The global market for vehicle tracker systems stands at $3.1 billion in 2023 and is estimated to reach $5.7 billion by 2028 at an annual growth rate of 13.1% from 2023 to 2028. Growing concern for vehicle safety and security and large-scale technology adoption are major growth factors for this market. Besides these, government guidelines to install vehicle tracker systems in all commercial and passenger vehicles and the rise in car rental and leasing services are further fueling growth.
Working in a loop of GPRS, GPS, special software, and digital maps, vehicle tracker systems track and observe vehicle activity. There are several benefits of using these systems, from insurance discounts and improved fleet and employee safety to enhanced customer service and cost savings. Let’s explore them in detail below:
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Enhanced Productivity
Tracker systems for vehicles can help you keep up-to-date vehicle usage and data records. Moreover, identifying driver locations and analyzing the shortest route to a destination improves fleet productivity. Also, having detailed reports of driver behavior, fuel usage, and engine idling lets you evaluate employee performance and reduce operational costs. Smart route planning reduces unproductive work mentality in the drivers, thus making your business more efficient.
Maximum Vehicle Usage
Vehicle tracker systems let you monitor vehicle performance and location at any point, improving fleet vehicle utilization. Further, your fleet management experts can use IoT sensors to collect and analyze data to reduce vehicle idling time, automatically driving maximum business revenue.
Improved Customer Service
Proper customer service should be your topmost priority to operate a successful transportation business. Having a vehicle tracker system means you can ensure your vehicles are delivering products within the deadline.
These systems keep you accountable for vehicle usage and location, helping you share your vehicle’s estimated time of arrival and route with clients. Further, customers can contact you for any kind of assistance, ensuring a seamless experience for the clients.
Boon for the Aviation Industry
Besides serving road transportation, GPS vehicle trackers are also making waves in the aviation industry, thanks to technological advancements in tracking technology. Aviation facilitates passenger transportation and also supports trade across the world. Nevertheless, air logistics involves cargo worth billions being exported or imported between different nations that can perfectly be managed using vehicle tracker systems.
Proper Fleet Management
Another major benefit of vehicle tracking systems is improvement in fleet management by providing real-time details about the location, behavior, and speed of vehicles and drivers. This can help you make more informed decisions regarding fuel consumption, route optimization, and driver security, resulting in low operational costs and high efficiency.
Low Insurance Costs
Vehicle tracker systems easily track vehicles that have deviated from their expected course and provide insights into driver behavior. This improves theft recovery and encourages fleet drivers to drive company vehicles more responsibly. So, insurance firms offer special discounts on vehicles with GPS tracking systems, allowing the owners to pay up to 30% lower premiums.
Driver Safety Assured
Real-time vehicle tracker systems also assure driver safety by providing valuable insights into driver behavior. You can use this information to spot risky driving practices, like sudden braking, sharp turns, and speeding, and provide feedback to the drivers, ultimately motivating them to improve their driving habits.
Geofencing
A major feature in most vehicle tracker systems, Geofencing lets you create a virtual boundary around specific areas, also called geofences. So, whenever a vehicle enters or exits this area, you will get proper alerts. Running a delivery business can benefit a lot by helping you monitor your fleet’s arrival and departure to and from specific locations.
The Geofencing feature also helps recover theft by tracking vehicles and assets in real-time. Geofencing a vehicle means it will not go out of its delineated area, and if it does so, the GPS tracker sends an alert through the system’s application installed on your computer or smartphone. It also enables you to share your vehicle’s live location with the police so they can locate and return your vehicle safely to you.
Better Vehicle Maintenance
GPS vehicle trackers feature advanced attributes, like fuel level indicators, vehicle diagnostics, and engine temperature indicators, that let you examine important aspects of your vehicle’s health. You even receive timely alerts about fleet maintenance schedules- like wheel alignment, oil changes, and other routine maintenance that eliminate unwanted vehicle inspection, letting you perform vehicle maintenance only when required. Besides extending your vehicle’s life cycle, it also maximizes business profits by helping you save unnecessary expenditures.
Low Fuel Costs
Improved route planning, better driver behavior, and less idling are a few benefits of vehicle tracker systems that bring down fuel costs to a considerable extent. By identifying the best routes for a destination, fleet trackers save both money and time while improving driver productivity and eliminating unwanted fuel expenditures.
Option to Integrate with Company Applications
You can integrate vehicle tracker systems with your logistics and supply chain applications to pull in shipment details and send information about all vehicles in transit. It also generates automatic alerts in supply chain management applications that further help you handle problems like vehicle breakdowns and shipment delays.
Better Time Management
Your business can eliminate billing inconsistencies to a considerable extent through the digital time card verification system of a vehicle tracker. These systems help you track and observe field crew remotely based on when they started and stopped their vehicles. It also helps you set automatic reports through mail to ensure employees are only paid for their service hours, thus eliminating unwanted paperwork and overbilling irregularities while streamlining payroll management.
Low Infrastructural and Staff Expenditures
Manual fleet management requires a huge workforce dedicated to managing different vehicles’ operations. It also means added infrastructure to accommodate the staff. However, you can manage this huge expenditure with a vehicle tracking system that completely digitizes your business management and operation.
Also, you require a small workforce to operate vehicle tracking systems successfully, helping you make major cost savings. And when you can operate and manage the business while cutting required costs by more than half, it helps you gain a significant edge over competitors.
Conclusion
Now that you know about the benefits of vehicle tracking systems, you can manage your vehicles more efficiently. From more efficient routes to better fuel usage, everything will improve, bringing you major profits with minor investments.
