Vehicle Tracking Device Market Size By Tracker Type (Wired, Wireless), By Vehicle Type (Passenger Vehicle (PV), Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV)), By Communication Technology (Cellular, GPS/Satellite, Dual Mode), By Application (Transportation & Logistics, Construction, Oil & Gas, Mining, Emergency Services), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2025

Industry Trends

Vehicle Tracking Device Market size in 2018 exceeded 18,984 thousand units with a industry value of over USD 600 million and is estimated to grow at a CAGR of over 20% from 2019 to 2025.
 

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The vehicle tracking device market growth is attributed to the rising demand for fleet telematics in the transportation and logistics industries. The government authorities are making regulations for vehicle tracking systems in passenger & commercial vehicles to improve the safety of passengers and drivers. The growing adoption of car leasing and rental services across the developing countries is enabling vehicle rental companies to deploy trackers to improve their services. The increase in cellular connectivity is helping fleet companies to track their vehicle traveling in remote locations using vehicle tracking devices. The technological advancements in the automotive sector, such as autonomous vehicles and C-V2X technology, are relying on GPS-based location tracking systems to improve the reliability and accuracy for navigation. Many countries are focusing on the development of their location-based technology such as Quasi-Zenith Satellite System (QZSS) of Japan and Indian Regional Navigation Satellite System (IRNSS) of India.
 

The capabilities of 5G, such as enhanced speed, low latency, and high capacity, will improve the performance of vehicle tracking devices. The adoption of 5G will help in the development of the autonomous driving technology, which uses GPS for route planning and its movement. Many telecom operators are focusing on the commercialization of next generation 5G technology.
 

Vehicle Tracking Device Market, By Tracker Type

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Wired vehicle tracking devices are expected to hold a market share of over 50% by 2025 due to the provision of reliable power connection for wired devices. Wired vehicle tracking devices can manually be connected to the vehicles’ electric systems, ensuring continuous power for these devices. These devices can be easily mounted in hidden locations in vehicles to avoid tampering. Wireless vehicle tracking device market is expected to show a growth rate of over 20% during the forecast period due to the increase in the adoption of wireless technologies. The transportation companies are using On-Board Diagnostics (OBD) dongles and plug & play devices embedded with sensors to detect vehicle idle time, driving patterns, fuel efficiency, and road conditions. The compact size of wireless tracking devices enables easy integration into vehicles that can be used in discrete covert vehicle tracking applications.
 

Vehicle Tracking Device Market, By Vehicle Type

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The Light Commercial Vehicle (LCV) segment held a market share of over 60% in 2018 due to the demand for cost-effective and low-emission ways to better manage fleet operations. The rapid growth of construction & e-commerce industries enables the adoption of LCVs for the transportation of goods within the cities. This growing adoption is increasing the demand for vehicle trackers among fleet managers to improve fleet security, route planning, and check unnecessary pilferage for cost optimization.
 

The Heavy Commercial Vehicle (HCV) segment in vehicle tracking device market is expected to show a CAGR of over 25% due to the growing need to monitor the vehicle movements, carrying both personnel and materials. Various government & private sector initiatives to drive the growth of the HCV segment will augment the need for GPS trackers, enabling fleet operators to manage and monitor heavy vehicles and control their functionalities by using GPS truck tracking apps.
 

Vehicle Tracking Device Market, By Communication Technology

The cellular vehicle tracking devices held a vehicle tracking device market share of over 40% in 2018 due to the deep penetration of the 4G LTE network across the world. According to the report released by the European Commission’s Broadband Coverage in Europe 2017 report, LTE coverage has already reached 99% households in European countries. This cellular network helps fleet operators to track their vehicles traveling in remote locations for improving their operational efficiency. The dual-mode communication type is expected to grow at a rate of over 25% due to the increase in the focus of fleet managers to get combined benefits of cellular and satellite communication. The cost-effectiveness of cellular network and reliability of satellite solutions are enabling fleet managers to track their large fleets effectively.
 

Vehicle Tracking Device Market, By Application

The transportation & logistics application segment held a vehicle tracking device market share of over 30% in 2018 due to the adoption of fleet management solutions for improving the operational efficiency of transportation & logistics companies. The fleet management solutions are enabling fleet operators to monitor different vehicle parameters such as location, driver behavior, fuel consumption, and engine condition using a vehicle tracking system installed in the vehicles. The rising internet penetration and ease in the availability of smartphones are also spurring the adoption of GPS technology to enable owners and fleet managers to monitor their vehicles remotely using smartphone applications.
 

The emergency services segment in vehicle tracking device market is expected to show a growth rate of over 25% during the forecast period due to the demand for reduced response time in cases of emergency. The GPS technology is extensively used for emergency services such as police vehicles, fire brigades, air rescue operations, and ambulance services to reduce the emergency response time. These rescue service providers install GPS systems in their vehicles to deal with emergencies quickly and optimize emergency response route. For instance, in June 2018, the Tripura government launched 50 life-support ambulances with pre-installed GPS tracking systems.
 

Vehicle Tracking Device Market, By Region

Europe vehicle tracking device market is expected to show a growth rate of over 17% during the forecast period due to the growing government investments in advanced technologies to improve public transportation. For instance, in May 2016, the Crown Commercial Service, Executive Agency, and Trading Fund of the Cabinet Office of the UK government signed a vehicle telematics agreement to help the public transportation in improving on-road safety and efficiency. The agreement was developed in combination with police, ambulance, local government, and central government customers, featuring a range of suppliers that are small and medium-sized businesses. This agreement enabled fleet managers to monitor factors such as fuel consumption, vehicle tracking, and driver behavior.  
 

Competitive Market Share

The companies operating in the vehicle tracking system market are focusing on extending its vehicle tracking solutions for small businesses. For instance, in July 2019, the company partnered with National Small Business Chamber (NSBC), a South African non-profit organization focused on the development of small businesses, to offer advanced telematics solutions for small businesses. This partnership helped the country to expand its customer base.
 

The companies are also emphasizing on strategic partnerships to enhance their vehicle tracking capabilities by integrating IoT technology. For instance, in February 2018, the company partnered with HERE, a leading fleet management platform and Airoha, an IoT unit of MediaTek. This partnership helped the company’s customers to take advantage of pre-integrated HERE’s advanced tracking technology.
 

The major players operating in the vehicle tracking device market are ATrack Technology Inc., CalAmp Corporation, Cartrack (Pty) Ltd, Concox Information Technology Co., Ltd., Garmin Ltd., Geotab Inc., Laird PLC, Maestro Wireless Solutions Limited, Meitrack Group, ORBCOMM Inc., Queclink Wireless Solutions Co., Ltd., Sierra Wireless, Inc., Starcom Systems Ltd., Suntech International Ltd., Teltonika, TomTom International B.V., Trackimo Inc, Verizon Communications, Inc. (Fleetmatics Group PLC), and Xirgo Technologies, LLC.
 

Industry Background

Logistics & transportation companies are facing challenges in managing a large number of fleets efficiently. The vehicle idle time and wrong driving behavior of vehicle drivers are causing huge operational expenses for these companies. Logistics and transportation companies are moving toward advanced technology to improve their fleet operations and reduce losses occurring due to wrong driving practices. The safety concerns about passengers traveling in private transportation also enable vehicle leasing and rental companies to shift toward reliable tracking solutions. The vehicle tracking system tracks different vehicle parameters such as location, fuel consumption, driving behavior, and engine condition. These systems improve passenger safety, especially women, children, and senior citizens, commuting through shared mobility. It also improves the security of personal vehicles as the location of stolen vehicles can be tracked using the GPS tracking devices installed in the vehicle.