Vehicle Tracking System Market: Current Analysis and Forecast (2025-2033)

Vehicle Tracking System Market Size & Forecast

The vehicle tracking system market was valued at approximately USD 27.9 billion in 2024 and is expected to grow at a substantial CAGR of around 13.6% during the forecast period (2025-2033), owing to the growing demand for fleet optimization and enhanced vehicle security across logistics and transportation sectors.

Vehicle Tracking System Market Analysis

Collaboration between information technology and the telecom sector has created a whole new generation of solutions in the major industrial sector, enabling businesses to enhance efficiency, cut costs, and speed deliveries. One such technology is a vehicle tracking system, which provides real-time information about the movement and location of vehicles, which is one of the most important for the smooth operation of the logistics and transportation sector. Logistics companies such as Blue Dart and Gati in India are using vehicle tracking systems (VTS) to track the status of shipments they need to deliver. In addition, car rental firms such as Budget Rent-A-Car also use the VTS to maintain schedules and track their operational vehicles. VTS uses technologies such as GPS and other navigation systems operating via satellite and ground-based stations to track vehicles anywhere on Earth. It is predicted that vehicle security, being the primary concern for vehicle owners, would provide ample growth opportunity for the automotive technology service providers to cater to the untapped market for VTS.

Vehicle Tracking System Market Trends

This section discusses the key market trends influencing the various segments of the Vehicle Tracking System Market as identified by our research experts.

Rising integration of AI and IoT in vehicle tracking

Another emerging trend that is driving the progress of the vehicle tracking system is the advancement of Artificial Intelligence and the Internet of Things-IoT about real-time data analysis and prognosis of maintenance needs. With IoT devices, it is possible to connect vehicles and, using the AI algorithms, analyze the performance of the fleet, detect any troubles with the car that may appear soon, and manage routes much more effectively. This technological integration not only enhances the operating effectiveness and safety of big structures, but it also contributes to minimizing of time and expenses needed for equipment failure and maintenance. Due to these business needs for better and more scalable solutions, this trend is therefore contributing to shifting market adoption across the transportation, logistics, and commercial vehicles industry.

Vehicle Tracking System Industry Segmentation

This section provides an analysis of the key trends in each segment of the global Vehicle Tracking System market report, along with forecasts at the global, regional, and country levels for 2025-2033.

The Active Systems Segment Holds the Largest Share of the Vehicle Tracking System Market.

Based on Type, the Vehicle Tracking System Market is segmented into active systems and passive systems. An active system is expected to witness high adoption owing to its reliability and accuracy. Active tracking systems cost more compared to the passive tracking system. The passive system constantly collects data about the vehicle's position and stores it in the storage device.

The GPS-Based Tracking Systems Market is Expected to Witness a Higher CAGR than the Vehicle Tracking System Market.

Based on Technology, the market is bifurcated into GPS-based tracking systems, Cellular network-based systems, and satellite-based systems. GPS-based tracking systems provide more accurate data compared to cellular network-based trackers; hence, adoption of GPS-based tracking systems is higher compared to the cellular network-based tracking system.

APAC has a significant share of the market in 2024.

The Asia-Pacific vehicle tracking system market is growing rapidly due to factors like the expansion of logistic services, the government’s smart mobility undertaking, and increased adoption of fleet management across the Asia-Pacific region. Some of the countries that have gained significant traction include India, Japan, and South Korea, with tracking and other IoT structures, which have been supported by legal bodies that have enhanced the safety regulations of the vehicles. The digital demand of the region and the client market’s focus on technology are also propelling the advancement and implementation of monitoring in automobiles.

China Dominates the APAC Vehicle Tracking System Market

The vehicle tracking system market in China is growing rapidly with the backing of smart transportation, EVs, and connected mobility. This is the finding of Law’s report that indicates a tight relationship between automobile manufacturers from other parts of the globe and Chinese design houses in telematics, tracking, and autopilot systems. Furthermore, special attention to data protection and the development of a digital environment in China also influences the application of tracking solutions for commercial and passenger fleets.

Vehicle Tracking System Industry Competitive Landscape  

The Vehicle Tracking System Market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top Vehicle Tracking System Companies

Some of the major players operating in the market are Robert Bosch; AT&T Inc.; Verizon Communications Inc.; TomTom Inc.; Continental AG; CalAmp Corp; Inseego Corp.; Geotab Inc.; Cartrack Holdings Limited (Karooooo Ltd); Xirgo Technologies, LLC. (Sensata Technologies) (Balmoral Funds LLC)

Recent Developments in the Vehicle Tracking System Market

• In April 2023, iTecknologi Group joined forces with Vehari Police to introduce Advanced Vehicle Tracking Services to enhance the safety and monitoring of the police fleet. This collaboration will provide real-time tracking capabilities, enabling the police to have up-to-date information about the location of their vehicles.

• In January 2023, West Bengal Chief Minister inaugurated a new system in Kolkata. The system aims to bring significant benefits to the transportation sector in the state. In its first phase, approximately 160,000 vehicles will be covered under this initiative. The inauguration of this system marks a significant step towards enhancing the efficiency and effectiveness of transportation in West Bengal.

• In August 2022,com partnered with Global Telemetrics. This collaboration marks a significant transition for ineedatracker.com as it moves from its current position as a retailer to a provider of monitored vehicle tracking systems.

Vehicle Tracking System Market Report Coverage

Reasons to Buy the Vehicle Tracking System Market Report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.

• The report presents a quick review of overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional-level analysis of the industry.

Customization Options:

The global Vehicle Tracking System market can be customized further as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.