The global vehicle tracking systems market was valued at USD 17.56 billion in 2020 and is expected to grow at a CAGR of 13.5% during the forecast period. The continual rise in the need for accomplishing enhanced operational productivity and profitability at concentrated costs, coupled with the robust growth in digitalization of the product, are the few prominent factors expected to accelerate the vehicle tracking systems market growth during the forecast period.
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Moreover, the significant expansion of the global transportation market, which is associated with the growing presence of vehicle rental companies, ride-hailing companies, and escalating adoption of app-based transportation services, is further boosting the preference for vehicle tracking systems market around the world. A vehicle tracking system is a sort of technology mainly utilized to obtain data regarding the real-time location of a vehicle through GPS technology and cellular network.
These systems comprise the features like telematics asset tracking, fleet route planning, and predictive fleet maintenance. Also, these features enable the optimum utilization of resources and improved flexibility in business operations. In addition, factors such as amplified cost savings and improved customer experience are further contributing to the considerable tracking systems market demand for end-use.
The tracking systems market has observed substantial developments in the last few years on account of the constant market growth in digitalization and technical developments, allowing easy tracking or monitoring of vehicle performance. Besides, the application of IoT, telematics, and automation in these tracking systems has allowed fleet operators to attain increased operational productivity The systems further ensure better safety and security while monitoring vehicle usage data.
Moreover, cost helps on the back of improved vehicle performance, and sophisticated features, including fuel management, fleet analytics, predictive vehicle maintenance, and driver monitoring, are other key factors predicted to drive the tracking systems market growth during the foreseen period. A surge in the fleet size of transportation and logistics vendors is another major reason to escalate the usage of the product for timely delivery and security. In addition, the rapid rise in sales volume of commercial vehicles is further projected to reinforce the demand for fleet tracking and maintenance operations.
As per the International Organization of Motor Vehicle Manufacturers (OICA), the global production of these systems is estimated at around 25.13 billion in 2018, signifying an increase from 23.84 billion in 2017. The year-on-year rise in commercial sales volume demonstrates the operational fleet size of logistics and transportation companies. As a result, the adoption of fleet operation and tracking became a necessity, thereby creating a positive demand for the global vehicle tracking systems market over the forecast period.
The market is primarily segmented on the basis of vehicle, end-use, technology, component, and region.
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Based on the technology segment, a GPS/satellite will be the largest revenue contributor in the global tracking systems market in 2020 and will likely maintain its dominance in the forthcoming period. The segment is anticipated to see healthy market growth from 2021 to 2028, owing to its several factors, including GPS ability to work with several technologies such as LTE, WiMAX, and GSM, along with the capability to publicize with various satellites.
This has forced consumers to deploy GPS/satellite systems, which further helps ensure more efficient routes and deliver increased productivity, which is predicted to propel the systems market growth. Dual-mode segment is anticipated to register the highest CAGR in terms of revenue over the study period. This can be accredited to the extensive presence of vendors that delivers both GPRS and GPS-based tracking systems.
Further, these devices are often considered the cost-effective, easy-to-deploy, and consistent link among the applications servicers and tracking devices, which are anticipated to reinforce the market growth in the foreseen period.
Geographically, North America is expected to dominate the global tracking systems market. This is mainly due to the rising utilization of navigation satellite systems and GPS for monitoring the location for personal as well as commercial purposes, coupled with the rising introduction of safety regulations by the regulatory bodies and transport authorities across the region. Government authorities in U.S. and Canada further acknowledged these concerns and consequently introduced strict norms and regulations in respect of safety programs. Part of these efforts is strengthening the adoption of the product, which aid in the security and safety of passengers.
Moreover, Asia Pacific is anticipated to observe a high CAGR in the global tracking systems market in 2020. The demand for the product in the region is anticipated to increase over the foreseen period due to favorable government initiatives concerning pollution control strategies and growing advancements in networking technologies, and the increasing number of vehicles on the road.
For instance, in 2020, China produced about 19.9 million units of passenger cars, signifying an increasing trend of about 5.2 million units, as per the International Organization of Motor Vehicle Manufacturers (OICA). Thus, many consumers and government agencies have now recognized the benefits, and so, the tracking systems market is gaining significant prominence in the region over the forecast period.
Some of the major players operating the global market include AT&T Inc., CalAmp, Cartrack, Continental AG, Geotab Inc., Inseego Corp., Laipac Technology Inc., ORBCOMM, Robert Bosch GmbH, Spireon.com, Teletrac Navman US Ltd, TELTONICA, TomTom International BV., Trackimo Inc., Verizon, and Xirgo Technologies, LLC.
Market size value in 2020
USD 17.56 billion
Revenue forecast in 2028
USD 41.94 billion
13.5% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD billion and CAGR from 2021 to 2028
By Vehicle, By End-Use, By Technology, By Component, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
AT&T Inc., CalAmp, Cartrack, Continental AG, Geotab Inc., Inseego Corp., Laipac Technology Inc., ORBCOMM, Robert Bosch GmbH, Spireon.com, Teletrac Navman US Ltd, TELTONICA, TomTom International BV., Trackimo Inc., Verizon, and Xirgo Technologies, LLC