The vehicle tracking system market comprises products such as global positioning system (GPS), global navigation satellite system (GNSS), and global system for mobile communication (GSM) that help track vehicles and fleet across locations. Vehicle tracking systems offer real-time monitoring of vehicles and deliver insights on parameters like engine hours, speed, mileage, and location through software platforms accessible on computers and mobile apps.
They help transport and logistics companies effectively manage fleet movement and ensure safer and secured Vehicle Tracking System Market Trends of cargo. The growing e-commerce industry is significantly contributing to the expansion of the logistics sector, augmenting the demand for effective vehicle tracking solutions. Furthermore, vehicle tracking systems help reduce operational costs by efficient routing, timely maintenance & repairs, and lesser fuel usage. They provide live updates on driver behavior and assistance during emergencies.
The Global Vehicle Tracking System Market is estimated to be valued at US$ 13.5 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024-2029.
Key Takeaways
Key players operating in the vehicle tracking system market are CalAmp, Cartrack, AT&T Intellectual Property, Cisco Systems, Inc., TomTom International BV., Verizon, and Geotab Inc.
The growing e-commerce industry is leading to rapid fleet expansion among logistics companies. Vehicle tracking solutions help transporters seamlessly handle the scaling demands while optimizing delivery timelines.
Technological advancements like integrated telematics control units, advanced GPS capabilities, and AI-powered driver monitoring systems are enhancing the functionalities of vehicle tracking platforms. Cloud-based solutions are enabling real-time vehicle management from any location.
Market Trends
Integration of IoT sensors is allowing fleet managers to access deeper analytic insights about asset health and predictive maintenance needs. This is improving operations efficiency.
Usage-based insurance models based on driving behavior data collected via telematics devices are gaining popularity. Insurers provide lower premiums to safe drivers measured through risk parameters like speeding, hard braking. tracking routes.
Market Opportunities
Expansion of commercial transportation through electric vehicles presents growth prospects. Tracking solutions facilitate efficient e-fleet administration and charging infrastructure optimization.
Adoption in non-commercial segments like private cars, school buses will increase with lower system costs and advanced features addressing privacy concerns of private asset tracking.
The COVID-19 pandemic has significantly impacted the growth of the vehicle tracking system market. During the pre-COVID era, the market was growing steadily owing to increasing vehicle thefts and road accidents across the globe. However, the imposition of lockdowns and mobility restrictions affected the demand for vehicle tracking systems temporarily.
With people staying indoors and commercial vehicles off the roads, the need for real-time vehicle location monitoring reduced significantly. This led to paused or delayed projects for fleet operators and logistic companies who are major adopters of vehicle tracking systems. Manufacturing facilities were also shut down affecting the production of these systems.
However, as lockdowns eased, the demand started reviving gradually. Commercial vehicles were back on roads to transport essential goods and emergency service vehicles needed to be tracked. With rising concerns over safety and security, individual owners also resumed installing tracking devices in personal vehicles.
Fleet operators realized the importance of optimizing fleet utilization and monitoring driver behavior through location-based services. This encouraged them to adopt advanced telematics solutions for fleet management on a larger scale. Furthermore, tech upgrades for contactless tracking and integrated features like geofencing aided compliance with social distancing norms.
The North American region holds the major share of the vehicle tracking system market in terms of value. This is attributed to large vehicle parc and strict regulations regarding fleet safety and efficiency. European nations also record high adoption driven by initiatives toward intelligent transport systems. On the other hand, the Asia Pacific region is witnessing fastest growth supported by initiatives for smart cities and rising automotive production in China, India and South Korea.
Though short term impacts were noted, the pandemic has long emphasised the need for connected vehicles and driver monitoring solutions. With mobility expected to surge post pandemic, the vehicle tracking system market is anticipated to further grow worldwide driven by demand across industries and geographies. OEM partnerships, value added services and IoT integrations will be key focus areas.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)