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The GPS tracker market size is forecast to increase by USD 2.13 billion, at a CAGR of 19.09% between 2024 and 2028. The market growth analysis hinges on several factors, notably the rising demand for fleet management systems, spurred by the need for efficient logistics and transportation solutions. Furthermore, there is a growing trend of investment in satellite deployment to enhance connectivity and coverage, which is essential for various applications including navigation and communication. Additionally, the increasing investment in LTE networks indicates a shift towards faster and more reliable wireless communication, further driving the market's growth trajectory. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is propelled by the increasing demand for fleet management solutions among fleet managers, seeking enhanced operational efficiency and resource allocation. These devices, especially small and compact trackers with 4G Cat 1 technology, offer precise vehicle tracking, support various digital or analog accessories via RS-232 connections, and provide real-time & historical location data for improved fleet management. However, challenges such as cyber threats, hacking attempts, and the risk of unauthorized access remain critical concerns, necessitating robust cybersecurity measures to mitigate potential financial losses and ensure personal safety. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand for fleet management systems is notably driving market growth. A fleet management system helps in minimizing fuel costs, improve fleet productivity, and ensure driver safety. Fleet management is necessary for a wide range of industries such as courier, construction, oil, and gas, and others, In order to implement a fleet management system. integrating GPS trackers that can record data to be accessed and analyzed in trucks, trailers, or containers is one of the major steps.
Several companies from a wide range of industries are implementing fleet management systems in their business operations, driving the demand for GPS trackers. For instance, in September 2021, Geotab announced that it had been selected as the telematics provider for the State of Oklahoma. This is to better understand and improve the utilization of the state's fleet. Tracking as a Service (TaaS) plays a crucial role in this context, offering comprehensive solutions for fleet tracking, management, and optimization. TaaS leverages GPS trackers and IoT connectivity to provide real-time location data, monitor vehicle health, and enhance operational efficiency. Cloud-based platforms facilitate seamless data transfer and analytics, empowering businesses to make informed decisions and improve fleet performance.
The compulsory integration has significantly increased the demand for GPS trackers, which is driving the growth of the market. Align with market trends, the adoption of GPS trackers helps owners locate their vehicles and monitor the unauthorized movement of vehicles. With the growing disposable income of consumers and the rising popularity of electric, hybrid, and autonomous vehicles, the total number of vehicles on roads is increasing rapidly.
According to Technavio, global automotive production in 2018 was recorded at 101.04 million units, which is expected to reach 123.07 million units by 2023. Therefore, government mandates regarding the integration of GPS trackers in vehicles will significantly increase the demand for these trackers, which will drive the growth of the market during the forecast period.
Growing demand for OBD dongles is the major challenge impeding market growth. Onboard diagnostic (OBD) dongles are devices that plug directly into the OBD-II port of the vehicle and connect wirelessly to a network. OBD dongles can provide various features, such as vehicle diagnostics, roadside assistance, stolen vehicle tracking, geofencing, and speed alerts. The dongles are GPS-enabled and are capable of communicating wirelessly or through a smartphone to the cloud.
The adoption of these devices is witnessed in both personnel as well as fleet management. They provide almost all the functionalities of GPS tracking and geo-fencing and are less expensive than fleet management solutions. Hence, fleet owners are increasingly opting for OBD dongles, which is expected to hinder the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth, driven by the increasing demand for fleet management solutions among fleet managers. These devices play a pivotal role in monitoring vehicle movements and driver behavior, optimizing operational activities, and ensuring efficient resource allocation. With a focus on enhancing operational efficiency, GPS trackers are indispensable tools for safeguarding valuable assets against theft. The integration of 4G LTE Cat 1 network coverage has led to the development of small and compact trackers that meet vehicle telematics requirements while supporting various digital or analog accessories and external equipment through RS-232 connections. Their compatibility with multiple LTE frequency bands ensures reliable speed and precise vehicle tracking capabilities. However, the market also faces challenges such as cyber threats, hacking attempts, and the risk of unauthorized access, which can result in financial losses and potential legal repercussions. Companies in the fleet management sector are actively investing in robust cybersecurity measures to mitigate these risks and ensure the seamless operation of GPS tracking devices in the ever-evolving fleet management landscape. In addition, a GPS tracker can be an invaluable tool for anglers, helping them monitor the location of their fishing bait in real time, ensuring better accuracy and success in their fishing endeavors.
The market share of the logistics and transportation segment will be significant during the forecast period. The growing investments in ride-hailing services and delivery services will result in a large number of vehicles being used, which will significantly increase the demand for GPS trackers. With the growing demand for GPS trackers in logistics and transportation, market companies are focused on delivering new and improved products in the market.
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The logistics and transportation segment was valued at USD 537.40 million in 2018. Logistics is the backbone of the supply chains of the e-commerce and retail sectors. In any supply chain, the product is moved from the manufacturing stage to end-users through trucks, trailers, and cargo containers in multiple stages. Integrating GPS trackers that can record data to be accessed and analyzed through fleet management software in trucks, trailers, or containers is one of the major steps in implementing a fleet management system. Companies opting for fleet management solutions to achieve supply chain optimization will significantly increase the demand for GPS trackers.
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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to Companies is Europe. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Europe is a hub of major automobile manufacturers such as Volkswagen AG (Volkswagen), BMW AG (BMW), AUDI AG (Audi), Ford Motor Company, and others. With the growing market demand for commercial, electric, and hybrid vehicles, automotive manufacturers are investing in setting up new manufacturing plants in the region. For instance, in October 2021, Ford announced that it would spend pound 230 million (USD315 million), transforming a factory in northwest England into a site that would make components for electric vehicles.
Segment Overview
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is evolving rapidly, especially in the context of fleet managers seeking enhanced control over vehicle movements and driver behavior. These devices streamline operational activities by enabling efficient resource allocation and boosting operational efficiency. They are invaluable in safeguarding valuable assets against theft, thanks to their real-time tracking capabilities that aid in recovering stolen vehicles and goods, reducing losses, and enhancing asset security. The introduction of advanced models like the EZ2 LTE with 4G LTE Cat 1 network coverage has revolutionized the industry, offering small and compact trackers that meet diverse vehicle telematics requirements. These devices often come with compatibility for digital or analog accessories, RS-232 connections, and support for external equipment. Their integration with multiple LTE frequency bands ensures robust connectivity, even in challenging environments.
However, challenges such as cyber threats, hacking attempts, and unauthorized access pose significant risks, leading to potential financial losses and reputational damage. To combat these, cybersecurity measures are crucial, considering the potential ramifications like factory closures, restrictions on transportation, and workforce shortages due to availability, delays, and shortages. The rise of online shopping and the e-commerce sector has further amplified the need for efficient delivery routes and customer experience through last-mile deliveries. GPS tracking devices coupled with real-time data analytics and sophisticated analytics tools empower companies to make instant decisions, optimize routes, predict maintenance needs, and improve overall operational efficiency in the transportation and logistics sector. Advanced features like augmented reality navigation, AR glasses, and visual cues also enhance tourism experiences by providing AR overlays and facilitating seamless exploration of landmarks.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.09% |
Market Growth 2024-2028 |
USD 2.13 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.56 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Germany, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ArusNavi, CalAmp Corp., GalileoSky Research Scientific Association LLC, Geotab Inc., JSC Teltonika, Laipac Technology Inc., Meitrack Group, Michelin Group, Mielta Technologies, Navtelecom LLC, ORBCOMM Inc., Queclink Wireless Solutions Co. Ltd., Sensata Technologies Inc., Shenzhen Coban Electronics Co. Ltd., Shenzhen Eelink Communication Technology Co. Ltd., Shenzhen Jimi IoT Co. Ltd., Sierra Wireless Inc., Trackimo Inc., Traxbean Technology Ltd. Co., and UAB Ruptela |
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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