Vehicle Tracking Systems Market Outlook
The global vehicle tracking systems market size was valued at USD 22.07 Billion in 2022 and is likely reach to USD 71.21 Billion by 2031, expanding at a CAGR of 13.9% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing need for enhanced operational efficiency, productivity, profitability, and cost-effectiveness along with the digitalization of vehicles across globe.
Vehicle tracking system enables round the clock tracking and control of automobiles through an online computer, smart phone, tablet, or other devices. Furthermore, various technology, such as the Global Positioning System (GPS) for mobile communications, and other radio frequency media are used to run this system.
Moreover, vehicle tracking system helps to get real time and historical tracking data of vehicle speed, routes taken, stopping points, and idling durations on maps along with the registry and check points with past and current reports.
Additionally, the implementation of 5G is contributing to the advancement of autonomous driving technology that relies on GPS for route planning and mobility. The commercialization of next-generation 5G technology is a top priority for many telecom carriers in recent years.
The COVID-19 pandemic has had an unfavorable impact on the demand for vehicle tracking systems. The worldwide automobile production volumes have been decreased due to the lower production volumes in North America and Europe, and other regions.
Furthermore, the slowdown in some of the important end-use industries, such as transportation & logistics, retail, construction, and manufacturing sector has witnessed a drop in the demand for vehicle monitoring systems.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing adoption of intelligent transport systems is one of the key factors fueling the market growth during the forecast period.
- Growing implementation of several disruptive technologies, such as mobility solutions, automation, robotics, and integration of Internet of Things (IoT) in the vehicle tracking industry are propelling the market expansion in the coming years.
- Increasing commercial vehicle sales along with the rising demand for fleet tracking and maintenance operations is estimated to boost the market growth.
- High cost involved in advanced systems installation along with the lack of consumer awareness is expected to hamper the market expansion in the coming years.
- Fast adoption of tracking systems by transportation & logistics businesses in order to gain a strong customer base is anticipated to offer immense opportunity for the market during the forecast period.
Scope of Vehicle Tracking Systems Market Report
The report on the global vehicle tracking systems market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Vehicle Tracking Systems Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Types (Passive and Active), Vehicles (Heavy Commercial Vehicles, Light Commercial Vehicles, and Passenger Vehicles), Components (Software [Driver Behavior Monitoring, Performance Measurement, Fleet Analytics & Reporting, Vehicle Diagnostics, and Others] and Hardware [Standalone Tracker and OBD Device/Tracker & Advance Tracker]), Technology (Dual Mode, GPRS/Cellular Networks, and GPS/Satellite), and End-users (Government & Defense, Aviation, Transportation & Logistics, Retail, Construction & Manufacturing, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Trackimo Inc.; CalAmp; TELTONIKA; Verizon; Laipac Technology Inc.; Geotab Inc.; Xirgo Technologies, LLC; Cartrack; ORBCOMM Inc.; and TomTom International B.V.
Vehicle Tracking Systems Market Segment Insights
Active segment is expected to grow at a rapid pace
Based on types, the global vehicle tracking systems market is bifurcated into passive and active. The active segment is expected to grow at a rapid pace during the forecast period, owing to its capacity to track real-time data across cellular and satellite networks.
Furthermore, active vehicle tracking systems have several advantages such as labor law compliance, flexible networks, and accurate delivery time information.
However, the passive segment is expected to register a considerable CAGR in the coming years. Vehicle data is collected and stored on a hard disc or memory card by passive vehicle tracking devices. On the other hand, simple functionality and zero monthly fee are estimated to boost the segment growth.
Passenger vehicles segment is projected to expand at a considerable CAGR
On the basis of vehicles, the market is segmented into heavy commercial vehicles, light commercial vehicles, and passenger vehicles. The passenger vehicles segment is projected to expand at a considerable CAGR during the forecast period due to the growing number of fleet operators across the developed and emerging economies.
Furthermore, small & medium enterprises prefer passenger vehicles. These are typically used as pool vehicles or minivans to complete everyday tasks of the business. As a result, demand for vehicle tracking systems in passenger vehicles has risen steeply. Additionally, the increasing need among fleet operators to provide a better customer experience is expected to propel the segment growth.
However, the light commercial vehicle segment is anticipated to expand at a substantial rate in the coming years, owing to the growing demand for light commercial vehicles across the logistics and transportation industry.
Furthermore, in trade & courier services, plumbing, heating, ventilation, air conditionings services, and light commercial vehicles such as pickup trucks and minivans are commonly used.
In addition, companies that provide these services can communicate the optimal route to the delivery team, send invoices, and use vehicle tracking systems to track evidence of delivery. Thus, all these factors are up surging the segment growth during the forecast period.
Software segment is estimated to gain a large revenue share
Based on components, the global vehicle tracking systems market is divided into software and hardware. The software segment is estimated to gain a large revenue share during the forecast period, owing to the growing number of companies providing software-based vehicle tracking systems.
Furthermore, this segment is further segregated as driver behavior monitoring, performance measurement, fleet analytics & reporting, vehicle diagnostics, and others. Additionally, rising demand for vehicle diagnostics, driver behavior monitoring, and fleet analytics & reporting are expected to up surge the segment growth.
However, the hardware segment is anticipated to constitute a key market share in the coming years. This segment is further bifurcated into standalone tracker and on-board diagnostic (OBD) device/tracker & advance tracker.
Furthermore, built-in Bluetooth, low power sleep modes, improved cellular performance, intelligent buzzer support, and battery management are all projected to propel the segment growth.
GPS/satellite segment is expected to dominate the market
On the basis of technology, the market is segregated as dual mode, General Packet Radio Service (GPRS)/cellular networks, and Global Positioning System (GPS)/satellite. The GPS/satellite segment is expected to dominate the market during the forecast period due to the GPS competence to work with various technologies such as LTE, GSM, and WiMAX along with the capability of GPS to be publicized with numerous satellites.
However, the dual mode segment is anticipated to expand at a significant CAGR during the forecast period, owing to the presence of numerous organizations that offer both GPRS and GPS-based vehicle tracking systems.
For instance, CalAmp is engaged in offering both GPS-based and GPRS-based devices. The dual mode devices are inexpensive, easy to install, and reliable link between the tracking devices and application servers.
Transportation & logistics segment is projected to account for a major revenue share
Based on end-users, the global vehicle tracking systems market is segmented into government & defense, aviation, transportation & logistics, retail, construction & manufacturing, and others. The transportation & logistics segment is projected to account for a major revenue share during the forecast period due to the increasing GPS tracking usage in the transportation & logistics industry.
Furthermore, vehicle tracking systems provide several assistances, such as vehicle and driver safety, real-time position monitoring, lower fuel usage, and lesser administrative costs. Thus all these factors are boosting the segment growth during the forecast period.
Vehicle Tracking Systems Market Regional Outlook
North America is anticipated to constitute a key market share
In terms of regions, the global vehicle tracking systems market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key market share during the forecast period, owing to the growing concerns related to carbon emission from vehicle, safety, and security in the automobile industry.
Furthermore, governments in industrialized countries have recognized these concerns and have enacted strict regulations and implemented safety programs across region.
For example, the General Services Administration (GSA) of the United States planned a "National Safety Program" for its fleet. Furthermore, the wide implementation of smart technology in fleet management has been supported by the ongoing development of intelligent transportation systems. Thus, all these factors are fueling the market growth in the region.
However, the market of Asia Pacific is estimated to gain a considerable revenue share in the coming years due to the rapid expansion of the e-commerce sector, growing advancements in network technology, and strict regulatory mandates across geographies.
Furthermore, rising commercial & passenger vehicle sales along with the increasing adoption of advanced technology such as autonomous vehicles, IoT, and cloud in the region are some of the key factors fueling the market growth in the region.
- Heavy Commercial Vehicles
- Light Commercial Vehicles
- Passenger Vehicles
- Driver Behavior Monitoring
- Performance Measurement
- Fleet Analytics & Reporting
- Vehicle Diagnostics
- Standalone Tracker
- OBD Device/Tracker & Advance Tracker
- Dual Mode
- GPRS/Cellular Networks
- Government & Defense
- Transportation & Logistics
- Construction & Manufacturing
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Trackimo Inc.
- Laipac Technology Inc.
- Geotab Inc.
- Xirgo Technologies, LLC
- ORBCOMM Inc.
- TomTom International B.V.
Some of the major players competing in the global vehicle tracking systems market are Trackimo Inc.; CalAmp; TELTONIKA; Verizon; Laipac Technology Inc.; Geotab Inc.; Xirgo Technologies, LLC; Cartrack; ORBCOMM Inc.; and TomTom International B.V.
These major players are progressively engaging in various marketing strategies such as, merger & acquisition, partnership, collaboration, R&D activities, and new product launches in order to gain competitive advantage in the market.
For example, Geotab Inc. announced the launch of its novel GO9+ telematics solution in January 2021, that comprises Wi-Fi connectivity. The GO9+ helps companies to gain real-time insights into their vehicles along with the Wi-Fi access for up to four hours with the ignition off.
For instance, TomTom International B.V. launched its new TomTom Go navigation app on key app platforms in September 2020. TomTom Go navigation gives a superior driving experience even if one doesn't have access to a cell network.
For example, Geotab Inc. stated its expansion into Southeast Asia by building an office in Singapore in January 2021. The move is intended to help the company to extend its regional presence and increase acceptance of its connected vehicle solutions.