Vehicle Tracking System Market Trends

Vehicle Tracking System Market Overview

The Vehicle Tracking System Market size was valued at USD 22.62 Billion in 2023. The Vehicle Tracking System industry is projected to grow from USD 25.83 Billion in 2024 to USD 65.57 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.34% during the forecast period (2024 - 2032). The rapid digitalization of vehicles and the need to achieve improved productivity, profitability at reduced costs, and operational efficiency are the key market drivers for expanding market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Vehicle Tracking System Market Trends

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  Increasing demand for commercial vehicles is driving the market growth

  
  

Market CAGR is driven by the growing number of commercial vehicles, including buses, trucks, and vans, driving the market for vehicle tracking systems. Vehicles that are engaged in transporting men, material, or machinery- where on-time delivery can make a significant difference in cost and productivity- are prompting players to adopt GPS-tracking devices. School buses, city buses, state transport buses, cash vans, police petrol vans, cargo vans, courier pickup, radio taxis, delivery vans, and others are prospects for vehicle tracking systems. The growing demand for commercial vehicles is likely to expand the sales of GPS tracking devices owing to the utilization of GPS tracking devices for several benefits, including theft protection, usage-based insurance (UBI), and prevention of unauthorized usage. As commercial vehicle sales expand, the demand for vehicle tracking system also increases. These devices are used to track and manage vehicles in real time. The owners or enterprises efficiently utilize their resources, which assists them in ensuring vehicle safety.

Additionally, an increase in data privacy violations is the major reason discouraging end-user from utilizing vehicle tracking systems, as the data includes personal information, including driver and vehicle details and routes traveled are restraining the market growth. Furthermore, the growth in data privacy violations is controlling end-users from utilizing vehicle tracking systems, as the data includes personal information such as driver and vehicle details and the route pursued. Due to a shortage of cellular or wireless network connectivity, GPS and cellular-based trackers fail, and the R&D price connected with the system acts as a barrier for new market competitors.

Various companies and government authorities worldwide have developed a mobility-as-a-service model to decrease traffic and carbon emissions. They are launching ride-hailing, carpooling, car sharing, and more options for commuters instead of utilizing their private vehicle. Vehicle tracking system delivery companies are likely to profit from this service. The hardware device and software are expected to assist in gaining insights regarding pick-ups, drop-offs, vehicle telematics, and payment activities.

For instance, in August 2020, Zoomcar launched 'Zoomcar Mobility Stack' (ZMS), a software stack for corporates and fleet owners to maintain track of vehicle position and drivers' behavior in real-time to stop rash driving and control vehicular damage. Moreover, the mobility services providers such as Lyft, Uber, Ola, DiDi, and others have announced their plans to introduce autonomous vehicles and robot taxis in their fleets. Therefore, the surge in the adoption of Mobility-as-a-service (MaaS) offers different opportunities for market expansion. Thus, driving the vehicle tracking system market revenue.

Vehicle Tracking System Market Segment Insights

Vehicle Tracking System Type Insights

The Vehicle Tracking System Market segmentation, based on type, includes passive systems and active systems. The passive system segment dominated the market, accounting for major market revenue over the forecast period. The passive vehicle tracking devices document the data collected from the vehicle and store it on a memory card or a hard drive for the growth of vehicle tracking system.

Vehicle Tracking System Technology Insights

The Vehicle Tracking System Market segmentation, based on technology, includes a global navigation satellite system (GLONASS), a global positioning system (GPS), connectivity technology, and others. The global positioning system (GPS) category generated the most income. This is attributed to an increase in commercial vehicle sales and the growing adoption of cloud technology and IoT in the healthcare, automotive, logistics, and defense industries—the compatibility of GPS with network technologies such as WiMAX, GSM, and LTE.

Vehicle Tracking System Vehicle Type Insights

The Vehicle Tracking System Market segmentation, based on vehicle type, includes passenger cars and commercial cars. The passenger car segment dominated the market, accounting for major market revenue over the forecast period. Using a tracking system by app-based transportation car leasing and renting businesses, including Uber; Careem; Ola; and Lyft, Inc., for smooth operating control is driving the segment's growth.

Vehicle Tracking System Propulsion Insights

The Vehicle Tracking System Market segmentation, based on propulsion, includes ICE and electric vehicle. The electric vehicle category generated the most income. This is attributed to increased demand for electric vehicles among the general population.

Vehicle Tracking System Application Insights

The Vehicle Tracking System Market segmentation, based on application, includes residential and commercial. The commercial segment dominated the market, accounting for major market revenue over the forecast period. The expanded logistic shipments across domestic and international borders via road transport are anticipated to contribute to this growth.

Figure 1: Vehicle Tracking System Market, by Application, 2022 & 2032 (USD billion)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Vehicle Tracking System Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The Asia-Pacific vehicle tracking system market area will dominate this market. This is due to technological advancements in networking, an increase in the sales of commercial and passenger vehicles, stringent government regulations, and the increasing popularity of the e-commerce sector drives the market in the region. Moreover, China’s vehicle tracking system market held the largest market share, and the Indian vehicle tracking system market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global Vehicle Tracking System Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe vehicle tracking system market accounts for the second-largest market share due to the growing acceptance of technologies such as cloud, connected cars, IoT, and autonomous vehicles in the region. Further, the German vehicle tracking system market held the largest market share, and the UK vehicle tracking system market was the fastest-growing market in the European region.

The North American vehicle tracking system market is expected to grow at the fastest CAGR from 2024 to 2032. owing to growing concerns over carbon emissions and an increasing understanding of vehicle fleet and cargo technology. The compulsory norms over safety criteria by the government drive the market growth in this region. Further, the US vehicle tracking system market held the largest market share, and the Canada vehicle tracking system market was the fastest-growing market in the North America region.

Vehicle Tracking System Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the vehicle tracking system market grow even more. Market participants are also undertaking multiple strategic activities to expand their global footprint, with important market developments including contractual agreements, new product launches, mergers and acquisitions, higher investments, and collaboration with other organizations. To enhance and survive in a more competitive and growing market climate, the vehicle tracking system industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global vehicle tracking system industry to benefit clients and expand the market sector. Major players in the vehicle tracking system market, including AT&T Intellectual Property (US), Cartrack (South Africa), Continental AG (Germany), and others, are attempting to increase market demand by investing in research and development operations.

CalAmp Corp. delivers wireless access and computer technologies. The Company's services include interface design and embedded computing, software development, technology consulting, and the production of electronic devices. CalAmp designs products for digital multimedia delivery, healthcare, retailing applications, public safety markets, and wireless enterprise connectivity. In June 2022, CalAmp Corp. announced a new partnership with Assured Telematics. With its CalAmp's edge computing devices, the company would offer commercial and public fleet operators the assured Apollo electronic logging device (ELD) solution.

Concox is a designer and manufacturer of professional telematics and wireless communications products. The company offers government, transportation, and enterprise GPS tracking solutions for higher organizational efficiency. In September 2022, Concox launched LL303, a 4G solar tracker for tracking ships and construction vehicles. In LL303, by integrating GPS, BDS, LBS, and WiFi multiple positioning systems, the cloud platform provides vehicle location and trajectory information outside vehicle location and trajectory information outside the production site to ensure production safety and productivity.

Key Companies in the Vehicle Tracking System market include

• AT&T Intellectual Property. (US)


• Cartrack (South Africa)


• Continental AG (Germany)


• Robert Bosch GmbH (Germany)


• (US)


• Spireon, Inc. (US)


• Geotab Inc. (Canada)


• Inseego Corp. (US)


• TomTom International BV. (Netherlands)


• Teletrac Navman US Ltd (US)


• RUPTELA (Lithuania)

Vehicle Tracking System Industry Developments

January 2024: It is reported that the National Highways Authority of India is getting ready to install cutting-edge vehicle tracking technology by the first half of 2024. The National Highway Traffic Administration (NHTI) is prepared to implement GPS-based toll collection and is getting ready to roll out the system. Anurag Jain, the secretary of the Roads Ministry, is believed to have said that pilot testing of the technology would begin on some routes, as stated by several media.

In April 2023, the partnership between Vehari Police and iTecknologi Group led to the launch of Advanced Vehicle Tracking Services that would enhance police fleet monitoring and safety, a move that will provide up-to-date location information about all their vehicles in real-time.

In Kolkata, the West Bengal Chief Minister inaugurated a new system in January 2023. This state-wide measure is expected to bring great improvements to the transportation sector. The first phase will see an approximate total of 160,000 vehicles fall under this initiative. Evidently, starting this system is yet another step towards improving transport efficiency within West Bengal. Global Telemetrics partnered with ineedatracker.com in August 2022. This implies that they no longer have a business as a shopkeeper but as a provider of monitored vehicle tracking systems.

CalAmp’s LoJack Italia subsidiary in September 2021 launched CalAmp iOn, which is the fully integrated fleet and asset management solution designed for transport, industrial, government, commercial and service fleet operators who are willing to reduce costs, increase operational efficiency and improve fleet safety.

Vehicle Tracking System Market Segmentation

Vehicle Tracking System Type Outlook

• Active System


• Passive System

Vehicle Tracking System Technology Outlook

• Global Navigation Satellite System (GLONASS)


• Global Positioning System (GPS)


• Connectivity Technology


• Others

Vehicle Tracking System Vehicle Type Outlook

• Passenger Car


• Commercial Car

Vehicle Tracking System Propulsion Outlook

• ICE


• Electric Vehicle

Vehicle Tracking System Application Outlook

• Residential


• Commercial

Vehicle Tracking System Regional Outlook

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  Middle East
  
  


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  Africa
  
  


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  Latin America