IoT’s Big Opportunity in Transportation: Challenges and Next Steps

A new study from Inmarsat warns that without improved data-sharing skills and processes, transport organisations will miss out on the full benefits of Internet of Things (IoT) solutions.

Commissioned in May by Vanson Bourne and surveying 100 large transport firms, the research highlights several promising IoT use cases. These include monitoring environmental conditions, cited by 54% of respondents, and accelerating time to market, identified by 48%.

However, companies face significant obstacles before they can extract those benefits. Two in five respondents (40%) reported they need additional analytics or data science expertise to deliver IoT projects successfully. More than half (55%) said IoT-generated data is not shared across their organisations and remains confined to the teams directly involved in IoT development and deployment.

“The transport sector stands to be one of the primary beneficiaries from the windfall of data coming its way from IoT,” said Mike Holdsworth, director of transport at Inmarsat Enterprise. “Data generated by sensors placed on cargo, vehicles, employees and places has the potential to fuel a revolution in the sector.”

Holdsworth added that while the industry already uses passenger data to manage routing and calculate fuel needs, many transport organisations have yet to develop a mature approach to the data produced by connected devices.

Despite these challenges, transport companies are gradually building the analytics capabilities needed to capitalize on IoT. In an interview for IoT News magazine, Michael Corcoran, chief marketing officer at business intelligence provider Information Builders, described how two clients—Ford’s warranty division and Maverick, a transport and haulage company in Arkansas—are applying technology to deliver measurable business value.

“Technology has to be applied to a very real business need—something that can have quantifiable value to the company,” Corcoran said. “Those are the things we help customers focus on. When we do that successfully, we become trusted partners. If we continue to innovate and create useful capabilities, we can expand our role within those organisations.”

To realize IoT’s full potential in transportation, companies will need to invest in data-sharing frameworks, broaden analytics skillsets, and ensure that sensor-generated intelligence informs decision-making across departments. When data is shared and analyzed effectively, it can enhance fleet operations, improve safety, optimize routes, reduce fuel consumption, and speed up service delivery. Without those changes, many organisations risk limiting IoT to isolated projects rather than scaling it into enterprise-wide transformation.

Practical steps for transport leaders include developing clear governance for IoT data, training or hiring analysts and data scientists, and implementing platforms that make insights accessible to operations, maintenance, logistics, and executive teams. Pilot projects that demonstrate measurable returns help build the case for broader adoption and can guide priorities for skills development and investment.

Ultimately, the shift from siloed data to shared, actionable intelligence will determine whether transport companies merely deploy IoT devices or truly transform how they operate. The companies that standardize data practices, connect analytics to concrete business goals, and foster cross-functional collaboration will be best positioned to reap the long-term rewards of connected technology.