GPS Tracking Device Market Trends

Growth Drivers

• Rising integration with AI and data analytics: The rapid integration of GPS tracking devices with AI and IoT platforms has advanced their applications benefiting the GPS tracking device market. Businesses can leverage data analytics to generate actionable insights such as predictive maintenance alerts. Data analytics facilitates efficient fleet management. For instance, in June 2024, Genesys launched AI integrated navigation map for automotive and mobility sectors and is set to encompass the largest navigable road network in India.
  
  Additionally, the adoption of GPS tracking devices is surging in cold chain logistics owing to monitoring solutions for transportation vehicles as well as leveraging ability to check cargo temperature. Manufacturers are poised to leverage the surging demands by providing advanced GPS tracking devices that can monitor location as well as temperature, and reduce idle times while optimizing routes.
• Surging demands for telematics in insurance: The GPS tracking device market is set to benefit from the increasing adoption of telematics in the insurance sector. Insurers are adopting GPS tracking devices to monitor driving behavior with integration in vehicle telematics, to provide usage based insurance plans and improve customer engagement. Businesses that are leveraging telematics can negotiate improved insurance premiums through demonstrating compliance with safety norms.
  
  Furthermore, GPS tracking devices streamline claims management by providing accurate data of accidents. Key market players are investing in acquisitions and partnerships to expand their portfolios. For instance, in September 2024, Platform Science announced decision to acquire Trimble’s global transportation telematics units.
• Growing demands of GPS tracking devices for pets: The GPS tracking device sector is positioned to leverage increasing demands for pet tracking devices. With growing awareness of pet care trends and pet safety, owners are investing in GPS-enabled pet collars to ensure real-time location tracking. For instance, in February 2024, Petcube announced expansion of product lineup with GPS tracker launch with customizable geofencing features.
  
  Additionally, availability of pet tracking and monitoring solutions with GPS tracking devices that are waterproof and durable is projected to expand market opportunities. With an increase in global pet ownership rates, especially in urban areas, the demand for GPS tracking devices is projected to increase during the forecast period.

Challenges

• Fragmented market and surging competitions: The GPS tracking device market is highly fragmented owing to multiple players providing diverse products at varying price points. The heightened competition has created market saturation in certain region, making it exceedingly difficult for new entrants to establish a steady foothold in the sector. Established players may also face challenges in balancing new advancements while maintaining affordability.
• Dependence on external power sources and limited battery life: GPS tracking devices face constraints in frequent battery replacements and reliance on external power sources. Many GPS devices, especially portable and wearable GPS devices embedded in smart wearables face constraints in limited battery life. Industries such as logistics and personal tracking are dependent on uninterrupted device functionality.