The global vehicle tracking system market size was valued at USD 21.54 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 14.1% over the forecast period from 2023 to 2030. The rising adoption of advanced technology and growing concern for the security and safety of vehicles are factors driving the market's growth. The rise in fleet operations in emerging nations, coupled with government regulations to install vehicle tracking devices in passenger and commercial vehicles, is fueling the growth. Furthermore, the growing adoption of car leasing and rental services has compelled rental companies to integrate tracking devices to enhance their services, further driving the market's growth.

The increase in the number of road accidents has led fleet management companies and government authorities to make installing tracking devices in all vehicles to track their location and speed mandatory. Additionally, the rising uptake of the intelligent transport system and the emergence of 5G into vehicle connectivity are anticipated to propel market growth. The increasing demand for semi-autonomous and autonomous vehicles also contributes to the demand for advanced and standard vehicle tracking systems.

In early 2020, the outbreak of the COVID-19 pandemic brought unprecedented challenges for industries around the world. To contain the aggressive spread of the virus, governments worldwide have to introduce lockdown and social distancing mandates. The lockdowns forced industries such as the automotive industry to halt manufacturing, assembly, and production in Europe, America, and Asia. The lockdown also negatively impacted the demand for passenger and commercial vehicles. The vehicle tracking system software and hardware production also experienced the impact induced by low demand for the product.

In 2021, as the lockdown mandates were lifted owing to COVID-19's subsiding effects, the demand for automobiles witnessed a surge, creating a demand for vehicle tracking system technologies. Still, the demand surge was met with a disrupted supply chain of semiconductor chips. Regardless of vehicle type, the semiconductor's chips are integral to the vehicle tracking system. The absence of semiconductor chips resulted in a production timeline delay. Therefore, the pandemic and the repeated supply chain and production disruption caused a restriction in the growth of the vehicle tracking system market.

Over time, as business and trade started expanding beyond regional boundaries, the import and export of different cargo also increased by volume. The growing volume of trade worldwide has also upsurged the need for a commercial vehicle fleet dedicated to logistics. The major market participants are dedicating resources to developing products that provide seamless fleet management to companies. For instance, Geotab has developed fleet maintenance software that uses predictive analytics by analyzing data to identify potential and critical mechanical issues and prioritize repairs. The software studies and compares data from engines and other components using sensors to predict the issues that might occur.

Detailed Segmentation:

End-use Insights

The transportation & logistics segment dominated the market with the highest revenue share of 27.3% in 2022 and is anticipated to register the fastest CAGR of 18.0% over the forecast period. This can be attributed to the increasing fleet size and fleet operators; the usage of a global positioning system for logistics and transportation tracking worldwide has seen an application surge.

Technology Insights

Based on technology, the market is segmented into GPS/ satellite, GPRS/ cellular network, and dual-mode. The GPS/satellite segment held the largest market share of 49.8% in 2022and is expected to register the fastest CAGR of 15.9% over the forecast period. The growth can be accredited to a surge in commercial vehicle sales and cloud technology and IoT adoption in the healthcare, automotive, logistics, and defense industries.

Regional Insights

North America dominated the market with the largest revenue share of 32.7% in 2022. Intelligent systems' emergence has led to the adoption of fleet management technologies. Furthermore, growing concerns over carbon emissions and awareness of vehicle fleet and cargo technology. 

Vehicle Type Insights

The passenger vehicles segment accounted for the largest revenue share of over 43.1%. The segment also is expected to register the fastest CAGR of 17.1% over the forecast period. Using a tracking system by app-based transportation car leasing and renting businesses such as Ola; Uber; Careem; and Lyft, Inc., for smooth operational control is driving the segment's growth.

Type Insights

The active segment accounted for the largest share of around 84.3% of the market in 2022 and is anticipated to register the fastest CAGR of 14.8% over the forecast period. The active and passive vehicle tracking systems have the same functionality. 

Component Insights

The software segment held a considerable market share in 2022. Features such as fleet analytics, real-time alerts for traffic and maintenance, vehicle diagnostics, driver behavior monitoring, and measuring vehicle utilization which indicates the vehicle efficiency and the total cost of vehicle ownership, are included in tracking software and are leading to significant growth.

Key Players in the Vehicle Tracking System Market

• Cartrack
• Verizon
• Geotab Inc.
• TomTom International BV.
• CalAmp
• TELTONIKA
• ORBCOMM
• Sensata Technologies Inc.
• Laipac Technology Inc.
• Trackimo

Recent Developments

• In April 2023, iTecknologi Group joined forces with Vehari Police to introduce Advanced Vehicle Tracking Services to enhance the safety and monitoring of the police fleet. This collaboration will provide real-time tracking capabilities, enabling the police to have up-to-date information about the location of their vehicles.
• In January 2023, West Bengal Chief Minister inaugurated a new system in Kolkata. The system aims to bring significant benefits to the transportation sector in the state. In its first phase, approximately 160,000 vehicles will be covered under this initiative. The inauguration of this system marks a significant step towards enhancing the efficiency and effectiveness of transportation in West Bengal.
• In August 2022, ineedatracker.com partnered with Global Telemetrics. This collaboration marks a significant transition for ineedatracker.com as it moves from its current position as a retailer to a provider of monitored vehicle tracking systems.

Order a free sample PDF of the Market Intelligence Study, published by Grand View Research.