For the past decade, the GPS tracking industry has been growing faster. As a result, the GPS tracking devices market size is expected to hit an estimated USD 3.38 billion by 2025, with a CAGR of 11.58 percent over the forecast period. The major drivers for this market are the increased demand for advanced GPS tracking solutions, the growing adoption of real-time GPS tracking solutions in fleet monitoring, transportation, and logistic sectors, and increased upgrades of GPS software and integration with other technologies such as machine learning, AI, and IoT.
Some of the largest GPS tracking device manufacturers include Atrack Technolgy inc, Trackimo, Sierra Wireless, Geotab Inc., Meitrack Group, Concox Information, Ruptela UAB, and Calamp Corp.
Despite the constant market growth, implementing GPS tracking is faced with key concerns, the most common being privacy, data, and battery usage. Some businesses even choose to refrain from introducing GPS-tracking apps to employees because they fear they will be met with resistance from the same workforce.
The uncertainty about GPS tracking doesn't end there, nor do the statistics support it.
In this post, we explored all the available data in the GPS tracking software industry to compile a list of the critical GPS tracking statistics available in the market.
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The option to use an app or software to track the location of a vehicle or individual was once a groundbreaking idea. But unfortunately, it was inaccessible for many businesses unfamiliar with GPS tracking and its ability in real-time location tracking, safety, cost-savings, and compliance.
But that has changed recently.
Several industries with a fleet of vehicles and a team of field agents have adopted cloud-based GPS management solutions. These industries provide a new methodology on how GPS tracking is being used globally, including construction, healthcare, manufacturing, logistics, deliveries, retail, and more. The next section will cover some of the main industries that use GPS tracking more. For more details, read our guide on the top industries that use GPS tracking.
Transportation and Logistics Industry
Trucks, trains, buses, and taxis rely heavily on GPS functionality for real-time vehicle tracking, fleet management, and route optimization. Using the best employee GPS tracking apps, businesses can stay connected with their drivers or field employees and inform customers about their estimated time of arrival or possible delays.
According to the 2023 Fleet Technology Trends Report, fleet businesses that invest in GPS tracking software realize true value from their investment within a short time. Another market research also shows that about 86 percent of fleets now use telematics, a significant increase from 48 percent two years ago and 82 percent in 2018.
The results of using GPS tracking are also promising. The same survey shows that by using GPS fleet tracking software, 42 percent have recorded fewer safety incidents, 62 percent have reported a positive ROI, and 55 percent have seen a reduction in fuel costs from telematic software, which is good news considering that fuel is one of the largest expense for 32 percent of fleets.
GPS fleet tracking solutions have also helped about 42 percent of users improve routing, 48 percent improve customer service, and 4 percent improve productivity - all while contributing to a better bottom line.
Items such as trucks, power tools, and other essential on-site equipment are excellent targets for theft. A recent survey shows construction-related crime has increased by 35 percent over the past year, roughly 13 incidents per day. The cost of tools and equipment stolen from construction sites and tradespeople's vehicles topped USD 8.4 million last year. Out of that, equipment stolen from vehicles amounted to half of that figure. This shows how vital GPS tracking is to help capture data, including location, usage, engine hours, idle time, and on-site job time.
When GPS and asset tracking apps are integrated with other telematic data systems, such as those related to routing, inspection, dispatch, and maintenance, employers can get a complete view of the fleet status and performance and experience efficiency improvement, which translates to less unplanned downtime for servicing assets.
Location-based vehicle tracking systems can also ensure drivers carrying loads from one location to another do not take unsafe routes or waste time idling. Approximately 39 percent of drivers report idling for three to four hours per day, while an additional 14 percent indicate idling for over four hours daily. GPS tracking software can reduce wasted time and ensure drivers obey safety regulations.
The home healthcare industry also uses GPS tracking a lot. For example, mobile healthcare personnel may perform ambulance dispatches, blood delivery, medicine distribution, routine mobile health check-ups, and other activities.
GPS fleet tracking ensures all these operations are done successfully within the specified period. They help hospitals know where their field healthcare providers and vehicles are, what they're doing, where they stopped, and the duration of each stop. In addition, these tools can help you create detailed reports for location data for deeper analysis.
In addition to tracking mobile healthcare personnel, GPS trackers can also be used to prevent the theft of medical supplies and equipment. Sadly, medical supplies theft accounts for over 40 percent, with the median value of pharma theft topping $100,000 even for the smallest medical supplies theft.
GPS trackers can be installed discreetly on vehicles to monitor drivers' progress and their shipments. Anti-theft GPS tracking can prevent theft in the first place, as the fleet will be continuously monitored. In the event of theft, GPS tracking equipment provides valuable information that increases the chance of recovery.
Courier / Delivery Services
As more people continue to rely on e-commerce stores for all their purchasing needs, quick fulfillment and delivery are no longer "good to have" but necessary for a better online shopping experience. To stay ahead of the competition, delivery service providers and major retailers are improving their fleet management, delivery speed, and overall user experience.
As a result, most companies rush to develop new technologies. They test supply chain models to increase delivery speed and packaging capacity and provide a better customer experience at a lower cost.
If you have ever tracked or monitored a shipment online in real-time, you will understand how tedious delivery can be with its long processing and delivery time, including the many drop-offs that delivery people have to make for every individual parcel in a single trip. If the delivery is in remote areas, the experience is even worse with routes that may be miles apart. Unfortunately, the situation isn't much better in cities, as traffic snarls may affect delivery time, leading to lesser drop-offs.
Traffic congestion is among the major factors affecting route planning and delivery. Traffic congestion costs organizations nearly USD 74 billion annually in the US alone.
The best way to tackle these challenges is by deploying GPS-tracking software. With the help of a GPS monitoring mobile app, drivers can optimize and choose the best possible route. This helps them avoid unnecessary delays caused by traffic congestion, car accidents, and vehicle breakdowns, improving their overall performance.
According to a study by the National Institute of Standards and Technology, GPS tracking software with route planning can help reduce transportation costs by up to 20 percent. Businesses can also save up to $8,700 per driver annually through route optimization and reduction in travel time. As a matter of fact, improved route planning can cut delivery time by 15 percent and improve efficiency by 10 percent.
Additionally, companies can use fleet management software to retrieve lost items and stolen vehicle data to help automotive investigations speed up the vehicle recovery process. Similarly, managers can gain deeper visibility into their operations, see where each vehicle or truck is, and use that data to make better decisions and increase efficiency.
Which Regions Use GPS Tracking More?
The Global GPS Tracking Device Market is segmented based on device types (OBD devices, standalone trackers, advanced trackers), industry (construction, transportation and logistics, and more), deployment (commercial vehicles, containers, cargo), and by region & country level.
The global GPS tracking system is analyzed across regions such as:
North America (U.S., Canada)
Western Europe (France, Germany, U.K, Italy, Spain)
Latin America (Brazil, Mexico, Argentina, Peru, Chile)
Eastern Europe (Russia, CIS, Poland)
Middle East and Africa (Gulf Cooperation Council (GCC) Countries, Turkey, South Africa, Israel, Iran)
Asia-Pacific (India, China, South Korea)
Asia-Pacific (APAC) will likely dominate the GPS tracking device market size during the forecast period (2023 - 2030) with a 13.5 percent CAGR.
GPS tracking devices are experiencing massive growth in the Asia-Pacific region, with key players such as China, Japan, India, and South Korea among the potential markets. The main reason for the high rate of development is due to the rising prevalence of online food deliveries, e-commerce stores, and taxi services.
Europe - one of the largest economies and most competitive landscape, is expected to account for the second-largest market share at USD 515 million, growing at a CAGR of 8.5 percent during the forecast period. The massive growth in this region is attributed to the increase in commercial vehicle sales, significant availability of component manufacturers and system integrators in aerospace industries, and affordable prices of tracking devices across the region and the rest of Europe.
Additionally, key market players in the GPS tracking device industry are acquiring local players to enhance their capabilities and expand their reach in different regions.
Debunking GPS Tracking Concerns Among Employees
While GPS tracking is becoming more popular in areas such as fleet management, some businesses still need to figure out if it's an investment worth making.
For a start, not all employees are entirely comfortable being tracked. About 60 percent of employees worry that their confidential data could be shared, and 41 percent have concerns about their personal information being spread in the workplace.
Understanding employees' concerns before implementing GPS tracking into the workplace is vital in helping them embrace the GPS tracking system and ease any concerns they may have beforehand. Also, it's crucial to have an employee tracking policy to ensure you are on the safe side of the law governing employees' personal privacy and data protection.
Here, we look at the top concerns surrounding GPS-tracking mobile apps concerns employees may have:
Privacy and After Hours Tracking
One in three employees has used GPS tracking for work, suggesting a consistent cloud technology adoption rate. Out of the employees who have had their locations tracked, the majority, 70 percent, report being fine with the employer tracking their location at work.
The same survey of employees tracked with GPS indicates that 45 percent worry they could be monitored outside working hours.
It's important to note that the law prohibits employers from monitoring their employees outside of working hours. But it allows employers to track employers using company vehicles even without their consent.
To address these concerns, employers can stress the importance of using apps such as Timeero that give users complete control over the time they are tracked. With Timeero, for instance, employees can initiate tracking themselves at the start of their workday and switch it off during breaks or at the end of the day, effectively ensuring their privacy.
While implementing employee GPS tracking best practices, employers can also educate employees about the app and how it works to build trust with the app. For example, about 95 percent of employees know they're being tracked and trust that the employer only tracks the required information. But about15 percent are worried that their companies use GPS tracking technology to collect their personal data.
Another concern with GPS location-tracking apps is data usage for employees who have never used GPS tracking at the workplace.
For fleet managers, having access to data is key as it provides valuable information to drivers, such as rerouting the directions whenever they make a wrong turn. It also allows the end-user to download updated digital maps to access accurate route information.
GPS tracking uses little data, and some apps, such as Timeero, offer offline mode to ensure GPS tracking is not interrupted even in areas without an internet connection. As a result, data is only consumed when downloading the app and using the information collected by the GPS tracker.
According to a TSheets market report, only 9 percent of employees surveyed cited caring about how much data a tracking app uses.
In fact, some popular apps, such as Facebook and Snapchat, use the most mobile data, while most GPS tracking apps in the workplace use far fewer data.
Using GPS on mobile phones does not drain the battery much for most people. But when they use GPS apps for the workplace, they might have a different experience. These apps may use more battery power and create problems. Employees using personal smart devices with GPS tracking might be concerned about battery drain as much as data usage.
Mobile devices simultaneously rely on communication from multiple satellites to collect GPS data. This constant communication prevents the device from going into sleep mode, leading to increased energy consumption. That said, if the location services are turned on for personal apps, the data can be shared between apps without significantly affecting battery life.
While battery life can be a significant concern, technological advancements have made it easier to mitigate this issue. Plenty of budget-friendly portable chargers and battery packs in the market allow end-users to quickly recharge their devices during travel or between meetings.
GPS Tracking Made Easy With Timeero
Outdated GPS tracking methods can cost employees and employers time and money. To ensure you don't face these challenges, consider implementing a cloud-based GPS-tracking mobile app like Timeero.
With Timeero, you can do the following:
Access critical information on your employee's whereabouts at any time of the day
Track speed, time, and distance for every location
See who's working right from your mobile phone
Restrict punch-in and out by location using geofencing
Ensure the safety of your field staff
Replay the routes your employees take
Generate detailed reports that show the exact location and time spent at work
Additionally, Timeero offers a facial recognition feature that requires users to identify themselves using a photo to clock in. This feature is accessible on the mobile app, specifically the Terminal Kiosk app, alongside other ways to sign in, such as QR codes, PINs, and more.
Timeero also offers a scheduling feature that allows users to create a new schedule quickly by selecting an employee or group of staff, choosing a job, and setting the date and time. You can also reschedule the shift to another day with a simple drag-and-drop. In addition, employees can accept or decline shifts directly from the app.
David is a content writer passionate about all things SaaS and technology! With over seven years of experience, David knows how to craft content that captivates his readers and effectively communicates their value and offerings. When he is not writing, he is at home reading, out playing soccer, or exploring new places.