The Remote Asset Management Market is expected to reach a CAGR of 14.5%, during the period of 2021-2026. Asset management and tracking solutions are increasingly resulting as a critical technique to achieve greater operational efficiencies in the current market scenario of rapid digitalization, in manufacturing environments and office spaces. Recent advancements in the IoT technology have enabled several end-users to acquire economical and efficient asset tracking hardware. In comparison to standard traditional asset tracking systems, modern IoT equipment that uses minimal electricity and infrastructure are driving the sales for asset tracking systems.
- Telstra, an Australian telecommunication company, recently released a suite of Internet of Things (IoT) tracking solutions, having Telstra Locator product, which is consumer-focused and an enterprise-focused Track and Monitor solution. The company is concentrating on the 'location of things,' thereby launching a small business, consumer, and enterprise solutions for connected asset tracking.
- Mobile assets stand to be a significant source of demand for custom hardware management solutions. In the current deployment scenario, generic asset management solutions are used in combination with motion detectors, tilt sensors, temperature, and pressure sensors, to ensure the health of high-value assets in transit.
- For instance, considering the case of DHL, one of the largest logistics companies worldwide, in June 2019, the company partnered with ALPS Electric Europe GmbH, a prominent manufacturer of electromechanical devices, and Sigfox, a French-based IoT service provider, to optimize supply chain processes of DHL's German parcel network using real-time location systems and advanced networked sensors.
- The COVID-19 is expected to have a positive impact on the market in the current year and is anticipated to continue to affect for the first two quarters of the year following it, due to an increased demand for connected devices; increase in affordability of cloud computing services; enhanced internet connectivity; decreased cost of components; rise in Information, Communication, & Technology (ICT) expenditure by governments in the several developed and the developing regions, including North America, Europe, and Asia-Pacific.
- Other factors that fuel the remote asset management market are high mobile adoption, an increase in broadband penetration, and significant advancements in the field of IoT.
Key Market Trends
Manufacturing to Drive the Market Growth
- With the advent of industry 4.0 in the manufacturing industry, various plants are adopting digital technologies to enhance, automate, and modernize the whole process with an aim to gain more realization on investment and materials. The integration of different digital technologies, such as asset tracking, are significantly becoming prevalent, as it provides exceptional benefits.
- For example, it can offer real-time alerts and feedback to the manufacturing companies associated with products and equipment used in processes. This would mitigate not only the operational time but also enhance efficiency and productivity.
- At present, the consumer product manufacturing industry is transforming from mass production to an industry characterized by mass customization. The process of how products are designed and delivered requires a new level of sophistication and require metric that analyze a complex set of data for deep insights.
- The manufacturing companies are now modernizing their supply chain through big data and GPS tracking, IoT sensors which not only help in data-driven planning to address the supply, demand, and logistics issues but also provides a competitive advantage over counterparts and stay ahead in the market due to efficient maintenance of the assets.
- One such instance is from Apotex, a pharmaceutical manufacturer, upgraded its manufacturing processes to automate manual processes. This included ensuring consistent batch production by introducing RFID tracking, sorting, and process flow tracking. As a result, the company had real-time visibility into manufacturing operations.
North America is Expected to Hold Major Share
- The North America region is expected to dominate the foreign asset management market due to the strong presence of manufacturing and transportation and logistics industries with several technological advancements in the area. Also, government initiatives and regulations in various end-user industries are expected to proliferate the market growth in the region.
- For instance, the Federal Highway Association (FHWA), along with the American Association of State Highway and Transportation Officials (AASHTO), State and local departments of transportation (DOTs) have been encouraging the application of remote asset management in the transportation and logistics industry.
- Also, the increasing cargo thefts and in-transit thefts and loss of goods-in-transit are further increasing the adoption of real-time location solutions in the region. For instance, according to a report by the Peel Regional Police, in 2018, 341 cases of cargo thefts were reported in the Peel Region, compared to 208 in all of California.
- Moreover, the region has always been dominant in technology adoption in almost every end-user industry and has been one of the largest areas to implement IoT across sectors. Hence, these trends provide ample opportunities for real-time location system vendors in the region to expand their foothold in the region by enhancing their market presence.
- For instance, in March 2019, NimbeLink, a provider of cellular Internet of Things (IoT) solutions and services, started providing its NimbeLink AT2 Asset Tracking Solution in Canada, on the TELUS LTE-M network. Also, in February 2020, NimbeLink collaborated with Amazon Web services to launch LTE-M cellular-based asset tracking solutions.
The remote asset tracking market is fragmented, considering the presence of multiple vendors providing different solutions. The solution providers are investing in multiple R&D activities, in order to improve the existing solutions and launch new products by integrating the latest technological developments in their solutions. Furthermore, companies are viewing global expansion as a path to attract maximum market share.
- January 2020 : Verizon Communications Inc. announced that partnered with Audi America., to deliver advanced connectivity and embedded in-vehicle connectivity solutions. Reportedly, these solutions enable Audi's connected vehicle service (launching in 2020) are expected to be initially featured in Audi A4 and A5 model lines.
- November 2019 : AT&T announced a collaboration with Nokia to delivering Munich-based innovation studio to support the growing global adoption of current and next-generation Internet of Things (IoT) solutions. This partnership will enable AT&T to help solve business problems associated with IoT solutions such as asset tracking and help it capture the European ecosystem.
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