Vehicle Tracking System Market

Vehicle Tracking System Market Outlook (2024 to 2034)

A revised research study released by Fact.MR places the global vehicle tracking system market at a value of US$ 27.81 billion in 2024. Sales of vehicle tracking systems are expected to increase to US$ 96.08 billion by the end of 2034, rising at a noteworthy 13.2% CAGR.

One of the most basic features of vehicle tracking systems is the ability for consumers to track automobiles in real-time. Other features include vehicle maintenance notifications, driver behavior analysis, and journey history, as well as fuel management and dispatching assistance. To avoid theft, the system delivers notifications and alarms, as well as reports with extensive analysis. Depending on the fleet management solution, more functions are also possible.

Governments from various countries are implementing these devices in different vehicles, especially those used for service or industrial purposes. These tracking devices are primarily utilized in taxis, trucks, graders, and similar vehicles. The main reason for this is the growing number of accidents. In addition, the increasing adoption of intelligent transportation systems and the advent of 5G in-vehicle connectivity are anticipated to propel vehicle tracking system market growth.

Key Market Growth Drivers

• The increasing need for semi-autonomous and autonomous vehicles is driving sales of advanced and standard vehicle tracking systems.
• Vehicle tracking systems are no longer confined to road transportation; advancements in tracking technology have extended their use to the aviation sector. Aviation not only supports passenger movement but also facilitates global trade.
• One of the key trends is the increasing acceptance of car leasing and rental services, prompting rental companies to incorporate these devices to enhance their services.
• Continuous improvements in the accuracy of communication networks and GPS have made vehicle tracking systems more reliable.
• These innovations, which enable real-time tracking, improved route optimization, and effective fleet management, are benefiting market players.
• Vehicle tracking systems are crucial for businesses with large fleets to ensure effective management, reduce expenses, increase productivity, and guarantee timely delivery of products and services.
• Fleet management relies on vehicle tracking systems as they provide critical information about driver behavior, maintenance needs, and vehicle utilization.
• Increasing use of modern technologies, along with growing concerns over vehicle security and safety, is contributing to the expansion of the vehicle tracking system market size.

Report Attribute	Detail
Vehicle Tracking System Market Size (2024E)	US$ 27.81 Billion
Forecasted Market Value (2034F)	US$ 96.08 Billion
Global Market Growth Rate (2024 to 2034)	13.2% CAGR
North America Market Share (2024E)	33%
East Asia Market Value (2024E)	US$ 6.53 Billion
Hardware Segment Value (2034F)	US$ 50.92 Billion
GPS/Satellites Segment Value (2034F)	US$ 67.25 Billion
Key Companies Profiled	TomTom International B.V.; Cartrack; ORBCOMM Inc.; Cartrack; Robert Bosch GmbH; RUPTELA; AT&T Intellectual Property; Continental AG; Geotab Inc.; Verizon; Xirgo Technologies Inc.

Why are Fleet Operators and Logistics Companies Increasingly Adopting Vehicle Tracking Systems?

“Improved Vehicle Security and Emergency Response through Real-Time Location Tracking”

With the increasing use of the internet and advancements in connectivity, the demand for vehicle tracking systems is rising to ensure vehicle safety and reduce idle time. Various fleet owners using E-call services, for example, have benefited from receiving emergency alerts. Consequently, fleet operators and logistics companies use vehicle tracking technology to enhance profitability.

The real-time location of a company car is effectively used to determine if it is in a secure place. Many vehicle GPS tracking systems have an SOS feature that the driver can activate if they are stranded and need assistance. This button quickly sends a notification to the fleet manager, who then dispatches help as soon as possible. Knowing the car's exact location allows the manager to determine which vehicle to send to the emergency. These factors are driving the demand for vehicle tracking systems in the global market.

What is Hampering Utilization of Vehicle Tracking Systems?

“Unauthorized Access and Hacking Incidents Leading to Identity Fraud”

Data stored in a vehicle's system includes sensitive information such as purchase details, owner's information, and addresses. This information can be exploited for criminal activities like vehicle theft, identity fraud, and other planned crimes. Concerns about data privacy violations are a major factor preventing end users from adopting vehicle tracking systems, especially in countries with stringent regulations.

Incidents of unauthorized access to vehicle connectivity solutions or hacking into in-car systems are hindering the global demand for vehicle tracking systems. The primary security issue is that hackers can easily access the cars' computer systems and the data they collect and store. Consequently, data privacy breaches and cybersecurity threats to vehicle tracking systems are impeding market growth during the forecast period.

Country-wise Insights

North America is estimated to hold 33% of the global vehicle tracking system market share in 2024. Innovations in smart sensors are boosting the adoption of fleet management solutions in this region. Sales of vehicle tracking systems in East Asia are projected to increase at a 14.4% CAGR during the forecast period (2024 to 2034).

Which Advancement in Vehicle Tracking Systems is Driving Market Growth in the United States?

“Utilization of Geofencing Technology to Prevent Unauthorized Deviations and Accidents”

Attribute	United States
Market Value (2024E)	US$ 4.08 Billion
Growth Rate (2024 to 2034)	13% CAGR
Projected Value (2034F)	US$ 13.8 Billion

Companies in the United States are incorporating geofencing technology into these systems. Geofencing allows users to define specific areas as safe zones for employees or business operations. The fleet management solution receives an alert if a vehicle exits the designated area, preventing drivers from deviating to non-work locations or encountering accidents. Similarly, pressing the SOS button triggers immediate alerts in emergencies. These advancements are driving product demand in the country.

Why is Demand for Vehicle Tracking Systems Increasing Rapidly in Japan?

“Tracking Systems Providing Detailed Records and Reports Aiding in Audits and Inspections”

Attribute	Japan
Market Value (2024E)	US$ 1.89 Billion
Growth Rate (2024 to 2034)	14.5% CAGR
Projected Value (2034F)	US$ 7.34 Billion

The use of vehicle tracking systems is prevalent in commercial and service vehicles due to stringent government regulations in Japan. To ensure user safety, many vehicles in Japan are equipped with an SOS feature, which is a major vehicle tracking system market trend. In addition, businesses utilizing monitoring systems can track the location, routes, and driving behaviors of their fleets. They use this data to verify compliance with laws regarding authorized routes, working hours, and speed limits.

Detailed records and reports from vehicle monitoring systems serve as evidence of compliance during audits or inspections. Consequently, businesses in Japan are increasingly adopting these systems to meet legal requirements, avoid penalties, and maintain the operational standards set by regulatory agencies overseeing commercial vehicles and transportation services.

Category-wise Insights

Based on type, the market is segmented into active and passive. An active system monitors real-time data supplied to a computer system or a data management center via satellite or cellular networks. The active tracking system accomplishes all functions and provides easy access to tracking data and compatibility with various networks.

Why are GPS/Satellite Systems a Reliable Vehicle Monitoring Solution?

“GPS/Satellite Technology Providing Accurate, Real-Time Location Data”

Attribute	GPS/Satellites
Segment Value (2024E)	US$ 18.91 Billion
Growth Rate (2024 to 2034)	13.5% CAGR
Projected Value (2034F)	US$ 67.25 Billion

GPS/satellite technology is widely used in vehicle tracking systems because it provides accurate, real-time location data essential for efficient fleet management and security. Enhanced operational efficiency, reduced fuel costs, and timely deliveries rely on GPS technology, which ensures precise tracking of vehicle movements, route optimization, and continuous status updates.

The extensive availability and reliability of GPS and satellite systems make them an ideal choice for vehicle monitoring solutions, ensuring consistent performance and coverage. This technology enhances security by enabling quick recovery of stolen vehicles and offering geofencing features to monitor and control vehicle usage.

Why Do Hardware Vehicle Tracking Systems Occupy a Significant Market Share?

“Critical Role of Physical Tracking Devices in Enhancing System Performance and Connectivity”

Attribute	Hardware
Segment Value (2024E)	US$ 15.85 Billion
Growth Rate (2024 to 2034)	12.4% CAGR
Projected Value (2034F)	US$ 50.92 Billion

Considering the critical role physical tracking devices play in the overall system performance, there is a higher demand for vehicle tracking system hardware compared to software. Hardware components such as GPS trackers, sensors, and communication devices are essential for collecting real-time position data, tracking vehicle performance, and ensuring connectivity. Accurate tracking and data collection rely not just on software but also on robust hardware.

Hardware requires a substantial initial investment since each vehicle needs its own device, while software solutions generally have lower maintenance and upgrade costs. The higher demand for hardware over software stems from the necessity for comprehensive and reliable equipment.

Competitive Landscape

Key players in the vehicle tracking system industry intend to supply fleet management solutions, tracking solutions, and communication solutions. They are also creating a diverse portfolio that is constantly upgraded through research and innovation to supply high-quality items. Most firms are gaining a competitive advantage in the global market by introducing new and innovative items or features.

• In February 2024, throughout its fleet of more than 8,000 buses, the Gujarat State Road Transport Corporation (GSRTC) deployed the Integrated Vehicle Tracking and Passenger Information System (GPS). The project's objectives are to increase the corporation's and the passengers' level of comfort, safety, and efficiency concerning state transportation services.
• In November 2023, Reliance introduced JioMotive, the company's latest smart automobile gadget. The JioMotive, an on-board diagnostics (OBD) device, promises to enhance the intelligence of your vehicle.
• In October 2022, Bharti Airtel introduced the "Always On" IoT connection solution in India, featuring a dual-profile M2M eSIM. This innovation enables IoT devices to maintain continuous network access through two telecom providers.
• In April 2022, AWS and Bosch worked together to digitize logistics. Bosch and the United States cloud provider Amazon Web Services (AWS) intend to increase productivity and sustainability in the logistics and transportation industries.

Fact.MR provides detailed information about the price points of key manufacturers of vehicle tracking systems positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Vehicle Tracking System Market Research

• By Type :

  • Active
  • Passive

• By Vehicle Type :

  • Passenger
  • Light Commercial
  • Heavy Commercial

• By Component :

  • Hardware
    • OBD Devices/Trackers and Advance Trackers
    • Standalone Trackers
  • Software
    • Performance Management
    • Vehicle Diagnostics
    • Fleet Analytics & Reporting
    • Driver Behavior Monitoring

• By Technology :

  • GPS/Satellites
  • GPRS/Cellular Networks
  • Dual Modes

• By End Use :

  • Transportation & Logistics
  • Construction & Manufacturing
  • Aviation
  • Retail
  • Government & Defense

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa