90 Million Businesses to Use Asset Tracking by 2025
Usage is up 27% due to COVID-19 driven need for a resilient supply chain.
Asset tracking solutions that allow companies to track cargo from dispatch to final destination will see a 27% increase in usage over the next five years, according to a new study from Juniper Research.
The number will hit 90 million in 2020 and increase to 114 million by 2025.
The research forecasts that $33 billion will be spent on asset tracking in 2025 globally; up from $10 billion in 2020.
This growth in adoption will be driven by the need to increase resilience in supply chains, as the ongoing COVID-19 pandemic highlights the need for real-time data on location and delays to logistics operations, the report finds.
Investment in tracking solutions provides enterprises with a strong return on investment, through the improvement of customer experiences and reduction of attrition, the report concludes. Small enterprises that rely on customer retention to offset initial onboarding costs will find these solutions particularly beneficial.
The report identified low-cost connectivity technologies, such as RFID (Radio-Frequency Identification) and LPWA (Low-Power Wide-Area) networks as key technologies that will enable logistics operations to achieve this.
China to Dominate the Asset Tracking Market
The report forecasts that China will lead the asset tracking market; generating $3 billion of spending in 2020.
This figure will increase to $11 billion by 2025; representing 34% of the total global spend.
China’s dominant role as a global exporter, combined with a strong base of IoT deployments, means that China will strengthen its position during the increasing acceleration to eCommerce as a result of COVID-19.
Expectations from Western consumers on the traceability of assets will drive Chinese manufacturers and logistics operators to implement asset tracking solutions. Failure to provide up-to-date tracking information will lead customers to source alternative suppliers, even if this comes at a higher price.