The global Vehicle Tracking System market size was valued at US$ 19.40 billion in 2021 and it is projected to be worth around US$ 60.91 billion by 2030, poised to grow at a CAGR 13.11% during the forecast period 2022 to 2030.
Key Takeaways:
· Asia Pacific is projected to grow at a CAGR of 17.8% over the forecast period.
Growth Factors:
Factors such as technological iterations and growing digitization within the automotive industry, paired with the continuous growth of the logistics and automobile industry worldwide, are encouraging the growth of the market. The surge in the sales of heavy and light commercial vehicles is also expected to drive the growth of the market.
The surge in adoption of mobility-as-a-service (MaaS) by numerous companies such as Ola, Rapido, and Bounce aimed at reducing carbon emission and traffic congestion on urban streets is also driving the market growth. These companies have introduced the concept of carpooling, sharing, and taxi-hailing for daily commuters as an option for public transport such as bus and metro and private vehicles. The tracking systems installed in these vehicles are beneficial for both the companies and commuters. The software and hardware facilitate features such as tracking vehicle status, driver behavior tracking in real time, and price comparing for different vehicles, such as sedans or prime sedans.
The improved connectivity network technology and services have led to the adoption of connected car tracking systems. The sensor and cameras embedded in the vehicle are enabled to transfer real-time data and collect intel on the vehicle's speed and distance traveled, current location, air pressure, and fuel consumption. The extensive implementation of cloud computing technology facilitates analysis, computation, storage, and access to data without compromising the vehicle owner's personal information. Thus, the application of cloud technology in vehicle tracking systems is expected to create new avenues of market growth opportunities.
Report Scope of the Vehicle Tracking System Market
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Report Coverage |
Details |
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Market Size |
US$ 60.91 Billion by 2030 |
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Growth Rate |
CAGR of 13.11% from 2022 to 2030 |
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Largest Market |
Asia Pacific |
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Fastest Growing Market |
North America |
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Base Year |
2021 |
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Forecast Period |
2022 to 2030 |
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Segments Covered |
Vehicle type, end use, technology type, type, component type and Region, |
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Companies Mentioned |
Verizon; Geotab Inc.; Cartrack; Tom Tom International B.V.; CalAmp; Teltonika; ORBCOMM Inc.; Xirgo Technologies, LLC; Laipac Technology Inc.; Trackimo Inc. |
Vehicle Type Insights
The passenger vehicle segment held the highest market share of over 42.6% in 2021. The segment also is expected to register the highest CAGR of 12.9% over the forecast period. The use of a tracking system by app-based transportation car leasing and renting businesses such as Ola; Uber; Careem; and Lyft, Inc., for smooth operational control is driving the growth of the segment. The tracking system enables the companies to gather data such as average speed and distance traveled, number of rides per day, and idle time to improve operational efficiency and profitability.
The light commercial vehicles segment is projected to have the second-highest CAGR of 12.9% during the forecast period. The increased logistic shipments across domestic and international borders via road transport are expected to contribute to this growth. The commercial vehicles for delivery services, trading, and courier services are further expected to propel the demand for tracking systems. The tracking system is especially useful when transporting high-value assets such as industrial machinery, defense ammunition, and ammunition. The relevant party can track the vehicle for timely delivery and safety purposes.
End-use Insights
The transportation and logistics sector showcased the highest market share of 26.8% in 2021 and is anticipated to register the highest CAGR of over 17.2% % from 2022 to 2030. This can be attributed to the increasing fleet size and fleet operators the usage of a global positioning system for logistics and transportation tracking worldwide has seen an application surge.
The vehicle tracking system offers advantages such as fleet management, ensuring the safety of the driver and the cargo, enhancing efficiency due to real-time traffic alerts and accurate route planning, monitoring fuel levels, distance traveled, and speed of the vehicles, and managing administrative costs. The advantages provided by the system create a positive impact on the growth of the market.
The retail segment is expected to accumulate the second-highest CAGR of 14.3% over the forecast period. The ever-growing influence and dependence on e-commerce have prompted retail companies to expand their delivery services and deliver fleets based on their delivery region parameter. The e-commerce delivery companies use the tracking system to gather data for creating delivery timelines, operation cost optimization, and enhanced productivity.
Technology Type Insights
The GPS/ satellite segment has posted the highest market share of more than 49.8% in 2021 and is expected to register the fastest CAGR of 15.9% over the forecast period. The growth can be accredited to a surge in commercial vehicle sales and the adoption of cloud technology and IoT in industries such as healthcare, automotive, logistics, and defense. The compatibility of GPS to work with network technologies such as WiMAX, GSM, and LTE. Furthermore, the changes in the size of the GS tracker, which have longer battery life and application along with durability, are also propelling the growth.
Based on technology type, the market is segmented into GPS/ satellite, GPRS/ cellular network, and dual-mode. The dual-mode segment is anticipated to grow at a CAGR of 12.6% over the forecast period. The dual-mode application offers both GPS and GPRS-based tracking systems. The dual-mode technology is inexpensive, easy to install, and establishes reliable connectivity between the server and vehicles tracking device. This factor is expected to contribute to the growth of the segment over the forecast period.
Type Insights
The active type segment dominated the market with the highest revenue share of 83.11% in 2021 and is anticipated to register the highest CAGR of 14.8% by 2030. The active and passive vehicle tracking systems have the same functionality. However, the active system tracks real-time data transferred via satellite or cellular networks to a computer system or a data analysis center. The active tracking system has complete functions, but it carries the advantage of offering effortless access to tracking information and compatibility with different networks. The advantages of an active tracking system are expected to boost its demand across major market regions.
The passive type segment is expected to expand at a CAGR of 9.6% during the forecast period. The passive vehicle tracking devices record the data they collected from the vehicle and store the same on a memory card or a hard drive. After some time, the data can be downloaded through the auto-download feature, which transmits the vehicle data to the computer system. The system does not depend on the cellular network for functioning and is affordable to use.
Component Insights
The software segment held the highest revenue share of 66.9% in 2021 along with the highest CAGR of 14.5% over the forecast period. Features such as fleet analytics, real-time alerts for traffic and maintenance, vehicle diagnostics, driver behavior monitoring, and measuring vehicle utilization which indicates the vehicle efficiency and the total cost of vehicle ownership, are included in tracking software and are leading to significant growth. The end-users have access to data that they can review and analyze, facilitating the maintenance of operational synergy, enhancing performance, monitoring employee behavior, and optimizing costs for management.
The hardware segment is expected to register a CAGR of 12.8% over the forecast period. The segment comprises Onboard Diagnostics Device (OBD)/tracker. The OBD segment accounted for a share of 13.9% during the forecast period. The device functions based on sensors, electronic control unit, and a diagnostic trouble code, among other components, which help analyze and regulate the vehicle system and alert the driver in case of any issues. Its features, such as buzzer support, sleep mode on low power, and efficient cellular and GPS performance, are factors driving its market growth.
Regional Insights
North America registered the highest market share of 32.6% in 2021 and is expected to maintain the growth pace over the forecast period. The emergence of intelligent systems has led to the adoption of technologies for fleet management. Furthermore, growing concerns over carbon emissions and growing awareness of vehicle fleet and cargo technology. The mandatory norms over safety norms by the government are also driving the market growth.
Asia Pacific is projected to grow at a CAGR of 17.8% over the forecast period. Factors such as technological iteration in networking, a surge in the sales of commercial and passenger vehicle sales, stringent government mandates and the growing popularity of the e-commerce sector in the region, and increasing trade activities are driving the market growth. Moreover, the rising acceptance of technologies such as cloud, IoT, connected cars, and autonomous vehicles in the region are further driving the market growth.
Key Company & Market Share Insights
The major market players aim to provide tracking solutions, fleet management solutions, and telematics solutions based on the different end-use applications. They have also developed an extensive portfolio which is continuously improved through R&D to provide quality products. For instance, ORBCOMM has launched IoT based telematics device, which is aimed at creating a fleet management system for refrigerated containers-CT 3500 telematics device. The device is capable of smart management regardless of transportation mode and is compatible with wireless technology such as Bluetooth 5, NFC, and LoRa. The device uses wireless sensors, which provide actionable insights about the fleet.
To extend their footprint in the market, the major players resort to mergers, acquisitions, and strategic partnerships. For instance, CalAmp and Moregon have announced partnerships for delivering predictive maintenance and remote diagnostics for fleet operators. The partnership will create a blend between the functionalities of CalAmp iOn, a fleet management software, cloud platform, and edge computing, and Noregon Trip Vision which can run diagnostics remotely to alert the driver of a vehicle ad provide alerts before any serious issues happen in the vehicles. These major players contribute to the market growth through their efforts for product launches and partnerships. Some prominent players in the global vehicle tracking system market include:
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Key Points Covered in Vehicle Tracking System Market Study:
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers