Global Vehicle Tracking Systems Market by End Use (Retail, Transportation & Logistics) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global vehicle tracking systems market was valued at USD 17.64 million in 2020. It is expected to grow at a compound annual rate (CAGR of 13.3%) between 2021 and 2028. The vehicle tracking system is also known HTML3_ tracking. Market growth is expected to be driven by the need for greater operational efficiency, productivity, profitability, and lower costs. These systems include predictive fleet maintenance, fleet route planning, and telematics asset track. These features allow for flexibility and optimal utilization of resources. Market demand is also influenced by factors like cost savings and customer experience.

The digitalization of vehicles and technological advances have led to significant changes in the market. These systems have enabled fleet operators to achieve greater operational efficiency through the use of automation, IoT, and telematics. These systems provide vehicle safety and security while also tracking vehicle usage data. Other key factors expected to drive market growth are cost reductions, improved vehicle performance, innovative features like fleet analytics, fuel management and driver monitoring, as well as predictive vehicle maintenance.

Fleet tracking is essential for vehicle security, timely delivery, and fleet management has become more important due to the growing fleets of logistics and transportation companies. It is expected that the rapid rise in commercial vehicle sales will drive demand for fleet tracking. Organisation Internationale des Constructeurs d'Automobiles (OICA) reports that Germany saw a dramatic increase in the number of commercial vehicles sold, from 386,282 units last year to 409,801 in 2019. Canada saw a similar increase in commercial vehicle sales to 1,479.2 millions units in 2019, compared with 1,407.2 million units for 2018. Year-on-year, Canada saw a growth in commercial vehicle sales of 1,479.2 million units in 2019, compared to 1,407.2 million units in 2018. Market growth will be boosted by the expected increase in fleet operations in developing markets.

The 2020 COVID-19 pandemic had a negative impact on the demand for vehicle tracking devices. Globally, automotive production volumes have decreased year-over-year, mostly due to lower production in North America and Europe. The slowdown in several of the top end-use industries such as transport & logistics, retail, construction and manufacturing has led to a decrease in vehicle tracking system demand.

Vehicle Type Insights

In 2020, the passenger vehicle segment held 41.0% of the market share. This segment is expected to grow at the highest rate of CAGR between 2021 and 2028 due to an increase in fleet operators from both developed and emerging countries. Passenger vehicles are also very popular with small and medium-sized companies. They are often used to transport employees and customers in their daily tasks. There has been an increase in demand for vehicle tracking systems in passenger cars. Segment growth is expected to be driven by the increasing desire of fleet operators to provide a better user experience.

From 2021 to 2028, the CAGR for light commercial vehicles will be 11.8%. This growth can be attributed largely to an increasing demand for light commercial vehicle across both the transportation and logistics sectors. The rising use of e-commerce is expected to increase the demand for vehicle tracking systems for light commercial vehicles. Pickup trucks and minivans, which are light commercial vehicles, are used in trade and courier services, plumbing, HVAC, and delivery services. These services allow companies to send the most efficient route to their delivery team, issue invoices, and track proof of delivery using vehicle tracking systems.

End-use Insights

In 2020, the transportation and logistics segment held a dominant share at over 26%. It is expected to maintain its dominance in the future. Due to increasing GPS tracking usage in transportation and logistics, the segment is expected to grow at the highest CAGR between 2021 and 2028. Vehicle tracking systems have positively impacted market growth by providing real-time location monitoring, driver safety, reduced fuel consumption, and lower administrative costs. Due to the rise of connected vehicles, many companies are now more inclined to use the system.

Retail is expected to grow at 13.5% CAGR over the forecast period. Small and medium-sized retailers are now offering delivery services due to the growth of e-commerce. Vehicle tracking systems allow retailers to reduce costs and increase productivity. They can track vehicles in real time and complete deliveries on-time. Construction and manufacturing will see a significant increase in revenue between 2021-2028. This can be attributed to a variety of factors such as engine monitoring, vehicle misuse prevention, monitoring PTO events and locating stolen equipment. It also helps with insurance costs.

Technology Type Insights

In 2020, the GPS/satellite segment was the largest and will continue to be the dominant segment for the forecast period. This segment is expected to grow at the highest rate of CAGR between 2021 and 2028 due to several factors such as GPS being able to work with multiple technologies like GSM/LTE and WiMAX, along with the ability for GPS to be publicly advertised with multiple satellites. Although it is more expensive than GPRS, the ability to map more efficient routes and increase productivity has positively impacted segment growth.

Due to the existence of many companies offering both GPS-based and GPRS-based vehicle trackers, the dual-mode segment will grow at 12.1% CAGR over the forecast period. CalAmp, for example, offers both GPS-based as well as GPRS-based devices. Dual-mode devices can be installed quickly and cost effectively and provide a reliable link between tracking devices and the application servers.

Type Insights

In 2020, the active segment accounted for a dominant revenue share at over 83%. It is expected to maintain its dominance in the future. This segment is expected to grow at the highest rate of CAGR between 2021 and 2028 because it can track real-time data through both satellite and cellular networks. Although active vehicle tracking systems can be complex, they have significant advantages, such as the ability to track vehicles via satellite and cellular networks, labor law compliance and precise delivery times.

Passive segment growth is expected to be substantial between 2021 and 2028. Passive vehicle tracking systems track vehicle data and save it to a hard drive. These data can later be accessed via a tablet or computer. These systems do not provide real-time location information, so they are not useful in emergency situations like road accidents or theft. Segment growth is expected to be driven by factors like simple functionality and no monthly fee.

Component Insights

Software accounted for 66% of the total revenue in 2020. It is expected to maintain its dominance during the forecast period. Due to an increasing number of companies offering software-based vehicle trackers, the segment is expected to grow at the highest rate CAGR between 2021 and 2028. Software includes performance, management, vehicle diagnosis, fleet analytics, reporting, driver behavior monitoring, as well as other software. The segment is expected to grow due to a rising demand and inclination primarily for driver behaviour monitoring, fleet analytics, reporting, vehicle diagnostics, and reporting.

Over the forecast period, the hardware segment will see a CAGR rate of 11.9%. This segment includes OBD device/tracker, advance tracker, and standalone tracker. In 2020, the OBD device/tracker subsegment and advance tracker accounted for a large share. This segment is expected to grow at a steady CAGR of 2021-2028. The segment's growth is expected to be driven by factors such as built-in Bluetooth, low power sleep modes and enhanced GPS and cell performance.

Regional Insights

North America was the country with the highest revenue share, at over 30% in 2020. It is expected to continue its steady growth over the forecast period. Transportation industry has been strongly affected by growing concerns about vehicle emissions, safety, and security. These concerns have been recognized by governments across developed countries who then established safety programs and strict norms. The U.S. government, for example, developed a "National Safety Program" for its General Services Administration fleet. Smart technologies have been widely adopted in fleet management due to the rapid development of Intelligent Transportation Systems.

Over the forecast period, the Asia Pacific vehicle tracking systems market will grow at a highest CAGR of 18.0%. Market growth is driven by the rapid expansion of the online e-commerce industry, the advancements in networking technology, strict regulatory mandates, increasing passenger and commercial vehicle sales, and the rising popularity of e-commerce. The market will also be boosted by the increasing adoption of advanced technologies like autonomous vehicles, IoT and cloud.

Market Share Insights & Key Companies

TomTom International B.V., Verizon; Geotab Inc., ORBCOMM Inc. and CalAmp are some of the market leaders. Market players are focused on product launches in order to increase their product offerings and satisfy consumer demand. Geotab Inc., for example, announced in January 2021 the launch of its new GO9+ telematics system, which now includes Wi-Fi connectivity. Businesses can now get real-time insights into their vehicles and connect to Wi-Fi with the ignition turned off for up to 4 hours. TomTom International B.V. launched the TomTom Go navigation application on all major platforms in September 2020. TomTom Go navigation features 3D maps that provide a better driving experience, even without a smartphone network.

Market players are also investing in strategic expansion to increase their market share. Geotab Inc., for example, opened a Singapore office in January 2021 to expand its presence in Southeast Asia. This development will allow Geotab Inc. to increase its presence in the region as well as drive adoption of its connected car solutions. The following are some of the major players in the global market for vehicle tracking systems:

• Verizon

• Geotab Inc.

• Cartrack

• TomTom International B.V.

• CalAmp

• Teltonika

• ORBCOMM Inc.

• Xirgo Technologies, LLC

• Laipac Technology Inc.

• Trackimo Inc.

Up Market Research published a new report titled “Vehicle Tracking Systems Market research report which is segmented by End Use (Retail, Transportation & Logistics), By Players/Companies Trackimo Inc, Laipac Technology Inc, Verizon, Geotab Inc, CalAmp, TomTom International BV, Cartrack, Xirgo Technologies LLC, Teltonika, ORBCOMM Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Vehicle Tracking Systems Market Report Segments:

The market is segmented by End Use (Retail, Transportation & Logistics).

Vehicle Tracking Systems Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Vehicle Tracking Systems Market

Overview of the regional outlook of the Vehicle Tracking Systems Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Vehicle Tracking Systems Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Vehicle Tracking Systems Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Retail

                2. Transportation & Logistics

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Vehicle Tracking Systems Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Vehicle Tracking Systems Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.