The number of businesses using asset tracking solutions will reach 90 million this year, and exceed 114 million by 2025 – representing a growth of 27 per cent over the next five years.

Market analysis from Juniper Research explained that asset tracking solutions enable enterprises to track cargo from dispatch to final destination; allowing increased transparency and more accurate delivery date estimations.

Its new report found that this growth in adoption will be driven by the need to increase resilience in supply chains, as the ongoing COVID-19 pandemic highlights the need for real-time data on location and delays to logistics operations.

It identified low-cost connectivity technologies, such as Radio-Frequency Identification (RFID) and Low-Power Wide-Area (LPWA) networks as key technologies that will enable logistics operations to achieve this.

The report forecasted that China will lead the asset tracking market, generating $3 billion of spend in 2020. This figure will increase to $11 billion by 2025; representing 34 per cent of the total global spend.

China’s dominant role as a global exporter, combined with a strong base of Internet of Things deployments, means that the country will strengthen its position during the increasing acceleration to e-commerce as a result of the Coronavirus.

Expectations from Western consumers on the traceability of assets will drive Chinese manufacturers and logistics operators to implement asset tracking solutions. Failure to provide up-to-date tracking information will lead customers to source alternative suppliers, even if this comes at a higher price, noted Juniper Research.

The report predicted that $33 billion will be spent on asset tracking in 2025 globally; up from $10 billion in 2020.

Investment in tracking solutions provides enterprises with a strong return on investment, through the improvement of customer experiences and reduction of attrition. Small enterprises that rely on customer retention to offset initial onboarding costs will find these solutions particularly beneficial, the research added.

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