The global vehicle tracking systems market size was valued at USD 17.64 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 13.3% from 2021 to 2028. The vehicle tracking system is also known as GPS tracking. The need for achieving improved operational efficiency, productivity, and profitability at reduced costs coupled with the digitalization of vehicles is anticipated to act as a key driving factor for the market growth. These systems include features such as predictive fleet maintenance, telematics asset tracking, and fleet route planning. These features facilitate optimum utilization of resources and flexibility in operations. Additionally, factors such as increased cost savings and enhanced customer experience are further contributing to the market demand.
the market has witnessed significant developments in the past few years due to increased digitalization and technological advancement, enabling easy tracking of vehicle performance. The application of automation, telematics, and IoT in these systems has enabled fleet operators to achieve higher operational efficiency. The systems ensure vehicle security and safety while tracking vehicle usage data. Cost aids due to enhanced vehicle performance and innovative features such as fleet analytics, fuel management, driver monitoring, and predictive vehicle maintenance are other key factors anticipated to drive the market growth over the forecast period.
Moreover, the increasing fleet size of the transportation and logistics companies has made fleet tracking necessary for vehicle security and timely delivery. The rapid increase in commercial vehicle sales is expected to drive the demand for fleet tracking and maintenance operations. For instance, according to Organisation Internationale des Constructeurs d'Automobiles (OICA), Germany witnessed a significant increase in commercial vehicle sales from 386,282 units in 2018 to 409,801 units in 2019. Similarly, Canada also witnessed commercial vehicle sales of 1,479.2 million units in 2019 compared to 1,407.2 million units in 2018. The year-on-year growth in commercial vehicle sales shows the increasing operational fleet size of logistics and transportation companies. The increase in fleet operations, especially in developing markets, is anticipated to boost the market growth.
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