A vehicle tracking system entails a software solution utilized by transportation companies to monitor the location of trailers, trucks, as well as other vehicles. The software is connected to automobiles via GPS, providing users with real-time insights into the vehicles’ geographic positions.

Often referred to as fleet management systems, vehicle tracking systems also support vehicle maintenance, in addition to managing fuel consumption and assessing driving behavior. These factors are essential in fueling their demand and adoption across various industry verticals, thus providing the market with lucrative expansion opportunities. According to Inkwood Research, the global vehicle tracking system market is anticipated to grow with a CAGR of 15.66% over the forecasting period of 2022 to 2030.

Top Advantages of Vehicle Tracking Systems: An Overview

From improved employee and fleet safety to higher cost savings, vehicle tracking systems bring about multiple advantages. For instance, when equipped with AI-enabled features, fleet managers can acquire better insights about distracted driving, red-light violations, and tailgating.

Aligning with this, here are the top advantages of vehicle tracking systems:

  • Improved Connectivity

    Globally, commercial fleet operations are on the rise. Moreover, with an increase in transportation & logistics activities, road transport is emerging as one of the most convenient ways of ensuring products’ availability, even in remote regions. In such a scenario, GPS/satellite, set to be the fastest-growing technology, provides tracking information pertaining to automobiles even in remote areas that lack cell phone coverage.

  • Lower Operational Costs

    Since vehicle tracking systems facilitate vehicle protection and reduce idle time, enterprises can implement improved measures to enhance security, thereby reducing operational costs. Fleet operators can also monitor vehicle usage via vehicle tracking systems, in addition to optimizing vehicle utilization.

  • Vehicle and Driver Safety

    The integration of vehicle tracking systems in automobiles has enabled manufacturers to provide add-on features that increase vehicle safety, especially in the case of thefts or similar losses. In addition, numerous companies are launching products and devices focused on automobile and driver security, as well. For example, the 3G Guardian GPS Tracker by Trackimo is a compact and portable device that can be utilized for tracking shipments, people, and luggage, in order to ensure their safety.

  • Improved Customer Service

    Vehicle tracking systems offer features that improve the accountability associated with vehicle usage. This advantage also enables fleet owners to generate accurate bills, thereby facilitating improved customer service. The majority of transportation businesses are in pursuit of optimal vehicle tracking technology to boost their offerings and provide unmatched customer satisfaction, as well. Likewise, in North America, the demand for vehicle tracking systems is observing substantial growth, primarily due to the rising need for better customer services and solutions in the automotive sector.

Passive vs. Active Vehicle Tracking Systems: What’s the Difference?

Generally classified into active and passive, vehicle tracking systems predominantly enable users to track vehicles in real-time. While passive devices store GPS location, speed, and even trigger events like door open/closed and key on/off, active devices collect similar information and transmit it in real time via satellite or cellular networks to a data center or computer. Although active tracking devices are usually more complicated due to their numerous operations, they offer quicker access to information, subsequently leading to increased earnings for the enterprise.

Inkwood Research’s projections reveal that the active segment, under the type category, is set to capture the highest market share and progress with the fastest CAGR during the forecast period. The segment’s notable growth is accredited to the following factors:

  • Real-time updates
  • Compatibility with all types of computer systems
  • Increased reliability
  • Utilized for diverse purposes, such as finding a stolen vehicle

On the other hand, several modern vehicle tracking systems also utilize a combination of active and passive tracking capabilities. As a result, when a cellular network is available, the device will automatically connect and transmit the information to a server.

Future Outlook: Transportation Requirements Influence Vehicle Tracking System Demands

Transportation activities by enterprises as well as the general public for private and personal use are rising globally. Since business activities fuel the demand for fleet operations, common passenger requirements further lead to increased cab fleet services, in addition to other modes of transportation. This factor plays a vital role in propelling the demand for vehicle tracking systems, primarily owing to the substantial rise in automobile applications.

Accordingly, the substantial rise in demand leads to mismanagement of vehicular operations, thus coercing fleet managers to run higher volumes of transportation activities. In this regard, tracking solutions could prove beneficial and subsequently promote the growth of the global vehicle system market during the forecast period.


Which is the largest end use in the global vehicle tracking system market?

The transportation & logistics segment, under the end use category, is set to grow with the highest CAGR of 16.83% during the forecast period.

What are the major software analyzed in the report?

Performance measurement, vehicle diagnostics, fleet analytics & reporting, driver behavior monitoring, and other software are analyzed in the report.