Vehicle Tracking System Market Insights, 2030
The global vehicle tracking system market was valued at $17.37 billion in 2020, and is projected to reach $109.95 billion by 2030, registering a CAGR of 19.7% from 2021 to 2030.
Vehicle tracking system is a system that used global positioning system (GPS) or cellular network to track and monitor the activity of vehicle. It includes vehicle tracking & monitoring remotely, vehicle maintenance, vehicle diagnostics, fuel management, route optimization, driver management and safety management. The vehicle tracking systems work in a loop of GPS, GSM/GPRS, digital maps, and special software.
A tracking module equipped in the vehicle continuously picks up the GPS coordinates that indicate the real-time location of the vehicle. Using a cellular data service, the coordinates are immediately transmitted to the user’s computers. Customers log in to the software to see their vehicles on road maps, similar to in-dash and handheld GPS-based navigation systems. There are non-real-time tracking systems in which the in-vehicle module records the coordinates, but does not relay them for real-time monitoring. The data are downloaded from the module when the vehicle is returned at the end of the trip.
The key factor that drives the growth of the global vehicle tracking systems market includes integration of real-time monitoring and fuel management in vehicles and safety & security concern within transportation services. Moreover, increase in fleet operations especially in emerging markets is expected to boost the revenue growth of the market during the forecast period. However, price concerns of fleet owners, data privacy infringement along with the cyber security threats and atmospheric inference concern is expected to hinder the market growth. Conversely, rise in adoption of intelligent transport systems, emergence of 5G into vehicle connectivity and growing adoption of mobility-as-a-service (MaaS) are anticipated to provide lucrative growth opportunities for the growth of the market.
Significant increase in adoption of shared mobility as well as commercial fleet vehicles along with rise in number of vehicle thefts in the North America region primarily driving the growth of vehicle tracking system industry in North America. Moreover, surge in retrofitting of existing fleet vehicle with advanced vehicle tracking system is further expected to fuel the market growth in the region. For instance, in May 2021, ORBCOMM Inc., a global provider of Internet of Things (IoT) solutions, today announced that Marten Transport (Marten), one of the largest refrigerated truckloads, dedicated, intermodal and brokerage providers in North America, has begun the retrofit of their fleet of refrigerated and dry van trailers with ORBCOMM’s next generation, dual-mode asset tracking solutions to track the freight’s location and temperature.
The large number of vehicles available for rental and leasing services along with a vast transportation industry fuel the demands of the vehicle tracking system in the U.S., which in turn is anticipated to drive the demand for vehicle tracking system market in the country. Moreover, an increase in number of fleet accidents in the U.S. are forcing companies to adopt vehicle tracking systems, which is further boosting the market growth. For instance, according to Insurance Institute for Highway Safety (IIHS) and Federal Motor Carrier Safety Administration, there were 33,244 fatal motor vehicle crashes in the U.S. in 2019 with 4,862 large trucks were involved in fatal crashes.
By Type
Active is projected as the most lucrative segments
The vehicle tracking system market is segmented on the basis of type, vehicle type, technology, component, and region. By type, the market is bifurcated into active and passive. By type of vehicle, it is divided into passenger cars and commercial vehicles. By technology, it is fragmented into GPS/satellite, GPRS/cellular networks, and dual mode. In terms of component, it is segregated into hardware and software. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The companies profiled in the global vehicle tracking systems industry report are CalAmp, Cartrack Holdings Limited, Continental AG, Geotab Inc., Trackimo, Teltonika, Teletrac Navman US Ltd, Tomtom, Inc., Verizon Communication Inc. and Xirgo Technologies, LLC
Key Developments:
- In September 2021, LoJack Italia, a subsidiary of CalAmp, launched CalAmp iOn, the fully integrated fleet and asset management solution helps transportation, industrial, government, commercial and service fleet operators reduce costs, increase operational efficiency and improve fleet safety.
- In June 2021, Geotab Inc. expanded its presence into Brazil, with the establishment of Geotab Telemática Ltda. The expansion is aimed to increasing its presence, service offering and leadership position within the Latin American fleet management market.
- In May 2021, CalAmp's LoJack Italia partnered with Program Autonoleggio, a leading long- and short-term corporate fleet rental company in Italy, to install LoJack's telematics solutions on its vehicles to increase driver and vehicle safety while improving fleet management.
- In December 2020, Continental AG launched its cloud-based tire monitoring system called ContiConnect Live system. The new system will allow for data on tire pressure and temperature to be sent in real time to the cloud using a central telematics unit. In addition, this unit transmits the vehicle’s location using GPS and records the operating hours of the tires.
By Vehicle Type
Commercial vehicle is projected as the most lucrative segments
Integration of real-time monitoring and fuel management in vehicles
Vehicle owner and fleet operators can track their vehicles in real-time and check if drivers are following the suggested path or if there are diversions. For such fleet management, cloud-based solutions, such as AI, IoT, and big data, are used to collect primary data. For instance, Techwave Consulting Inc. uses sensors that can be embedded in vehicles to monitor high-value goods as they connect to the cloud and transmit the data in real-time. Furthermore, activities that are crucial in vehicle tracking system include vehicle & driver tracking, asset management, two-way communication, driver safety & time management, rescheduling the delivery task, and others.
Moreover, introduction of innovative products and advantages of using vehicle tracking system, such as quick access & response, wide-area coverage, and cost reduction, helps vendors to increase their productivity and efficiency, thereby escalating the demand for vehicle tracking system. Moreover, many vehicle owners and fleet operators are facing an issue to measure accurate consumption of fuel required for vehicles, owing to lack of technical know-how about fuel monitoring tools. Therefore, by leveraging the Internet of Things (IoT), fuel can be controlled. Specially designed sensors are embedded in the fuel tanks that send notifications to the user’s mobile handsets and computers about the fuel level in vehicles through the public cloud.
Furthermore, vehicle tracking system helps vehicle management by identifying the driver behavior with the help of sensors embedded in the vehicle. This includes the number of hours that the driver is driving, harsh braking, slow & speed driving, consistency in the speed limit, frequent halts, and harsh acceleration. Thus, the integration of real-time monitoring and fuel management in vehicles drives the market growth.
Increase in fleet operations especially in the emerging markets
The demand for vehicle tracking system has increased to make sure vehicle safety and eliminate idle time with increased use of internet and technological developments in connectivity. Directives such as e-call services have aided the fleet owners to obtain emergency alerts. Fleet operators and logistics businesses can capitalize on the vehicle tracking technology as one of the main drivers of profitability.
By Technology
GPS/Satellite is projected as the most lucrative segments
For instance, China, Japan, and South Korea are leading Asia's electric/hybrid trend. These steps are taken to increase the number of fleet cars on road. Accordingly, fleet operations are anticipated to grow at a faster rate in emerging regions such as Asia-Pacific and Latin America.
Data privacy infringement along with the cyber security threats
Data related to vehicle contain sensitive information, such as the vehicle make, drivers’ personal details, and routes traversed. The data can be exploited for carrying out malicious or criminal activities, including vehicle robberies and planned crime. Data privacy infringement is a major reason discouraging end customers from using vehicle tracking system, especially in North American countries and China, where regulations are stringent. Moreover, events, such as unauthorized access to multiple vehicle connectivity solutions or breaking into the in-vehicle connectivity system. The major security concern is that the hacker has access to the computer system of the vehicles as well as to the data that it collects and stores. Therefore, data privacy infringement along with the cyber security threats of vehicle tracking system is expected to hamper the growth of the market.
By Component
Software is projected as the most lucrative segments
Rise in adoption of Mobility-as-a-service (MaaS)
Various companies and government authorities across the world have come up with a mobility-as-a-service model to reduce traffic and carbon emissions. They are introducing ride-hailing, carpooling, car sharing, and more options for commuters instead of using their private vehicle. Vehicle tracking system provider companies are likely to benefit from this service. The hardware device and software is expected to assist in gaining insights regarding pick-ups, drop-offs, and vehicle telematics, and payment activities.
For instance, in August 2020, Zoomcar introduced 'Zoomcar Mobility Stack' (ZMS), a software stack, for corporates and fleet owners to keep track of vehicle status and drivers’ behavior in real-time to prevent rash driving and control vehicular damage. Moreover, the mobility service providers such as Lyft, Uber, Ola, DiDi and others announce their plans to introduce autonomous vehicles and robo-taxies in their fleets. Therefore, surge in adoption of Mobility-as-a-service (MaaS) offers different opportunities for market expansion.
Covid-19 Scenario Analysis
The spread of the COVID-19 pandemic has negatively impacted the global vehicle tracking system market, owing to commute restrictions and expected weak financial performance of the market players in 2020. The economic impact of the pandemic is visible with organizations preparing strategic cost-saving plans. Organizations with vehicle assets are considering sale and leaseback options to improve cash flow. The major risk factors of the vehicle tracking system participants are supply chain execution, regulatory & policy changes, dependency on labor, working capital management, and liquidity & solvency management. Although, FMCG, retail, agriculture pharmaceuticals, and other essential services provider are not being able to dispatch the stored products owing to the fewer number of transporters. To manage and cater to the continuous supply of essentials, the demand for vehicle tracking hardware and managing software increased.
By Region
LAMEA would exhibit the highest CAGR of 21.7% during 2021-2030.
Key Benefits For Stakeholders
- This study presents analytical depiction of the global vehicle tracking system market analysis along with current trends and future estimations to depict imminent investment pockets.
- The overall vehicle tracking system market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the global vehicle tracking system market with a detailed impact analysis.
- The current vehicle tracking system market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Vehicle Tracking System Market Report Highlights
| Aspects | Details |
 By Type |
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 By VEHICLE TYPE |
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 By APPLICATION |
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 By INDUSTRY VERTICAL |
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 By Region |
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 Key Market Players | ROBERT BOSCH GMBH, Continental AG, AT&T Inc, VERIZON COMMUNICATION INC, TOMTOM, INC, GEOTAB INC, Cartrack Holdings Limited, TELETRAC NAVMAN US LTD, SPIREON INC, INSEEGO CORP |
Analyst Review
The vehicle tracking system market is projected to witness considerable growth, owing increase in automotive sales by aspiring Asian consumers. Moreover, there is an increase in fleet operations in this region owing to adoption of public transportation and other commercial activities.
In addition, various leading manufacturers such as Cartrack Holdings Limited and Verizon Communications Inc. occupy prominent revenue share in the vehicle tracking systems market. Key companies have focused on product development and partnership to strengthen their foothold in the market. For instance, Cartrack Holdings Limited updated its Mi-Fleet software with a thought to simplify the fleet operation with no additional cost. Verizon Communication Inc. partnered with Gravel Conveyors Inc. to implement Verizon connect REVEAL fleet management software to reduce costs and improve fleet performance. Moreover, innovative marketing and positioning strategies have influenced the expansion of the global vehicle tracking systems market.
The key factor that drives the growth of the global vehicle tracking systems market includes integration of real-time monitoring and fuel management in vehicles and safety & security concern within transportation services. Moreover, increase in fleet operations especially in emerging markets is expected to boost the revenue growth of the market during the forecast period. However, price concerns of fleet owners, data privacy infringement along with the cyber security threats and atmospheric inference concern is expected to hinder the market growth. Conversely, rise in adoption of intelligent transport systems, emergence of 5G into vehicle connectivity and growing adoption of mobility-as-a-service (MaaS) are anticipated to provide lucrative growth opportunities for the growth of the market.
Among the analyzed regions, Asia-Pacific is the highest revenue contributor, followed by Europe, North America, and LAMEA. On the basis of growth rate, LAMEA is expected to lead during the forecast period, owing to rise in GDP in African economies, adoption of telematics & Global navigation satellite system (GNSS) in a few Middle East countries, and rapid urbanization in Latin America.
There are differrent types of vehicle tracking system based on the technology such as GPS/Satellite-based, GPRS/Cellular networks-based and Dual mode, also vehicle tracking system further splits into hardware-based and software based.
The global vehicle tracking system market was valued at $17,378.40 million in 2020, and is projected to reach $109,953.80 million by 2030, registering a CAGR of 19.7% from 2021 to 2030.
The sample for global vehicle tracking system market report can be obtained on demand from the AMR website. Also, the 24*7 chat support and direct call services are provided to procure the sample report.
There are certain upcoming trands in vehicle tracking system industry such as growing adoption of Mobility-as-a-service (MaaS), emergence of 5G into vehicle connectivity and rise in adoption of intelligent transport systems
There are certain outlook in vehicle tracking system industry including ntegration of real-time monitoring and fuel management in vehicles and increase in fleet operations especially in the emerging markets
The company profiles of the top market players of vehicle tracking system service industry can be obtained from the company profile section mentioned in the report
Vehicle tracking system industry was valued at $17,378.40 million in 2020, and is projected to reach $109,953.80 million by 2030
Verizon Communication Inc, Continental AG, TomTom, and CalAmp are among the companies who holds the most market share in vehicle tracking system
Canada, UK, India and Africa are the key matured markets growing in the vehicle tracking system industry
There are certain known and unknown adjacencies impacting the vehicle tracking system market including atmospheric inference concern, data privacy infringement along with the cyber security threats and price concerns of fleet owners
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