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The Application of IoT in Transportation and Logistics [How to Benefit]

    When it comes to technology, data is everything. Data promotes efficiency and helps industries improve processes in ways we previously could only imagine. Nowhere does this hold more truth than with the Internet of Things (IoT). The application of IoT in transportation is expected to grow from a market size of $83.2 billion in 2020 to $495.5 billion by 2030.

    Here, we’ll discuss how companies utilize IoT in transportation and logistics and why partnering with the right software development team plays a vital role.

    What Is the Internet of Things (IoT)?

    Billions of everyday devices connect to the internet with IoT. These connections make it possible to send and receive information from smart devices like wearable health monitors, TVs—even your refrigerator.

    IoT facilitates the direct sharing of devices and computers without human interaction. It uses cloud computing for storing and processing data, and by automating communications IoT drives down the cost of intelligent data management for many industries.

    This smart technology is particularly transformative in applications of IoT in transportation and logistics. 

    The Application of IoT in Smart Transportation and Mobility

    Hundreds of critical processes in traffic management, safety, and supply chains use a combination of sensors and software. Internet of Things (IoT) applications in automotive transportation include the following:

    Managing Fleets

    Sensors are used in IoT to track and monitor real-time data, like:

    • Location
    • Fuel use 
    • Temperature
    • Tire pressure

    IoT can even measure driver behavior to facilitate better habits—like improving how they brake or advising on using less fuel.

    Facilitating Self-Driving Cars (Autonomous Vehicles)

    It may take many years before we fill our roadways with fully autonomous vehicles, but the world of transportation is heading in that direction with full force. IoT makes this possible.

    Sensors gather data about a vehicle’s surroundings, combined with cameras, GPS systems, and Light Detection and Ranging (LiDAR). IoT uses this combined information to steer the vehicle accurately while controlling its systems. 

    As a part of IoT, advanced artificial intelligence (AI) assesses traffic scenarios and predicts a safe course of action. IoT is even used for inter-vehicle communication.

    What Is IoT in Logistics?

    In the transport industry, logistics manages the data flow required for warehousing, distributing, and shipping products. Logistics is about making sure the right products:

    • Are placed on the right vehicle
    • Arrive at the proper destinations
    • Arrive on time
    • Are the right quantities

    Logistics is used in warehouse management to track every product, report on stock, and even automate orders. Depending on the level of sophistication, companies can use IoT logistics for documentation, insurance claims, and regulation management.

    When warehousing, distribution, and shipping interconnect through the application of IoT in transportation and logistics, companies can operate at a new level of efficiency.

    Challenges in IoT

    IoT is already widely used across every stage of transportation and logistics, but it comes with challenges. 


    Regulatory concerns can slow progress, but regulation is necessary to safely transition to fully automated processes. Companies must predict every potential danger to prevent accidents or costly system failures.


    Wherever a device connects online, there’s the potential for a malicious actor to attempt a system hack, making security a vital part of the IoT software development process.


    Converting decades-old transit, distribution, and shipping systems to fully automated processes requires massive infrastructure. Conversion takes money, resources, political support, and an understanding that a larger technological footprint requires greater security maintenance.

    Partner with Excel SoftSources for Your IoT Processes Today

    The application of IoT in transportation and logistics is the future of managing complex systems for efficiency and cost reduction. Excel SoftSources develops IoT software by partnering with your team throughout your development lifecycle. We develop IoT applications like these:

    • Logistics and transportation management
    • Warehouse management
    • Traffic management
    • Fleet management
    • Telematics

    Our nearshore software development teams work during US business hours, using world-class Agile methodology and DevOps processes.