The vehicle tracking system market is estimated to be valued at USD 22 Billion in 2022 and is anticipated to reach USD 78.04 Billion by 2032, with a steady CAGR of 13.5% from 2022 to 2032.
One of the key factors fuelling the global vehicle tracking system market expansion is the rising demand for fleet telematics solutions. The sales of vehicle tracking systems are rising as operators of vehicle fleets can follow their cars with the use of vehicle tracking systems and assess them based on a number of factors, such as performance, location, and fuel usage.
| Attributes | Details |
|---|---|
| Vehicle Tracking System Market CAGR (2022 to 2032) | 13.5% |
| Vehicle Tracking System Market Value (2022) | USD 22 Billion |
| Vehicle Tracking System Market Value (2032) | USD 78.04 Billion |
The vehicle tracking system market share is projected to rise as a result of factors like the rising adoption of cutting-edge technology and rising consumer concern over the security and safety of automobiles.
The demand for vehicle tracking systems is rising due to the expansion of fleet operations in developing countries as well as laws requiring the installation of vehicle monitoring systems in both passenger and commercial vehicles.
Additionally, the sales of vehicle tracking systems are growing as a result of the increasing use of car leasing and rental services, which has forced rental businesses to incorporate monitoring devices to improve their services.
The need for efficient real-time monitoring solutions for precise data collecting has grown as a result of the automobile industry's tremendous expansion. This can be linked to customers' growing concerns about safety and security, which is one of the major drivers propelling the vehicle tracking system market growth.
The adoption of vehicle tracking systems in passenger cars and commercial vehicles has intensified due to the rapid expansion of ride-hailing businesses.
The increasing presence of mobility-as-a-services (MaaS), and app-based transportation services is positively impacting the demand for vehicle tracking systems.
The integration of GPS, the Internet of Things (IoT), and telematics to achieve improved operational efficiency is one such continuing technical advancement in the vehicle tracking system market that is operating as a major growth-inducing factor.
The vehicle tracking system supports fleet managers in route planning and optimization, remote vehicle maintenance issues resolution, and wireless vehicle health monitoring.
The introduction of cellular vehicle tracking systems for autonomous and semi-autonomous vehicles, as well as significant research and development efforts, are further aspects that are enhancing the vehicle tracking system market outlook.
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Fleet management businesses and government agencies have made installing vehicle tracking systems in all cars to monitor their position and speed essential due to the rise in traffic accidents.
Additionally, the sales of the vehicle tracking system are predicted to be fueled by the growing adoption of intelligent transportation systems and the arrival of 5G in-vehicle connections. The demand for advanced and common vehicle tracking systems is rising along with the demand for autonomous and semi-autonomous cars.
The demand for cars increased in 2021 when the lockdown mandates were lifted as a result of COVID-19's diminishing effects, which increased the sales of vehicle tracking system technologies. Even yet, the supply chain for semiconductor chips was interrupted in response to the rise in demand.
The demand for a fleet of commercial vehicles specifically used for logistics has also increased due to the increasing volume of global trade. The key market players in the vehicle tracking system market are investing efforts in creating products that offer businesses smooth fleet management.
For instance, Geotab has produced fleet maintenance software that makes use of predictive analytics to prioritize repairs and identify possible and critical mechanical flaws in data. To forecast potential problems, the software analyzes and contrasts sensor data from engines and other components.
The vehicle tracking system then notifies the fleet owners and provides them with a thorough report on the component issue. This enables the fleet owner to cut costs and improve time management.
The vehicle tracking system also alerts the owner to potential wear and tear brought on by heavy driving, erratic maintenance, and bad weather.
The vehicle tracking system displays a history of each fleet vehicle's health status, highlighting any wear and tear that goes above a set threshold.
Additionally, the program offers remote diagnostics, plans fleet maintenance cycles, and generates expense reports. The use of vehicle tracking systems in conjunction with sensors results in a seamless operation and maintenance cycle, reducing downtime and operating expenses.
The main factor restricting the adoption of vehicle tracking systems is the rise in data privacy violations as the data contains sensitive information about drivers, vehicles, and travel routes.
Vehicle tracking systems also restrict end users from using them since the data they contain includes personal information about the driver and the vehicle as well as the route taken. This is due to the rise in data privacy violations.
GPS and cellular-based trackers fail due to a lack of wireless or cellular network access, and the associated Research and development expenses operate as a barrier for new market entrants.
Additionally, growing environmental concerns frequently result in ambiguous communication and a subpar user experience. Vehicle tracking systems are therefore infrequently employed.
A poor user experience is typically the outcome of increasing environmental problems in communication. The demand for vehicle tracking devices is therefore affected. These tracking devices use GPS, which is diverted if an object is in its route and leads to a bad connection. The vehicle tracking system market is constrained by these limitations.
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In 2021, the passenger car segment had the largest share in the vehicle tracking system market, with over 42%. Additionally, the segment is anticipated to experience the highest CAGR of 16.9% during the projection period (2022 to 2032).
The segment's growth is being driven by the usage of tracking systems for efficient operational control by app-based automobile leasing and renting companies like Ola, Uber, Careem, and Lyft, Inc.
During the forecast period, the category for light commercial vehicles is anticipated to have the second-highest CAGR, at 12.5%. This rise is anticipated to be aided by the expansion of logistical shipments by road transportation across national and international borders.
With a market share of 26.4 percent in 2021, the transportation and logistics industry is expected to have the greatest CAGR of 17% from 2022 to 2032. This is explained by the growing fleet size and fleet operators. Global deployment of a global positioning system for tracking logistics and shipping has increased.
The benefits of using a vehicle tracking system include fleet management, cargo, and driver safety, increased productivity owing to precise route planning and real-time traffic warnings, tracking fuel levels, mileage, and vehicle speed, and controlling administrative costs.
With a market share of over 49% in 2021, the GPS/satellite category is projected to grow at the fastest CAGR of 15.7 percent during the forecast period (2022 to 2032).
The increase in commercial vehicle sales and the adoption of cloud and IoT technologies in sectors including healthcare, automotive, logistics, and defense are credited with the vehicle tracking system market expansion.
The ability of GPS to function with network standards including WiMAX, GSM, and LTE. The expansion is also being fueled by modifications in the size of the GS tracker, which has a longer battery life, more applications, and is more durable.
In 2021, North America had the largest share of 32.4% in the vehicle tracking system market, and it is anticipated that it is likely to develop at a rapid rate over the forecast period.
Technologies for fleet management have been adopted as a result of the development of intelligent systems. Additionally, there are rising worries about carbon emissions as well as increased knowledge of cargo and fleet technology. The government's obligatory safety standards are another factor in the vehicle tracking system market's expansion.
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Over the projection period, the Asia Pacific vehicle tracking system market is expected to develop at a CAGR of 17.4% from 2022 to 2032.
The vehicle tracking system market in Asia Pacific is expanding as a result of a number of factors, including technological advancements in networking, an increase in the sales of commercial and passenger vehicles, strict governmental regulations, and the growing popularity of eCommerce in the region.
Additionally, the vehicle tracking system market is expanding as a result of the region's growing embrace of technologies like cloud, IoT, linked autos, and autonomous vehicles.
The vehicle tracking system market is fragmented, with multiple large-scale and medium-scale key players. These companies are investing heavily in research and development in order to introduce environmentally friendly vehicle tracking systems.
Based on the various end-use applications, the key vehicle tracking system market players seek to offer tracking solutions, fleet management solutions, and telematics solutions. Additionally, they have built up a sizable portfolio that is continually enhanced by Research and Development to deliver high-quality items.
The global market size to reach USD 5,828 million by 2033.
1. Executive Summary | Vehicle Tracking System Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Vehicle Type 5.1. Passenger Vehicle 5.2. Light Commercial Vehicle 5.3. Heavy Commercial Vehicle 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By End-use 6.1. Transportation and Logistics 6.2. Construction and Manufacturing 6.3. Aviation 6.4. Retail 6.5. Government and Defense 6.6. Others 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Technology 7.1. GPS/Satellite 7.2. GPRS/Cellular Network 7.3. Dual Mode 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Type 8.1. Active 8.2. Passive 9. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Component Type 9.1. Hardware 9.1.1. OBD Device/ Tracker and Advance Tracker 9.1.2. Standalone Tracker 9.2. Software 9.2.1. Performance Measurement 9.2.2. Vehicle Diagnostics 9.2.3. Fleet Analytics and Reporting 9.2.4. Driver Behavior Monitoring 9.2.5. Others 10. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. Asia Pacific 10.5. Middle East and Africa 11. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. Middle East and Africa Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Verizon 18.2. Geotab Inc. 18.3. Cartrack 18.4. Tom Tom International B.V. 18.5. CalAmp 18.6. Teltonika 18.7. ORBCOMM Inc. 18.8. Xirgo Technologies 18.9. Laipac Technology Inc. 18.10. Trackimo Inc. 19. Assumptions & Acronyms Used 20. Research Methodology
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Vehicle Tracking System Market
