The global vehicle tracking systems market was accounted at USD 21.16 billion in 2022 and is expected to reach USD 80.17 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 14.3% from 2023 to 2032.
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The global vehicle tracking systems market is driven by the rising need for the automation of automotive products. Increasing operational efficiency and profitability along with a reduction in costs is driving the growth of the vehicle tracking systems market. The rapid growth of digital technologies has influenced almost every industry across the globe and digitization of the vehicles is an important aspect of vehicle tracking systems. The digitization of vehicles had resulted in increased operational efficiency owing to the introduction of telematics, the Internet of Things (IoT), and automation. The vehicle tracking systems help 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 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, the rising adoption of 5G connectivity, and the emergence of intelligent transportation systems are crucial factors that positively affect market growth. The vehicle tracking systems integrate fuel management, vehicle monitoring, and safety issues in real-time which can enhance the transport services. The growth in online businesses across the globe is significantly boosting the growth of vehicle tracking systems owing to the rising demand for logistic services for delivering goods to 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 market growth. Moreover, the growing demand for 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.
|Market Size in 2023||USD 24.08 Billion|
|Market Size by 2032||USD 80.17 Billion|
|Growth Rate||CAGR of 14.3%|
|Largest Market||North America|
|Forecast Period||2023 to 2032|
|Companies Covered||CalAmp, Cartrack Holdings Limited, Continental Ag, Geotab Inc., Trackimo, Teltonika, TeletracNavman US, Tomtom, Inc., Verizon Communication Inc., Xirgo Technologies, LLC.|
Based on vehicle type, the passenger vehicles segment accounted for over 41% of the market share in 2022. This can be simply attributed to the increased production, sales, and adoption of passenger vehicles across the globe. The rising disposable income, increased urbanization, and growing need for private commute has propelled the growth of the passenger vehicles segment. Moreover, the rising penetration of electric vehicles is further expected to spur the demand for passenger vehicles and 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 light commercial vehicles owing to 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 2022, in terms of revenue and is estimated to sustain its dominance during the forecast period. The ability of GPS/satellite technology to work with other technologies like WiMAX, GSM, and LTE has boosted the adoption of GPS technology across the global vehicle tracking systems market. The increased efficiency and rising popularity of GPS/Satellite technology 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 66% of the market share in 2022. 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, 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 are boosting the growth of this segment.
Based on region, North America accounted for over 32% of the market share in 2022. This is attributed to the increased usage of advanced technologies in the region. The transportation industry in North America is highly influenced by passenger safety and vehicle emission. The increased adoption of vehicle tracking systems owing to the various benefits such as increased operational efficiency and profitability along with a reduction in costs had significantly driven the North American vehicle tracking systems market. Moreover, the increased disposable income coupled with increased demand for personal commute solutions has boosted the sales of passenger vehicles which augmented the demand for 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 public transport solutions among the people owing to the presence of a huge population. Therefore, the demand for vehicle tracking systems is expected to rise to monitor vehicle locations, fuel management, and vehicle diagnostics to ensure the safety of the passengers.
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 foster market growth and offer 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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