Tracking as a Service Market

Market Overview

The global tracking as a service market size was valued at USD 1,675.10 million in 2022. It is projected to reach USD 7,776.84 million by 2031, growing at a CAGR of 18.60% during the forecast period (2023-2031). 

A specific cloud-based digital monitoring system called tracking-as-a-service was created to assist many sectors with regular business operations. Tracking-as-a-service systems provide a suitable tracking solution so businesses can keep track of specific data about their operations and assets. Tracking-as-a-service is crucial for a company to improve its manufacturing and logistical processes and maximize financial efficiency. These services include tools for system integration, optimization, and end-user job management abilities. Additionally, tracking service technology aims to keep track of the current whereabouts of all assets. They provide a clear picture of the support used as a result. The requirement for improved fleet operator efficiency systems is expected to rise throughout the projected period, leading to noticeable growth in the tracking-as-a-service market.

Market Dynamics

Market Drivers

Increased Use of Smartphones

The industry is expected to rise due to the expanding use of technology in the manufacturing, healthcare, retail, and industrial logistics sectors and the development of smartphone technology. In addition, the capacity of smartphone navigation systems to track inventory, assets, and vehicles via a smartphone application is one of the key factors fueling the market's expansion in the logistics and supply chain management sectors. Asia-Pacific and North America are among the top regions for developing and distributing tracking service solutions based on 5G mobile network technology. Due to the availability of 5G infrastructure for improved tracking solutions, the increase in demand for tracking-as-a-service in China, Japan, the U.S., and South Korea is a key factor driving the global tracking-as-a-service technology market.

Increasing Necessary Upgrades to Improve the Effectiveness of Fleet Operators

A collection of cars leased or owned by a company and used only for supply chain operations is under a fleet manager's or operator's control. Multi-cloud platforms like public clouds, private clouds, and on-premises resource platforms are compatible with tracking-as-a-service technologies. As a result, this presents a tremendous opportunity for improvement to raise fleet operator efficiency. Companies like FieldLogix, for instance, are creating sophisticated route plans and customer service based on GPS fleet monitoring technology, which is anticipated to increase fleet operator efficiency. As a result, this presents profitable growth prospects for the market. Additionally, it has been predicted that the rise of novel technologies like multi-cloud platforms will accelerate the adoption of tracking-as-a-service technology among fleet operators.

Market Restraint

Increased Privacy Worries About Technological Monitoring Systems

Despite substantial growth, there are considerable obstacles to the quick implementation of monitoring and locating system solutions because of the rise in privacy and security worldwide. Additionally, private industries worldwide are concerned about privacy issues with electronic monitoring systems regarding data shared with third parties and stored via the tracking application, limiting the market growth. For example, tech giant Google recently announced that it would allow third-party cookies to track the user's information, which is anticipated to deter businesses from adopting the tracking solution. Although working as a service technician is fraught with difficulties, if the IT department of an organization uses it correctly, it should result in a more secure and effective cloud environment.

Market Opportunities

Increased Adoption of the Internet of Things

The market for tracking as a service has seen increased penetration of Internet of Things-based locating system solutions in recent years. Compared to conventional approaches, the Internet of Things technology's real-time capacity to track inventory shipments, assets, and items offers a very accurate and economical alternative. Due to this, applications for tracking services based on the Internet of Things are now more prevalent. Additionally, it is predicted that the expansion of tracking-as-a-service technology will be fueled by the surge in demand for 5G network-based applications across the retail, manufacturing, and industrial sectors during the projection period.

Regional Analysis

North America Dominates the Global Market

The global tracking as a service market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

North America is the most significant revenue contributor and is expected to exhibit a CAGR of 17.60% during the forecast period. The U.S. and Canada's markets for tracking-as-a-service are examined. As one of the early adopters and creators of the tracking service technology, North America is expected to account for significant growth throughout the projection period and retains a dominant position in the market for tracking-as-a-service. Due to the rise in demand for improved fleet operator Services, which opens up opportunities for the tracking-as-a-service market, the need for cloud-based logistic and inventory tracking solutions is expanding across various industries, including the retail, healthcare, food and beverage, and pharmaceutical industries. Additionally, it is predicted that during the projection period, a rise in demand for cloud infrastructure in the IT and telecommunications, and healthcare sectors will propel the business for tracking-as-a-service technology.

Europe is expected to exhibit a CAGR of 18.35% during the forecast period. The UK, Germany, France, Italy, Spain, and the rest of Europe's tracking-as-a-service sector are all examined. Due to advancements in warehouse and logistics management systems in retail, healthcare, IT and telecom, and other industries, there has been a sharp increase in demand for tracking-as-a-service technology throughout Europe. Furthermore, due to several government initiatives aimed at developing 5G technology across the industrial sector, Europe has the second-highest revenue contribution in the tracking-as-a-service technology market. The market for tracking as a service is anticipated to grow in Europe as real-time locating systems become more prevalent and European nations adopt cloud-native technologies to update their digital infrastructure.

Asia-Pacific is expected to grow significantly over the forecast period. For example, the increase in cloud infrastructure and Internet of Things technologies in the retail, IT and telecom, and healthcare sectors are driving the expansion of the tracking-as-a-service market in the Asia-Pacific region. Moreover, a surge in demand for a supply chain management system throughout the forecast period is anticipated to contribute considerably to the market's growth. For instance, Busan Port in South Korea won USD 11.9 million in funding in July 2020 to implement a blockchain-based digital logistics system. Advanced self-driving vehicles and logistics technology based on the Internet of Things was used to start this project. Large businesses in this region have also been modernizing their core business systems by implementing cloud infrastructure technologies, which increases their company's flexibility and security.

Due to the growing need for tracking service applications in the logistics industry, Latin America and the Middle East currently account for a significant portion of global revenue and market share. Additionally, the demand for advanced technologies in nations like Oman, the United Arab Emirates, Saudi Arabia, and others is anticipated to present growth opportunities for the real-time locating service technology market. Additionally, leading market players are establishing their distribution and manufacturing networks in the LAMEA area, which is anticipated to impact market growth substantially.

Segmental Analysis

The global tracking as a service market is segmented by asset type, component, enterprise size, and industry vertical.

Based on asset type, the global market is bifurcated into electronic and IT assets, in-transit equipment, manufacturing support, and others.

The manufacturing assets segment is the major contributor to the market and is estimated to exhibit a CAGR of 19.30% during the forecast period. Manufacturing assets are tracked to detect things utilizing electronic monitoring equipment. The infrastructure on which inventory technology is based can be integrated with security for any help available in the warehouse or while in transit using a manufacturing asset tracking platform for cloud computing. Real-time manufacturing asset tracking is a technique utilized by major manufacturing sectors to improve the standard of supply chain logistics practices. The primary driver of the expansion of inventory tracking platforms in the manufacturing industry is the high frequency of theft, fire, and natural disasters in manufacturing plants combined with a rise in Internet of Things penetration. As a result, this promotes the market for tracking as a service.

Consumer electronics, aerospace, defense, transportation, and delivery industries use in-transit equipment tracking technologies to connect stocks and supply chain logistics management. Additionally, the industrial sector's adoption of an increase in automation technology due to the introduction of 5G network technology and the Internet of Things' increased penetration is significantly boosting the market's growth. For instance, Savi, a pioneer in the development of supply chain visibility software, has been awarded a contract by U.S. government agencies and allied partners to provide software and integration services for global assets tracking and in-transit visibility, which is anticipated to create more opportunities for market growth.

Based on components, the global market is bifurcated into software and service.

The software segment is the major contributor to the market and is estimated to exhibit a CAGR of 18.30% during the forecast period. A sophisticated tracking software is installed on an electronic device to remotely report the gadget's or vehicle's whereabouts. Numerous advantages of the tracking or device tracking software include better project schedules, prioritized projects, and real-time personnel and inventory tracking. The public cloud platform is developed using a standardized computing model of different resources such as applications, virtual machines, and remote storage for users. In addition, warehouses and logistics industries worldwide have started to deploy tracking software-based robotics applications, which give them flexible operational efficiency and a flexible working environment to improve their services and products. The public cloud platform offers significant cost advantages by lowering an organization's investment requirement and maintaining on-premises IT reserves.

Due to the hosted program and their addictions crammed into a single package, tracking-as-a-service technology enables software developers and IT organizations to cut shipment time. Due to the surge in improved inventory logistics deployment and supply chain capabilities, which are some of the key factors boosting the growth of tracking-as-a-service technology during the forecast period, tracking-as-a-service is anticipated to offer various business opportunities for small and medium-sized businesses. However, due to increased restricted access granted to end users and vulnerable cloud servers, the tracking-as-a-service technology market is facing cybersecurity challenges.

Based on enterprise size, the global market is bifurcated into Small and Medium Enterprises, Large Enterprises.

The large enterprise segment is the major contributor to the market. Major businesses worldwide are making extensive use of the cloud tracking platform. Still, a real-time locating system is now widely used across large businesses due to an increased requirement to close the gap and make inventory management flexible and secure. Additionally, adopting a cloud computing tracking solution in large enterprises aims to offer more flexible schedules; the need for web-enabled monitoring solutions is predicted to increase primarily due to the implementation of automation in major businesses' supply chain systems.

Small and medium-sized businesses (SMEs) are transitioning from an on-premises tracking paradigm to a cloud-based monitoring system in tandem with significant corporations, mainly to save money on infrastructure and maintenance. Many SMEs that handle food and pharmaceutical inventory have begun to deploy tracking system technology to check the temperature, humidity, and shock levels during delivery. The tracking system's data is intended to move directly into the inventory management program to create a thorough audit trail. All these causes drive the necessity for adopting tracking-as-a-service technology.

Based on industry verticals, the global market is bifurcated into transportation and logistics, manufacturing healthcare, and others.

The transportation and logistics segment owns the highest market and is estimated to exhibit a CAGR of 18.05% during the forecast period. Due to the explosion in the creation of logistic mobility solutions to assist enterprises in controlling and monitoring fleet vehicles and labor, tracking services are widely utilized in the transportation and logistics sector. A specific tracking program for modern mobile transportation is designed to safeguard technical data important to cost estimation. For instance, Linfox, a major logistics firm operating in the Asia-Pacific region, has started working with Amazon Web Service to create a monitoring system that will enable it to monitor the location of its vehicles. The industry must expand due to the higher quality inventory delivery services across logistics and transportation.

The manufacturing sector has begun using automated cloud-based solutions in various sectors, including asset management and logistics systems. This is expected to increase demand for tracking service technology during the projection period. Additionally, the manufacturing industry has been researching innovative approaches to improve the logistical and supply chain systems to satisfy client demands while controlling costs. The development of cloud-based real-time locating system technology has opened many doors for expanding the manufacturing sector's tracking-as-a-service market.

To address inventory security concerns and define potential security holes, which are prospects for market growth, the food and beverage industry has started to establish tracking as a service-based technology across small and medium firms. The food and beverage sectors can modernize outdated applications, such as on-premises tracking technology, into cloud-based or Internet of Things-enabled tracking solutions thanks to real-time locating system technical solutions. The food and beverage industries can deploy scalable logistic services securely and dependably on various platforms to maximize agility and hasten business development by adopting tracking as a service solution.

Recent Developments

• January 2023- TSRTC launched a mobile app for real-time tracking bus services.
• February 2023- Nielsen BookData launched BookScan tracking service in Colombia.