The Tracking as a Service market is expected to register a CAGR of 25.86% during the forecast period (2020 - 2025). The technological advancements such as warehouse robotics in the supply chain, RFID integrated goods vehicle, self-drive vehicles resulted in the rapid growth of the logistics and transportation sector.
- Also, automation in the retail industry has resulted in the increased demand for a cloud-based solution like tracking-as-a-service. Moreover, the growing use of electronic monitoring for personal and professional work is anticipated to boost the market growth of tracking-as-a-service.
- Factors such as increasing usage of mobile technology, increasing need to improve fleet operator efficiency, the emergence of eye tracking systems, use of electronic monitoring systems for monitoring purposes are certain factors driving the market.
- Another key factor stimulating the growth of the market is the increasing adoption of the Internet of things (IoT). Smart connected devices help to track the shipments of goods in real time. Also, governments worldwide are mandating GPS tracking in all new vehicles in a bid to maintain driver safety. Vehicle tracking solutions offered through the cloud improve fleet operator efficiencies at lower costs.
- Many industries have privacy concerns regarding electronic monitoring hence restraining the enterprises from adopting the solution. There is even a chance of a security breach by intruders interrupting the tracking software.
Scope of the Report
Tracking-as-a-service can is defined as a platform or cloud-based solution used in supply chain and logistics industry to track inventories, vehicles, and assets. The platform is used by enterprises in retail and manufacturing industries, where goods are delivered regularly, and deployment of a tracking system is necessary for remote monitoring. Cloud-based tracking systems are gaining popularity because the data can be transmitted instantly in a cloud-based ICT infrastructure.
Key Market Trends
Platform as a Service Holds the Largest Market Share
- The Platform as a Service (PaaS) segment holds the maximum market share because enterprises rely on PaaS solutions for their reliability, simplicity, and scalability. PaaS solutions are of low cost and are flexible and are used to offer tracking solutions.
- It can help to visualize performance metrics such as CPU, memory, requests, response time, and more for dynamic workloads. Monitoring these service and metrics over time allows to study trend usage, detect abnormalities, and identify potential opportunities to improve performance. It helps to view and correlate PaaS monitoring metrics alongside the other systems, application metrics, and infrastructure to help pinpoint the root cause of performance issues efficiently and quickly.
- The benefits of a PaaS cloud model, such as rapid application development, customization and integration, the addition of new and different tracking devices, reliability, and security are fueling the adoption of tracking-as-a-service technology. PaaS solutions are being increasingly used to create, deploy, and manage hosted asset tracking and monitoring applications, and hence, this segment will continue to gain popularity during the forecast period as well.
North America To Hold The Largest Market Share
- North America is expected to be the largest market for Tracking-as-a-Service market. The majority of Tracking-as-a-Service vendors such as AT&T Inc., Motorola Solutions, Inc., and Honeywell International Inc. are based in the North America region.
- The growth can also be attributed to increasing advances in automation technology, especially in the logistics and transportation sector in the region. The adoption of warehouse robots or the delivery robots is growing at an increasing pace, and hence, the adoption of these services is increasing.
- The region is also witnessing an expansion in the criminal offender monitoring market. The majority of the areas in the US have compelled the use of offender tracking equipment for sexual offenders. The market will also continue to grow in the region as the regulatory bodies in North America are encouraging the installation of GPS tracking devices in private passenger vehicles.
The presence of many vendors characterizes the tracking-as-a-service market. These vendors are focusing on the development of cloud computing solutions with added features and are supplying them at competitive prices. The increasing demand for cloud computing services is expected to strengthen the market’s competitive environment. To increase their footprint in this global market, the vendors are making huge investments towards the development of specific and customized cloud-based solutions.
- April 2019 - WABCO, the leading global supplier of braking control systems and other advanced technologies, recently announced that it would launch its new advanced trailer monitoring and remote diagnostics solution, TX-TRAILERPULSE, a trailer-focused IoT connectivity solution which combines real-time track and trace functionality with additional remote trailer health and diagnostic information.
- April 2019 – Verizon Connect recently partnered with Iveco, a leading manufacturer of commercial and industrial vehicles, to help customers gain insights into their fleets and to provide customers with a comprehensive telematics and mobile workforce management software platform.
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