Understanding the Differences Between GPS Tracking and Telematics

Understanding the Differences Between GPS Tracking and Telematics

Confused between telematics and GPS tracking technology? Read on to learn how these two are similar and dissimilar in terms of functions, data collection, and more factors.

Ever wondered how delivery/ fleet management companies track their packages or how fleet managers optimize their routes? The answer to this often lies in technology, specifically GPS tracking and telematics. While both of these technological advancements involve monitoring location or valuable insights, they offer distinct functionalities and benefits.

This guide sheds light on the fundamental differences between both technological advancements.

Understanding the Differences Between GPS Tracking and Telematics

Well if you are into logistics or fleet management, you might have heard these two technological terms i.e. GPS Tracking and Telematics. These two terms are very similar but can have different contexts when it comes to the collection of different types of data.

This guide will help you unfold the difference between these two technological terms in detail.

GPS Tracking: Your  Virtual Copilot

Ever dreamt of having a loyal navigator whispering directions in your ear? Well if yes, that’s the essence of GPS tracking software. The system employs the Global Positioning System to pinpoint the location of vehicles or assets. You can simply say it is more like a digital map.

that is constantly updating your position.

📌GPS Tracking- GPS tracking refers to the process of utilizing the Global Positioning System (GPS) to determine the precise location of an object, person, or asset in real-time. It involves the use of GPS technology, which relies on a network of satellites orbiting the Earth to accurately pinpoint the location of a GPS receiver or a device.

GPS tracking systems typically involve a GPS receiver or device installed on the vehicle being tracked, that communicates with the satellites to determine its location.

Telematics: Beyond Location, Deeper Insights

While GPS tracking tells you about the “whereabouts of your fleet”, telematics takes it a step further. Now, wonder if this virtual copilot will morph into a data analyst that provides insights i.e. beyond location. Telematics systems often combine GPS with sensors and onboard diagnostics to capture a wealth of information about vehicle performance, data on drivers’ performance, alerts on route deviation, and more.

📌TelematicsTelematics refers to the technology that combines telecommunications and informatics to send, receive, and store information related to the vehicle over a network. This then processes and analyzes that data for various purposes such as tracking, monitoring, and managing assets, optimizing vehicle performance, providing navigation assistance, and facilitating communication between vehicle and external systems.

Telematics systems often utilize GPS (Global Positioning System) technology to track the location of vehicles and other assets in real-time, along with various sensors to collect additional data such as speed, fuel consumption, engine diagnostics, and more.

TrackoBit has leveled up telematics by providing video telematics. Keep an eye on your fleet easily with us!

Difference Between GPS Tracking and Telematics

Now that you know the definition of GPS tracking and telematics, let’s have a look into some other bases of differentiation between the two.

Basis GPS Tracking Telematics
Primary Functions 
  • GPS Tracking majorly focuses on tracking and monitoring the real-time or historical location of assets or vehicles.
  • It involves collecting GPS data to pinpoint the exact location and movement patterns of mobile assets like vehicles. 
  • Telematics is more than just about locational tracking. It includes a broader range of features such as vehicle diagnostics, driver behavior monitoring, fuel consumption analysis, and more. 
  • Telematics systems integrate various technologies like GPS, telecommunications, and data analytics to provide comprehensive insights into vehicle operations and performance.
Data Collection 
  • GPS tracking primarily collects GPS data related to location and movement.
  •  It tracks coordinates, speed, and other location-based information to provide accurate positioning of the moving object.    
  • Telematics systems collect a wider range of data, including GPS location, vehicle speed, engine diagnostics, fuel consumption, driver behavior, and more.
  • This extensive data collection allows for an in-depth analysis of vehicle performance and behavior.
  • Some of the most common applications of GPS tracking are fleet management, asset tracking, and more. 
  • Whereas, when it comes to telematics, it covers various fields including fleet management, driver behavior analysis, and optimizing operational efficiency.
  • GPS tracking systems can work as standalone software or can be integrated with other systems for specific activities. 

For instance- a GPS tracking system can be integrated with fleet management software to provide a complete fleet tracking and management solution. 

  • Telematics systems are often integrated into complete fleet management systems or vehicle tracking systems. 
  • Further these systems combine GPS tracking with vehicle diagnostics and other telematics data to provide a complete picture of vehicle operations and performance. 

How TrackoBit’s Telematics Solution is the Right Fit for You?

TrackoBit’s Telematics Solution is the Right Fit for You

With TrackoBit, you can track every bit of your fleet, as it provides precise GPS tracking capabilities wrapped in comprehensive vehicle telematics solutions, allowing fleet managers to accurately monitor the location of their vehicles or assets in real time. Our video telematics solutions give you access to:

  • Efficient GPS tracking of vehicles, live on the map – to ensure enhanced visibility & safety.
  • Efficient and fastest delivery routes, to save your traveling miles.
  • Reports on speed, vehicle diagnostics, engine idling, and distance traveled.
  • Alerts on route deviation, geofence entry/exit, and more than 50+ custom alerts.
  • Fuel consumption and utilization reports.
  • Driver’s driving events and in-cabin activities.

What more? TrackoBit offers customization depending on their specific needs. It offers customization options to tailor the solutions to your requirements.

Still, thinking? Just get in touch with us to improve your fleet management with our GPS-powered telematics software.

Optimize your Fleet Operations with Telematics Solutions


  • How is GPS Tracking different from Telematics?

    GPS tracking focuses primarily on location tracking, providing information about the location of a vehicle or property. Telematics, on the other hand, encompasses vast amounts of data collection and analysis including vehicle analysis, fuel consumption, driver behavior, and more.

  • What data does telematics provide?

    Telematics solutions provide more information than just location, including vehicle analytics, driver behavior, and more.

  • Can GPS tracking and telematics be integrated into existing systems?

    Yes, both GPS tracking and telematics systems can often be integrated into existing fleet management or operational systems. This integration allows for seamless data sharing and analysis, providing a more comprehensive view of vehicle and asset performance.

  • Do GPS Tracking and Telematics incorporate different technologies?

    While GPS tracking and telematics both of these technologies rely on GPS technology for locational data. But then telematics includes additional sensors, communication devices, and software to collect, and transmit detailed insights that are beyond the locational data.

  • How are GPS tracking and telematics used in different industries?

    GPS tracking is commonly used in industries where real-time location monitoring is critical, such as transportation and logistics, delivery companies, construction, and emergency services. Telematics, with its broader data collection capabilities, is utilized in these industries as well but is also prevalent in fleet management, insurance, automotive, and even personal vehicle monitoring.

Understanding the Differences Between GPS Tracking and Telematics

Anvesha Pandey

Anvesha is a blooming content writer at TrackoBit. She is a Gen-Z working with a team full of millennials. Reading books is her hobby (her collection of books says it all). She prefers living in the world of Jane Austin. When not reading, you'll find her eating KitKat, brainstorming on social issues, and listening to podcasts.

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