Access TOC
Get a SampleJanuary 2025
The global vehicle tracking systems market size is estimated at USD 31.60 billion in 2025 and is anticipated to reach around USD 99.56 billion by 2034, expanding at a CAGR of 13.67% from 2025 to 2034. The North America vehicle tracking systems market size was estimated at USD 9.12 billion in 2024 and is expanding at a CAGR of 13.70% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global vehicle tracking systems market size accounted for USD 27.64 billion in 2024 and is predicted to reach around USD 99.56 billion by 2034, growing at a CAGR of 13.67% from 2025 to 2034. The increasing cases of car theft cases globally has boosted the growth of the vehicle tracking systems market.
AI has played a significant role in the automotive industry. In automotive companies, AI has been integrated for developing the manufacturing process coupled with minimizing errors in finished products. Nowadays, vehicle tracking systems companies are engaged in developing trackers based on AI for providing accuracy and authenticity while monitoring different automotives. Moreover, AI-enabled vehicle trackers can alert the fleet operators and private owners if anyone tries to perform any unwanted activity in the vehicles.
The U.S. vehicle tracking systems market size was valued at USD 6.39 billion in 2024 and is expected to be worth around USD 23.20 billion by 2034, growing at a CAGR of 14% from 2025 to 2034.
The North America accounted for over 33% of the market share in 2024 and the U.S. and Canada are the major contributors of this industry. In U.S., this market is generally driven by the technological advancements in the automotive industry along with rising investment by numerous companies for developing advanced vehicle tracking devices. In Canada, this industry is gaining traction due to several government rules for integrating trackers in vehicles coupled with increased focus on enhancing operational efficiency.
In Asia Pacific, China held the dominant position in the industry. In China, this industry is largely driven by the increased sales of passenger vehicles along with presence of well-established automotive aftermarket industry. India, Japan and South Korea also held substantial share of the market. In India, the market is boosted by the rising cases of thefts. In Japan, this industry is driven by the rise in number of ride-sharing platforms. In South Korea, this industry is generally driven by the presence of automotive companies such as Hyundai, Kia, Genesis, Daewoo Motors and some others.
The global vehicle tracking systems market is driven by the rising need for the automation of automotive products. Increasing operational efficiency and profitability along with a reduction in costs is driving the growth of the vehicle tracking systems market. The rapid growth of digital technologies has influenced almost every industry across the globe and digitization of the vehicles is an important aspect of vehicle tracking systems. The digitization of vehicles had resulted in increased operational efficiency owing to the introduction of telematics, the Internet of Things (IoT), and automation. The vehicle tracking systems help in vehicle maintenance, route optimization, vehicle diagnostics, driver management, and fuel management. The wireless internet connectivity helps in tracking the location of the vehicles and transfers real-time data. The growing demand for transportation services and rapid growth in the vehicle and transportation industry has fueled the growth of the global vehicle tracking systems market.
The rising adoption of mobility-as-a-service, the rising adoption of 5G connectivity, and the emergence of intelligent transportation systems are crucial factors that positively affect market growth. The vehicle tracking systems integrate fuel management, vehicle monitoring, and safety issues in real-time which can enhance the transport services. The growth in online businesses across the globe is significantly boosting the growth of vehicle tracking systems owing to the rising demand for logistic services for delivering goods to customers at distant locations. Hence, the rising penetration of online business is expected to exponentially drive the growth of the global vehicle tracking systems market in the forthcoming years. Moreover, the rising number of commercial vehicle sales across the globe is driving market growth. Moreover, the growing demand for passenger vehicles among the population owing to the rising popularity of the electric vehicle is offering lucrative growth opportunities to the market players operating in the global vehicle tracking systems market.
| Report Coverage | Details |
| Market Size by 2034 | USD 99.56 Billion |
| Market Size in 2025 | USD 31.60 Billion |
| Market Size in 2024 | USD 27.64 Billion |
| Market Growth Rate from 2025 to 2034 | CAGR of 13.67% |
| Largest Market | North America |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Vehicle Type, Technology, Component |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Based on vehicle type, the passenger vehicles segment accounted for over 41% of the market share in 2024. This can be simply attributed to the increased production, sales, and adoption of passenger vehicles across the globe. The rising disposable income, increased urbanization, and growing need for private commute has propelled the growth of the passenger vehicles segment. Moreover, the rising penetration of electric vehicles is further expected to spur the demand for passenger vehicles and tracking systems during the forecast period.
On the other hand, the light commercial vehicles segment is expected to be the fastest-growing segment during the forecast period. This is attributed to the increasing adoption of light commercial vehicles owing to the rising penetration of the e-commerce industry across the globe is boosting the sales of the minivans and other light commercial vehicles like pickup trucks for logistics operations.
The GPS/Satellite segment dominated the global vehicle tracking systems market in 2024, in terms of revenue and is estimated to sustain its dominance during the forecast period. The ability of GPS/satellite technology to work with other technologies like WiMAX, GSM, and LTE has boosted the adoption of GPS technology across the global vehicle tracking systems market. The increased efficiency and rising popularity of GPS/Satellite technology has made this segment the fastest-growing segment during the forecast period. The GPS technology can be publicized with various satellites and can chart enhanced routes.
The software segment accounted for over 66% of the market share in 2024. This is attributed to a rapid surge in the number of software solution providers in the market. The software provides various solutions like vehicle maintenance, route optimization, vehicle diagnostics, driver management, and fuel management, which had augmented the segment’s growth.
On the other hand, hardware is estimated to be the most opportunistic segment during the forecast period. The hardware consists of various devices such as trackers, onboard diagnostic devices, and others. The wireless Bluetooth connectivity and enhanced performances of the hardware are boosting the growth of this segment.
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
The various developmental strategies like new product launches, collaborations, partnerships, mergers, and government policies foster market growth and offer lucrative growth opportunities to the market players.
By Vehicle Type
By Technology
By Component
By Geography
For questions or customization requests, please reach out to us at sales@precedenceresearch.com
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
January 2025
January 2025
January 2025
August 2024