During the forecast period 2022-2032, the Vehicle tracking system market is expected to grow at a 13.7% CAGR, according to Fact.MR. In 2021, this market was predicted to have a global valuation of US$ 19.4B and is expected to reach a sum of US$ 78.35 Billion by 2032. A vehicle tracking system uses GPS or a cellular technology to measure and analyze the behavior of a vehicle. It comprises remote vehicle tracking and monitoring, diagnosis, maintenance, fuel efficiency, driver management, route planning, and safety management. GPS, digital maps, GSM/GPRS, and specific software are used in vehicle tracking systems.
The expanding usage of modern technologies, as well as growing concern for vehicle security and safety, are driving market expansion. The expansion in fleet operations in developing countries, combined with government rules requiring the installation of vehicle monitoring systems in passenger and commercial vehicles, is driving development in the global vehicle tracking system market. Furthermore, the increasing acceptance of car leasing and rental services has prompted rental companies to integrate monitoring devices to improve their services, fueling market growth.
However, increasing environmental concerns can result in ambiguous communication, resulting in a bad user experience. As a consequence, vehicle tracking systems are hardly utilized. Growing environmental challenges frequently lead to confusing communication, resulting in a poor user experience. As a result, vehicle tracking devices are rarely used. These tracking devices employ GPS, and if an object is in its path, the signal is diverted, resulting in a poor connection. These issues constrain the market demand for vehicle tracking systems.
As an opportunity, the aviation sector has begun to adopt these products as well. Aviation not only facilitates passenger movement, but it also facilitates global trade. However, logistics service via air transport is also a business that involves cargo worth billions of dollars being imported and sold between countries. As a result, the key companies have been compelled to formulate a comprehensive vehicle and asset monitoring tracking system devoted to air transportation, hence fueling market growth during the forecast period.
Key Takeaways from the Market Study
- In 2022, the global Vehicle tracking system market is estimated to have a global market size of US$ 21.7 Billion
- By vehicle segment, the passenger car segment will account for 41% of the global Vehicle tracking system market share in 2022
- By end-use type, the transportation and logistics sector will acquire a market size of 26% in 2022
- The GPS/satellite category is expected to grow with 13.6% CAGR during 2022-2032
- The APAC vehicle tracking system market is expected to grow with a 13.4% CAGR during the forecast period
- The North American region was projected to acquire 32.5% of the global market share in 2021