The global vehicle tracking systems market was accounted at USD 16.8 billion in 2020 and is expected to reach USD 45.8 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 10.6% from 2021 to 2030.
The global vehicle tracking systems market is driven by the rising need for the automation of the automotive products. Increasing operational efficiency and profitability along with reduction in costs is driving the growth of the vehicle tracking systems market. The rapid growth of the digital technologies has influenced almost every industry across the globe and digitization of the vehicles is an important aspect of the vehicle tracking systems. The digitization of vehicles had resulted in increased operational efficiency owing to the introduction of telematics, internet of things (IoT), and automation. The vehicle tracking systems helps in vehicle maintenance, route optimization, vehicle diagnostics, driver management, and fuel management. The wireless internet connectivity helps in tracking the location of the vehicles and transfers real-time data. The growing demand for the transportation services and rapid growth in the vehicle and transportation industry has fueled the growth of the global vehicle tracking systems market.
The rising adoption of mobility-as-a-service, rising adoption of 5G connectivity, and emergence of intelligent transportation systems are the crucial factors that positively effects the market growth. The vehicle tracking systems integrates fuel management, vehicle monitoring, and safety issues in real-time that can enhance the transport services. The growth in the online businesses across the globe is significantly boosting the growth of the vehicle tracking systems owing to the rising demand for the logistic services for delivering goods to the customers at distant locations. Hence, the rising penetration of online business is expected to exponentially drive the growth of the global vehicle tracking systems market in the forthcoming years. Moreover, the rising number of commercial vehicle sales across the globe is driving the market growth. Moreover, the growing demand for the passenger vehicles among the population owing to the rising popularity of the electric vehicle is offering lucrative growth opportunities to the market players operating in the global vehicle tracking systems market.
Report Scope of the Vehicle Tracking Systems Market
|Market Size in 2020||USD 16.8 Billion|
|Growth Rate||CAGR of 10.6% From 2021 to 2030|
|Largest Market||North America|
|Forecast Period||2021 to 2030|
|Companies Covered||CalAmp, Cartrack Holdings Limited, Continental Ag, Geotab Inc., Trackimo, Teltonika, TeletracNavman US, Tomtom, Inc., Verizon Communication Inc., Xirgo Technologies, LLC.|
Vehicle Type Insights
Based on vehicle type, the passenger vehicles segment accounted for over 40% of the market share in 2020. This can be simply attributed to the increased production, sales, and adoption of the passenger vehicles across the globe. The rising disposable income, increased urbanization, and growing need for the private commute has propelled the growth of the passenger vehicles segment. Moreover, the rising penetration of the electric vehicles is further expected to spur the demand for the passenger vehicles and the tracking systems during the forecast period.
On the other hand, the light commercial vehicles segment is expected to be the fastest-growing segment during the forecast period. This is attributed to the increasing adoption of the light commercial vehicles owing the rising penetration of the e-commerce industry across the globe is boosting the sales of the minivans and other light commercial vehicles like pickup trucks for logistics operations.
Based on the technology, the GPS/Satellite segment dominated the global vehicle tracking systems market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. The ability of the GPS/satellite technology to work with the other technologies like WiMAX, GSM, and LTE has boosted the adoption of the GPS technology across the global vehicle tracking systems market. The increased efficiency and rising popularity of the GPS/Satellite technology is has made this segment the fastest-growing segment during the forecast period. The GPS technology can be publicized with various satellites and can chart enhanced routes.
Based on the component, the software segment accounted for over 65% of the market share in 2020. This is attributed to a rapid surge in the number of software solution providers in the market. The software provides various solutions like vehicle maintenance, route optimization, vehicle diagnostics, driver management, and fuel management, which had augmented the segment’s growth.
On the other hand, the hardware is estimated to be the most opportunistic segment during the forecast period. The hardware consists of various devices such as trackers, onboard diagnostic devices, and others. The wireless Bluetooth connectivity and enhanced performances of the hardware is boosting the growth of this segment.
Based on region, North America accounted for over 31% of the market share in 2020. This is attributed to the increased usage of the advanced technologies in the region. The transportation industry in North America is highly influenced by the passenger safety and vehicle emission. The increased adoption of the vehicle tracking systems owing to the various benefits such as increased operational efficiency and profitability along with reduction in costs had significantly driven the North America vehicle tracking systems market. Moreover, the increased disposable income coupled with increased demand for the personal commute solutions has boosted the sales of the passenger vehicle that augmented the demand for the vehicle tracking systems in the region.
On the other hand, Asia Pacific is estimated to be the most opportunistic market during the forecast period. This owing to the increased demand for the public transport solutions among the people owing to the presence of huge population. Therefore, the demand for the vehicle tracking systems is expected to rise to monitor vehicle locations, fuel management, and vehicle diagnostics to ensure safety of the passengers.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
In September 2020, TomTom International launched its TomTom Go, a navigation app. This app provides 3D maps even in the absence of mobile networks.
The various developmental strategies like new product launches, collaborations, partnerships, mergers, and government policies fosters market growth and offers lucrative growth opportunities to the market players.
Some of the prominent players in the global vehicle tracking systems market include:
Segments Covered in the Report
By Vehicle Type
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