Vehicle tracking market size can be segmented on the basis of solution, service, connectivity technology, and vertical. Global fleet management market size was valued at USD 8 billion in 2015 and is anticipated to exceed USD 22 billion by 2022, growing at a CAGR of over 20% from 2016 to 2023. It offers Automatic Vehicle location (AVL) of each vehicle in the desired fleet. In addition, it also facilitates the customers to get used to new developments and make informed and smart decisions which in turn save cost.
Global vehicle tracking market combines software with automatic vehicle location in order to collect the fleet data for a complete picture of vehicle locations. These systems mainly employ Global Navigation Satellite System (GLONASS) or Global Positioning System (GPS) technology to locate and track the vehicle. The vehicle information can be observed on electronic maps with the help of Internet or other specialized software.
Tracking provides driving behavior information such as mileage, fuel consumption and speed of the vehicles. Real time data can assist with confirmation of delivery and allow users to supervise working-time guidelines conformity. Moreover, it precisely accounts hours spent and hours worked behind the wheel and also registers the past data of the vehicle. Savings can also be done by monitoring the driven route and speed. The aforementioned factors are expected to drive the industry demand over the forecast period.
Major solutions include operation management, asset management and driver management. By service, the industry can be segregated into professional services, integration & deployment services and managed services. Connectivity technology includes satellite GNSS and cellular system.
Government, manufacturing, transportation and logistics, retail, energy and utilities and construction are the key vertical segments. Manufacturing vehicle tracking market share was the largest vertical owing to increasing focus on maintaining separate fleet of vehicles.
Fleet management systems market facilitates in reducing the risks and costs associated with vehicle management, telematics and investment. It ensures conformity to regulations by diminishing CO2 emissions. Moreover, it tracks location and examines the driver behavior. Technologies such as sensors, Radio Frequency Identification (RFID) and GPS tracker are employed to monitor vehicles and fleet movement along with the fuel usage. It includes wide range of functions including operation management, driver management and asset management that helps manufacturers to efficiently operate and manage their fleets with minimum risk by providing real-time information. North America vehicle tracking market share is predicted to observe significant growth over the several upcoming years.
With mounting complexity of operations in logistics and transportations, key players are expected to limit the downtime of fleet and drivers which in turn surge the demand for robust fleet management services and solutions between constructions, mining and manufacturing sectors. Proliferating demand for operational efficiency is likely to surge the vehicle tracking market. Increasing fuel consumption, maintenance cost and accidents is anticipated to drive fleet management market size over the forecast period.
Rising demand for commercial vehicles in regions such as Latin America and Middle East and Africa (MEA) signify a potential growth opportunity. Moreover, integration of Internet of Things (IoT) technology with vehicles is expected to boost the adoption rate of tracking systems in developed regions such as Europe and North America. However, high cost involved in installation of these systems is anticipated to hamper the demand over the forecast period. Lack of consumer awareness is also likely to challenge the industry growth.
Asia Pacific vehicle tracking market size is anticipated to witness significant growth over the forecast period. This can be primarily attributed to rising demand from countries such as Japan, India and China. These emerging markets have high potential owing to the presence of large number of commercial vehicles. Latin America and Middle East & Africa are also forecast to witness moderate growth owing to growing adoption across various nations over the forecast period.
In the near future, Vehicle Tracking Market will be not only provide the vehicle tracking, vehicle monitoring , but also provide value added service to the operater, it will develop to vehicle Service System.
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