Vehicle Tracking Device Market Size - By Component (Hardware, Software), Tracker Type (Wired, Wireless), Vehicle (Passenger Vehicles, Commercial Vehicles [High-Duty, Medium-Duty, Light-Duty]), Communication, Application & Global Forecast, 2023 - 2032

Vehicle Tracking Device Market Size - By Component (Hardware, Software), Tracker Type (Wired, Wireless), Vehicle (Passenger Vehicles, Commercial Vehicles [High-Duty, Medium-Duty, Light-Duty]), Communication, Application & Global Forecast, 2023 - 2032

Vehicle Tracking Device Market size is projected to exhibit over 15% CAGR from 2023 to 2032 driven by the growing emphasis on supply chain visibility as well as efficiency in logistics operations. The increasing focus on optimizing logistics and enabling real-time tracking of in transit goods is surging the demand for vehicle tracking across businesses. Additionally, the burgeoning need to ensure transparency, reduce risks, and improve the overall supply chain visibility is contributing to the growing acceptance of vehicle tracking devices.

Furthermore, the continuous innovations in tracking device hardware, such as GPS modules and sensors, for providing enhanced performance, reliability, and functionality is expected to augment the industry outlook. For instance, in August 2023, MapmyIndia introduced a new range of Mappls Gadgets for cars and two-wheelers, comprising advanced vehicle GPS trackers, dash cams, in-dash navigation systems, and Smart Helmet kits.

The vehicle tracking device industry is segmented into component, tracker type, vehicle, communication tracker, application, and region.

Based on component, the market share from the hardware segment is projected to gain significant traction from 2023 to 2032 due to increasing number of businesses across various industries prioritizing fleet management and vehicle security. Innovations, such as ruggedized and compact devices, extended battery life, and integration capabilities to cater to diverse industry needs, including transportation, logistics, and asset tracking will also fuel the segment growth.

In terms of application, the vehicle tracking device industry from the transportation & logistics segment will foresee considerable growth during 2023-2032. Vehicle tracking devices provide real-time tracking, route optimization, and maintenance schedules leading to enhanced operational efficiency and cost savings. With the increasing emphasis on supply chain visibility, regulatory compliance, and customer satisfaction in the transportation and logistics industry, the adoption of vehicle tracking devices is rising. Additionally, the ability of tracking technologies to streamline processes and improve the overall fleet performance will further contribute to the segment expansion.

Asia Pacific vehicle tracking device industry is estimated to exhibit robust growth through 2032. With the surge in fleet management adoption and the increasing concerns about road safety, businesses and transportation sectors across the region are embracing vehicle tracking devices.

There have also been significant government initiatives to improve transportation infrastructure and regulations for promoting vehicle safety. Moreover, the ongoing innovations and product launches by several market players for catering to the evolving end-user and consumer needs will propel the industry outlook. For instance, in November 2023, Reliance Jio introduced JioMotive, its latest smart device for older cars and even some new entry-level vehicles to offer a variety of smart capabilities, such as vehicle tracking and diagnostics.