Vehicle Tracking System Market Size, Share & Trends Analysis Report By Vehicle Type, By End Use (Transportation & Logistics, Retail), By Technology Type, By Type, By Component, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global vehicle tracking system market size is valued at USD 19.38 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.9%% from 2022 to 2030. The rising adoption of advanced technology and growing concern for the security and safety of vehicles are factors driving the growth of the market. The rise in fleet operations in emerging nations, coupled with government regulations to install vehicle tracking devices in passenger and commercial vehicles, is fueling the growth. Furthermore, the growing adoption of car leasing and rental services has compelled rental companies to integrate tracking devices to enhance their services, further driving the growth of the market.

The increase in the number of road accidents has led fleet management companies and government authorities to make installing tracking devices in all vehicles to track their location and speed mandatory. Additionally, the rising uptake of the intelligent transport system and the emergence of 5G into vehicle connectivity are anticipated to propel market growth. The increasing demand for semi-autonomous and autonomous vehicles also contributes to the demand for advanced and standard vehicle tracking systems.

In early 2020, the outbreak of the COVID-19 pandemic brought unprecedented challenges for industries around the world. To contain the aggressive spread of the virus, governments worldwide have to introduce lockdown and social distancing mandates. The lockdowns had forced industries such as the automotive industry to halt manufacturing, assembly, and production in Europe, America, and Asia. The lockdown also negatively impacted the demand for passenger and commercial vehicles. The production of vehicle tracking system software and hardware also experienced the impact induced by low demand for the product.

In 2021, as the lockdown mandates were lifted owing to COVID-19's subsiding effects, the demand for automobiles witnessed a surge, creating a demand for vehicle tracking system technologies. Still, the demand surge was met with a disrupted supply chain of semiconductor chips. Regardless of vehicle type, the semiconductor's chips are integral to the vehicle tracking system. The absence of semiconductor chips resulted in a production timeline delay. Therefore, the pandemic and the repeated supply chain and production disruption caused a restriction in the growth of the vehicle tracking system market.

Over time, as business and trade started expanding beyond regional boundaries, the import and export of different cargo also increased by volume. The growing volume of trade around the world has also upsurged the need for a commercial vehicle fleet dedicated to logistics. The major market participants are dedicating resources to developing products that provide seamless fleet management to companies. For instance, Geotab has developed fleet maintenance software which uses predictive analytics by analyzing data to identify potential and critical mechanical issues and prioritize repairs. The software studies and compares data from engines and other components using sensors to predict the issues which might occur.

The software then alerts the fleet owners with a detailed record of the component problem. This helps the fleet owner to optimize time management and reduce repair expenditure. The software also notifies the owner about possible wear and tear caused due to hard driving, irregular maintenance, and adverse weather conditions. The software shows the record of the health level of each fleet vehicle, indicating any wear and beyond a certain level. The software also provides remote diagnostics and schedules fleet maintenance cycles and expenditure reports. The application of software coupled with sensors creates a smooth operation and maintenance cycle, which helps in decreasing downtime and operational cost.

The application of vehicle tracking systems is not only restricted to road transportation, but technological modification in tracking technology has also expanded its usage to the aviation industry as well. Aviation not only facilities passenger transportation, but it also supports trade worldwide. However, logistics service through air transport is also an affair that involves cargo worth billions being imported and exported between different countries. This has prompted the major players to develop a comprehensive vehicle and asset monitoring and tracking system dedicated to air transportation while driving the market growth.

Teltonika has developed its vehicle tracking device, which supports the NB IoT and LTE M1 connectivity and is equipped with Bluetooth to connect with external devices and low energy sensors, which helps in tracking the ground support vehicle effortlessly. The senores help gather combined and analyzed data with location details to provide accurate monitoring without any discrepancies. The Bluetooth low energy radio transmitter beacons are also implemented for tracking indoor positions of airport fleet, which helps in theft protection, and decreases assets search time.

The increase in data privacy violations is the major reason discouraging end-user from using vehicle tracking systems as the data contains personal information such as driver and vehicle details and route traveled are restraining the market growth. Furthermore, the rise in data privacy violations is preventing end-users from utilizing vehicle tracking systems, as the data comprises personal information such as driver and vehicle details, as well as the route followed. Due to a lack of cellular or wireless network connectivity, GPS and cellular-based trackers fail, as well as the R&D costs connected with the system, act as a barrier for new market competitors.

Moreover, rising environmental concerns usually lead to unclear communication, resulting in a poor user experience. As a result, vehicle tracking devices are rarely used. The growing environmental issues frequently result in muddled communication, which leads to a bad user experience. As a result, the use of vehicle tracking systems is limited. These tracking systems use GPS, if there is an object within its path, it diverges the signal and results in poor connection. These factors restrain the growth of the market for vehicle tracking systems.

Vehicle Type Insights

The passenger vehicle segment held the highest market share of over 42% in 2021. The segment also is expected to register the highest CAGR of 16.9% 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 12.5% 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 26.4% in 2021 and is anticipated to register the highest CAGR of over 17% % 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 14.1% 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% in 2021 and is expected to register the fastest CAGR of 15.7% 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 83.8 % in 2021 and is anticipated to register the highest CAGR of 14.6 % 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 9.4 % 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 66.6 % 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 12.5% over the forecast period. The segment comprises Onboard Diagnostics Device (OBD)/tracker. The OBD segment accounted for a share of 13.5% 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 32.4% 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 17.4% 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:

• Verizon

• Geotab Inc.

• Cartrack

• Tom Tom International B.V.

• CalAmp

• Teltonika

Vehicle Tracking System Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global vehicle tracking system market report based on vehicle type, end-use, technology type, type, component, and region:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Passenger Vehicles

  • Light Commercial Vehicles

  • Heavy Commercial Vehicles

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Transportation & Logistic

  • Construction & Manufacturing

  • Aviation

  • Retail

  • Government & Defense

  • Other

• Technology Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • GPS/Satellite

  • GPRS/Cellular Network

  • Dual Mode

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Active

  • Passive

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hardware

    • OBD Device/ Tracker and Advance Tracker

    • Standalone Tracker

  • Software

    • Performance Management

    • Vehicle Diagnostics

    • Fleet Analytics & Reporting

    • Driver Behavior Monitoring

    • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa