Vehicle Tracking Systems Market Size to Hit US$ 80.17 Bn by 2032

The global vehicle tracking systems market was valued at USD 21.16 billion in 2022 and is projected to hit USD 80.17 billion by 2032, poised to grow at a CAGR of 14.3% from 2023 to 2032.

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Key Takeaways

North America has held the highest revenue share 32% in 2022.
Asia-Pacific is expected to expand at the fastest CAGR between 2023 and 2032.
By Vehicle Type, the passenger vehicles segment generated the largest market share of 41% in 2022.
By Vehicle Type, the light commercial vehicles segment is anticipated to grow at a notable CAGR during the projected period.
By Technology, the GPS/satellite segment has held the maximum market share in 2022.
By Component, the software segment held the biggest revenue share of 66% in 2022.

The vehicle tracking systems offer various advantages such as increased operational efficiency, reduced cost, vehicle monitoring, fuel management, vehicle maintenance, driver monitoring, and safety & security, which spurs the demand for the vehicle tracking systems across the globe. The proliferation of the advanced technologies such as IoT, automation, digitization, and telematics has significantly fostered the growth of the vehicle tracking systems market.

The rising adoption of the 5G technologies, rapidly growing ICT industry, and rising adoption of mobility-as-a-service is rapidly boosting the growth of the vehicle tracking systems market. The surging popularity of the electric vehicles across the globe owing to the rising government initiatives to promote emission free mobility solutions is augmenting the demand for the electric vehicle among the population. Further, the rising popularity of the autonomous driving vehicles among the premium customers is expected to foster the demand for the vehicle tracking systems. Hence, the growing demand for the latest electric and autonomous driving vehicles is expected to drive the global vehicle tracking systems market during the forecast period.

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Regional Snapshot

North America dominated the global vehicle tracking systems market, accounting for over 31% of the market share in 2020. This is attributed to the increased penetration of the e-commerce industry. The increased demand for the logistics solutions by the e-commerce is boosting the demand for the commercial vehicle. Moreover, increased demand for the passenger vehicles in the region has significant contribution in the growth of the North America vehicle tracking systems market. The rising demand for the electric passenger vehicles due to the increased disposable income, increased environment consciousness, and improved standard of living is further expected to drive the market growth in this region.

On the other hand, Asia Pacific is estimated to be the most opportunistic market during the forecast period. Asia Pacific is the home to around 60% of the global population. The demand for the public transportation is high owing to the huge presence of middle and low-income consumers. Furthermore, the rising penetration of the e-commerce is expected to drive the market growth in the forthcoming years. The growing number of commercial vehicles owing to the rising commercial activities is augmenting the growth of the vehicle tracking systems market.

Vehicle Tracking Systems Market Scope

Report Highlights	Details
Market Size in 2023	USD 24.08 Billion
Market Size by 2032	USD 80.17 Billion
Growth Rate	CAGR of 14.3%
Largest Market	North America
Base Year	2022
Forecast Period	2023 to 2032

Market Dynamics

Driver

Rising penetration of online retailers

With the advancements in the digital technologies and increasing adoption of the smartphones coupled with the rising number of internet users across the globe, the emergence of the online retailers has gained momentum. Various online shopping platforms such as Amazon, eBay, Flipkart, and Wal-Mart has gained rapid traction among the consumers. These online retailers increasingly adopts the logistic services in order to efficiently deliver the goods to their customers. Hence, this has increased the demand for the vehicle tracking systems to provide the details regarding the orders to the customers.

Restraints

Lack of accuracy owing to the unfavorable weather conditions

The GPS technologies face difficulties in providing accurate locations and routes sometimes owing to the unfavorable weather conditions. This is a major drawback of the vehicle tracking systems that may hamper the market growth during the forecast period.

Opportunities

Rising adoption of smart logistics

The proliferation of latest technologies like AI and IoT has boosted its adoption in the logistics. These latest technologies are expected to enhance the vehicle tracking performances and hence promoted the growth of the smart logistics.

Challenges

Privacy and network security issues

The major challenge faced by the digital technologies is the privacy and the network security concerns. The market players are constantly involved in enhancing their services and improve the privacy and network security related issues.

Report Highlights

Based on the vehicle type, the passenger vehicle segment dominated the market with over 40% of the market share in 2020. This is simply attributed to the increased adoption of the passenger vehicle among the global population owing to increased disposable income and rising demand for the luxury consumer products. In some countries, the personal vehicles are a symbol of prosperity, which further boosts the demand for the passenger vehicle among the common public.
Based on the technology, the GPS/Satellite is the dominating and the fastest-growing segment. This is due to the increased efficiency of the GPS to publicize with the satellites and provide accurate routes and location, which increases the efficiency of the vehicle tracking systems.
Based on the component, the software segment dominated the market, garnering over 65% of the market share in 2020. The ability of the software to provide various benefits such as vehicle monitoring, fuel management, vehicle maintenance, driver monitoring, and safety & security has resulted in its dominance and is expected to sustain its position throughout the forecast period.

Some of the prominent players in the global vehicle tracking systems market include: