VEHICLE TRACKING SYSTEM MARKET ANALYSIS

Vehicle Tracking System MarketSize and Trends

The global vehicle tracking system market size was valued at US$ 9.3 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 12.32% from 2023 to 2030. The rising demand for GPS-based technologies and increasing adoption of connected vehicles is driving the market growth. Similarly, government initiatives to promote eco-friendly transportation are also likely to fuel the market growth. These policies promote the use of electric and battery-powered vehicles and are a significant factor driving global demand for these systems. The growth of this market is also supported by the rapid expansion of the app-based transportation system, rise in vehicle leasing and rental activities, and concerns regarding safety of automobiles from theft.

Figure 1: Global Vehicle Tracking System Market Share (%), By Region, 2022

Global Vehicle Tracking System Market Segmentation:

The global vehicle tracking system market report is segmented into Vehicle Type, End-Use, Technology Type, Type, and Component Type.

Based on Vehicle Type, the market is segmented into Passenger Vehicles, Light Commercial Vehicles, and Heavy Commercial Vehicles. Out of which, Passenger Vehicles is expected to dominate the global market over the forecast period and this is attributed to the increasing fleet operators in many emerging countries. Moreover, the growing shift of these operators to offer improved user experience at different costs is also driving growth of this segment.

Commercial Vehicles segment is also expected to witness significant growth in the near future and this is owing to the increasing penetration of e-commerce industry and growing adoption of light commercial vehicles such as pickup trucks and minivans. These vehicles utilized for delivering HVAC, services, and plumbing services, along with courier and trade services. Companies who provide these services are thus capable of monitoring proof of delivery, offer invoices, and show the best delivery route to the team.

Based on End-Use, the market is segmented into Transportation & Logistics, Construction & Manufacturing, Aviation, Retail, Government & Defense, and Others. Out of which, Transportation & Logistics is expected to dominate the global market over the forecast period and this is attributed to the increasing use of GPS (global positioning systems) tracking in the industry. Many companies are using GPS systems due to growing adoption of connected vehicles. The use of vehicle tracking system reduces cost of administration and consumption, due to which the safety of vehicle and driver, and monitoring of real-time location is impacting the vehicle tracking system market positively.

Construction & Manufacturing segment is also expected to witness significant growth in the near future and this is owing to the many factors such as monitoring engine runtime, accurate budgets, field service management, location stolen equipment, monitoring PTO events and others.   

Based on Technology, the market is segmented into GPS/Satellite, GPRS/Cellular Networks, and Dual Mode. Out of which, GPS/Satellite is expected to dominate the global market over the forecast period and this is attributed to the various factors, like its ability to work with different technologies such as GSM, LTE, and WiMAX and it can be publicized with many satellites. Thus, due to the better productivity and chart of GPS/Satellite, their adoption is high among several applications, which is driving growth of this segment.

Dual-mode segment is also expected to witness significant growth in the near future and this is owing to the presence of many companies offering both GPS and GPRS-based vehicle tracking systems. Calamp Corp. for instance, offers both GPS and Cellular-based devices. The dual-mode devices can be installed easily, are inexpensive, and are the reliable links between the tracking devices and application servers. Due to this, the demand for dual-mode vehicle tracking system technology is increasing, which is further likely to boost the market growth.

Based on Type, the market is segmented into Active, Passive. Out of which, Active is expected to dominate the global market over the forecast period and this is attributed to the ability of active tracking systems to track real-time data through cellular and satellite networks. Moreover, despite the complexity of the system, it offers enhanced benefits compared to the counterpart of this system.

Passive segment is also expected to witness significant growth in the near future and this is owing to the factors such as no requirement for monthly subscription, easy to operate and easy functionality of passive vehicle tracking systems. These systems are still being used widely, despite the lack of provision of real-time location. The passive systems collect vehicle data and store it on a hard drive or a memory card, and this data can be accessed later on when these devices are connected to a tablet or a computer.

Based on Component, the market is segmented into Software (Performance Measurement, Vehicle Diagnostics, Fleet Analytics and Reporting, Driver Behavior Monitoring, and Others), Hardware, (OBD Device/tracker & advance tracker, Standalone Tracker). Out of which, Software is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of software-based systems for vehicle tracking, in which, the systems is installed directly on the user’s machine, which further eliminates the need for hardware. Moreover, the use of software also provider various other benefits, and these factor in turn are driving growth of this segment.

Hardware segment is also expected to witness significant growth in the near future and this is owing to the features of hardware components such as, sleep mode on low power, buzzer support, and effective GPS and cellular performance.

Global Vehicle Tracking System Market Trends:

Transportation and Logistics segment among End-Use is gaining traction

Transportation is an important element in modern society. The use of tracking solutions by the logistics and transportation sector improves vehicle maintenance. With enhanced maintenance, the life of vehicle can be extended. It many also help prevent delays occurring due to break down of vehicles. As the growth of private companies that offer car services and ride-sharing, such as Lyft, Uber, and Roam is increasing, tracking of location data has become crucial asset for these companies. Thus, this in turn is expected to drive growth of the global vehicle tracking system market over the forecast period.

Increasing adoption of car leasing and rental services is a recent trend

Emerging countries are witnessing rise in adoption of car leasing and rental services, which has enabled the vehicle rental companies in these countries integration of tracking device for improving their services. The capabilities of 5G such as enhanced speed, low latency, and high capacity are likely to drive the launch of cellular vehicle tracking, which in turn is expected to boost adoption of vehicle tracking devices. This trend is likely to continue in the global vehicle tracking system market over the forecast period.