Vehicle Tracking System Market Report Scope & Overview:

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Vehicle tracking system market size was valued at USD 23.15 billion in 2023 and is expected to reach USD 76.54 billion by 2032 and grow at a CAGR of 14.21% over the forecast period 2024-2032.

The global vehicle tracking system market is driven by the increase in fleet operations in developing nations and the growing need for passenger and commercial vehicle tracking devices. Also, the increasing vehicle renting, and rental administrations have constrained rental organizations to coordinate GPS beacons to upgrade their administrations, further driving the market's development. According to the SNS's current analysis of recent industrial car registrations elevated by 13.9% in 2023 in comparison to 2022, driven through the revival of the Rental and leasing enterprise. In 2023, there were over 1.6 million commercial vehicles registered. People are increasingly concerned with vehicle robbery and driver protection, making tracking systems more Important. Additionally, fleet operators in emerging markets are adopting these solutions to control their developing fleets better.

The increase in road accidents has led fleet control businesses and monitoring devices in all cars to track their location and velocity. Additionally, the growing uptake of intelligent delivery gadgets and the emergence of 5G into car connectivity are anticipated to propel market growth. The key element that drives the increase of the global vehicle tracking systems market consists of the integration of real-time monitoring and management of fuel in vehicles and protection.

Teltonika has created a vehicle tracking device that supports NB-IoT and LTE M1 connectivity and is equipped with Bluetooth to link with other devices and low energy sensors, allowing the ground support truck to be tracked easily.

MARKET DYNAMICS:

Drivers

• Vehicle tracking systems growing Because they provide actual-time location monitoring, which can deter robbery and help get better stolen cars.

• Governments are mandating the installation of vehicle tracking systems in commercial motors. This is being achieved to enhance safety and security.

• The integration of advanced technologies together with artificial intelligence (AI) and the Internet of Things (IoT) is making vehicle tracking systems more sophisticated and valuable.

Growing vehicle thefts are a Major challenge for both individuals and agencies. In the United States, the FBI said over 1,020,729 vehicle thefts in 2023. Vehicle Tracking systems play an important role in fighting this difficulty. By supplying real-time place records, those structures can deter robbery tries within the first area. Additionally, they notably improve the probability of getting back stolen vehicles. Studies advise that stolen vehicles equipped with monitoring systems are recovered at a fee of up to 85% compared to just 34% for those without. Furthermore, vehicle tracking systems promote safer driving practices. By monitoring motive force conduct, including dashing or harsh braking, fleet managers can discover and cope with capacity troubles. With the rising expenses related to car injuries and theft, the price proposition of vehicle tracking systems turns into clean, Driving market growth.

Restraints for the Vehicle Tracking System Market

• There are issues that vehicle tracking systems could be used to track the locations of people or their movements without their consent.

• The cost of installing a vehicle tracking system is excessive initially, specifically for small organizations.

• Vehicle tracking systems are at risk of hacking or related to cybersecurity, which may permit criminals to benefit from getting the right of entry to vehicle vicinity facts.

One essential hurdle for the vehicle tracking system market is gathering real-time area data, which can be seen as an intrusion on private freedoms. Users, especially in regions with stricter policies, are probably hesitant to adopt this era due to worries about their moves being monitored without their know-how or consent. This increases questions about statistics possession, entry to control, and potential misuse with the aid of unauthorized people. Until clean facts privacy laws and strong safety features are installed, consumer adoption of vehicle monitoring structures may be constrained.

Segment Analysis

By Type

• Active

• Passive

By Vehicle Type

• Passenger vehicles

• LCV (Light Commercial Vehicles)

• HCV (Heavy Commercial Vehicles)

Passenger Vehicles, Leading the Charge in the Vehicle Tracking System market, held the highest Revenue share of more than 42.6% and boasted a significant growth rate. This surge is fuelled by the considerable adoption of monitoring systems via app-primarily based vehicle leasing and renting corporations like Uber, Ola, Lyft, and Careem. These systems offer crucial operational manipulation for these businesses. Across the European Union, 9.25 Mn. new passenger cars were sold in 2022. The tracking device empowers these companies to accumulate valuable information like common speed, distance travelled, daily rides completed, and automobile idle time. These records are interpreted into actionable insights that can be used to enhance operational performance and, in the end, raise profitability.

Light commercial vehicles growing with a significant annual growth rate during the forecast period of 2024-2031. This is essentially pushed through the ever-growing extent of domestic and global logistic shipments transported by avenue. From shipping vans to buying and selling courier cars, the demand for tracking structures in light commercial vehicles is expected to rise. The transporting of high-priority assets together with business equipment, protection systems, or ammunition. Real-time tracking allows applicable parties to monitor the area of the car, ensuring well-timed shipping and safeguarding precious cargo.

By Application

• GPS/Satellite

• GPRS/Cellular Network

• Dual Mode

GPS/satellite held the largest market share of more than 47.6% in 2023 and growing with a significant growth rate. This dominance can be attributed to several factors the rise in commercial vehicle sales has driven demand for tracking solutions, globally 92.3 Mn vehicles are sold in 2023 in approximately 25 Mn are commercial vehicles. the increasing adoption of cloud technology and the Internet of Things (IoT) across various industries, including healthcare, automotive, logistics, and defence, has created a favourable environment for GPS-based tracking.

Dual-mode segment is expected to experience significant annual growth in the forecast period of 2024-2032. This technology offers the best of both worlds, combining GPS and GPRS-based tracking systems. This translates to several advantages. Dual-mode systems are generally inexpensive and easy to install. More importantly, they establish a reliable connection between the server and the vehicle tracking device, ensuring consistent data flow.

By Industry Verticals

• Transportation & Logistic

• Construction & Manufacturing

• Aviation

• Retail

• Government & Defence

• Other

The transportation and logistics industry is the leader in utilizing vehicle tracking systems, held the largest revenue share of more than 26% in 2023, number of companies operating fleets of vehicles is constantly increasing. Also, there's been a global rise in using GPS technology to track shipments and vehicles in the transportation and logistics sectors.   Due to the widespread use of GPS monitoring software, the transportation and logistics industry in the United States will undergo significant change in 2024. GPS era and up-to-end RFID answers have enabled businesses to systemize their fleet management, enhance operational performance, and secure cargo, as a consequence becoming an essential device. Vehicle tracking systems offer significant benefits to companies in this industry. These benefits include improved management of fleets and resources, increased safety for drivers and cargo, better efficiency through real-time traffic updates and optimized routes, the ability to monitor fuel levels, distance travelled, and vehicle speeds, and reduced administrative costs through automated data collection. The combination of these advantages is a major factor driving the growth of the vehicle tracking system market in transportation and logistics.

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By Component

• Hardware

  • OBD Device/ Tracker and Advance Tracker

  • Standalone Tracker

• Software

  • Performance Management

  • Vehicle Diagnostics

  • Fleet Analytics & Reporting

  • Driver Behaviour Monitoring

  • Others

The software segment is the dominant vehicle tracking system market and held a revenue share of more than 58% in 2023.  Packed with features like fleet analytics, real-time traffic and maintenance alerts, vehicle diagnostics, driver behaviour monitoring, and even utilization measurements that track efficiency and ownership costs, this software provides users with valuable data for analysis. This data empowers fleet managers to maintain operational harmony, improve overall performance, monitor employee behaviour, and optimize costs. Essentially, the software acts as the brain of the tracking system, turning raw data into actionable insights.

With a Significant compound annual growth rate of 17.2%, the hardware segment is growing. This segment includes both OBD (Onboard Diagnostics Device) trackers and standalone trackers. These devices act as the eyes and ears of the system, using sensors, electronic control units, and diagnostic trouble codes to analyze and regulate vehicle systems. also alert drivers to potential problems. Features like buzzer support, low-power sleep mode, and efficient cellular and GPS capabilities all contribute to the hardware segment's strong market position.

REGIONAL ANALYSIS:

North America region held 32.5% revenue share of the Vehicle tracking system market in 2023. The development of intelligent systems has prompted the use of fleet management technologies. Additionally, increasing awareness of vehicle fleet and cargo technology and concerns regarding carbon emissions. The government's mandated safety standards also help to drive vehicle tracking system market expansion.  

With a CAGR of 17.9%, the Asia-Pacific region is anticipated to expand the fastest annual growth. The market's growth is being fuelled with the aid of several factors, together with an upward push within the wide variety of business and passenger car sales, stringent authorities mandates, the location's growing reputation of e-trade, and growth in change activities. In addition, the market's expansion is further Driven by the region's growing acceptance of IoT, connected cars, autonomous vehicles, and cloud technologies.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of the Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

Key Players

The Major Players in market are Laipac Technology Inc., Sensata Technologies Inc., Trackimo, CalAmp, TELTONIKA, ORBCOMM, TomTom International BV., Cartrack, Geotab Inc., Verizon, and Others in final Report.

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