Real-Time Locating Systems (RTLS) pinpoint the location and movement of assets, equipment, and personnel, offering unmatched potential to boost operational efficiency and cut costs.
With the RTLS market projected to reach $30.43 billion by 2032, understanding these systems’ core functionalities and technologies is more important than ever.
This article breaks down everything you need to know to harness the full potential of RTLS and transform your operations.
In this article...
Key Components of an RTLS System
Real-time locating systems provide accurate location data and enable real-time insights by combining several critical components.
These key elements include:
- Tags/Sensors – capture data from assets, employees, or equipment
- Anchors/Readers – receive signals from tags
- Software/Algorithms – process location data and display insights
- Network infrastructure – provides connectivity using Wi-Fi, Bluetooth, UWB, etc.
When all these components come together, the RTLS system can be visualized like this:
Source: Inpixon
But let’s dive a little deeper into individual components, and how they interact with each other.
Tags or sensors are attached to assets, such as equipment and tools, or personnel for real-time tracking.
They serve as unique identifiers that emit signals at defined intervals or based on specific event triggers, enabling the system to capture and track location and movement in real time.
The signal frequency and tracking precision vary depending on the RTLS technology used, such as RFID tags, UWB sensors, and Bluetooth beacons.
Source: GoCodes
Anchors or readers are fixed devices strategically placed within the RTLS environment.
Their role is to accurately and continuously pick up signals, and then relay the raw location data to the central software for processing.
The software ensures that the recorded asset movements and locations become actionable insights.
Intuitive software solutions typically include a dashboard to aid visualization and decision-making.
Finally, RTLS requires a robust network infrastructure to ensure seamless communication between tags, readers, and software.
Common connectivity methods include Wi-Fi, Bluetooth, and UWB, but the end goal is the same—ensuring long-term network stability and speed.
A cohesive RTLS solution is essential for keeping track of equipment and people in real-time, analyzing movement patterns, and enabling data-driven decision-making.
With this in mind, it’s no wonder that the market was recently valued at $5.50 billion and is projected to grow nearly six-fold in just eight years.
Illustration: GoCodes / Data: S&S Insider
RTLS emerged as a critical asset-tracking technology, but how exactly does it work once it’s up and running?
Let’s break it down step by step.
How RTLS Works: Step-by-Step Process
RTLS systems deliver near-instant insights, but before you can get the information on your device, several things need to happen in the background.
It starts with tag activation and transmission.
Tags deliver key location data by interacting with readers or sensors, and the process is slightly different depending on the kind of tag you’re using.
Since active tags have their own power source, they can broadcast signals at set intervals and capture any changes immediately.
Passive tags, on the other hand, first require activation from a reader’s signal.
This means you can get a snapshot of the asset’s location when its tag is scanned, but not continuous updates.
Dr. Valerie McKinnis, a former CMIO of a Colorado hospital system, explains why they opted for active tags.
These tags ensured that the staff would be able to look up patients’ locations from any device and find them throughout the facility.
Illustration: GoCodes / Quote: Healthcare IT News
The RTLS sensors mentioned by Dr. McKinnis need to be installed at specific locations to create a network that covers the entire tracking area.
Depending on your use case, you can combine fixed sensors or readers with mobile ones, such as handheld devices.
The important thing is that the readers capture relevant signals and relay them to the system for processing.
At this point, it’s time for advanced algorithms to calculate the precise positions of your assets or employees, and make sense of the incoming data.
The software relies on methods like trilateration or triangulation for accurate readings, but each one has its pros and cons, as explained in the video below.
Source: Marvelmind Robotics on YouTube
Advanced RTLS solutions use more sophisticated algorithms to filter out irrelevant information and even make predictions based on the object’s velocity and direction.
All this data is then presented using intuitive dashboards or maps to enable both agile and strategic decision-making.
For instance, the detailed summary of asset movement below focuses on productivity and idling trends in particular.
Source: GoCodes
Having a centralized platform goes beyond securing easier access to information—it enables you to integrate location data captured by different RTLS technologies.
Let’s say you’ve initially adopted a Bluetooth-based RTLS solution for staff tracking, but realized later on you could optimize operations further with active RFID tags.
Ideally, you can simply expand on your existing RTLS system, but if it lacks interoperability, you’re in for a costly and disruptive switch to a new system.
Paul Criswell, a former Global Product Manager at CenTrak, notes that relying on non-unified platforms creates unnecessary challenges, especially if you want to scale your system.
Illustration: GoCodes / Quote: RFID Journal
Newer RTLS platforms like CenTrak help break down data silos by providing a cloud-based software platform.
That way, users can easily manage data from sensors, no matter if they´re using BLE, Wi-Fi, LF RFID, and other technologies.
To sum up, RTLS systems deliver value only when you can collect relevant data from multiple sources while ensuring all the insights are displayed cohesively.
RTLS Positioning Methods
Real-time location systems use various positioning methods to determine the location of objects and help you track assets and personnel more effectively.
Here´s a brief overview of common RTLS positioning techniques, focusing on their benefits, drawbacks, and ideal applications:
Time of Arrival (ToA) strategy determines the location of a tracked object by measuring how long it takes for a signal to reach different readers.
ToA is ideal for outdoor applications and is commonly employed for GPS-based positioning in large spaces, such as construction sites.
However, one of the drawbacks of this method is that it requires precise time synchronization between the devices—any discrepancies due to interferences could lead to errors in positioning.
Luckily, the limitations of one-way signal measuring can be overcome with two-way ranging (TWR).
This method involves both the tag and receiver sending signals back and forth to each other to improve accuracy.
Source: Inpixon
This “ping-pong” method helps to account for clock discrepancies, reducing the need for perfect synchronization.
Time Difference of Arrival (TDoA) compares signal arrival times at multiple anchors to triangulate the precise position of the object.
Source: Inpixon
This method is often used in RTLS systems focusing on outdoor applications because it provides accurate positioning without the need for synchronization.
TDoA also excels in dynamic environments because it´s less sensitive to issues like multipath interference, although it can still be affected by environmental factors.
Keep in mind that while using three or more receivers for triangulation provides greater precision, it also increases both the cost and complexity of the infrastructure.
Next up, we have Angle of Arrival (AoA) which calculates the position of a device by measuring the angle of incoming signals.
This method is more commonly used indoors or in controlled environments where accuracy and space constraints are key considerations.
Source: Inpixon
The advantage of AoA is that it often requires fewer sensors than ToA or TDoA, which reduces hardware costs.
However, AoA is less reliable in complex environments where signals bounce off surfaces and create multiple signal paths.
Received Signal Strength Indicator (RSSI) estimates the object´s distance by analyzing the strength of received signals, and is also used predominantly for indoor tracking.
It’s a cost-effective and easy-to-implement method, which makes it ideal for broad, low-cost deployments in retail and office environments.
Source: Inpixon
The reason why RSSI works best for indoor tracking also hides its biggest drawback.
Signal strength can be influenced by different obstacles, interferences, and environmental factors, which then impact RSSI’s accuracy.
When assessing RTLS positioning methods, make sure to consider factors like accuracy, deployment environment, and budget constraints—these will ultimately determine the best solution for your needs.
Types of RTLS Technologies
The capabilities and limitations of RTLS systems largely depend on the type of technology used to capture data.
Each technology has its strengths and limitations, making it suitable for different use cases.
Let’s compare and contrast the five most common RTLS technologies:
- RFID-based RTLS
- Ultrawideband (UWB)
- Bluetooth Low Energy (BLE)
- Infrared and Optical RTLS
- GPS-based RTLS
RFID-based RTLS uses radio waves for location tracking.
It’s particularly effective in indoor settings where line of sight isn’t required, making it ideal for industries like healthcare and warehousing.
For example, Borda Technology´s patient tracking system relies on active RFID tags equipped with advanced fall alerts.
Source: Borda Technology on YouTube
RFID tags are often regarded as cost-effective, but there is a notable difference between passive and active tags, both in price and installation complexity.
Outdoor application is not recommended due to signal interferences and limited tracking range.
Ultrawideband (UWB) provides real-time, high-precision tracking with accuracy down to 40 cm.
This makes it an ideal choice for handling complex environments, such as factories and warehouses.
It´s less effective than GPS when it comes to outdoor tracking, but it can still work well in open areas with fewer obstructions.
However, the tradeoff is a high infrastructure cost.
These systems are notoriously expensive to set up, especially across larger areas.
While this makes them less accessible for smaller operations, it´s a strong contender for businesses that need precision and are ready to pay for it.
Systems based on Bluetooth Low Energy (BLE) are the polar opposite, offering a cost-effective and scalable solution for RTLS needs.
Low power consumption makes it suitable for large indoor deployments, as showcased below.
Source: MOKOSMART on YouTube
BLE is commonly used in retail asset tracking or personnel tracking in offices, but its limited range can be a disadvantage for expansive spaces.
Nevertheless, it´s a good option for businesses prioritizing the ease and price of RTLS deployment.
Next up is Infrared & Optical RTLS (IR), a system often used in hospitals for patient tracking.
IR isn’t a widely used RTLS technology, but it can be leveraged for location positioning in healthcare and other controlled indoor environments.
These systems are highly accurate, and IR tags generally consume very little power, which extends their lifespan without the need for frequent recharging or battery replacements.
Their major drawback is the line of sight requirement.
However, when deployed in the right context, IR RTLS can be a highly effective and reliable tracking solution.
Finally, we have GPS-Based RTLS which is the go-to solution for outdoor tracking, offering global coverage and good accuracy within 1-5 meters.
It’s perfect for tracking vehicles, outdoor assets, or personnel in large outdoor areas.
Here´s an example of trip tracking using GoCodes real-time GPS trackers.
Source: GoCodes
GPS trackers are highly effective but can be costly to deploy on larger fleets.
Plus, they’re less effective indoors since satellite signals are often impacted by obstructions like buildings or dense environments.
Still, GPS remains a reliable solution for precise outdoor tracking due to its global coverage and ability to work in large, open spaces where other technologies may struggle.
With all this in mind, here´s the breakdown of key characteristics of each RTLS technology.
| Technology | Accuracy | Range | Price | Advantage | Disadvantage |
|---|---|---|---|---|---|
| RFID-based RTLS | 1-10 m | Medium | $-$$ | Precision in indoor setting | Prone to interference |
| Ultrawideband (UWB) | +/- 40 cm | Long | $$$ | High accuracy | Infrastructure cost |
| Bluetooth Low Energy (BLE) | < 5 m | Short | $ | Low power consumption | Limited range |
| Infrared & Optical RTLS | 0.5-3 m | Short | $$ | High accuracy (in line of sight) | Requires line of sight |
| GPS-based RTLS | 1-5 m | Long | $$ | Global coverage | Indoor limitations |
Each RTLS technology offers unique benefits depending on your application’s needs.
Whether it’s the precision of UWB, the cost-efficiency of BLE, or the flexibility of GPS, understanding the strengths and limitations of each method helps you choose the right solution for your environment.
Conclusion
A well-chosen RTLS technology significantly enhances operational efficiency, accuracy, and safety—no matter your industry.
But there’s a catch.
Making informed decisions requires a clear understanding of how these systems work and the benefits of each option.
Whether you aim to optimize asset management, improve workflow visibility, or track staff and inventory movement, implementing the right RTLS solution will offer tangible benefits.
To unlock these advantages, evaluate your organization’s unique requirements and start exploring various RTLS technologies to transform your operations.
We trust you’ll find the best option sooner than you think!
