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What Is Vehicle Tracking System - Your One-Stop Solutions

By Majedul Haque Shakil Last Updated -- Tuesday, 2023-10-31
what is vehicle tracking system

Maintain accountability for your driver, cost management and fleet security with a vehicle tracking system. Learn What is vehicle tracking system with this influential blog. Overall, transportation is necessary for any business. 

Being a business owner in a fleet or taxi industry, you need to improve your vehicle business. A vehicle tracking system is precisely the option to look at.

Such tracking systems not only track the vehicle but also help manage daily transportation activities easily.

The vehicle tracking system market has rapidly grown over time. A report shows that it will grow from $3.795 billion in 2018 to $14.957 billion by 2025.

We'll cover what is vehicle tracking system and how to use it to improve the flexibility and scalability of your fleet.

What Is Vehicle Tracking System 

With its simplest definition

A vehicle tracking system is a system that is used to monitor, manage, and maintain the vehicle or fleets. You can control it through online computers, smartphones, tablets, etc. Vehicle tracking software gives the opportunity to their user to take complete control of their vehicle.

You can check everything, like 

  • History of vehicle speeds 
  • The routes they followed 
  • Stopping points
  • Idling times of a vehicle 
  • Registry and checkpoint with past and present reports.

A user will get all the details on a  24/7 basis 

Thanks to GPS satellites and Vehicle tracking software

Why Do I Need Vehicle Tracking? Lets Breakdown 

But why? Is a real-time vehicle tracking system really a big deal?

It really is 

Let's see a real-time example real quick.

Fleet managers have a lot of duties on a daily basis, and we already know. The Fleet manager's responsibility is to know 

  • Where are their assets/vehicles?
  • How long have they been in operation?
  • Where they're heading?
  • How long driver will take to deliver? 

The main problem is that information is sent from time to time. Other times, and most of the time, it needs to be more accurate. Especially when drivers are relaying information over the phone. You don't trust your driver because sometimes they lie for their reason.

Fleet managers maintaining all the work manually is a really tough job. Instead of calling drivers all the time to ask for their location, it is painful.

In that case, Vehicle tracking software is the best option. It totally simplifies and improves fleet operations.



According to NICB, they post a report. The report shows us that nearly 500,000 vehicles were reported stolen nationwide.

In the first half of 2023, there was an increase of more than two per cent compared to the first half of 2022.



Losing a vehicle to thieves is very expensive to your business, as well as bad news for fleet managers. 


When you lose a vehicle, you also lose the inventory it was transporting. In that sense, You can also lose the trust of your customers. It is awful for any business owner.

So, installing a vehicle tracking system in your vehicle solves all the problems. You can track, monitor, and maintain easily the vehicle from time to time.

Let's discuss How the Vehicle Tracking System Works.

What Is The Difference Between Passive And Active Tracking?

If you are thinking of investing in a vehicle GPS-tracking system, then it's a tough job. First of all, You must know the difference between passive and active tracking. Not all GPS devices function work in the same way or even in the same capacity.

Active or passive!!!! Which one to choose?

It is mandatory to know whether you need an active or a passive device for your requirement. So, let's find out the difference between the two tracking systems.

  • How they function
  • What features do they offer
  • How they track and report data, etc.



The most significant difference between active and passive vehicle trackers is how they collect data. It sends a signal to receivers, while passive trackers rely on cell phone towers or GPS signals already in place.  This tracker can collect data faster, while passive trackers are less expensive.



Active vehicle tracking system

This system continuously sends a signal that people can track up to the minute, wherever it may be. You don't have to wait to download data. You can see on the map and check the live location of a vehicle.

  • Active tracker compatible with all the operators 
  • It's basically helpful when it comes to an emergency like missing or theft
  • Provide security for the driver and passengers

Who should use the active real-time vehicle tracking system?

What Is Passive Vehicle Tracking System?

In this system, GPS devices collect data and then download it. It doesn't report in real-time. This tracking system silently collects data that you can view as a whole after the download. Once you download the data, you'll be able to see exactly where the tracker has been.


Who should use the passive GPS tracking system?

If you have an interest in tracking the history or monitoring the last month's record, then this is the perfect tracking solution for you. It's also an excellent choice for users typically involved in tracking their mileage for work purposes.

So now it's all up to you people. You know the difference, and you know your requirements. So choose the one you need.

How Vehicle Tracking System Works


It works by using GPS (Global Positioning System) mobile networks and a web platform.

GPS =Satellite-based radio navigation system

It provides real-time data and information on location, vehicle speed, time and direction through the help of the Global Navigation Satellite System (GNSS) network. A person can monitor the center location to maintain the history log.

Step1-GPS Receiver

They install a GPS receiver in each vehicle. It receives signals from multiple GPS satellites. These satellites provide precise location and timing information.

Step 2- Data Collection 

The GPS receiver calculates the vehicle's exact position (latitude and longitude) based on signals from the GPS satellites. They collect this data from time to time, typically every few seconds.

Step 3 - Data Transmission 

They transmit the collected location data to a central server or a cloud-based platform using three different ways.

  • Cellular
  • Satellite 
  • Radio communication

This allows for real-time or near-real-time tracking of the vehicle's location.

Step 4- Data Processing 

The central server or cloud-based platform receives the data from all vehicles in the fleet. It processes this data to display the vehicle's location on a map and store historical location information.

Step 5- User Interface and Fleet management solution  

Users, such as bird fleet managers or vehicle owners, can access the tracking system through a web-based or mobile application. They can see the real-time location of each vehicle on a map and access various reports and alerts.

Step 6- Alerts and Notifications 

You can configure vehicle tracking systems to send alerts and notifications based on specific events or conditions.These alerts can include speeding, unauthorised use, maintenance reminders, and more.

Step 7-Historical Data 

The system also stores historical data, allowing users to review past routes, speeds, and other vehicle-related information. This data can be valuable for analysing vehicle usage, improving efficiency, and enhancing security.

Top 5 Reasons Why Vehicle Tracking Is Good For Your Business

Every business owner wants to do their business smartly. So, if you want to handle your business smartly with maximum profitability, then choose VMS.

After knowing What is vehicle tracking system and how it works.

We gather the five best reasons why you should invest in a vehicle tracking system. 

Reason #1: Keep Fuel Costs Down

Minimising fuel vehicle costs is one of the best reasons why you should invest in a vehicle tracking system. A vehicle tracking software can help you keep fuel costs down. It helps you to understand how the vehicle system operates. You can get 24/7 poor driving reports that cause the extra fuel cost.

Installing a vehicle tracking system, you can easily spot any unauthorised vehicle use, as that, too can increase fuel costs.

Come on !!! You aren't worried about your drivers.

  • Maximising fuel efficiency
  • Minimising wear and tear
  • Check the Engine Light.

As far as they're concerned, those are your vehicles and your problems, not theirs, unless you're getting behind the wheel of each vehicle regularly.

And yes, another best thing about vehicle tracking software is getting a detailed report of all your vehicles. So it helps to save extra additional costs.

Reason #2: Protect Your Business Against Fraud

Do you have any ideas about fuel cards?

Most of the fleet companies use this fuel card.

You can easily link up this card with this vehicle tracking software.

Linking your vehicle GPS tracker to the fuel cards, you can unlock lots of benefits. 

what are benefits of a vehicle tracking system

  • Cross-reference the stations 
  • Time and use of the fuel card 
  • location of your vehicle. 

This means you can immediately spot if the card was used when your vehicle was somewhere else.

A vehicle track system in hands means Tracking payment history, Using card history and other financial log data with ease.

Are your employees using company fuel cards to top up their cars without authorisation?

GPS vehicle tracking makes it easy to find out.

Reason #3: Driver Safety And Vehicle Security 

Speeding and harsh breaking can lead to fines and safety violations. It will also affect the vehicle's overall health. All those behaviours can sometimes lead to massive accidents. Ultimately, when your car has an accident, who is on the losing side? Of course you. If you lose your vehicle, that means you have to repair it.

So, you can eliminate all this unexpected chaos by having a vehicle tracking system.Here how 

VMS helps you keep your drivers (and vehicles ) safer on the road: 

  • If your driver drives the car over speed, you will know right away.
  • An unplugged device notification system helps you to handle the situation quickly. 
  • Crash detection alert.

Keeping your fleet safe while on the road is mandatory. 


Sitting for extended periods overnight on weekends and holidays? 

How will you know that your vehicles are secure?

 Using a Vehicle monitoring system is the answer to all the questions.

The vehicle management system helps you get disturbance alerts if a break-in attempt.

If someone steals your vehicle, you can track your stolen vehicle in real-time and provide location information instantly. Then, it's a matter of time before you get your vehicle back. A vehicle tracking system speeds up recovery and minimises the potential damage.

Reason #4: Quality Of Customer Service 

Suppose you have a delivery work to do within 50 min. Now, what should you do? If you have a vehicle tracking system, then it's an easy task.

But if you have no vehicle monitoring  system, then 

1 star review is coming your way

You try to locate which car is near the customer's location. You track it with the system, and now it's easy to pissy.

Vehicle tracking software enables you to provide accurate delivery times, keeping your customers informed and satisfied. The ability to track shipments in real-time not only builds trust but also sets the stage for elevated customer experiences. It also helps to build solid brand loyalty.

Reason #5: Maximum Productivity And Efficiency

Imagine having real-time insights for your whole fleet. A vehicle tracking system gives this power. From optimising routes to identifying inefficient driving patterns, this technology makes sure your fleet operates at its maximum efficiency. 

Do you maintain a taxi fleet?

Save time and increase productivity. 

This software not only saves fuel costs but also boosts overall productivity, giving your business maximum efficiency.

what is the best vehicle tracking device?

Find the best solution that's right for your business 

Start using VMS(vehicle management system)

In just a few steps, our VMS lets you match the right solution to your unique business asset management needs.

To Conclude 

A vehicle tracking system is a game-changer for fleet management across various industries. Its unique functions include real-time tracking and driver behaviour monitoring. With the power of technology at your fingertips, you can improve efficiency, security, and transparency in your fleet operations like never before. Speed up the future of vehicle management with a reliable vehicle monitoring system.

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