- The base of active cargo tracking devices for cargo units including trailers, intermodal containers, railcars, air cargo containers, cargo boxes and pallets reached 11.1 million units in 2021.
- Of 50 million intermodal containers, trailers, rail freight wagons, and ULDs in 2021, only 15% have active tracking devices installed.
- In addition, there are billions of individual cargo boxes, packages and pallets that can benefit from real-time tracking solutions.
Berg Insight has released a new report covering the trailer and cargo container tracking market. 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 11.1 million worldwide in 2021, according to the leading global IoT market research provider.
Growing at a compound annual growth rate (CAGR) of 24.4 percent, this number is expected to reach 33.1 million by 2026. In terms of installed units, trailer telematics is today the most developed market, followed by tracking devices for general cargo applications and intermodal containers. The total market value for trailer and cargo container tracking solutions reached an estimated € 1.5 billion in 2021. Growing at a CAGR of 14.1 percent, the total market size is forecasted to reach € 2.9 billion in 2026.
ORBCOMM is the largest provider of cargo tracking solutions
Berg Insight ranks ORBCOMM as the largest provider of cargo tracking solutions, having a significant installed base of both trailers and containers. The company’s total installed base reached more than 828,000 units at the end of 2021. The second largest player, SkyBitz, has an installed base of 685,000 tracking units, primarily on trailers. Additional leading providers of trailer telematics solutions are Spireon (now owned by Solera), Samsara, CalAmp, Powerfleet, Phillips Connect (the telematics division of Phillips Industries), Idem Telematics and Schmitz Cargobull.
The container tracking market is dominated by Maersk, which has equipped its entire fleet of 385,000 reefer containers with tracking devices. Other significant players in the segment are Envotech, ZillionSource, Globe Tracker, Traxens, and MECOMO. Leading telematics players in the rail industry are Nexxiot, Amsted Rail, Siemens, SAVVY, DOT Telematik and Cognid Telematik. Nexxiot is very successful in the segment, working on large-scale projects in Europe.
Sensitech (part of Carrier), DeltaTrak, Tive, Roambee and Controlant are the largest providers of cargo tracking devices, each with hundreds of thousands of devices in use. These players offer tracking devices that can be used on all modes of transport, including air freight.
“There is an ongoing trend in the transport industry to invest in new digital solutions that increase visibility and security in the supply chain”, said Martin Backman, Senior Analyst at Berg Insight.
Telematics now offered as standard on new trailers
Major container and rail freight wagon fleet owners have in the past few years taken a big step toward full-scale deployment of tracking solutions. Leading trailer OEMs in both Europe and North America have at the same time partnered with specialist tracking vendors to include telematics as standard on new trailers.
“While the market is indeed growing rapidly, there is much room left for additional growth during the next five years”, continues Mr. Backman. There are about 50 million intermodal containers, trailers, rail freight wagons, and ULDs in use worldwide. Less than 15 percent of these are today equipped with tracking technology. In addition, there are billions of individual cargo boxes, packages and pallets that can benefit from real-time tracking solutions.
“Recent advancements in IoT communications technology, energy harvesting, sensor technology and monitoring software are expected to accelerate adoption of tracking solutions in the next few years”, Backman concluded.
The cold chain tracking solutions market set for rapid growth
In September, Berg Insight released a market report covering the cold chain tracking market. The number of active tracking devices deployed for refrigerated cargo and cargo-carrying units including trailers, intermodal containers, rail freight wagons, air cargo containers, cargo boxes, and pallets reached 4.1 million worldwide in 2021. Growing at a compound annual growth rate (CAGR) of 17.4 percent, this number is expected to reach 9.2 million by 2026.
In terms of the installed base, tracking devices for general refrigerated cargo applications is today the largest market, followed by refrigerated intermodal containers and trailers. The markets for tracking solutions for refrigerated rail freight wagons and air cargo containers are considerably smaller. The total market value for cold chain tracking solutions reached an estimated € 720 million in 2021. Growing at a CAGR of 11.4 percent, the total market size is forecasted to reach € 1.2 billion in 2026.
The potential for pallet tracking
Back in 2017, Berg Insight ranked connected pallets as the most promising greenfield IoT application enabled by LPWA (Low-power wide-area) cellular and non-cellular technologies. Based on industry estimates, the company reported at the time that the global base of pallets used for transportation is around 10 billion units, making them a huge potential market for IoT.
“With an average sales price of US$ 10 per unit for regular pallets, the cost of adding connectivity can be justified by increasing efficiency in many logistics operations”, stated Tobias Ryberg, Senior Analyst and author of the 2017 report. “The ability to track pallets can also contribute to extending their lifespan which is currently around 2 years.”