Vehicle Tracking System Market by Technology (GPS/Satellite, GPRS/Cellular Networks and Dual Mode), Type (Active and Passive), Component (Hardware and Software), and Vehicle Type (Passenger Cars and Commercial Vehicles - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits - Forecast 2024 – 2032

Industry : Information Technology | Pages : 182 Pages | Upcoming : Jun 2024


In 2023, the global market for vehicle tracking systems had a value of $17.37 billion. However, due to the COVID-19 pandemic, the market was adversely affected. Restrictions on commuting and the expected poor financial performance of market players led to this impact.

As a result, organizations have been implementing cost-saving strategies, including considering options such as selling and leasing back their vehicle assets to improve their cash flow. The participants in the vehicle tracking system market face several risk factors, including supply chain execution, regulatory and policy changes, dependence on labor, working capital management, and liquidity and solvency management. Additionally, certain industries like FMCG, retail, agriculture, and pharmaceuticals, which provide essential services, have faced challenges in dispatching stored products due to a limited number of transporters. To ensure a continuous supply of essential goods, there has been an increased demand for vehicle tracking hardware and management software. By 2030, the market is projected to reach $109.95 billion, with a compound annual growth rate (CAGR) of 19.7% from 2023 to 2030.

A vehicle tracking system is a technology that utilizes the global positioning system (GPS) or cellular network to monitor and track the activities of a vehicle. It offers various functionalities such as remote tracking and monitoring of vehicles, maintenance management, vehicle diagnostics, fuel management, route optimization, driver management, and safety management. The system operates through a combination of GPS, GSM/GPRS, digital maps, and specialized software.

Inside the vehicle, a tracking module continuously captures the GPS coordinates, providing real-time information about the vehicle's location. These coordinates are transmitted to the user's computers using cellular data services. Customers can access the software and view their vehicles on road maps, similar to GPS navigation systems. There are also non-real-time tracking systems where the in-vehicle module records the coordinates, which can be downloaded from the module when the vehicle is returned.

The growth of the global vehicle tracking systems market is driven by the integration of real-time monitoring and fuel management in vehicles, as well as the increasing concern for safety and security in transportation services. Additionally, the expansion of fleet operations, especially in emerging markets, is expected to contribute to revenue growth. However, challenges such as price concerns for fleet owners, data privacy issues, cybersecurity threats, and atmospheric interference pose obstacles to market growth. On the other hand, opportunities for market growth include the adoption of intelligent transport systems, the emergence of 5G connectivity in vehicles, and the growing adoption of mobility-as-a-service (MaaS) models.

The vehicle tracking systems market is categorized based on type, vehicle type, technology, component, and region. Types include active and passive tracking systems, while vehicle types comprise passenger cars and commercial vehicles. The technology options consist of GPS/satellite, GPRS/cellular networks, and dual-mode systems. Components are divided into hardware and software. The market is further analyzed across regions including North America, Europe, Asia-Pacific, and LAMEA.

The companies profiled in the global vehicle tracking systems industry report are CalAmp, Cartrack Holdings Limited, Continental AG, Geotab Inc., Trackimo, Teltonika, Teletrac Navman US Ltd, Tomtom, Inc., Verizon Communication Inc. and Xirgo Technologies, LLC

Integration of real-time monitoring and fuel management in vehicles

Vehicle owners and fleet operators have the ability to track their vehicles in real-time, ensuring adherence to planned routes and detecting any deviations. Cloud-based solutions incorporating technologies such as AI, IoT, and big data are utilized to gather primary data for effective fleet management. For example, Techwave Consulting Inc. employs embedded sensors in vehicles to monitor high-value goods, enabling real-time data transmission to the cloud. Key activities in vehicle tracking systems include vehicle and driver tracking, asset management, two-way communication, driver safety and time management, rescheduling delivery tasks, among others.

The introduction of innovative products and the advantages of vehicle tracking systems, such as rapid access and response, broad coverage, and cost reduction, enhance productivity and efficiency for vendors, consequently driving the demand for such systems. Additionally, many vehicle owners and fleet operators encounter challenges in accurately measuring fuel consumption due to a lack of familiarity with fuel monitoring tools. By leveraging IoT, fuel control can be achieved. Specially designed sensors are integrated into fuel tanks, transmitting notifications about fuel levels to users' mobile devices and computers via the public cloud. Moreover, vehicle tracking systems contribute to efficient vehicle management by utilizing embedded sensors to assess driver behavior, including driving hours, harsh braking, speed consistency, frequent halts, and aggressive acceleration. This integration of real-time monitoring and fuel management plays a significant role in propelling market growth.

Increase in fleet operations especially in the emerging markets
The increasing demand for vehicle tracking systems is driven by the need for enhanced vehicle safety and the reduction of idle time, facilitated by the growing use of the internet and advancements in connectivity technologies. Directives like e-call services have provided fleet owners with emergency alert capabilities, further bolstering the adoption of vehicle tracking systems. Fleet operators and logistics businesses recognize the potential of this technology as a key driver of profitability, leading to its widespread implementation.

In the context of the electric/hybrid vehicle trend, countries such as China, Japan, and South Korea are at the forefront, aiming to increase the number of fleet cars on the road. As a result, fleet operations are projected to experience rapid growth in emerging regions like Asia-Pacific and Latin America.

However, concerns regarding data privacy infringement and cybersecurity threats pose significant challenges. Vehicle-related data contains sensitive information, including vehicle details, driver personal information, and travel routes. Exploitation of this data for malicious activities, such as vehicle theft or organized crime, is a significant deterrent for end customers, particularly in countries with strict regulations like North America and China. Unauthorized access to multiple vehicle connectivity solutions or breaches of in-vehicle connectivity systems present security risks, as hackers gain access to the vehicle's computer system and the data it collects and stores. Consequently, the potential infringement of data privacy and the accompanying cybersecurity threats within vehicle tracking systems are expected to hinder the market's growth.

Rise in adoption of Mobility-as-a-service (MaaS)
Companies and government entities worldwide have implemented a mobility-as-a-service (MaaS) model as a means to reduce traffic congestion and carbon emissions. This approach involves offering alternatives to private vehicle usage, such as ride-hailing, carpooling, and car-sharing services. Vehicle tracking system providers stand to benefit from this paradigm shift. The hardware devices and software utilized in these systems enable valuable insights into pickup and drop-off locations, vehicle telematics, and payment activities. For example, in August 2023, Zoomcar introduced the 'Zoomcar Mobility Stack' (ZMS), a software stack that allows corporates and fleet owners to monitor real-time vehicle status and driver behavior, promoting responsible driving and minimizing vehicular damage. Additionally, major mobility service providers like Lyft, Uber, Ola, DiDi, and others have announced plans to incorporate autonomous vehicles and robo-taxis into their fleets. The increasing adoption of MaaS presents diverse opportunities for market expansion.

COVID-19 has had a negative impact on the global vehicle tracking system market due to commuting restrictions and the expected financial challenges faced by market players in 2023. Organizations have responded to the economic implications of the pandemic by implementing strategic cost-saving measures, including considering options like sale and leaseback of vehicle assets to improve cash flow. Participants in the vehicle tracking system market face various risk factors, including supply chain execution, regulatory and policy changes, labor dependency, working capital management, and liquidity and solvency management. Moreover, sectors such as FMCG, retail, agriculture, and pharmaceuticals, which provide essential services, have faced challenges in dispatching stored products due to limited transportation availability. To ensure a continuous supply of essentials, there has been an increased demand for vehicle tracking hardware and management software.

Market Segmentation:

By Type

• Active
• Passive



• Transportation and Logistics
• Construction & Manufacturing
• Aviation
• Retail
• Government
• Other Industry Verticals

Key Benefits For Stakeholders

• This study provides an analytical overview of the global vehicle tracking system market, including an analysis of current trends and future projections to identify promising investment opportunities.

• By understanding the lucrative trends, the report assesses the overall market potential for vehicle tracking systems, aiding in establishing a stronger market position.

• The report offers valuable insights into the key drivers, restraints, and opportunities within the global vehicle tracking system market, accompanied by a detailed impact analysis.

• Through quantitative analysis spanning from 2023 to 2030, the report evaluates the financial capabilities of the current vehicle tracking system market.

• Porter's five forces analysis is utilized to illustrate the bargaining power of buyers and suppliers within the industry.


Table and Figures


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