Vehicle Tracking System Market to reach US$ 94.6 billion by 2027
The Vehicle Tracking System Market size is estimated to reach a valuation of US$ 94.6 billion by 2027 and is predicted to register a CAGR of 14.1% from 2022 to 2027.
A Vehicle Tracking System tracks and keeps track of a vehicle’s activity using the GPS or cellular network. A tracking device installed in the car continually gathers the GPS data that show the vehicle’s current position. The coordinates are promptly sent from the cellular data service to the user’s PC. Customers sign up to the system to view their cars on road maps, just as in-dash and portable GPS navigation devices. There are tracking systems that don’t transmit coordinates for real-time monitoring instead, they record them in the in-vehicle module. At the conclusion of the trip, when the car is returned, the data are retrieved from the module.
Market Drivers and Restraints:
The market for Vehicle Tracking Systems is increasing as the necessity of vehicle safety and security increases considerably. Safety in vehicles is crucial for a number of reasons. It first aids in preventing collisions and injury to the passengers of the vehicle. Second, it can aid in shielding the vehicle from harm. Thirdly, the safety of vehicles is crucial for all other users of the road, including drivers and pedestrians. By making sure that automobiles are trustworthy and safe, we can contribute to the reduction of fatalities and accidents on the roads.
Car rental firms are showing an increasing need for vehicle monitoring systems, which is likely to have a positive effect on the market’s expansion. Vehicle Tracking Systems are frequently used by car rental firms to track the whereabouts and motion of their rental cars. This can assist the business in monitoring its fleet and ensuring that the cars are being used appropriately.
One of the key reasons restraining the market’s growth is the data privacy issues related to vehicle monitoring systems. There may also be privacy concerns with the usage of car tracking devices. There can also be worries regarding the possibility of exploiting the gathered data. The use of Vehicle Tracking Systems is also projected to be hampered by the inefficiency of GPS devices, and high R&D expenses, all of which are anticipated to have a negative effect on the market’s growth rate.
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The report is segmented as:
Vehicle Tracking System Market is segmented on the basis of By Vehicle Type, By Technology, By Type, By Component, By End-User.
By Vehicle Type:
- Passenger Vehicles
- Light Commercial Vehicles.
- Heavy Commercial Vehicles.
- GPRS/Cellular Network.
- Dual Mode.
- Transportation & Logistics.
- Construction & Manufacturing.
- Government & Defence.
Market Geographical Segmentation:
Vehicle Tracking System Market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East & Africa, and the rest of the world.
North America dominates in terms of market share for Vehicle Tracking Systems. Vehicle Tracking Systems are becoming more widely used in the North American area because of the expanding fleet management sector and rising adoption of technology advancements.
One of the potential regions for the Global market for Vehicle Tracking Systems is Asia-Pacific. The market expansion in this area is largely driven by increased acceptance of new technologies and rising vehicle sales throughout the APAC region. Furthermore, it is anticipated that rising demand for Vehicle Tracking Systems in developing nations like China and India is expected to boost the market in the Asia-Pacific region.
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Impact of COVID-19 on the Market:
The COVID-19 viral outbreak challenged industries with difficulties. Governments must impose lockdowns globally to stop the virus’s fast spread. The market for commercial and passenger automobiles was significantly impacted by the lockdown as well. Low demand for the product affects both the software and hardware development of vehicle tracking systems. The demand for cars increased when the lockdown regulations were lifted as a result of COVID-19’s diminishing effects, which increased the need for vehicle monitoring system technology. Even yet, the supply chain for semiconductor chips was interrupted in response to the rise in demand. The semiconductor chips are essential to the vehicle tracking system, regardless of the kind of vehicle. The lack of semiconductor chips caused a delay in the production schedule. As a result, the pandemic and the frequent disruptions to the supply chain and manufacturing limited the market’s expansion for vehicle monitoring systems.
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