Why GPS Asset Tracking Often Falls Short – Understanding Its Limitations

GPS asset tracking, introduced roughly 25 years ago, is the most familiar solution for locating people and vehicles. It powers cell phones, digital maps, and fleet management in trucking and transportation.

While GPS excels at pinpointing mobile assets, it is ineffective or cost‑prohibitive for many other applications such as shipping containers, hospital equipment, or construction materials.

Key Limitations of GPS Asset Tracking Systems

To grasp why GPS struggles with certain assets, it helps to review how the technology works. The Global Positioning System relies on a constellation of satellites that broadcast signals to GPS receivers on the ground. At any time, a minimum of 24 operational satellites is required for full global coverage; as of August 2018, 31 satellites were active.

Each satellite orbits 12,550 miles above Earth, completing two circuits per day across six orbital planes. Satellites transmit radio signals that include their position, status, and an accurate timestamp. A GPS device captures the arrival time of at least four signals, calculates the distance from each satellite, and uses trilateration to determine its 3‑D location. The device then reports its position to a portal via cellular data at preset intervals.

Because GPS depends on an unobstructed line of sight to the sky, any blockage—buildings, trees, heavy clouds—can severely degrade accuracy. An asset inside a building, truck, or container cannot reliably receive satellite signals, rendering GPS ineffective.

Urban environments introduce additional challenges. Tall buildings cause multipath distortion, where satellite signals bounce off structures before reaching the receiver. Positioning algorithms assume a straight‑line path; reflected signals arrive slightly later, leading to positional errors that vary with the extent of distortion.

Battery consumption is another drawback. Continuous satellite listening drains power rapidly; most personal GPS trackers survive only days or weeks on a single charge. Low‑power alternatives exist but are limited to predefined areas.

Explore Alternative Asset‑Tracking Solutions

Wondering about other asset‑tracking options besides GPS? Download our free white paper to discover which technology best fits your use case.

High Cost of GPS Tracking Hardware

GPS trackers are expensive—often hundreds of dollars per tag. Their constant satellite monitoring also necessitates frequent battery recharging, and cellular data usage adds recurring monthly fees.

These factors make GPS most suitable for high‑value, outdoor assets such as cars, freight trucks, farm equipment, and construction machinery. For assets like shipping containers, medical equipment, or construction materials, a Real‑Time Location System (RTLS) offers a more accurate and economical solution.

Learn more about RTLS solutions and how to select the right one for your business, budget, and use case. Download our free white paper on Asset Location Technologies & The Selection Process for an overview of available tracking systems and their advantages. Or, ask us about AirFinder—a simple, cost‑effective RTLS solution that adapts to a wide range of scenarios.