The global positioning system (commonly known by the abbreviation GPS) tracking has been on the rising end of the market and demand recently. GPS trackers connect to multiple satellites to determine location. The tracker utilizes a process known as trilateration, using the position of three or more satellites from the GNSS network and their distance from them to determine latitude, longitude, elevation, and time.
GPS tracking has proved useful for many people, especially in logistics industries. The real-time updates, geofencing, and continuous data collection and analysis have greatly optimized fleet management. Operating a commercial vehicle or fleet management comes with an unwritten requirement for a GPS tracking system, thus a great driver for the GPS trackers market.
How has the market been? As of 2021, the global GPS tracking device market stood at a market size worth $2.19 Million. A forecast of the same at a Compound annual growth rate (CAGR) of 12.6% brings the figure to a potential whooping net worth of $6.38 Million by 2030. At a simple assumption based on the forecasts, there is a high expectation of growth and even a further widening of the market.
The expected growth is more than just presumptive. Instead, it is based on several driving factors that will increase the demand and use of GPS Trackers.
The Driving Forces of GPS Tracking Market Demand
i. Increased Sales of Commercial Vehicles to Aid in Business
Most businesses value efficiency, and a core and integral part of this is the need to buy commercial vehicles to aid in business. With the increased sale of commercial vehicles, GPS Tracking companies are finding real and fleet-specific tracking devices. People who offer transport services for people on a commercial basis may have different concerns from those who transport cargo. Unlike inanimate cargo in transit, people can refuse to go to a different destination.
The thriving and busy GPS truck tracking, by RAM Tracking, is working to ensure they offer exactly what can be tuned to suit various needs in commercial fleet management. As market drivers for commercial vehicles remain on top, the market for GPS tracking devices will remain a beneficiary of its wave and influence.
ii. Revolution of the Internet of Things (IoT) and Growth of Cloud Technology to Support Markets
IoT, or the Internet of Things, refers to the collective network of connected devices and the technology that facilitates communication between devices and the cloud. We are at the age of tech, and any invention or service that cannot appreciate this will soon be out of the market. If not pushed out of the market by obsolescence, then the inability to compete effectively with tech-appreciating competitors will push them out of the market.
With modern technology like IoT and Cloud Tech, GPS trackers are considerably scaled to reach a performance level that can serve various applications. When embedded with electronics and internet connectivity, GPS trackers are transformed into intelligent devices that perform multiple functions. With the appreciation of cloud technology, GPS trackers can be controlled remotely and maintain communication with one another to enhance real-time information. With the increased use of such tech, the GPS Trackers market will continuously skyrocket.
iii. Increased Interest in Starting Logistic Companies
Logistics companies remain the subtle drivers of demand for GPS Tracking devices as they control and streamline various moving processes, including warehousing and transportation, from the point of origin to the point of consumption based on specific customer requirements. All these steps are made more effective by using GPS Trackers to replace human involvement, which registers many limitations and poor cost-benefit analysis. The increase in logistic services comes with a consequent widening of the market for GPS tracking devices.
With these drivers doing their work, how will the market look in the next ten years?
Ten Years Market Forecast
i. Increase in the Number of Big Players And Eventual Death of Incompetent Players
The market currently operates with various drivers giving their inputs to make a difference. The drivers have an effect of increasing demand for GPS Trackers in such a manner as is technologically competent enough to drive demand and remain on the positive side of relevance. The current, reliable big players in the fleet tracking device providers like RAM have a great potential to be a global powerhouse in a decade. This is only possible if they grow with tech and continue to adapt their specifications to suit the customer’s needs.
What about the companies that are not putting their best foot forward to tap into tech and customer satisfaction? Nothing rather than death and closure await any GPS Tracking providing companies that refuse to adapt accordingly. But all companies that remain competitive in a decade will become big players in this tech-driven industry. To put it succinctly, the GPS Trackers market is so tech-dependent that only tech-savvy providers of tracking services will competitively command the market.
ii. Regional Specific Demands Standing Clear Off Each Other
The tremendous global regions like North and Latin America, Europe, Africa, and Asia have their own scales and user ratios. That said, the expectation is that regions that appreciate GPS tracking have great potential to be ahead of the rest in the next ten years. On the other hand, growth can change in case one region gives more attention.
While the Asia-Pacific leads at a CAGR of 13.5% (China and India being great contributors in the regional average), the European block follows at a CAGR of 8.5% within the same forecast period, and other regions share the remaining portion in lower percentages, there could be a different outlook in ten years. With population advantage, Asia stands a better chance of winning fairly in the next decade unless they don’t maintain the current motivations.
iii. Continuous Market Segmentation
The global GPS market operates with three segments; type, technology, and the end user. By type, the GPS market operates in a threefold segmentation of data loggers, pushers, and pullers. By tech, we have standalone and advanced trackers. Segmentation by end-users takes the most significant share with such segments as Automotive, Defense, Transportation, Aerospace, et cetera. Because all these segments were driven by need, growing needs will bring even more.
The Advanced Trackers segment is expected to exhibit a high market attractiveness index over the forecast period. It is expected to grow steadily with a potential of being valued in net worth exceeding $ 445 Million.
The market for Global Positioning System trackers is set for better days in the next ten years, as seen by its powerful drivers and reliable forecasts. The market is set for much more growth, and only the companies that can grow with tech and demand will remain in the market for ten years. To stay relevant, whether you are an end user, or GPS tracking service provider, you must strive to keep up with technology.