Growing Concerns Over Vehicle Safety, Security, and Accidents to Fuel Growth of Vehicle Tracking System Market
Vehicle tracking systems allow real-time tracking of vehicles as one of the most basic functions. Other functions that drive the growth of vehicle tracking system market, include driver behaviour analysis, vehicle maintenance reminders, and journey history along with facilitating fuel management, and dispatching. The system sends notifications and alerts to prevent theft and provides reports with detailed analysis. Due to a rise in the frequency of road accidents, there has been a boom in demand for car tracking systems. The increased number of accidents has prompted government agencies and fleet management corporations to install tracking systems, which is likely to be working to the advantage of vehicle tracking system market. Automobile owners are concerned about vehicle security, which leads to a continuous quest for new and enhanced vehicle security measures.
Vehicle tracking systems allow for real-time tracking, close vehicle surveillance, as well as the travel history analysis. Maintenance of a frequent log of the vehicle’ activities aids in alleviating security concerns. The systems use a global positioning system (GPS) to establish the vehicle's location and relay its coordinates to a monitoring centre via satellite. According to the National Highway Traffic Safety Administration of the United States Department of Transportation (DOT), 37,133 people died in motor vehicle crashes in 2017. As a result, the government made it mandatory to install tracking devices in all transport vehicles to track speed, location, and other factors. For instance, the number of people killed in traffic accidents has gradually increased, from 1.15 million in 2000 to 1.35 million in 2021. Road traffic injuries account for around 2.37 percent of the 56.9 million deaths worldwide, making them the eighth leading cause of mortality.
Increasing adoption of vehicle tracking systems by individuals to identify and prevent theft is expected to fuel the growth of vehicle tracking system market. For example, in the event of a car heist, the location information from a tracking unit can be used to find a vehicle, and these coordinates can then be given to the authorities for further investigation. To locate a stolen vehicle, police may simply follow the signal from the tracking system. Historically, vehicle tracking system is classified into active, and passive. Active systems will collect and send information in real-time whilst passive systems will collect and save all the data, which will be made available to retrieve later. Some tracking systems may have both active and passive tracking.
Increased Demand in Passenger Vehicles to Drive Vehicle Tracking System Market Growth
The passenger vehicle segment will continue to dominate global vehicle tracking system market throughout the forecast period. Because of the growing number of fleet operators in developed and emerging nations, this category is expected to grow at the fastest CAGR from 2021 to 2028. With the rising usage of the Internet and technological advancements in connectivity, the demand for car monitoring systems has increased to ensure vehicle safety and decrease idle time. E-call services, for example, have benefited fleet owners in receiving emergency alerts. Vehicle tracking technology can be used by fleet operators and logistics companies as one of the key profit drivers. Moreover, small, and medium-sized enterprises are also big fans of passenger automobiles. They are typically used as pool vehicles or minivans to complete business's everyday tasks. As a result, demand for vehicle tracking systems in passenger vehicles has skyrocketed. Furthermore, the increased desire among fleet operators to provide a better customer experience is expected to drive market expansion throughout the projection period.
Increased Concern Regarding Vehicle Security to Drive Growth of North America Vehicle Tracking System Market
In the next years, North America is likely to dominate the market share. Concerns regarding car pollution, security, and safety have had a significant impact on the transportation industry. Governments in sophisticated economies have recognized these problems and have responded by enacting strong laws and safety initiatives. For example, the United States' General Services Administration (GSA) developed a "National Safety Program" for its fleet. Rapid improvements in intelligent transportation systems have facilitated the widespread application of smart technology in fleet management. In North America, devices like GPS are routinely used to locate vehicles and track their whereabouts for both corporate and personal reasons. For instance, in North America, 810,400 vehicles were stolen in 2020, the largest number of vehicles stolen in a single year since 959,059 vehicles were stolen in 2008. The number of stolen vehicles increased by 11.8 percent to 724,872 in 2020, up from 724,872 in 2019. In 2020, the rate of motor vehicle theft was 246.0 per 100,000 inhabitants, the highest rate since 2009, when it was 259.2. Therefore, an increase in the rate of vehicle theft is leading to the increasing demand for vehicle security systems.
Over the forecast period, the Asia Pacific vehicle tracking system market is expected to grow at the fastest rate of 18.0%. Some of the important reasons driving the regional market growth are the rapid expansion of the e-commerce industry, increased advancements in networking technologies, tight regulatory demands, and increasing commercial and passenger car sales. Furthermore, the region's increased adoption of sophisticated technologies such as autonomous vehicles, IoT, and cloud is expected to boost the market growth. Additionally, during the forecast period, the European vehicle tracking device market is expected to develop at a substantial CAGR. The government's increased investment in innovative technologies to improve public transportation is largely responsible for the region's growth.
Global Vehicle Tracking System Market: Competitive Landscape
In February 2020, The Masternaut and Fraikin vehicle fleet service organizations of the Michelin Group have teamed together to provide connected fleet management services for one of the UK's leading supermarkets, with over 3000 vehicles available for online delivery. On the other hand, in January 2020, GPS Insight acquired ServiceBridge, a prominent field service management software firm based in Chicago, to expand the scope of its software offering and provide complete solutions to its growing customer base.
A few of the players in the vehicle tracking system market include AT&T Inc, Teletrac Navman Us Ltd, Cartrack Holdings Limited, Spireon Inc, Continental Ag, Verizon Communication Inc, Robert Bosch Gmbh, Inseego Corp, Geotab Inc, and Tomtom, Inc.
Global Vehicle Tracking System Market is Segmented as Below:
By Vehicle Type
By Industry Vertical
Key Elements Included In The Study: Global Vehicle Tracking System Market
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