Rising IoT adoption and GPS mandates are fueling growth in the vehicle tracking systems market, with North America leading the industry.

Hyderabad, Nov. 05, 2025 (GLOBE NEWSWIRE) — Hyderabad, India, November 2025 – According to a report by Mordor Intelligence, the global vehicle tracking system market, valued at USD 29.60 billion in 2025, is projected to reach USD 60 billion by 2030, growing at a 15.18% CAGR. Market growth is being driven by increasing demand for fleet optimization, safety compliance, and real-time analytics, as well as government mandates for GPS installation in logistics and passenger transport fleets. Telematics providers are rapidly adopting cloud-based dashboards, SIM-less tracking devices, and AI-powered routing systems, fueled by the convergence of IoT, 5G, and predictive maintenance technologies. 

Technology Shaping Vehicle Tracking System Market Growth 

Declining IoT and GNSS Chipset Prices Boost Affordability and Adoption 

As IoT and GNSS chipsets become cheaper, vehicle tracking systems are becoming more accessible. Advanced, compact hardware now supports multiple connections, appealing to fleets seeking affordable digital solutions. Subscription-based pricing also helps businesses realize faster ROI. 

AI-Enabled Telematics Transforming Connected Vehicles 

Automakers are increasingly integrating telematics and smart camera systems directly into connected vehicles, removing the need for aftermarket installations. These built-in solutions support remote updates, enhance data security, and enable real-time driver monitoring to promote safer driving behavior. 

By linking with predictive maintenance tools and connected service APIs, connected vehicles allow proactive management and reduced downtime. This evolution transforms telematics from a basic tracking tool into a comprehensive, data-driven ecosystem for fleet operators and mobility partners within the vehicle tracking system market. 

Smart Fleets Powering the E-Commerce Revolution  

The rapid growth of online shopping has intensified the need for efficient last-mile delivery fleets. Companies are using intelligent route-planning tools and real-time dashboards to minimize delays, manage traffic challenges, and improve delivery accuracy. Advanced vehicle tracking system technology now integrates multiple mobility data sources, helping drivers and dispatchers adjust routes instantly while enhancing customer experience with live delivery updates. Growing environmental regulations are also pushing logistics firms toward connected, eco-friendly fleets that ensure compliance and sustainability. 

Regional Insights 

North America remains the most developed market for vehicle tracking systems, supported by strong regulatory frameworks and widespread adoption of electronic logging devices. Fleet operators are increasingly embracing connected solutions to meet strict delivery schedules and improve transparency. In the U.S., demand is driven by data-focused shippers seeking greater cost visibility, while Canada’s rigorous certification standards sustain premium offerings. Continued venture investment in software-driven providers reinforces the region’s leadership position. 

 
Asia-Pacific is emerging as the fastest-growing region, fueled by rapid urbanization, expanding e-commerce, and government efforts to modernize logistics infrastructure. Growing adoption of compliant tracking systems, electric fleet deployment, and integrated telematics by regional manufacturers are accelerating market development. While some emerging economies still face connectivity challenges, hybrid network solutions are helping bridge the digital divide and expand access to advanced tracking technologies. 

Table of Contents (Partial) – Vehicle Tracking System Market 

1. INTRODUCTION  

  • 1.1 Study Assumptions and Market Definition  
  • 1.2 Scope of the Study  

2. RESEARCH METHODOLOGY  

3. EXECUTIVE SUMMARY  

4. MARKET LANDSCAPE  

  • 4.1 Market Overview  
  • 4.2 Market Drivers  
    • 4.2.1 Tightening cross-border ELD and e-log compliance mandates  
    • 4.2.2 Surge in e-commerce-driven last-mile fleets  
    • 4.2.3 Falling IoT/GNSS chipset ASPs  
    • 4.2.4 And more 
  • 4.3 Market Restraints  
    • 4.3.1 Cellular “dead-zone” coverage gaps  
    • 4.3.2 Data-privacy / GDPR litigation risk  
    • 4.3.3 Volatile LEO-satellite bandwidth pricing  
    • 4.3.4 And more 
  • 4.4 Value / Supply-Chain Analysis  
  • 4.5 Regulatory Landscape  
  • 4.6 Technological Outlook  
  • 4.7 Porter’s Five Forces Analysis  
    • 4.7.1 Threat of New Entrants  
    • 4.7.2 Bargaining Power of Buyers  
    • 4.7.3 Bargaining Power of Suppliers  
    • 4.7.4 Threat of Substitutes  
    • 4.7.5 Competitive Rivalry  

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)  

  • 5.1 By Component  
    • 5.1.1 Hardware  
    • 5.1.2 Software  
    • 5.1.3 And more 
  • 5.2 By Vehicle Type  
    • 5.2.1 Passenger Cars  
    • 5.2.2 Light Commercial Vehicles  
    • 5.2.3 Heavy Commercial Vehicles  
    • 5.2.4 And more 
  • 5.3 By Application  
    • 5.3.1 Fleet Management  
    • 5.3.2 Asset Tracking and Monitoring  
    • 5.3.3 Safety and Security  
    • 5.3.4 Predictive Maintenance  
    • 5.3.5 And more 
  • 5.4 By Deploment Type  
    • 5.4.1 On-Premise  
    • 5.4.2 Cloud  
    • 5.4.3 Hybrid  
  • 5.5 By Geography  
    • 5.5.1 North America  
      • 5.5.1.1 United States  
      • 5.5.1.2 Canada  
      • 5.5.1.3 Mexico  
    • 5.5.2 South America  
      • 5.5.2.1 Brazil  
      • 5.5.2.2 Argentina  
      • 5.5.2.3 Rest of South America  
    • 5.5.3 Europe  
      • 5.5.3.1 Germany  
      • 5.5.3.2 United Kingdom  
      • 5.5.3.3 France  
      • 5.5.3.4 Italy  
      • 5.5.3.5 Spain  
      • 5.5.3.6 Russia  
      • 5.5.3.7 Rest of Europe  
    • 5.5.4 Asia-Pacific  
      • 5.5.4.1 China  
      • 5.5.4.2 Japan  
      • 5.5.4.3 India  
      • 5.5.4.4 South Korea  
      • 5.5.4.5 Australia and New Zealand  
      • 5.5.4.6 Southeast Asia  
      • 5.5.4.7 Rest of Asia-Pacific  
    • 5.5.5 Middle East and Africa  
      • 5.5.5.1 Middle East  
      • 5.5.5.1.1 United Arab Emirated  
      • 5.5.5.1.2 Saudi Arabia  
      • 5.5.5.1.3 Rest of Middle East  
    • 5.5.5.2 Africa  
      • 5.5.5.2.1 South Africa  
      • 5.5.5.2.2 Nigeria  
      • 5.5.5.2.3 Rest of Africa  

6. COMPETITIVE LANDSCAPE  

  • 6.1 Market Concentration  
  • 6.2 Strategic Moves  
  • 6.3 Market Share Analysis  
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)  
    • 6.4.1 Verizon Connect  
    • 6.4.2 Geotab  
    • 6.4.3 Trimble Inc.  
    • 6.4.4 Webfleet (TomTom)  
    • 6.4.5 Samsara  
    • 6.4.6 CalAmp  
    • 6.4.7 ORBCOMM  
    • 6.4.8 ATandT Fleet Complete  
    • 6.4.9 Gurtam  
    • 6.4.10 And more 

For details on other market segments and the full table of contents, visit – https://www.mordorintelligence.com/industry-reports/vehicle-tracking-system-market?utm_source=globenewswire 

Related Reports by Mordor Intelligence 

GPS Tracking Device Market  – The GPS tracking device market is valued at USD 4.25 billion in 2025 and is projected to reach USD 7.43 billion by 2030, growing at a CAGR of 11.82% during the forecast period. The market growth is driven by increasing demand for vehicle and asset tracking solutions, rising adoption of connected devices, and growing emphasis on logistics and fleet management efficiency across industries. 

IoT Security Market – The IoT security market is estimated at USD 8.81 billion in 2025 and is expected to reach USD 37.41 billion by 2030, expanding at a remarkable CAGR of 33.53%. Growth in this market is fueled by the rapid proliferation of IoT devices, increasing cyber threats, and the need for robust security solutions to protect sensitive data and ensure regulatory compliance across sectors. 

Tracking-as-a-Service Market – The Tracking-as-a-Service market is expected to register a strong CAGR of 25.08% during the forecast period. Growth is driven by increasing demand for real-time tracking solutions, expanding use of IoT and cloud technologies, and rising adoption across logistics, transportation, and retail sectors to enhance supply chain visibility and operational efficiency. 
 

About Mordor Intelligence 

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. 

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