operations, such as inventory, temperature, and performance of each piece of equipment. Companies use this data to predict equipment failures and reduce the associated risks and delays in inventory transportation.

• Increasing global sales of electric vehicles

Another major factor propelling market growth is the increase in global electric vehicle (EV) sales over the past few years. With the increasing preferences of consumers towards more sustainable products, the demand for IoT chips in the transportation sector is expected to propel significantly. The IoT offers a key application in EVs, including autonomous vehicles and connected vehicle technologies. The IoT chips in the automotives sector also help in fleet management and vehicle telematics solutions.

The International Energy Agency, in its global report, stated that in 2021, the total sales of battery electric vehicles were recorded at 4.7 million units, which increased to 7.3 million in 2022. The agency noted that in 2023, the total sales of battery electric vehicles in the global market were 9.5 million units. The agency further stated that the sales of commercial electric vehicles in the global market also witnessed significant growth. The agency noted that in 2021, the total sales of electric trucks were recorded at 20,000, which increased to 39,000 units in 2022. The total sales of electric trucks globally in 2023 were recorded at 53,000 units.

IoT Chip Market in Transportation Restraints:

• Higher manufacturing cost of IoT chips.

A major challenge to the global IoT chips market in the transportation sector is the higher manufacturing cost of the chips. The IoT chips are designed and produced using a complex and highly technical process. The manufacturing process also includes a precise quality monitoring process and inventory control. This process also includes deposition, photoresist coating, lithography, etch, ion implantation, and packaging, generally including precise machinery and equipment.

IoT Chip Market in Transportation Geographical Outlook:

• Asia Pacific is forecasted to hold a major share of the IoT chip market in transportation

The APAC regional market is projected to witness a substantial CAGR during the forecast period owing to rising initiatives regarding smart cities in countries like India and the growing focus on digitizing the transportation sector across various APAC countries. Many companies are launching pilot projects across this region to develop IoT solutions, especially for the transportation sector.

For instance, in 2018, DHL, the world’s largest mail and logistics company, launched DHL SmarTrucking, an innovative trucking solution leveraging IoT technology. The solution was first implemented across Indian road networks, and it outfits trucks with IoT sensors to provide real-time data analysis for route optimization while reducing transit times by up to 50% and providing over 95% reliability for real-time tracking. DHL SmartTrucking IoT solution aims to build a fleet of 10,000 IoT-enabled trucks by 2028. Similarly, the demand and production of electric vehicles in the Asia Pacific region have also witnessed a significant rise, boosting the integration of IoT chips in electric vehicles. Countries like China, India, Japan, and South Korea are among the biggest manufacturers of automotives in the global market, with the production of electric vehicles rising significantly.

IoT Chip Market in Transportation Products Offered by Key Companies:

• Intel Corporation is among the global leaders that manufactures and designs various computer components. The company offers a wide range of products and solutions, which includes processors, select systems & devices, AI accelerators, software, and network to edge, among many others. In the IoT chip market in the transportation sector, the company offers Intelligent Transportation System (ITS) Solutions, which offers enhanced transportation operational efficiencies. The solutions also provide intelligent and innovative experiences to the users.
• Texas Instruments Incorporated is among the leading semiconductor and computer equipment manufacturers based in the USA. The company provides solutions for various industries, including automotives, industrial, reference designs, technologies, and personal electronics, among many others. In the IoT chips market in transportation, the company offers Automotive Bluetooth LE wireless microcontrollers and battery management systems (wBMS).

IoT Chip Market in Transportation Key Developments:

• In October 2024, Qualcomm Technologies, Inc., a global leader in wireless technology and chip manufacturing, launched its industrial-grade IQ series and IoT solutions. The latest solution by the company features a blueprint of chipsets, software enables, and operating systems, among others.

IoT Chip Market in Transportation Scope:

IoT Chip Market in Transportation Segmentation:

• By Connectivity
  • Cellular
  • Wi-Fi
  • Bluetooth
  • ZigBee
  • NFC
  • MQQT
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Others

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