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How does GPS tracking work? A simple explanation.

04-06-2025 05:23 PM CET | Logistics & Transport

Press release from: AREALCONTROL GmbH

Telematics: Vehicle tracking and tracing for automation (© AREALCONTROL GmbH)

Telematics: Vehicle tracking and tracing for automation (© AREALCONTROL GmbH)

GPS tracking has become an indispensable tool for companies and private individuals.

It provides real-time location data, enabling smarter decisions, improved efficiency and more security in various operations. But how exactly does it work? Let us explain it in more detail.

What is GPS tracking?

GPS tracking uses a satellite network to determine the exact location of a device on earth. Modern Global Navigation Satellite Systems (GNSS), including GPS (USA), Galileo (Europe) and Beidou (China), provide positioning data that devices can use to calculate their exact location.

Galileo offers high precision and reliability, especially in urban environments where buildings can obstruct signals. Beidou offers strong coverage in Asia and is increasingly expanding its global reach. Modern GPS chips can use multiple GNSS signals simultaneously, improving accuracy and reducing signal loss.

Galileo offers high accuracy and reliability, especially in urban environments where buildings can obstruct signals. Beidou offers strong coverage in Asia with its extensive satellite network and is increasingly expanding its global reach. Modern GPS chips can use multiple systems simultaneously, improving accuracy, reducing signal loss and ensuring seamless positioning worldwide.

Companies in a wide range of industries benefit from GPS tracking. Fleet managers use it to optimize routes and reduce fuel costs, delivery services provide precise arrival times and construction companies protect valuable equipment from theft. AREALCONTROL offers integrated telematics solutions to optimize fleet and logistics processes.

With just one compact tracking device and a reasonably clear view of the sky, GPS technology enables high-precision, global asset monitoring.

Components of a GPS tracking system

A functional GPS tracking system consists of three main components: the GPS device, the communication system and the software interface.

GPS device - A small tracker that is installed in vehicles or on objects contains a GPS chip that receives satellite signals and thus determines the exact position. Modern devices are designed for discreet and efficient installation.

Communication system - This component transmits GPS data via cellular networks, similar to cell phones. In remote areas with weak mobile phone coverage, satellite communication serves as a reliable backup.

Software interface - The collected data is transformed into actionable insights via mobile apps or web-based dashboards. Users can track locations in real time, receive alerts and generate reports on key metrics such as mileage and speed limits.

All three components work together to provide seamless, real-time GPS tracking that businesses can rely on.

Real-time data transmission from GPS devices

One of the greatest strengths of modern GPS tracking is real-time data transmission. The GPS device continuously records location, speed and direction of movement and then transmits this information to a central server via mobile or satellite networks.

This constant flow of data enables live tracking, immediate notifications and precise delivery time estimates. The update frequency can range from a few seconds to several minutes, depending on system settings and network conditions.

The transmission speed depends largely on network coverage and device quality. In urban areas, updates are usually available immediately, while in remote areas there may be slight delays due to weaker network connections.

Satellite GPS vs. mobile GPS

GPS tracking systems are based on either cellular or satellite communication - or a combination of both. Each method offers different advantages.

Cellular GPS uses cellular networks for fast and cost-effective data transmission, making it ideal for tracking in urban and suburban areas. However, in remote areas where the cellular signal is weak or unavailable, there may be gaps in coverage.

Satellite GPS communicates directly with satellites, ensuring reliable positioning in remote or offshore areas. This method guarantees uninterrupted operation even when there is no mobile phone coverage, but is generally associated with higher costs and somewhat slower data updates.

Many modern tracking solutions switch seamlessly between cellular and satellite communication, ensuring continuous and reliable tracking regardless of location.

Options for fleet management and vehicle tracking

Fleet management is one of the most commonly used applications of GPS tracking and helps companies improve vehicle operations and overall efficiency.

* Basic Tracking - Provides real-time location visibility for effective dispatching and route planning.
* Advanced analytics - Monitors driver behavior, including speed, braking patterns and acceleration, to improve safety and reduce fuel consumption.
* Geofencing - Allows companies to set virtual boundaries and trigger alerts when vehicles enter or leave predefined areas - an essential feature for safety and compliance.

Software integration - Seamlessly connect GPS tracking data with business systems, such as accounting tools for automated mileage reporting or CRM software for accurate customer ETAs. AREALCONTROL specializes in customized solutions that integrate directly into transportation processes.

Choosing the right fleet management system depends on factors such as fleet size, operational range and specific data requirements. With the right solution, GPS tracking becomes a powerful tool to increase productivity, reduce costs and maximize overall fleet efficiency.

KfdM - Kommunikation für den Mittelstand
Schulstr. 29
84183 Niederviehbach
Germany

https://www.logpr.de

Marcus Walter
01707736705

walter@kfdm.eu

Founded in 2003, AREALCONTROL GmbH is a provider of telematics & IoT solutions with optional GPS positioning and tracking as well as software for transportation/logistics, retail, trade, construction companies and medium-sized industry. Today, the company offers multiple award-winning solutions for fleet and vehicle fleet requirements in many applications and industries. Most recently, AREALCONTROL won 1st place in the German Telematics Award 2024 and previously in 2022, category "Field Service", 1st place for service cars in 2018 and several 2nd and 3rd places in 2018 - 2020 in truck categories.

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