Vehicle Tracking Market: Global Industry Analysis and Forecast (2024-2030) by Type, Application and End-User

Vehicle Tracking Market

Vehicle tracking refers to the use of systems and devices to track the location, behavior, and other parameters of vehicles. The tracking system includes various components such as hardware (e.g., tracking devices), software (e.g., fleet analytics), and different technologies (e.g., GPS, cellular network). With major advantages including enhanced operational efficiency, vehicle monitoring, maintenance, driver tracking, cost savings, safety, and security, the vehicle tracking system market is a quickly expanding sector of the economy.

 

The Global Vehicle Tracking Market is influenced by factors like Increasing acceptance of Car Leasing and Rental Services and a significant rise in Fleet Operations. The Vehicle Tracking Market is primarily driven by several components such as Rising Adoption of Advanced technology, Growing Concern for Security and Safety, Government Regulations, and Technological Advancements. Data Privacy Concerns, Lack of connectivity, Rising Environmental Concerns, R&D Costs, Unclear Communication, and Poor User Experience are some of the major restraints that hinder the market growth of the Vehicle Tracking Market. The Vehicle Tracking Market is segmented based on By Type, Application, and By End-User.

 

The Vehicle Tracking Market has been dominated by North America which holds over 33% of the total market share with nations like the U.S., Mexico, and Canada being the key nations for the region. Europe is expected to grow at the quickest CAGR. UK, Germany, France, and Italy are the major countries in this region attributing to its significant growth. Asia-Pacific is estimated to grow at a CAGR of 16.4% over the forecast period. China, Australia, India, and Japan are the key countries driving the market growth in this region. Some of the key players dominating the Vehicle Tracking Market globally are Verizon Communications, Inc., Sierra Wireless, Inc., TomTom International B.V., Cartrack (Pty) Ltd, AT&T Inc., ORBCOMM INC, Calamp Corp, Geotab Inc., AT&T Intellectual Property, Continental AG, Robert Bosch GmbH, Spireon, Inc.

 

Vehicle Tracking Market Dynamics

Rising Adaption of Advanced Technology, One of the main factors propelling the growth of the vehicle tracking market is the increasing use of cutting-edge technology, such as GPS tracking systems. Numerous causes are driving its acceptance, such as the increased popularity of car leasing and rental services in emerging nations, the advent of cellular vehicle monitoring systems, and the use of GPS tracking devices in the supply chain and logistics business. Another such advanced technology is the introduction of 5G. Shortly, usage of vehicle tracking devices will continue to be fueled by 5G's high capacity, improved speed, and reduced latency.

 

Peer-to-peer and car analytics will also benefit from 5G connectivity, opening the door to faster and more reliable communication. 5G allows automobiles to access and process massive volumes of data in real time, facilitating speedier decision-making and increased safety. Data transfer speeds can reach 100 times faster than 4G. To facilitate real-time data processing and analysis—which is necessary for the effective operation of vehicle tracking systems—5G's low latency, as low as 1 millisecond, is critical.

Growing Concern for Security and Safety, One major reason propelling the vehicle tracking market is the increasing concern for vehicle security and safety. This can be seen by the growing need for car trackers brought on by an increase in traffic accidents, which has prompted fleet management businesses and government agencies to put tracking devices in place. The demand for car tracking systems has also expanded dramatically due to the necessity for sophisticated anti-theft solutions and the desire to successfully preserve precious vehicles and assets. Due to the adoption of Vehicle tracking systems, the accident rate in 2023 has reduced by 3.3% compared to the estimated fatalities during the same period in 2022. Also, the estimated fatality rate for the first three months of 2023 decreased to 1.24 fatalities per 100 million vehicle miles traveled, down from the projected rate of 1.32 during the same time in 2022.  

 

Government Regulations, The installation of vehicle monitoring devices in both passenger and commercial vehicles is required by law, which has significantly impacted the market for vehicle tracking systems. These laws are the result of growing consumer concerns about vehicle security and safety as well as the rising popularity of car leasing and rental services, which has led to the incorporation of vehicle monitoring by rental firms and fueled industry expansion. For instance, in the U.S., the Department of Transportation's National Highway Traffic Safety Administration reported 37,133 motor vehicle crash-related deaths in 2017, leading to the government's mandate to install tracking devices in all transport vehicles to track speed, location, and other parameters.

 

Similarly, the China government also made it compulsory to install tracking devices in all commercial and passenger vehicles. Also in countries like India the government in August 2022, the Ministry of Transportation and Highways (MoRTH) issued a notification mandating that all goods vehicles used for transporting dangerous or hazardous products must be equipped with a location tracking device, for the vehicles constructed on or after 1 September 2022. From 1 September 2022, vehicles of categories N2 and N3, in the case of new models, and 1 January 2023, in the case of existing models, carrying dangerous or hazardous goods, shall be fitted with a vehicle tracking system device as per the Automotive Industry Standard (AIS) 140. These rules are an obvious illustration of the mandatory safety requirements imposed by the government, which are driving the expansion of the vehicle tracking market.

 

The increased acceptance of auto leasing and rental services, coupled with growing concerns about vehicle security and safety, is what is driving the regulations. Rental firms have been compelled to implement vehicle monitoring, which is expected to fuel market expansion over the projection period.

 

Increasing Acceptance of Car Leasing and Rental Services, the market is experiencing growth because rental businesses are integrating tracking devices due to the growing acceptance of car leasing and rental services. Vehicle tracking devices are being used by rental firms to track the location, speed, and other characteristics of their vehicles due to the rising popularity of car leasing and rental services. Innovative programs that enable customers to track their rental cars using their cellphones have been developed as a result of this , making it simpler and more convenient for consumers to keep an eye on their cars. Over the course of the forecast period, the growing popularity of automobile leasing and rental services is expected to fuel the expansion of the vehicle tracking system market. Heartz Global Holdings, Inc., Avis Budget Group Inc., and Enterprise Holdings are some of the key players in the Car rental business dominating globally.

Restraints for the Vehicle Tracking Market

Data Privacy Concerns, One of the main things deterring end users from adopting car monitoring systems is the fact that the data contains personal information about the driver, the vehicle, and the routes travelled. End consumers are reluctant to embrace car monitoring systems as a result of growing worries about data privacy. There are worries about the possible exploitation of this sensitive information given the data these systems capture, which includes personal information like driver and vehicle characteristics and routes traveled.

 

The rise in data privacy violations has become a major deterrent for the adoption of vehicle tracking systems, as end-users are increasingly wary of the potential misuse of their personal information. This element has had a major effect on the market since it has made it more difficult for these systems to be widely accepted and used because people are reluctant to use them because of privacy concerns. In order to increase end-user confidence and promote the wider deployment of vehicle monitoring systems, it is imperative to address data privacy issues and guarantee the safe and responsible use of the information gathered by these systems.

 

Lack of Connectivity, new competitors in the market are hindered by the failure of GPS and cellular-based trackers caused by a lack of cellular or wireless network access. This is a significant barrier to the market for vehicle tracking. Data transmission for GPS and cellular-based trackers depends on network access; a loss of connectivity results in system failure, which can be quite problematic for end users. Data loss from this has a negative impact on the system's functionality. For new market entrants, the R&D costs involved in creating a system that can function without network connectivity is a major obstacle.

 

Also, Growing environmental concerns result in poor user experience and ambiguous communication, which further impede the uptake of car tracking systems. Because of this, car tracking devices are rarely utilized in places with inadequate network access, which restricts the range of possible uses and market penetration. In order to get around this problem, businesses are spending money on creating new technologies, such satellite-based tracking systems, that don't require network connectivity to function. End users find these systems appealing because they can reliably give tracking data even in places with spotty network access.

 

Market Segmentation Of Vehicle Tracking Market

By Type, the Vehicle Tracking market is further segmented into Active and Passive Systems, with the passive system segment dominating the market. The active system segment accounted for 83.8% of total revenue for the year 2021. Active systems provide simple access to tracking data by monitoring real-time data supplied by satellite or cellular networks to a computer system or a data analysis center. The passive system, on the other hand, captures and saves data on a hard drive or memory card, which may subsequently be downloaded by using the auto-download option. Throughout the projected period, the passive system is anticipated to expand at a CAGR of 9.4% and run independently of the cellular network. The rise of the passive system is being driven by its affordability and detachment from the cellular network.

By Application, the market for vehicle monitoring systems is divided into residential and commercial applications with commercial applications estimated to dominate the markets due to rising sales of commercial vehicles and the expanding use of cloud and IoT technologies in the transportation, defense, and automotive sectors. Trucks, buses, and trailers are a few of the vehicles that fall under the category of commercial vehicles.

 

The commercial segment is expanding due to the growing need for effective fleet management and operational control. Real-time monitoring of vehicle performance, fuel usage, and driver behavior is made possible by the integration of vehicle tracking systems with cloud computing and the Internet of Things. This has improved operational efficiency and decreased expenses. Cars and motorcycles that are utilized for private transportation are included in the residential section. Over the course of the forecast period, the category is anticipated to rise at a substantial CAGR due to growing use of car leasing and rental services and growing security and safety concerns among vehicle owners.

 

By End-User, The market's end-use sector, which is divided into a number of industries including retail, government and defense, manufacturing and construction, transportation and logistics, aviation, and others, is crucial to the market's evolution. With the biggest market share, the transportation and logistics industry is expected to grow at the fastest compound annual growth rate (CAGR) of nearly 17.2% between 2022 and 2031. The reasons behind this growth are  the number of fleets and fleet operators are growing; intelligent systems are emerging and driving the adoption of fleet management technologies as well as the need for tracking systems is growing in sectors like trading, courier services, and high-value asset transportation.

 

GPS tracking solutions are used by the transportation and logistics sector for a variety of purposes, including driver safety, fuel efficiency monitoring, route management, and vehicle tracking. The market in this category is also being driven by the rising e-commerce industry, the expanding adoption of connected cars, and the rising need for commercial vehicles.

 

Competitive Landscape of the Vehicle Tracking Market

The vehicle tracking system market is highly competitive, with multiple large-scale and medium-scale key players. Some of the key players dominating the markets are Verizon Communications, Inc., Sierra Wireless, Inc., TomTom International B.V., Cartrack (Pty) Ltd, AT&T Inc., ORBCOMM INC, Calamp Corp, Geotab Inc., AT&T Intellectual Property, Continental AG, Robert Bosch GmbH, Spireon, Inc., TELETRAC NAVMAN US LTD. These companies are constantly involved in introducing new strategies such as new product launches, collaborations, business expansion, partnerships, mergers and acquisitions, joint ventures, and others to stay competitive in the market. Some instances include-

 

Verizon Communications, Inc.- Verizon Communications invested  in Associated Industries of Massachusetts as part of their Grant on November 21, 2023. Also, the firm partnered with the Minnesota Technology Association to create tech career pathways in Minneapolis as part of the Verizon Communications Inc. Forward Community Enhancement Award, a $1 million national initiative equipping communities with the tools to navigate an increasingly technological world. Verizon increased its footprint in the government and defense industry when it was awarded a $15 million contract for data services related to Navy Morale, Welfare, and Recreation (MWR).

 

Semtech Corporation- Semtech Corporation  acquired Sierra Wireless for $31 per share in an all-cash deal with an estimated $2.2 billion in enterprise value. Through the acquisition, two crucial IoT technologies for the future—cellular and LoRa—were combined to facilitate the digitization of the industrial sector. Semtech was projected to treble its IoT revenue and increase its addressable market as a result of the acquisition. January 2023 marked the completion of the deal.

 

TomTom International B.V- As per the Financial reports of the firm the company has made significant investments in the significant investments in new and existing leadership roles to ensure the delivery of future flows.

Vehicle Tracking Market Scope
Market Size in 2023	USD 24.18 Bn.
Market Size in 2030	USD 60.50 Bn.
CAGR (2024-2030)	14%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Application Residential Application Commercial Application
	By  Deployment Mode Cloud Mode On-premises Mode
	By End-User Transportation and Logistics Construction and manufacturing Aviation Retail Government and Defence Vehicle Tracking Market
Regional Scope	North America- United States, Canada, and Mexico Europe - UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific - China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America - Brazil, Argentina, Rest of South America

 

Key Players for the Vehicle Tracking Market

1. AT&T Intellectual Property
2. Cartrack
3. Continental AG
4. Robert Bosch GmbH
5. Verizon
6. Spireon, Inc.
7. ORBCOMM INC
8. Calamp Corp
9. Geotab Inc.
10. Sierra Wireless, Inc.
11. TomTom International B.V.
12. Concox Wireless Solution Co., Ltd.
13. ATrack Technology Inc.
14. Trackimo LLC.
15. Meitrack Group
16. Laird PLC
17. Fleet Complete
18. Teletrac Navman
19. GPS Insight
20. Fleetmatics