What have you known about vehicle tracking system?

Updated Aug 16, 2022

Understanding what vehicle tracking system is, its major constituents, and the benefits of having it in your car or bus!

Technology has changed people's way of living. It made people's lives more comfortable and more convenient. We can easily communicate with each other even if we're in different parts of the world. Even home tasks are easier because of smarter appliances.

School and office work become more pleasant because of modern computers and the internet. Technology has dramatically impacted almost everything, including the automotive industry.

How a vehicle tracking system works

The automotive industry is continuously creating modern cars that have advanced features, safety systems, and dashboard and infotainment systems. Aside from that, most cars we have today can already be tracked easily. It is done through a vehicle tracking system.

In this article from Philkotse.com, we take a closer look at it, how it works, and why it is essential, especially in businesses.

1. What is a vehicle tracking system?

The vehicle tracking system is a system that enables the control and tracking of any vehicle with the use of a tablet, smartphone, online computer, etc. on a 24/7 basis. It is made possible by GPS satellites.

Because of a vehicle tracking system, it is already possible to have real-time tracking of a car. It also enables car owners to reckon the history, speed, stopping points, followed routes, checkpoint with present and past reports, and idling times on maps that provide a registry.

2. Active vs passive tracking

There are generally two types of vehicle tracking devices: “active” and “passive.”

Passive devices

These devices collect and store Global Positioning System (GPS) location, heading, and speed and even trigger events like door opening/closing and key on/off. If the car gets back to its predetermined point, the tracking device will be removed, and all the collected data will be downloaded to a computer for evaluation. This system also has an automatic download type which transfers the data using a wireless download.

Passive tracking device


The passive device has an automatic download function which transfers the data using a wireless download

Active devices

Active devices, on the other hand, gather similar information but the data are usually transmitted near real-time to a data center or computer by using satellite or cellular networks. The collected data will then undergo an evaluation.

GPS tracking


The data from active devices are transmitted near real-time to a data center by using satellite or cellular networks

Lots of modern car tracking devices use both passive and active tracking abilities. When there's an available cellular network and the tracking device is connected, the data are transmitted to the server.

If the network is unavailable, the collected data from the device will be stored in internal memory. The data will only be forwarded to the server if the network becomes available again.

3. Major constituents of GPS-based vehicle tracking system

GPS tracking

GPS stands for Global Positioning System -- a satellite navigation system. It provides time and location information in all weather conditions made possible by four or more satellites to detect positions of the GPS receiver and every accessible sight around the globe.

This system was initially introduced for military purposes. GPS became available for public use because of the downing of a passenger aircraft back in 1983. The plane changed its direction, far from its regular route, and was shot down by a military airplane. The said passenger aircraft was carrying 269 passengers.



GPS is a satellite navigation system

Today, GPS is widely used in airplanes, mobile phones, a navigation system, vehicle tracking systems, and mapping.

There are different GPS in place. Different countries develop each system. They are the following:

  • GPS – This system was produced by the United States of America. It was a project that was kicked off next to the launching of the first satellite in 1978. It was completed in the year 1994 when the number of satellites reached 24.
  • GLONASS – This project was developed by Russia and was kicked off next to the launching of the first satellite in 1979. It was completed in 2011 when the number of satellites reached 24.
  • GALILEO – This project was initiated by ESA (European Space Agency) in 1999. It will be composed of a total of 30 satellites which will be available for public use this year.
  • COMPASS-BEIDOU-2 – This system was developed by China. It is primarily based on the COMPASS-BEIDOU-1 system that was sent in mission in 2000 consisting of three satellites. This system will be functional by 2020 with a total of 35 satellites.
  • IRNSS – This project started way back in 2006 after the Indian government approved it. It was designed to be a local positioning system that inaugurated in 2016 consisting of nine satellites in total.

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4. How is a vehicle tracking system crucial for you or your business?

Cost savings

It enables this because all the information about fuel consumption will be collected. It will eliminate unwanted driver's behavior like speeding. Thus, it will result in better fuel management, less idling, and maintenance time.

Toy car with coins


One of the advantages of the vehicle tracking system is better to finance management

Insurance discount

Insurance companies offer discounts for companies using a vehicle tracking system in their fleet management. The vehicle tracking system provides more data about the fleet and improves the safety of both the fleet and employees. Thus, business owners will be able to cut costs.

Toy car in paper


Insurance companies offer discounts for companies using a vehicle tracking system in fleet management

Added safety

With the help of the vehicle tracking system, it’s already possible to decrease the cases of traffic accidents. It will also help in avoiding any traffic jams, on-road constructions and any problems a driver might encounter on the way. Fleet management also helps in preventing theft through a theft-prevention feature.

Better service for customers

Every gathered piece of data from the vehicle tracking system can help in providing better management to the entire business processes. It will also help deliver better service to customers because it’s possible to see stops, routes, possible arrival time, and idle time.

GPS working process

A vehicle tracking system will also help deliver better service to customers

Employee management

If you have a vehicle tracking system in your business, you will enjoy the advantage of better employee management. It is possible because of the data gathered on fuel management. You will also be able to monitor the behavior of the driver.

Theft prevention

The theft prevention features are the most common feature of a vehicle tracking system that is one of the most important ones. With this feature, car owners will receive notifications and alerts every time a suspicious behavior occurs. It will help owners reaction quickly to such behavior.

Hanna Sanchez

Hanna Sanchez


Hanna is one of the most competitive swimmers in the country during her day. It was not long before she discovered her passion for the automotive industry as well. Nowadays, she balances her passion through writing as well as coaching.

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