The global vehicle tracking system market is estimated to be valued at USD 13.19 Bn in 2025 and is expected to reach USD 29.75 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 12.32% from 2025 to 2032.
The rising demand for GPS-based technologies and increasing adoption of connected vehicles is driving the market growth. Similarly, government initiatives to promote eco-friendly transportation are also likely to fuel the market growth. These policies promote the use of electric and battery-powered vehicles and are a significant factor driving global demand for these systems. The growth of this market is also supported by the rapid expansion of the app-based transportation system, rise in vehicle leasing and rental activities, and concerns regarding safety of automobiles from theft.
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Artificial intelligence enhances vehicle tracking systems by transforming raw location data into actionable insights. AI algorithms analyze GPS and sensor inputs in real time to optimize routes, predict delays, and monitor driver behavior. They detect patterns indicating risky driving, unauthorized vehicle use, or potential mechanical issues, enabling faster intervention. AI-powered video telematics can also identify distractions or fatigue, improving overall safety.
In October 2025, Netradyne introduced its Driver•i D-450 video safety platform and a new Driver Monitoring System (DMS) sensor in India. The four-camera D-450 uses AI to record and analyze driving behavior, identifying risks, distractions, and fatigue in real time. The in-cabin DMS sensor enhances the system by tracking eye movements to spot early drowsiness and deliver timely warnings.
In terms of vehicle type, the Passenger Vehicles segment contributes 43.2% of the market share in 2025. Passenger vehicles dominate because of their sheer volume globally and increasing demand for personal and shared mobility solutions. Tracking systems are widely deployed for passenger vehicles for theft prevention, insurance monitoring, and fleet management for ride-sharing platforms.
The trackers for modern passenger vehicles are designed with a state-of-the-art integration of telematics, IoT sensors, and mobile applications that enable users to receive data remotely, assisting them in maintaining vehicle health, driver behavior, and fuel efficiency. This increases the value for customers, but on the other hand, such systems are also increasingly required by insurance and regulatory entities in many jurisdictions.
For instance, in September 2025, MMVD announced that about 95,000 passenger vehicles in Maharashtra (India) have been fitted with mandatory GPS-enabled “Vehicle Location Tracking Devices (VLTDs)”, including real-time monitoring and onboard SOS alert functionality.
By end use, the Transportation & Logistics segment contributes 51.7% of the market share in 2025, while vehicle tracking systems are being increasingly adopted for improving route efficiency, monitoring driver performance, and decreasing operational costs by fleet operators, shipping companies, and delivery services.
Real-time tracking by the logistics manager enables them to optimize routes, manage fuel consumption, and facilitate on-time delivery. In addition, the tracking data support regulatory compliance, load management, and predictive maintenance that minimize downtime and operational disruption.
For instance, in February 2025, at Tech & Telco Summit 2025, TransTRACK introduced an IoT-based fleet monitoring solution, which had the potential to provide real-time GPS tracking, route optimization, predictive maintenance, and driver behavior monitoring.
In terms of technology type, the GPS/Satellite segment holds the largest market share in 2025. GPS-based systems provide high accuracy, global coverage, and reliability, making them the preferred choice for tracking both commercial and passenger vehicles.
These systems facilitate real-time location, speed monitoring, and geofencing of vehicles. Along with cloud analytics and mobile dashboards, GPS tracking thus helps operators to monitor fleets remotely, analyze driver behavior, and prevent theft. Satellite-based tracking is considered important in regions with poor coverage of the cellular network, ensuring continuous monitoring across urban and remote areas.
For instance, in May of 2025, at the Conference of 5GAA in Paris, LG Electronics Company demonstrated a satellite-based connected-car solution using IoT-NTN (non-terrestrial/satellite) telematics.
By type, Active trackers account for the largest share of 77.3% in 2025, while active tracking devices offer real-time communication with fleet managers or vehicle owners by providing location updates, instant alerts, and dynamic route management.
Active tracking solutions find broad applications in passenger, commercial, and government fleets where instant responses and continuous monitoring are highly essential. The integration of IoT sensors and telematics platforms further increases vehicle safety, fuel management, and driver behavior monitoring.
For instance, in August 2025, 3Dtracking’s device-integration announcement showing availability of new tracker devices for fleets.
In terms of component type, Hardware (tracker/devices) holds 58.2% of the market share in 2025. Hardware devices, including GPS trackers, OBD devices, and advanced telematics units, form the backbone of vehicle tracking systems.
The hardware segment dominates due to the critical role of devices in capturing vehicle location, speed, diagnostics, and driver behavior. Modern trackers are compact, durable, and compatible with cloud platforms, supporting real-time fleet monitoring and predictive maintenance.
For instance, in April 2024, ATrack Technology Inc. introduced its new hardware, including the AK750 GEO/LEO AI Telematics Box, which supports satellite (GEO/LEO) connectivity + LTE fallback, meant for remote-connectivity vehicle/asset tracking.
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North America continues to dominate the global vehicle tracking system market, holding a 33.3% share in 2025, driven by the region's advanced digital infrastructure, widespread telematics adoption, and strong presence of leading fleet-management and GPS-technology providers. The U.S. has emerged as a powerhouse for connected-vehicle technologies due to high demand from transportation & logistics companies, last-mile delivery service providers, and commercial fleet operators seeking real-time visibility and operational efficiency.
For instance, in August 2025, 3Dtracking announced expanded integration of newly released LTE/GNSS hardware trackers such as the GV50 series and ET300 devices, enhancing real-time fleet tracking and security for North American logistics operators.
Asia Pacific has established itself as the fastest-growing region within the global vehicle tracking system market, driven by an increase in commercial fleet expansions, rapid digitalization, and increased adoption of GPS-based and IoT-enabled vehicle tracking solutions across emerging economies. Countries like China, India, Indonesia, and Vietnam are experiencing solid growth in transport, logistics, ride-hailing, and e-commerce delivery services, thus driving up demand for sophisticated vehicle tracking hardware.
The growing demand for fleet safety, fuel optimization, and route efficiency has driven the widespread deployment of active trackers, OBD devices, and smart telematics units throughout regional logistics networks. Supported by government-backed investments in smart city programs and ITS, adoption is accelerating.
For instance, in May 2025, Arknav GPS launched its “iON-it Guardian Lite” vehicle-tracking device, a compact, hardware-based anti-theft and telematics unit, expanding availability of cost-efficient tracking solutions across Asian markets.
The U.S. vehicle tracking system market is seeing rapid growth in 2025, driven by increasing adoption of connected vehicles, advanced telematics, and fleet management solutions. E-commerce expansion, together with urban congestion and demand for faster and more efficient deliveries, has prompted logistics and transportation companies to implement real-time GPS/GNSS tracking, AI route optimization, and predictive maintenance systems. Government regulations related to fleet safety, emissions, and ELDs further accelerate the implementation of hardware and cloud-based telematics solutions.
For example, in August 2025, Trucking Hub announced the launch of Dashcam One, referred to as “the industry’s first dashcam with built in ELD, real time telematics, diagnostics, and AI-powered safety” for trucking fleets.
China’s vehicle tracking system market is witnessing strong growth in 2025, driven by the rapid expansion of commercial fleets, urbanization, and the increasing adoption of GPS and IoT-based vehicle tracking solutions. Government-backed smart city initiatives, rising e-commerce deliveries, and demand for fleet optimization are fueling adoption of active trackers, OBD devices, and cloud-based fleet monitoring systems.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 13.19 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 12.32% | 2032 Value Projection: | USD 29.75 Bn |
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| Companies covered: |
Trackimo Inc., Verizon, Laipac Technology Inc., Geotab Inc., Xirgo Technologies, Llc., Cartrack, Orbcomm Inc., Tomtom International B.V., Teltonika, and Calamp |
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The expansion of global transportation and logistics industry is increasing all over the world. The tracking fleet has become necessary for the security of vehicle and timely delivery, with the rise in fleet size of transportation and logistics companies. The sales of commercial vehicles are rapidly increasing all over the world, which further is creating demand for vehicle tracking systems for maintenance and fleet tracking operations.
The need for reduction in cost and enhancement in operational efficiency is increasing for achieving higher productivity along with profitability. A vehicle tracking systems offers services such as telematics, asset tracking, predictive fleet maintenance, and fleet route planning. With these services, the optimum use of resources and operational flexibility is facilitated. Moreover, use of these systems also enhances the customer experience and helps boost cost savings. Due to aforementioned factors, the demand for vehicle tracking systems is increasing all over the world, which in turn is expected to propel growth of the global vehicle tracking system market over the forecast period.
Emerging cloud computing is expected to bring growth opportunities in the global vehicle tracking system market during the forecast period. The adoption of connected vehicle tracking systems has increased, owing to enhanced connectivity services and proliferation of technology. The use of cloud computing has increased in recent years, as it offers software, computation, data, and storage access resources, without needing information of the vehicle owner. The vehicles come with GPS antenna and GSM-enabled device. The GSM-enabled device is connected to sensors to monitor necessary parameters such as fuel consumption, vehicle speed, vehicle location and others. Due to various benefits of cloud computing, its adoption across vehicles technologies is increasing, which in turn is likely to benefit the market in the coming years.
Digital integration, the proliferation of IoT devices, and regulatory controls for fleet safety and emissions performance are driving the vehicle tracking system market. Regional regulations, such as those by the European Union, which require telematics-based monitoring of commercial fleets, along with regulatory interest by the US Department of Transportation in driver behavior and accident prevention, further expedite the adoption of connected vehicle technologies.
Global logistics and e-commerce leaders such as DHL, FedEx, and JD Logistics, are already pushing for telematics adoption across their fleets to increase route optimization and reduce downtime, as well as improve asset security. In fact, passive GPS trackers are rapidly being replaced by active dual-mode devices that provide real-time vehicle data, driver behavior insights, and automated maintenance alerts.
In the end, commercial success in vehicle tracking will depend on the capability to provide actionable intelligence instead of mere location visibility. Vendors offering telematics innovation combined with AI-powered fleet analytics and cross-platform interoperability will achieve deeper enterprise penetration and regulatory alignment while defining the next competitive frontier of the global vehicle tracking system market.
Definition: A Vehicle Tracking System is an automated tracking solution that enables fleet management. It consists of a telematics device installed in a car or truck, communicating with a GPS satellite network. It collects and sends information about the vehicle's location, speed, and other data points.
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