According to Allied market research, the global IoT in the transportation market is expected to reach $328.76 billion by 2023, growing at a CAGR of 13.7% from 2017 to 2023. As the stats prove, IoT is poised to reinvent transportation to make this world a smarter place.
Data influences every aspect of our lives and transportation is no outsider either. IoT is already incorporated in transportation whether it’s something as small as real-time traffic information or as massive as fully autonomous self-driving cars. According to VXchnge, by 2020, 90% of Automobiles Will Be Connected to the Internet. We, in this article, discuss how IoT is all set to barge in and transform the transportation industry.
 Real-time parking and traffic data
If someone needs to get to Street XYZ, Google maps are there to guide them with great accuracy on how to get there. But, if someone wants to park on that street, Google map doesn’t help them park.
According to Deloitte Insights, Americans on average spend 17 hours per year searching for parking, resulting in a cost of US$345 per driver in wasted time, fuel, and emissions. Already advances in IoT and vehicle connectivity are changing the possibilities for parking.
With IoT based apps, real-time parking means an enhancement in both transparency and accountability. By integrating with smart parking meters, traffic cameras, sensors on the road, access control equipment, and other real-time feeds, these apps provide real-time parking and traffic information.
For consumers, this means absolute time savings and seamless experience. For operators and application owners, it means efficient revenue utilization and maximization in profits. With the insights that they draw from the apps, they will know the real-time parking demand and can facilitate more dynamic and flexible pricing throughout the day. This will also reduce congestion as with the data, a balance can be struck between supply and demand.
 Vehicle Fleet Safety
Whether for consumers or logistics companies, periodic vehicle maintenance is a must. In periodic maintenance, the car owners are asked to take their cars to service centers regularly after a certain time period or distance covered.
The major drawback of this is that there is no way of knowing if the car at all requires servicing. Also, of course, a significant expense in terms of cost and time.
IoT helps bridge this gap. The telematics devices collect data from different sensors installed in the car in order to analyze the condition of the different parts of the car. The data is then sent to a centralized system for processing.
If some sort of anomaly in the performance is noted (like low tire pressure, malfunctioning engine, etc), a service request is raised. Real-time alerts on the performance of the vehicle parts are provided and prediction analysis w.r.t this data can be used to further view how the car will perform over time. This reduces service and maintenance costs and also provides alerts about critical maintenance issues that need immediate attention.
 Real-time insights into driver behavior
A mobile app interacting with these telematics devices can alert drivers, in real-time about their speed variations, seatbelt usage, harsh acceleration, frequent braking, change in gears, etc, so that they get some insights in their driving behavior.
These apps can also have access to cloud services and the driver data can be synced so that the drivers can be enlightened on their habits and can see their improvements over time.
These data can also be sent to the insurance companies so that based on the insights and taking into consideration the external factors like age, gender, driving record, traffic and weather, they can create risk profiles for their customers. The different risk profiles can have different insurance clauses and premiums.
Also with geo-fencing, the IoT device can capture the coordinates of a particular area and if a driver deviates from the prescribed path, it can send alerts.
 Improving Fleet Logistics
The “Worldwide IoT in Logistics” market is expected to reach $1,050.95 billion by 2022, growing at an estimated CAGR of 35.5% during the forecast period 2016-2022.
With IoT in transportation and logistics, inventory management has become simpler and more transparent. Real-time visibility about inventory and stock-in-hand helps warehouse managers keep “Out of stock” situations at bay.
Also, the ability to track and receive updates about freights in real-time has been a boon on this industry. Identifying and monitoring vehicle idle time between routes, checking the fuel consumption and targeting inefficiencies in logistics have become easier. This, in turn, made logistics more effective.
 Air travel
IoT is making airports smarter! Passengers in this era of instant gratification still need to reach the airport at least 2 hours before departure. And also, there are layovers that make travel pretty challenging.
Digital beacons strategically placed throughout the airport can guide passengers in real-time towards restaurants, shopping centers, parking spaces, security check-in gates, etc. Also with these beacons, no longer will tired passengers sprint from one terminal to another to look for their flights as these can seamlessly guide passengers from check-in until take-off.
Also, for making luggage tracking efficient and faster, the airport uses these IoT beacons that connect to an airport’s cellular network to provide the live location of the passenger’s luggage. This reduces lost luggage complaints and passenger’s hassles. Also, the money commercial aviation loses on passenger reimbursement is also lessened.
Transportation is called the ‘lifeline’ of a nation. Transport infrastructure is one of the most important factors for a country’s progress. Already, 4.1% of IoT devices are used in transportation and vehicle manufacturers are the fifth-largest user of IoT devices. IoT in technology means increased public safety, reduced congestion, reduction in environmental degradation, efficient logistics and much more. There are countless opportunities for IoT-enabled devices in the transportation sector and the pioneers are already leveraging it for smart cities and a smarter world.
Author’s Bio: Jyotirmay is an Entrepreneur and Technocrat with more than 18 years of experience working at companies like Google, Amazon, Salesforce, etc which helped him understand the different work cultures, techniques, and values across different continents. At present, he is the CEO of BinaryFolks – A Custom Software Development Company with a specific focus on Cutting Edge SaaS-based Web Application Development, Mobile Application Development and IoT development.