Vehicle Tracking System Market

• Increasing demand for commercial vehicles is driving the market growth

Market CAGR is driven by the growing number of commercial vehicles, including buses, trucks, and vans, driving the market for vehicle tracking systems. Vehicles that are engaged in transporting men, material, or machinery- where on-time delivery can make a significant difference in cost and productivity- are prompting players to adopt GPS-tracking devices. School buses, city buses, state transport buses, cash vans, police petrol vans, cargo vans, courier pickup, radio taxis, delivery vans, and others are prospects for vehicle tracking systems.

Additionally, an increase in data privacy violations is the major reason discouraging end-user from utilizing vehicle tracking systems, as the data includes personal information, including driver and vehicle details and routes traveled are restraining the market growth. Furthermore, the growth in data privacy violations is controlling end-users from utilizing vehicle tracking systems, as the data includes personal information such as driver and vehicle details and the route pursued. Due to a shortage of cellular or wireless network connectivity, GPS and cellular-based trackers fail, and the R&D price connected with the system acts as a barrier for new market competitors.

Various companies and government authorities worldwide have developed a mobility-as-a-service model to decrease traffic and carbon emissions. They are launching ride-hailing, carpooling, car sharing, and more options for commuters instead of utilizing their private vehicle. Vehicle tracking system delivery companies are likely to profit from this service. The hardware device and software are expected to assist in gaining insights regarding pick-ups, drop-offs, vehicle telematics, and payment activities.

For instance, in August 2020, Zoomcar launched 'Zoomcar Mobility Stack' (ZMS), a software stack for corporates and fleet owners to maintain track of vehicle position and drivers' behavior in real-time to stop rash driving and control vehicular damage. Moreover, the mobility services providers such as Lyft, Uber, Ola, DiDi, and others have announced their plans to introduce autonomous vehicles and robot taxis in their fleets. Therefore, the surge in the adoption of Mobility-as-a-service (MaaS) offers different opportunities for market expansion. Thus, driving the vehicle tracking system market revenue.

The Global Vehicle Tracking System Market Industry is projected to experience substantial growth, with estimates indicating a market size of 93.0 USD Billion by 2035. This growth trajectory reflects the increasing reliance on vehicle tracking technologies across various sectors, including logistics, public transportation, and personal vehicle management. The anticipated CAGR of 12.35% from 2025 to 2035 underscores the market's robust potential, driven by factors such as technological advancements, regulatory support, and heightened security concerns. As the industry evolves, it is likely to witness innovations that further enhance the capabilities and applications of vehicle tracking systems.

The Global Vehicle Tracking System Market Industry is also driven by increasing concerns over vehicle theft and security. With vehicle theft rates rising in various regions, consumers and businesses are seeking effective solutions to protect their assets. Vehicle tracking systems provide real-time monitoring and recovery options, which can significantly reduce the financial impact of theft. For instance, systems equipped with geofencing capabilities alert owners when vehicles move outside designated areas. This heightened focus on security is likely to propel market growth, as more individuals and organizations invest in tracking solutions to safeguard their vehicles.

Government regulations and initiatives aimed at enhancing road safety and reducing traffic congestion are contributing to the growth of the Global Vehicle Tracking System Market Industry. Many governments are mandating the use of tracking systems for commercial vehicles to ensure compliance with safety standards and improve accountability. Such regulations not only promote the adoption of vehicle tracking technologies but also encourage innovation within the industry. As governments worldwide continue to implement policies that support the integration of tracking systems, the market is poised for substantial growth, aligning with broader public safety objectives.

The Global Vehicle Tracking System Market Industry is witnessing a shift due to the increasing adoption of electric vehicles (EVs). As the EV market expands, the need for tracking systems that monitor battery performance, charging status, and overall vehicle health becomes more pronounced. Vehicle tracking systems can provide valuable data to manufacturers and consumers alike, facilitating better maintenance and enhancing user experience. This trend is expected to gain momentum, particularly as the market for electric vehicles is projected to grow significantly in the coming years, further driving the demand for integrated tracking solutions.

Technological advancements in GPS and Internet of Things (IoT) are significantly influencing the Global Vehicle Tracking System Market Industry. The integration of advanced GPS technology allows for precise location tracking, while IoT enables seamless communication between vehicles and tracking systems. This synergy enhances data collection and analysis, providing businesses with actionable insights. Furthermore, the proliferation of smartphones and mobile applications facilitates user access to tracking information, thereby increasing the appeal of these systems. As technology continues to evolve, the market is expected to expand, with a projected CAGR of 12.35% from 2025 to 2035.

The Global Vehicle Tracking System Market Industry is experiencing a surge in demand for fleet management solutions, driven by the need for enhanced operational efficiency. Companies are increasingly adopting vehicle tracking systems to monitor their fleets in real-time, optimize routes, and reduce fuel consumption. This trend is particularly evident in logistics and transportation sectors, where businesses aim to minimize costs while improving service delivery. As a result, the market is projected to reach 25.8 USD Billion in 2024, reflecting a growing recognition of the value that vehicle tracking systems bring to fleet management.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The Asia-Pacific vehicle tracking system market area will dominate this market. This is due to technological advancements in networking, an increase in the sales of commercial and passenger vehicles, stringent government regulations, and the increasing popularity of the e-commerce sector drives the market in the region. Moreover, China’s vehicle tracking system market held the largest market share, and the Indian vehicle tracking system market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global Vehicle Tracking System Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe vehicle tracking system market accounts for the second-largest market share due to the growing acceptance of technologies such as cloud, connected cars, IoT, and autonomous vehicles in the region. Further, the German vehicle tracking system market held the largest market share, and the UK vehicle tracking system market was the fastest-growing market in the European region.

The North American vehicle tracking system market is expected to grow at the fastest CAGR from 2024 to 2032. owing to growing concerns over carbon emissions and an increasing understanding of vehicle fleet and cargo technology. The compulsory norms over safety criteria by the government drive the market growth in this region. Further, the US vehicle tracking system market held the largest market share, and the Canada vehicle tracking system market was the fastest-growing market in the North America region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the vehicle tracking system market grow even more. Market participants are also undertaking multiple strategic activities to expand their global footprint, with important market developments including contractual agreements, new product launches, mergers and acquisitions, higher investments, and collaboration with other organizations. To enhance and survive in a more competitive and growing market climate, the vehicle tracking system industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global vehicle tracking system industry to benefit clients and expand the market sector. Major players in the vehicle tracking system market, including AT&T Intellectual Property (US), Cartrack (South Africa), Continental AG (Germany), and others, are attempting to increase market demand by investing in research and development operations.

CalAmp Corp. delivers wireless access and computer technologies. The Company's services include interface design and embedded computing, software development, technology consulting, and the production of electronic devices. CalAmp designs products for digital multimedia delivery, healthcare, retailing applications, public safety markets, and wireless enterprise connectivity. In June 2022, CalAmp Corp. announced a new partnership with Assured Telematics. With its CalAmp's edge computing devices, the company would offer commercial and public fleet operators the assured Apollo electronic logging device (ELD) solution.

Concox is a designer and manufacturer of professional telematics and wireless communications products. The company offers government, transportation, and enterprise GPS tracking solutions for higher organizational efficiency. In September 2022, Concox launched LL303, a 4G solar tracker for tracking ships and construction vehicles. In LL303, by integrating GPS, BDS, LBS, and WiFi multiple positioning systems, the cloud platform provides vehicle location and trajectory information outside vehicle location and trajectory information outside the production site to ensure production safety and productivity.