Transport industry reducing spend on Internet of Things despite sustainability pressures, finds Viasat report

Viasat, Inc., a global leader in satellite communications, today shared its ‘State of Industrial IoT in 2024’ report, which finds transport industry spending IoT is down more than 10% since Viasat’s previous survey in 2021.

Industrial Internet of Things (IIoT) solutions utilize a range of connected devices which can help companies operate more safely, efficiently, and sustainably. Examples include equipment for environmental monitoring, remote control solutions, and vehicle tracking.

The report uses insights from hundreds of business leaders from around the world across five major industries - agriculture, energy, mining, transport and utilities. Participants were asked about their IoT solutions, priorities, challenges, budget and progress so far.

Transport leaders report a reduction in investment levels (down 10.8% since 2021), citing board-level reluctance as a major stumbling block. On top of this, 2023 saw significant external pressures on the industry from inflation, continued pandemic disruptions, and evolving laws and regulations designed to reduce emissions.

Despite lower investment, leaders are continuing to look forward. Almost 90% of those surveyed have developed or are developing their IoT strategy, while more than half have already a formal strategy in place.

Unsurprisingly, the report shows strong adoption of vehicular tracking and route optimization (48%) across the sector. Logistically, the focus is more on shipment/supply chain tracking, with 39% having already deployed it, compared with 20% who have deployed cold chain tracking.

Nearly a third (30%) of respondents report the largest challenge once solutions are deployed is a lack of consistent and reliable connectivity. Following the previous report in 2021, satellite connectivity has become the most popular connectivity source for enabling IoT, at 41%, with others opting on a range of solutions like Wi-Fi (39%), cellular (36%) and Radio (34%). With businesses still reporting connectivity gaps, the findings could suggest there is room for growth in highly reliable satellite solutions.

Andy Kessler, Vice President, Viasat Enterprise, said: “IoT has proven its value for businesses navigating an unpredictable environment, helping them become more agile and efficient. But businesses still face connectivity issues, which is why they are looking for reliable, consistent satellite solutions to drive the roll-out. Looking forward, reducing the complexity of converging satellite and terrestrial is going to be key to maximizing the full potential for IoT.”