Globally, the vehicle tracking market is estimated to foster over owing to rising safety and security awareness, particularly in the corporate sector.
The size of the vehicle tracking market was valued at over USD 6 billion in 2016 and is predicted to exhibit over 7% CAGR by 2024.
The growing need for monitoring the automobile movement carrying both passengers as well as goods will promote this market and its components.
Vehicle tracking solution generally comprises four key elements – vehicle tracking GPS based hardware device installed in the vehicle, partnership with a telecom operator to provide data services, a partnership with a cloud hosting provider to provide a stable and reliable system, and an application that would be built on the said platform.
A synergy between telecommunications and information technology has introduced the next generation solutions in multiple sectors, enabling speed deliveries and improved efficiency in the transportation system.
Increasing deployment of vehicle tracking devices by the transportation service providers to ensure fast movement of goods is primarily driving the GPS tracking industry size.
Multiple countries have guidelines on application, usage, and installation of fleet monitoring devices. Increasing automobile theft in countries is driving the regulations to be mandatory on product usage.
For instance, on the policy intervention front, India once the Central Government’s mandate – that all public commercial vehicles must have a vehicle tracking device installed – comes into effect. The initial deadline for the mandate was April 1, 2018, but it’s been postponed.
Additionally, with increasing sales of commercial automobiles in developing countries the vehicle tracking market will gain higher momentum. Increasing investments in road up-gradation or constructing new ones will boost prospects for transportation via roadways, increasing the demand for GPS fleet tracking devices.
For this market, the Asia Pacific is projected to account for approximately 21% of the volume share by 2024. Increasing automotive production, particularly in emerging economies is improving the regional penetration rate made this projection.