How IoT is revolutionizing the transportation industry?

Many variables affect the efficiency of transport and logistics operations. It is therefore necessary to use tools that collect and analyze key data to improve fleet management and forwarding processes. One of the most important technologies used in this area is the Internet of Things. How to use IoT in transport and logistics? 

IoT in the transport industry 

The Internet of Things (IoT) is one of the fastest-growing technologies in the transport industry. By connecting physical objects to the Internet using sensors, electronic components, and telematics, IoT solutions create effective tools for monitoring objects in motion—namely vehicles and shipments—in real time. This technology offers unprecedented opportunities for supply chain optimization and efficient fleet and delivery management. 

IoT is the answer to many challenges faced by companies operating in the transport and logistics sector, dealing with, among others: 

• The need for cooperation between many entities that are part of the supply chain, i.e., sellers, suppliers, warehouse workers, transport companies, logistics centers, and others;  

• The risk of errors resulting from inefficient communication between individual elements of the supply chain; 

• Rising costs of downtime resulting from, among others, driver shortages, malfunctions, and accidents; 

• Growing customer expectations requiring full and accurate information about delivery status and shipment location in real time; 

• Difficulties in transporting goods that require maintaining specific temperature, humidity, or other parameters, e.g., in the case of food or pharmaceutical transport. 

IoT in the transport industry – application examples 

IoT, thanks to its wide integration possibilities with existing company infrastructure, e.g., ERP or TMS systems, contributes to creating comprehensive and complete solutions for acquiring and analyzing data in real time. Such data can then be used to optimize delivery and fleet management. 

The main areas of IoT use in transport are: 

Vehicle location monitoring 

Equipping vehicles with sensors allows for real-time tracking of their location. It also enables monitoring of more detailed parameters, such as speed or travel route. Rapid analysis of such data allows for ongoing route optimization and immediate response to emerging problems. 

Intelligent route planning 

Ongoing analysis of weather and road conditions, as well as vehicle location, availability, and equipment, allows for automatic or semi-automatic determination of the most optimal routes. This enables shorter delivery times and lower shipping costs. 

Fuel consumption analysis 

IoT sensors allow for constant and accurate monitoring of fuel consumption. This enables effective detection of areas for automation and causes of inefficiency, such as excessive speed or prolonged engine idling. By using the edge computing model, data acquired by sensors is partially analyzed at the sensor level, which speeds up its processing and use in process optimization. 

Vehicle condition monitoring 

IoT tools allow for ongoing monitoring of vehicle condition and receiving real-time information about their operation. Combined with machine learning, this technology allows for predicting failures and implementing preventive measures in time, thereby avoiding costly downtime and unplanned repairs. 

Driver behavior monitoring 

IoT sensors are able to examine not only the vehicle’s condition but also driver behavior. The technology can detect, among other things, speeding, deviating from the designated route, or analyzing cornering style, and then identify areas requiring improvement in terms of safety or fuel consumption. 

Shipment tracking 

GPS sensors allow for real-time monitoring of shipment location. This enables quick reactions in case of delays or lost shipments, as well as providing customers with accurate information regarding delivery time. IoT solutions enable a gradual move away from traditional barcodes, which required manual printing, sticking, and scanning, in favor of RFID tags and automatic data transfer directly to the cloud.  

Smart containers 

IoT technology allows vehicles to be equipped with sensors monitoring key transport conditions, such as humidity or temperature, as well as the condition, weight, and position of the cargo itself. This makes it possible to react immediately to undesirable events, such as a temperature drop, by fixing the fault and securing the shipment. 

Warehouse space monitoring 

Motion sensors installed in the warehouse are able to detect unwanted movement, as well as fires or flooding. This increases the safety of both employees and property. Equipping the warehouse with sensors also helps optimize the operation of the warehouse itself, e.g., through proper goods placement and shortening transport time inside the hall. 

Furthermore, IoT solutions are scalable—one properly configured system is able to collect, aggregate, and analyze information from hundreds or thousands of devices in real time. 

IoT in transport – benefits 

The use of IoT in the transport industry brings many benefits, the ultimate and most important of which are increased business profitability (ROI), improved efficiency of transport and logistics operations, increased safety, and activities for sustainable development.  

Key benefits include: 

Technological: 

• Wide integration possibilities – IoT can be freely combined with other technologies such as AI, Big Data, blockchain, or telematics; 

• Possibility of integrating IoT with the cloud environment; 

• Availability of tools for accurate and automatic measurements of conditions inside containers and rooms; 

• Possibility of accurate and constant monitoring of objects in motion (shipments and vehicles) in real time; 

• Detailed control of device operation; 

• Automation of key processes; 

• Infrastructure scalability – any number of devices can be connected to one properly configured system; 

• Collecting data from various sources in one consistent system; 

• Processing and analyzing data in real time and its availability to various entities that are part of the supply chain.  

Operational: 

• Ability to track key indicators in real time; 

• Increasing fleet management efficiency; 

• Improving communication and information exchange between supply chain participants (drivers, suppliers, warehouse workers, distributors, and customers); 

• Eliminating the risk of failure and early detection of faults; 

• Improving the safety of drivers, warehouse workers, and property; 

• More efficient use of warehouse space; 

• Reporting automation. 

Business: 

• Reduction of fleet maintenance costs; 

• Reduction of fuel consumption; 

• Preventing costly downtime; 

• Reduction of storage costs; 

• Reduction of losses resulting from improper transport of goods; 

• Increasing competitive advantage; 

• Acting for sustainable development; 

• Making more accurate business decisions based on detailed data analysis. 

IoT in transport – examples and case studies 

How do transport companies use IoT to optimize fleet, deliveries, and logistics? Below are some of the most interesting examples: 

• Blackberry Radar is a solution that allows for real-time monitoring of truck locations and then sending data to a system of connected mobile devices. It uses tracking devices and geofencing, which is the detection of a vehicle crossing a designated geographical area. 

• DHL uses SmartSensor products, such as tags measuring temperature, humidity, shocks, lighting, and other parameters, and then sending information to other systems used globally by DHL. 

• Maersk uses IoT in maritime logistics to monitor conditions on ships and in containers. 

• Tire manufacturer Michelin implemented IoT solutions as part of its “Michelin Fleet Solutions” platform, which allows monitoring tire pressure, fuel consumption, and other vehicle parameters, improving transport safety and profitability. 

• International Truck uses the OnCommand Connection program, which combines IoT with Big Data to minimize downtime. Their vehicles are equipped with systems that read information from the engine about the vehicle’s speed, such as RPM or coolant temperature. Then, with the help of telematics solutions, the data is transmitted to AWS, where employees and customers have access to it. 

• The Australian company Rio Tinto has been automating truck fleet management using IoT and telematics for over a decade. 

IoT trends in the transport industry 

As predicted, the market for IoT devices in transport will develop particularly dynamically. According to Cognitive Market Research, this market will reach a value of approximately USD 383 billion by 2030, representing a growth of 21.4% in the years 2024-2030. According to Statista, in 2025 alone, we can expect approximately USD 23.6 billion in revenue from the use of IoT in the automotive industry. 

What will be the most important IoT trends in the transport industry in the coming years? 

• Sensor development 
  One of the main trends is the constant emergence of new types of sensors that will allow for even more accurate measurements and further expansion of the range and application of IoT device networks. 

• 5G network 
  The development of 5G will significantly accelerate the growth of the Internet of Things market. An efficient network and fast connectivity will speed up the global exchange of information, thereby increasing the efficiency of IoT devices and improving the flow of information in real time. 

• Digital twins 
  Another IoT trend is digital twins, which are virtual devices that are replicas of physical objects. Their task is to map the operation of the source object based on data collected via IoT. In logistics, digital twins can support processes such as goods loading or KPI monitoring. 

• Integration of IoT with AI 
  With the development of artificial intelligence, we can expect its growing influence on both the transport industry and the IoT market. Over time, IoT devices will have increasingly broad possibilities for integration with AI and ML, which will allow for advanced data analysis and predictive analysis. 

• Smart cities 
  Another important factor for logistics and transport is the development of smart cities. Integrated urban systems monitored by a system of sensors and telemetry solutions will increase the efficiency of managing goods transport, loading, and delivery coordination. 

• Autonomous vehicles 
  Autonomous vehicles are a revolution in transport involving driving vehicles without driver participation. It uses advanced technologies such as artificial intelligence, sensors, and cameras, and precisely analyzes the environment in real time, improving traffic flow and minimizing the risk of collisions and accidents. 

• V2X (Vehicle-to-Everything) 
  V2X is a set of tools enabling vehicles to communicate with elements of the environment. Its components include V2V (Vehicle-to-Vehicle communication), V2I (Vehicle-to-Infrastructure communication with urban and road infrastructure), V2P (Vehicle-to-Pedestrian communication), and V2N (Vehicle-to-Network communication with the environment via the network, e.g., to obtain information about weather, traffic intensity, or accidents). V2X operation is based on communication technologies such as Wi-Fi, LTE, 5G. 

• IoT in sustainable development 
  IoT enables the installation of sensors in vehicles that monitor fuel consumption and CO2 emissions in real time. This data allows for route optimization, reduction of empty runs, and more efficient fleet management, and thus lower fuel consumption and exhaust emissions.  

IoT for transport – summary 

IoT is a key technology in transport that provides unprecedented opportunities for optimizing operational activities and reducing costs, and ultimately—increasing business profitability and building a competitive advantage. 

If you would like to learn more about the possibilities of implementing IoT solutions in your transport or logistics company, please contact us. Our experts will be able to advise you on solutions that will help you achieve the best results in your type of business.