According to a recent report by MarketsandMarkets, the market for real-time location systems (RTLS) in the manufacturing and automotive sectors is expected to grow from USD 1.19 billion in 2025 to USD 2.94 billion by 2030, representing a CAGR of 19.9%.
RTLS as a driver of smart factories
The report shows that RTLS is becoming increasingly important as companies switch from manual tracking methods to networked, intelligent systems. RTLS provides precise location data for tools, components and personnel, enabling OEMs and suppliers to:
- Dynamically control material replenishment
- Detect bottlenecks in real time
- Automate quality checks
The integration of RTLS with MES, ERP and robotics platforms is transforming traditional production lines into data-driven systems that can respond immediately to changes in demand, supply chain disruptions or process deviations.
At the same time, RTLS applications are evolving towards digital twin synchronisation, predictive maintenance and advanced work safety functions such as proximity alerts and fatigue monitoring. Manufacturers are increasingly turning to multi-technology hybrid solutions to combine high accuracy with cost efficiency across different factory layouts. Given global trends towards sustainable production, zero-defect manufacturing and resilient supply chains, RTLS is recognised as a key technology for agile and future-proof manufacturing processes.
Environmental monitoring as a high-growth application
Environmental monitoring is the second strongest RTLS application in the manufacturing and automotive sectors. RTLS-based sensors capture critical production conditions such as temperature, humidity, vibration, dust and gas leaks in real time. In automotive paint shops, battery production or electronics assembly, this enables:
- Prevention of quality defects
- Protection of sensitive components
- Compliance with strict safety requirements
The solution delivers a high ROI through predictive maintenance, rapid incident response and reliable documentation, especially in highly automated manufacturing processes.
WLAN: Dominant technology due to existing infrastructure
The WLAN sector currently holds the largest market share in the RTLS segment for manufacturing and automotive. Many production facilities already have robust WLAN infrastructures in place, enabling rapid and cost-effective implementation. WLAN RTLS offers room-level accuracy, covers essential tracking applications (asset tracking, tool monitoring, personnel tracking) and integrates seamlessly with existing ERP, MES and IoT systems.
The advantages:
- Scalability across large facilities
- Lower total cost
- Minimal disruption during implementation
This makes WLAN RTLS the preferred choice for large automotive OEMs and suppliers.
North America: leading market
North America has the largest share of the RTLS market for manufacturing and automotive. Reasons:
- Mature industrial and manufacturing base
- High concentration of OEMs and suppliers
- Early adoption of advanced automation technologies
Government initiatives such as the CHIPS Act and the Inflation Reduction Act are promoting massive investment in new battery factories, semiconductor plants and automotive assembly. Precise real-time tracking is necessary to ensure zero-defect production and full traceability. In addition, labour shortages and increasingly complex production processes are accelerating the adoption of RTLS.
Market participants
Leading RTLS providers in the manufacturing and automotive sectors include:
- Securitas
- Zebra Technologies
- Impinj Inc
- Siemens
- Qorvo
These players are driving innovation in real-time location tracking, production automation and integrated security monitoring.
