Unlocking the Future: Cutting-Edge Asset Tracking Technologies

The Global Asset Tracking Market

The global asset tracking market is vibrant and set to almost double in size over the 5-year period between 2023 and 2028, enabled by innovations in IoT technologies and cellular and wireless communications. Miniaturisation of electronic devices, such as embedded processors and transceivers, and advanced power-management techniques are enabling the creation of low-cost, battery-operated asset-tracking devices. Using these devices, asset-tracking applications are delivering real business benefits across a wide spectrum of applications in multiple sectors, including transportation and logistics, manufacturing, healthcare, and retail.

This article takes a closer look at asset tracking, describing ongoing and future market trends, and highlighting the technologies enabling this market growth. It concludes by discussing how asset-tracking technologies are also contributing to other emerging technological trends, including smart cities and the Industry 4.0 factory.

Asset Tracking Defined

Asset tracking is the process used by an organisation to monitor and manage its valuable physical assets throughout their lifecycle. An asset, by definition, is anything owned by a business which has value – for example, equipment, machinery, vehicles, computers, and many more. Since these items have a monetary value, it's important to track attributes such as their current location, condition, and user status, all of which can impact the profitability of the business.

Modern asset tracking systems leverage advanced Internet of Things (IoT) and Artificial Intelligence (AI) technologies to deliver a wide range of business benefits, including:

  • Real-time tracking of valuable assets, improving visibility and enabling quick responses to changes or incidents.
  • Predictive maintenance based on the analysis of data collected by IoT sensors embedded in assets.
  • Enhanced security features built into asset tracking systems and real-time monitoring, triggering alerts when assets deviate from predetermined routes or locations.
  • Optimal utilisation: IoT and AI-based analytics provide insights into asset utilisation patterns, enabling informed decisions about deployment, allocation, and optimisation of asset usage.
  • Streamlined inventory management: IoT-enabled asset tracking systems automate inventory management processes by providing real-time visibility into stock levels, locations, and movement. This improves accuracy, reduces manual effort, and streamlines inventory replenishment workflows.

 

An asset tracking system comprises connected devices, or tags, which transmit real-time data, and specific digital systems, such as asset tracking software, which read and interpret the data. Asset tracking may be segmented into long-range, where items need to be tracked over long distances, sometimes in remote or difficult-to-reach locations, or short-range, where the item is confined to a specific building or plant. Different technologies suit each segment, and some applications may span segments, requiring combinations of technologies, as will be described in a later section.

The Asset Tracking Market

The emergence of IoT technologies in recent years has significantly contributed to the growth of the asset tracking market. Advances in miniaturisation and wireless technologies, enabling machine-to-machine (M2M) communications and inexpensive connectivity, have expanded the scope of asset tracking, making it practical and economically feasible for a wider range of industries and asset types.

According to Mordor Intelligence, a [insert description], the asset tracking market size, estimated at US$ 21.09 billion in 2023, is expected to reach USD 40.45 billion by 2028, with a CAGR of 13.91% over the five-year period 2023-2028. Within this overall picture, growth by regions will vary (see Figure 1). The Asia Pacific market is predicted to be the fastest-growing, while the North American market will be the largest.

Asset Tracking growth by region
Figure 1 - Asset tracking market growth by region

The asset tracking market can be segmented in various ways, including by component, deployment type, end-user industry, and geography. On the demand side, industries like fleet, container, and logistics were early adopters of asset tracking. While the fleet currently holds over 77% of the market, non-fleet asset tracking is growing at an 18% faster rate. The combination of increased device functionality and component miniaturisation is driving a new generation of low-cost tracking devices, introducing new markets and device categories, such as disposable trackers. As asset tracking technology becomes more affordable, solutions are reaching smaller and medium-sized enterprises, driving further growth in the total addressable market.

On the supply side, the asset tracking market remains highly fragmented, with multiple vendors offering diverse solutions. These solution providers are heavily investing in R&D to enhance existing solutions and introduce new products that integrate the latest technologies. Concurrently, many suppliers of asset tracking solutions see global expansion as a lucrative opportunity to grow and capture market share. In such a dynamic and competitive landscape, integrating the latest technologies with short development cycles and optimised costs becomes pivotal. Developers must judiciously select the best technologies for their application, while also considering the availability of supporting tools and environments.

Key Asset Tracking Technologies

In many aspects, asset tracking technology can be perceived as one of the primary use cases of the IoT. IoT devices seamlessly integrate remote sensors with intelligent devices and sophisticated analytics. The form factor of IoT devices has shrunk significantly due to advancements in electronics miniaturisation. Moreover, the IoT has spurred innovations in low-power devices and wireless communications, both of which have significantly benefited asset tracking technology.

An asset tracking device typically integrates a microcontroller unit (MCU) with functionalities like wireless transceivers and neural network accelerators. These devices also encompass a variety of sensors to capture and measure parameters such as temperature, humidity, shock, and vibration forces. Additionally, these devices may boast advanced power management capabilities, allowing them to shut down functions when not in use, thereby extending battery life.

Asset tracking devices employ wireless technologies to ascertain their position, with eight primary wireless technologies being utilised based on the specific application (see Figure 2). For instance, Ultra-Wideband (UWB) is a relatively novel technology for asset tracking and real-time location, but it outshines other technologies in terms of accuracy, scalability, security, and cost. UWB's capability to penetrate objects and function without a direct line-of-sight between devices makes it apt for extending GNSS-style positioning functionality to indoor settings like factories, warehouses, offices, classrooms, and hospital wards. However, its primary shortcoming, in contrast to Wi-Fi or GNSS, is its need for unique infrastructure in the designated tracking area, specifically in the form of TDoA anchors.

Technology Advantages Disadvantages
Bluetooth Low Energy (BLE)
  • Low power consumption
  • Can be cheap to acquire BLE tags
  • Accurate between one to three meters 
  • Read range between thirty to eighty meters
  • Latency issues in some real-time applications
  • Interference and dropped data
  • Don't cope well in cluttered environments with a lot of metal or reflective surfaces

Wi-Fi
  • Real-time location tracking
  • Fewer data-bridging systems needed
  • Read range between 60-100 meters
  • Can't scale 
  • Power-hungry tags 
  • Poses security risks 

Cellular Positioning
  • Long range / global reach
  • Standardisation 
  • Power hungry tags 
  • Low accuracy 
  • Not reliable indoors or underground

GPS
  • Global visibility
  • Stable and mature 
  • Can be scaled by using tags 
  • Almost inter interference-free
  • Only works outdoors
  • Requires a line of sight with at least 4 satellites
  • High power consumption

RFID
  • Longevity
  • Small in size
  • Low-cost tags or labels
  • Lower precision
  • Wireless signals easy to intercept
  • Cannot provide real-time location data 

NFC
  • Fast set-up 
  • Inexpensive tags
  • Suitable for high-density applications 
  • Compatible with passive RFID infrastructures
  • Short read range
  • Cannot be used in 2D or 3D spaces 

LPWAN
  • Long-range wireless connectivity
  • Tags have a long battery life 
  • Indoor and outdoor coverage
  • Good for large-scale deployments
  • Low data transfer rates 
  • Needs network to deploy
Ultra-Wideband (UWB)
  • High-accuracy (centimeter-level accuracy)
  • More resistant to multipath interface 
  • Extremely power efficient 
  • Precise timing between sensors requires cabling to be synchronized 
  • More expensive 
  • Low emission limits 

Cargo ship aerial shot - Asset Tracking

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Avnet Silica and its leading suppliers are supporting a number of businesses across EMEA to revolutionise their asset tracking systems and procedures, making their business smarter, more profitable and giving them an advantage over their competition.

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In many cases, a tracking device may utilise complementary positioning technologies to increase the availability of location information. GNSS may deliver reliable location data for a shipping container while at sea but when it moves to an indoor logistics facility a short-range asset tracking solution, based on BLE, UWB or Wi-Fi may be required to take over. Many manufacturers are therefore developing solutions which offer multiple technologies. Nordic Semiconductor’s nRF5x range of modules, for example, provides a UWB/BLE dual radio solution while the Miro TrakIT device, figure 3, from miromico offers LoRA, GPS, Wi-Fi and BLE capabilities and can operate for up to 10 years on two AA batteries.

Asset Tracking as an Enabler

Asset tracking technologies are underpinning efficiency improvements across a wide range of sectors and are enabling or enhancing several emerging markets.

Miro TrackIt

In smart cities, for example, asset tracking technology can be used to manage refuse collection fleets, ensuring optimal route planning and, as a result, maximising fuel efficiency and reducing costs. Smart sensors can also be employed to improve traffic flow in congested areas, for example, by monitoring and broadcasting the status of parking spaces.

In healthcare, asset tracking can optimise the utilisation of scarce and valuable equipment in hospitals. Smart tags can locate the equipment, minimising the time taken to access it, which reduces its idle time and enhances its overall availability.

Predictive maintenance is gaining traction across various sectors, including the Industry 4.0 smart factory. Here, smart sensors can monitor and report on the status of machinery and other production assets in real time. Analysing this data can provide insights into the behaviour of the equipment and help predict the best times for maintenance, reducing the need for planned shutdowns, minimising downtime, and extending the life cycle of the plant.

The market for asset tracking technologies is experiencing rapid growth, with the availability of cost-effective IoT technologies enabling expansion into new sectors and applications. In this fragmented and dynamic market, opportunities exist for vendors who can quickly introduce the right technology at a competitive price.

With a comprehensive product portfolio from our industry-leading partners, Avnet Silica is well-positioned to provide the engineering and supply chain expertise needed to help our customers succeed in the market.

Featured suppliers

Supplier

Miromico

As an IoT hardware provider, Miromico supplies its customers state-of-the-art LoRaWAN® communication modules as well as ready-to-use LPWAN sensors and gateways that are at the leading edge of technology.

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Supplier

Nordic Semiconductor

Nordic Semiconductor is a Norwegian fabless semiconductor company specializing in wireless communication technology that powers the Internet of Things (IoT). Nordic was established in 1983 and has more than 1300 employees across the globe.

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