The global vehicle tracking systems market size was valued at USD 17.64 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 13.3% from 2021 to 2028. gps car tracker

The vehicle tracking system is also known as GPS tracking. The need for achieving improved operational efficiency, productivity, and profitability at reduced costs coupled with the digitalization of vehicles is anticipated to act as a key driving factor for the market growth.

These systems include features such as predictive fleet maintenance, telematics asset tracking, and fleet route planning. These features facilitate optimum utilization of resources and flexibility in operations. Additionally, factors such as increased cost savings and enhanced customer experience are further contributing to market demand.

The market has witnessed significant developments in the past few years due to increased digitalization and technological advancement, enabling easy tracking of vehicle performance. The application of automation, telematics, and IoT in these systems has enabled fleet operators to achieve higher operational efficiency. The systems ensure vehicle security and safety while tracking vehicle usage data. Cost savings due to enhanced vehicle performance and innovative features such as fleet analytics, fuel management, driver monitoring, and predictive vehicle maintenance are other key factors anticipated to drive market growth over the forecast period.

Moreover, the increasing fleet size of transportation and logistics companies has made fleet tracking necessary for vehicle security and timely delivery. The rapid increase in commercial vehicle sales is expected to drive the demand for fleet tracking and maintenance operations. For instance, according to the Organisation Internationale des Constructeurs d’Automobiles (OICA), Germany witnessed a significant increase in commercial vehicle sales from 386,282 units in 2018 to 409,801 units in 2019. Similarly, Canada also witnessed commercial vehicle sales of 1,479.2 million units in 2019 compared to 1,407.2 million units in 2018. The year-on-year growth in commercial vehicle sales shows the increasing operational fleet size of logistics and transportation companies. The increase in fleet operations, especially in developing markets, is anticipated to boost the market growth.

The COVID-19 pandemic has negatively impacted the demand for vehicle tracking systems in 2020. The overall automotive production volumes have declined globally on a year-on-year basis, mainly due to the decreased production volumes in North America and Europe, among other regions. The slowdown faced in some of the leading end-use industries, such as transportation & logistics, retail, and construction and manufacturing, has particularly translated into a dwindling demand for vehicle tracking systems.

Technology Type Insights

The GPS/satellite segment emerged as the largest segment in 2020 and is anticipated to maintain its dominance over the forecast period. The segment is estimated to expand at the highest CAGR from 2021 to 2028 owing to several factors, such as GPS capability to work with various technologies like GSM, LTE, and WiMAX coupled with the ability of GPS to be publicized with several satellites. Though it is costly compared to GPRS, its ability to chart more efficient routes and provide better productivity has positively impacted the segment growth.

The dual-mode segment is projected to expand at the second-highest CAGR of 12.1% over the forecast period owing to the presence of several companies that offer both GPS and GPRS-based vehicle tracking systems. For instance, CalAmp is engaged in offering both GPS-based and GPRS-based devices. The dual-mode devices are cheap, easy to install, and are a reliable link between the tracking devices and application servers.

GPS car tracker key players

Some of the key players offering GPS Tracking devices include Calamp (US), Orbocomm (US), Sierra Wireless (Canada), Quelink Wireless Solution (China), Concox Wireless Solution (China), TomTom International (Netherlands), Laird (UK), Xirgo Technologies (US), and Maestro Wireless Solutions (Hong Kong) among others.

The companies in the market are highly focused on product launches to expand their product offerings and meet consumer demands. For instance, in January 2021, Geotab Inc. announced the launch of its new GO9+ telematics solution, which now offers Wi-Fi connectivity. The GO9+ allows businesses to get insights into their vehicles in real time and use Wi-Fi connectivity with the ignition off for up to four hours. In September 2020, TomTom International B.V. announced the launch of the TomTom Go navigation app on major app platforms. TomTom Go navigation comes with 3D maps and provides a better driving experience even without a mobile network.

Regional Insights gps car tracker

North America accounted for the largest revenue share of over 30% in 2020 and is estimated to register a steady growth rate over the forecast period. The growing concerns of vehicle emission, security, and safety have strongly influenced the transportation industry. Governments across the developed nations have acknowledged these concerns and subsequently introduced stringent norms and developed safety programs. For instance, the U.S. government developed a ‘National Safety Program’ for its General Services Administration (GSA) fleet. Besides, increasing development in Intelligent Transportation Systems has promoted the widespread adoption of smart technologies in fleet management.

The Asia Pacific vehicle tracking system market is projected to expand at the highest CAGR of 18.0% over the forecast period. The rapid expansion of the e-commerce sector, rising advancements in networking technologies, strict regulatory mandates, and increasing commercial and passenger vehicle sales are some of the key factors driving the regional market growth. Besides, the growing adoption of advanced technologies such as autonomous vehicles, IoT, and cloud in the region is further anticipated to bolster the market growth. gps car tracker

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