Vehicle Tracking System Market

Vehicle Tracking System Market Size (2022 - 2027):

The Vehicle Tracking System Market size is estimated to reach a valuation of US$ 94.6 billion by 2027 and is predicted to register a CAGR of 14.1% from 2022 to 2027.

Market Overview:

A vehicle tracking system is a device or software that uses GPS technology to track the location and movement of a vehicle. This system can be used for various purposes, such as fleet management, vehicle security, and personal tracking. The system typically consists of a GPS receiver, a communication device, and a software application that allows the user to view the vehicle's location and other data in real-time. In addition, some vehicle tracking systems may include additional features, such as tracking the vehicle's speed, fuel usage, and other performance metrics.

Market Drivers:

The importance of vehicle safety and security is growing significantly, promoting the vehicle tracking system market growth. Vehicle safety is important for several reasons. Firstly, it helps prevent accidents and injuries to the vehicle's occupants. Secondly, it can help to protect the vehicle itself from damage. Thirdly, vehicle safety is essential for other road users, such as pedestrians and drivers. We can help reduce accidents and fatalities on our roads by ensuring that vehicles are safe and reliable.

The demand for vehicle tracking systems is growing promisingly among car rental companies, which is also expected to showcase a favorable impact on the market growth. Car rental companies often use vehicle tracking systems to monitor the location and movements of their rental vehicles. This can help the company keep track of its fleet and ensure that the vehicles are being used properly. For example, a vehicle tracking system can help a car rental company monitor the speed and route of a rental vehicle, as well as its fuel usage and other performance metrics.

Furthermore, increasing fleet operations from various countries promotes the vehicle tracking system market. In addition, governments of various countries have made strict regulations around the usage of vehicle tracking devices, which is anticipated to promote the demand levels for these products and accelerate the growth rate of the vehicle tracking system market. In addition, increasing adoption of technological advancements in the automotive industry, YOY growth in the number of road accidents from all geographies of the world, and rising usage of vehicle tracking systems from autonomous and connected cars are further boosting the growth of the vehicle tracking system market.

Market Restraints:

Data privacy issues associated with vehicle tracking systems are one of the major factors hampering the market growth. The use of vehicle tracking systems can raise privacy concerns. For example, some people may be uncomfortable monitoring their location and movements by a third party, even for a legitimate purpose such as fleet management or vehicle security. In addition, there may be concerns about the potential for misusing the collected data, such as being sold to third parties without the individual's consent. In addition, the adoption of vehicle tracking systems is further anticipated to be hindered by the function failure of GPS devices, increasing concerns associated with the environment, and high costs associated with the R&D are anticipated to project a negative impact on the market’s growth rate.

Market Opportunities:

Electric vehicle (EV) sales have been increasing in recent years as more and more people choose EVs as an alternative to traditional gasoline-powered vehicles. The EV sales growth is driven by several factors, including environmental concerns, the increasing availability of EV models, and government incentives for purchasing EVs. In addition, growing manufacturing activities from the automotive industry are further expected to offer growth possibilities to the vehicle tracking system market. Automotive production has seen significant growth over the past few decades. This growth has been driven by several factors, including increasing demand for vehicles, manufacturing technology advancements, and the global automotive market expansion. As a result, the number of vehicles produced each year has increased dramatically, and the automotive industry has become a significant contributor to the global economy. The growth of the automotive industry is expected to continue in the coming years. However, the exact growth rate will depend on various factors, such as economic conditions and consumer demand.

VEHICLE TRACKING SYSTEM MARKET REPORT COVERAGE:

Market Segmentation:

Vehicle Tracking System Market – By Vehicle Type:

• Passenger Vehicles
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Based on vehicle type, the passenger vehicles segment captured the leading share of the global vehicle tracking system market in 2021; The segment is expected to register the fastest CAGR during the forecast period. The usage of vehicle tracking systems is growing significantly among car rental companies, which is one of the major factors driving the segment’s growth. Vehicle tracking devices offer data about traveling speed, the number of kilometers traveled, and the performance of passenger vehicles, which helps car rental companies analyze and make appropriate decisions.

On the other hand, the light commercial vehicles segment is also expected to register a healthy CAGR during the forecast period.

Vehicle Tracking System Market – By Technology:

• GPS/Satellite
• GPRS/Cellular Network
• Dual Mode

Based on technology, the GPS segment had almost half of the market share in 2021 and is expected to be the fastest-growing segment during the forecast period. Factors such as the increasing adoption of technological advancements in the automotive industry and a rise in the sales of commercial vehicles are promoting the growth of the GPS segment. In addition, the growing adoption of GPS devices and increasing awareness of GPS devices among the population is further expected to aid the segment’s growth.

The dual-mode segment is estimated to showcase a promising CAGR during the forecast period.

Vehicle Tracking System Market – By Type:

• Active
• Passive

The active segment had the lion's share of the global vehicle tracking system market in 2021 and is expected to have the fastest CAGR during the forecast period. The advantages of active tracking systems propel the demand for these devices and accelerate the segment’s growth. Active tracking systems can track the real-time data of the vehicles and send the data to the data analysis centers using satellites and cellular networks.

Vehicle Tracking System Market – By Component:

• Hardware
• Software

Based on the component, the software segment had the largest shares of the vehicle tracking system market in 2021. The software segments a wide range of data that helps to analyze the performance of the vehicles, the health of the vehicles, usage of the vehicles, and real-time traffic and maintenance, which is one of the major factors propelling the segment’s growth.

Vehicle Tracking System Market – By End Use:

• Transportation & Logistics
• Construction & Manufacturing
• Aviation
• Retail
• Government & Defence
• Others

Based on the end-user, transportation, & logistics segment is expected to perform well during the forecast period. The retail segment is expected to have the highest CAGR in the coming years.

Market Regional Analysis: 

The Global Vehicle Tracking System Market Report includes the segmentation of regions:

• North America
• Europe
• APAC
• Latin America
• Middle East and Africa

North America is ruling with the prominent shares of the vehicle tracking market. The growing fleet management market in the North American region and increasing adoption of technological developments have accelerated the usage of vehicle tracking systems in this region. In addition, the governments of North American countries have imposed several norms around the safety of vehicles, one of the major factors propelling the market growth in North America.

Asia-Pacific is one of the promising global vehicle tracking system market regions. Increasing sales of vehicles across the APAC region and rising adoption of technological advancements are primarily boosting the market growth in this region. In addition, growing awareness of vehicle tracking devices and developing countries such as India and China are estimated to promote the vehicle tracking systems market in the Asia-Pacific region.

COVID-19 Impact on the Vehicle Tracking System Market:

The COVID-19 pandemic has had a significant impact on the automotive industry. The lockdowns and restrictions to control the virus's spread have disrupted the global supply chain and decreased demand for vehicles. This has resulted in a sharp drop in automotive production and sales, and many companies in the industry have had to lay off workers or temporarily shut down their operations. In addition, the shift to remote work and reduced travel have decreased the demand for certain types of vehicles, such as passenger and commercial vehicles. Due to the reduced sales of passenger and commercial cars, the manufacturing activities around vehicle tracking systems have also reduced to a significant level, which resulted in the decline of the market’s growth rate. However, as per the predictions, the market for vehicle tracking systems is expected to recover very soon and register a healthy CAGR during the forecast period as the pandemic comes under control and economic conditions improve.

Market Key Players:

1. Geotab Inc.
2. Inseego Corp.
3. Robert Bosch GmbH
4. Verizon Communications Inc.
5. Spireon, Inc.
6. US Fleet Tracking
7. TRACK GROUP (US)
8. Continental AG
9. Robert Bosch GmbH
10. Verizon Communications Inc.
11. AT&T Inc.
12. Cartrack Holdings Limited
13. Spireon, Inc.

Market Key Developments:

• In June 2019, Orbocomm Inc. a company that provides communication and tracking solutions for various industries. The company developed a Class B vessel tracking solution in collaboration with Pole Star Space Applications Limited and Weatherdock AG. This solution is tamper-proof hardware that helps always to monitor and track the position of a vehicle.