Berg Insight's new report covering cargo tracking found the market is growing at an annual compound rate of 27.3%.
The number of active tracking devices deployed for cargo loading units including trailers, intermodal containers, rail freight wagons, air cargo containers, cargo boxes and pallets reached 6.1 million worldwide in 2018.
Growing at a co, this number is expected to reach 20.4 million by 2023.
Trailer telematics is the most developed market, followed by tracking devices for general cargo applications and intermodal containers.
The markets for rail freight wagon and air freight cargo tracking are considerably smaller but will grow substantially during the coming five years.
The total market value for trailer and cargo container tracking solutions reached at the same time an estimated €857 million in 2018.
The market for remote tracking solutions for cargo containers has entered a period of healthy growth that will continue for several years. Growing at a CAGR of 16.3%, the total market value is forecasted to reach €1.8 billion in 2023.
Europe lags US
The European trailer telematics market is substantially smaller than the North American and dominated by Idem Telematics, Schmitz Cargobull, CLS Group and Transics/WABCO.
On the market for container tracking solutions, three major vendors are Malaysia-based Envotech and Sierra Wireless and Geoforce based in the US. Mecomo and Agheera, both based in Europe, are strong vendors in the adjacent swap body segment.
Technological developments in the telematics industry in recent years have resulted in more advanced tracking solutions. “Today’s telematics solutions generate an increasing amount of data on the status and location of cargo and cargo loading units”, said Martin Bäckman, IoT Analyst at Berg Insight.
Along with the development of more capable tracking solutions, low-end solutions are becoming increasingly affordable. “The price for real-time tracking technology is now at a point where customers find it viable to track also low-value goods such as non-perishable food”, continued Bäckman.
This enlarges the addressable market and tracking of trailers, containers, rail wagons and cargo boxes is expected to become increasingly common in the next decade.