





Table of contents
A GPS tracker determines its location — and the location of whatever vehicle or asset it is attached to — using satellite signals. The GPS tracker transmits this data to a digital platform where it’s displayed as information that people can easily understand. Businesses typically want live location data to help improve the efficiency and security of their operations.
What is GPS?
GPS stands for Global Positioning System and was designed for navigation. The system is composed of a network of satellites orbiting the earth that continuously broadcast their position and exact time, sending signals to receivers on the ground. The receivers — planted in vehicle navigation systems or mobile phones, for example — calculate their own position based on the timing and distance from multiple satellites. They can identify their precise latitude, longitude and, in some cases, speed. GPS is the system itself that makes locating objects possible. GPS trackers, on the other hand, are the receiving devices.
What is a GPS tracking device?
A GPS tracking device is a small electronic piece of hardware installed in a vehicle or attached to an asset. It receives signals from satellites and calculates its location based off their positions. The GPS tracking device transmits this data to a platform or software system where the information is displayed in a way that is quickly interpretable by a human. GPS tracking devices are most commonly installed in vehicles, trailers, equipment or high-value assets so companies can keep tabs on their whereabouts for performance monitoring and security purposes.
How does a GPS tracker work?
GPS trackers are designed to receive signals from different satellites and calculate their own positions on the Earth using a process called trilateration. This means using the position of three or more satellites to determine speed, direction and time. Once calculated, the GPS tracker prepares the data for transmission. When in motion, the GPS tracker continually repeats this process, updating its position and sending the latest location data to the end platform or software system.
How GPS tracking data is transmitted
A tracker sends data to a system using mobile networks or satellite communication in remote areas. This data transmission is possible via an embedded SIM card or communication module. The incoming data appears on your desktop dashboard or your app where you can check real-time location updates. Without a communication network, the tracker cannot upload or share live location data.
What components does a GPS tracker need to work?
A GPS tracker is a small bundle made of a receiver chip, to capture satellite signals, and an antenna, to strengthen signal reception. To send and display the information it has collected, the GPS tracker requires an internal communication module and an external software platform. The GPS tracker also needs a power source to function — usually the vehicle battery or an internal rechargeable battery.
Types of GPS trackers
There are three main types of GPS trackers: hardwired, plug-and-play and battery-powered.
- Hardwired: Hardwired GPS trackers sit within a vehicle’s electrical system and receive continuous power from the vehicle battery. Offering reliable power and resistant to tampering, hardwired GPS trackers are a common choice for fleet vehicles.
- Plug-and-play: Plug-and-play GPS trackers are connectable via diagnostic ports and therefore easier to install or remove. This makes them a convenient option for smaller fleets with potentially lower budgets.
- Battery-powered: Battery-powered GPS trackers are designed for assets with no internal power source, such as trailers or equipment. The battery life depends on the tracking frequency required by a business. Battery-powered trackers are portable and can be swapped between assets easily, ideal for temporary tracking needs like seasonal use.
How accurate are GPS trackers?
In general, GPS trackers deliver more than sufficient accuracy for fleet operational needs. GPS tracking can pinpoint location within a few metres, which is suitable for most fleet activities, including vehicle tracking, arrival/departure verification and routing and dispatching. GPS tracker accuracy can be affected by signal strength, city infrastructure, tunnels or underground locations and weather conditions. That said, multi‑constellation support and advanced filtering help maintain precise and stable positioning even in challenging environments.
What’s the difference between real-time and passive tracking?
The difference between real-time and passive tracking is the presence of a connected communication module. Real-time trackers contain a SIM or data modem that allows for the immediate transmission of location information to an end platform. Locations can be monitored via receiver data being updated at regular intervals. Real-time visibility is key for operational safety, security and efficiency, so this type of tracking is common in fleet management cases.
With regards to passive tracking, the device lacks a connected communication module and cannot upload live data. It is still able to calculate its position and store the data internally, but the information can only be read later when a connection becomes available. For this reason, passive tracking is used in scenarios where constant connectivity is not essential.
What are GPS trackers used for?
- Vehicle tracking
- GPS trackers can be used to monitor the activity of company vehicles. Vehicle tracking allows fleet operators to view locations, routes taken and even driver behaviour such as speeding or idling.
- Asset tracking
- GPS trackers enable asset tracking too, and can monitor trailer, machinery and equipment location. This visibility helps businesses improve asset utilisation and prevent fleet theft.
- Fleet management
- GPS trackers improve fleet management in various ways. By tracking routes and time taken, companies can compare trips and select the most efficient path for future jobs. By seeing which drivers are where when a new order or task comes in, fleet managers can quickly assign it to the nearest driver and boost overall productivity.
- GPS trackers also collect motion data, meaning you can monitor driving behaviours like speeding, sudden acceleration/deceleration, direction changes and idling.
- In general, increased operational oversight helps fleet operators identify aspects to optimise across all areas of their fleet management.
- Car tracking
- GPS trackers enable you to keep tabs on live car locations, trip history and driving behaviours.
- Van tracking
- You can locate your vans in any moment with GPS trackers and monitor delivery status easily. This allows you to provide customers with accurate ETAs.
- Truck tracking
- Truck tracking is possible with GPS trackers. Get visibility into truck routes, vehicle usage and driver activity to improve logistics operations planning.
Benefits of using GPS trackers
The key benefit of using GPS trackers is increased visibility over vehicles and assets. From this stem many other benefits. Fleet operators can visualise inefficient routes, behaviours linked to excessive fuel use and sites that pose a security threat — then plan around them. All speed and direction data helps you anlayse operations and make better decisions. Live location tracking also allows for the calculation of precise ETAs, improving communication with customers.
Using GPS trackers and telematics together
Combining GPS tracking and telematics takes fleet your management further than basic tracking. You can extract more insights by correlating the location data from GPS trackers with the vehicle performance data, engine diagnostics, driver behaviour insights and fuel usage information from telematics. Uncover causes and effects in your operations and make targeted improvements.











