Vehicle Tracking System Becomes Indispensable for Fleet Management
Essentially, a fundamental and extensive application of the vehicle tracking system is the Location facility. Besides locating the vehicles, a vehicle tracking system has varied applications in fleet management, such as vehicle security, maintenance, visibility of fleet, fuel management, asset tracking, insurance cost reduction, transit tracking, weather updates, and traffic updates.
The global vehicle tracking system market is expected to grow at a CAGR of approximately 11.7% during the forecasted period 2020–2027.
Loss of fleet assets is a major concern for fleet owners. Nevertheless, a vehicle tracking system offers uninterrupted position updates that enable a user to locate and reclaim his belongings. Further, it provides a single source of data, such as reports on engine, speed, fuel, and direction that enhance the efficiency and prevention maintenance of the management. The GPS monitoring device grants real-time data access to the vehicle and the driver. Precaution is required to ensure the security and delivery of valuable items that are being transported. Keeping this in view, a vehicle tracking system becomes extremely beneficial.
The worldwide vehicle tracking system market is driven by a large deployment of intelligent transportation systems. Concerns of security and safety have swiftly boosted the sales of vehicle tracking systems in the transportation sector. Furthermore, a rise in fleet operations, particularly in emerging regions, is predicted to surge the revenue throughout the vehicle tracking systems market. The boom of ride-hailing businesses under amicable Government legislation and raising customer demand is expected to provide lucrative prospects for the worldwide vehicle tracking system market.
On the contrary, the high installation cost and a lack of customer awareness are limiting the market for car monitoring systems.
Vehicle Security Drives the Vehicle Tracking System Market
Vehicle security is a major concern for automobile owners, thus, leading to a persistent search for new and improved vehicle security measures. The vehicle tracking system facilitates tracking and close monitoring of automobiles in real-time and reviews the travel history. Keeping a regular track of the vehicle's activity aids the car’s security concerns. The technology employs Global Positioning System [GPS] to determine the location of the automobile and send its coordinates to the monitoring center via a satellite. Individuals use vehicle tracking devices as a means of theft identification and prevention.
For instance, in case of a car robbery, a tracking unit's position information can be utilized to locate a car, and these coordinates can be submitted to the authorities for further investigation. Police may simply follow the tracking system's signal to find a stolen car.
Expansion of Goods and Passenger Transportation Boosts the Growth
Expansion of the goods and passenger transportation business lead by the ride-hailing businesses, car rental firms, and adoption of app-based transportation services, is driving the demand for automobile monitoring systems worldwide. Trackers can provide statistics on the vehicle's real operating state, such as speed, door lock and unlock, and other engine metrics; as a result, fleet managers may track the vehicle to ensure correct delivery and secure passenger transportation.
A rise in car rental services around the world is increasing the demand for vehicle tracking systems by the transportation businesses. The advancement of mobile applications has simplified the process of renting an automobile. The use of booking applications expands the availability of rental automobile services to the public. These applications make the cost of renting a car transparent to the public and provide amazing features, such as price comparison, automobile type selection, and passenger limit. The market's expansion is an outcome of the variety of vehicle rental programs and the ease of booking.
COVID-19 has drastically disturbed the supply chain and manufacturing industry. In 2020, the COVID-19 epidemic had a detrimental influence on the vehicle tracking system market. On a year-over-year basis, the worldwide automobile production volume has fallen due to the lower production rate in North America and Europe. The slowdown in some of the major end-user sectors, such as logistics and distribution, retail and infrastructure, and production, has resulted in a steep drop in the demand for vehicle tracking systems.
Passenger Vehicle Segment to Grow Soon
Due to the spike in the sum of service providers in the established and emerging countries, the Passenger vehicle segment is expected to grow at the fastest CAGR from 2020–2027. In addition, small and medium-sized enterprises prefer passenger automobiles because they are typically used as pool vehicles or minivans to complete daily business tasks. As a result, the popularity of vehicle tracking systems in passenger cars has grown. Furthermore, the increased eagerness amongst the fleet operators to provide a better customer experience is expected to drive the market growth throughout the projection period.
The need for vehicle monitoring systems for passenger cars is fueled by the advancements of the app-based transportation network, increased car rental and leasing operations, and vehicle owner’s concern for the security of their automobiles from thievery.
Transportation and Logistics Segment Leads the Market
In 2020, the transportation and logistics category had a commanding lead, and this trend is expected to remain in the future. Considering the growing use of GPS tracking in the transportation and logistics industry, the segment is expected to grow at the fastest CAGR from 2020–2027. Furthermore, vehicle tracking systems provide real-time position tracking, car and driver protection, decreased fuel usage, and administrative expenses, which have contributed to the industry's growth. Besides that, the rise of connected automobiles has intrigued various firms to employ a similar system.
A vehicle tracking system adds value to the company and improves logistics management. The vehicle tracking system has benefited the transportation and logistics industry by improved fleet management, monitor driving behavior, improved fuel efficiency, optimum use of resources, reduced expenses, route optimization, driver identification and document Processing, and risk mitigation against thieves. Owing to these factors, the demand for vehicle tracking systems is increasing rapidly in the transportation and logistics industry.
North America Thrives to Dominate the Market
North America is expected to dominate the market share in the upcoming years. The transportation business has been heavily affected by raising concerns about vehicle emissions, security, and safety. Governments in advanced economies have recognized these issues and implemented strict regulations and safety programs as a solution. For instance, the General Services Administration (GSA) of the United States devised a "National Safety Program" for its fleet. The broad use of smart technology in fleet management has been aided by rapid advancements in intelligent transportation systems. Devices such as Global Positioning System (GPS) are commonly used in North America for finding vehicles and tracking their whereabouts for business and personal reasons.
The prominent players of the vehicle tracking system market include AT&T Intellectual Property., Cartrack, Continental AG, Robert Bosch GmbH, Verizon, Spireon, Inc., Geotab Inc., Inseego Corp., TomTom International BV., Teletrac Navman US Ltd, RUPTELA, Trackimo, nuevastech, Pricol Limited, U.S. Fleet Tracking, Mobiliz, Global Tracking Group, LLC., RAM Tracking, Concox, Meitrack Group., along with other regional players. Product launches are a top priority for market players as it tends to extend their product portfolio and meet the customer needs. Due to the large sum of players in the market, the vehicle tracking system is highly fragmented.
Vehicle Tracking System Market Segmentation
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