This is necessitated by increased supply chain pressures due to COVID-19 pandemic
The number of businesses using asset tracking solutions will reach 90 million this year, and exceed 114 million by 2025, according to Juniper Research’s study, titled Fleet Tracking & Logistics: Key Challenges & Strategic Recommendations 2020-2025. This represents a growth of 27% over the next five years. Asset tracking solutions enable enterprises to track cargo from dispatch to final destination; allowing increased transparency and more accurate delivery date estimations.
The new research found that 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. It 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 USD 3 billion of spend in 2020. This figure will increase to USD 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.
Asset Tracking to Drive Return on Investment
The research forecasts that USD 33 billion will be spent on asset tracking in 2025 globally; up from USD 10 billion in 2020. Investment in tracking solutions provides enterprises with a strong return on investment, through the improvement of customer experiences and reduction of attrition. Small enterprises that rely on customer retention to offset initial on-boarding costs will find these solutions particularly beneficial.