With the growing awareness of the benefits offered by tracking systems in terms of safety & security, vehicle tracking market has indeed witnessed a massive incline in the recent years. Managing and maintaining huge vehicle fleets can often become challenging, especially when it comes to increasing driver productivity, providing customers with an estimated arrival time, ensuring safety and locating stolen vehicles. In this regard, these systems have emerged as a highly advantageous option for minute scrutiny. Their increasing demand by the day across numerous application arenas has indeed led to vehicle tracking industry registering a valuation of USD 6 billion in 2016.
U.S. Vehicle Tracking Market, By Vehicle, 2016 & 2024, (USD Million)
It is prudent to mention that this technology, apart from being adopted by corporates with a huge vehicle fleet, is also being made compulsory for adoption by regional governments in heavy commercial vehicles. For instance, the Roads and Transport Authority of Dubai will be making it mandatory to install monitoring devices on all new heavy vehicles to monitor driver behavior and mechanical faults. The requirement for these systems has been rising exponentially across the public and private sectors, thereby augmenting the commercialization scale of vehicle tracking market.
Installing these systems in huge fleets has been found to be essentially beneficial for large-scale businesses, as they help in various aspects such as increasing fuel efficiency and decreasing carbon footprint by suggesting shortest routes. A research study on fuel cost reduction due to effective use of GPS depicted that on an average deploying GPS could lead to fuel savings worth $51,582 per year. As the use of tracking devices results in reduction in insurance premiums besides enhancing safety for vehicles as well as drivers, tracking devices are being popularly used in heavy vehicles. Customers, with the help of these devices, would be able to receive precise updates about how long their package will require to be delivered. It is therefore rather overt that fleet management is one of the most profitable application domains of vehicle tracking market.
With the rise in the deployment of tracking systems in huge vehicle fleets, the demand for heavy commercial vehicles has gone up a certain notch. In fact, vehicle tracking market size from heavy commercial vehicles is projected to witness a 12% CAGR over 2017-2024, driven by the rising transportation of passengers and goods. HCVs used by the corporate sector and self-hailing taxis are now compulsorily equipped with tracking devices to enhance passenger and vehicle safety besides monitoring rash driver behavior. Besides, as courier services are becoming increasingly commonplace with the skyrocketing popularity of online shopping, the demand for LCVs has also grown tremendously. Indeed, estimates claim vehicle tracking market share from light commercial vehicles to be pegged at $3 billion by 2024.
Numerous large-scale businesses of late, have been taking advantage of the evolving global positioning technology, internet and satellite technology, thereby contributing their bit toward global vehicle tracking market. Several industries like commercial fishing, shipping and aviation have turned vehicle tracking into a valuable asset. With fast-improving mapping capabilities and the availability of resources like Google Earth and Microsoft Virtual Earth, vehicles can be now viewed in real photo maps and details of the location. This has indeed, had a massive impact on the revenue graph of vehicle tracking market. The increasing speed of the internet across major geographies has also proved lucrative for vehicle tracking industry as many providers are now offering web-based GPS tracking software to subscribers for a yearly or monthly fee. One of the major advantages of web-based GPS tracking is that the provider constantly updates the software and the subscriber is left with no concerns about software maintenance.
It has been observed that developed nations which are essentially progressive hubs as far as technology is concerned will be foremost in adopting vehicle tracking systems. The expanding transportation industry across North America is a pivotal instance of the same. Aided by a strong regulatory frame of reference and the large presence of technology providers, North America is projected to dominate the overall vehicle tracking market over 2017-2024. The emerging economies of the Asia Pacific region will also be contributing their bit toward vehicle tracking industry growth, as the application of advanced technology is expected to become commonplace across this region in the years ahead. For instance, the Ministry of Road Transport and Highways of India has passed a regulation wherein all the buses have to fitted with a GPS tracking system, an emergency button and surveillance cameras.
Of late, there has been an increase in the interest for helping vehicles reach destination in lesser time, using routes with less traffic that would decrease carbon emissions. In this regard, vehicle tracking devices are becoming more important than ever before. In light of increasing business efficiency and streamlining services, vehicle tracking industry size is projected to surpass $11 billion by 2024.