How does Global Positioning System (GPS) work?
- Regami Solutions
- Mar 14, 2022
- 4 min read
Updated: Mar 22

In the past, navigating unknown terrain was a challenge. Without modern technology, people would rely on compasses, the stars, or local knowledge to find their way. But today, with just a smartphone or GPS receiver, you can pinpoint your exact location with ease. So, how does the Global Positioning System (GPS) make this possible?
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Understanding GPS Technology
At the core of the Global Positioning System is a network of satellites orbiting the Earth. GPS operates using a process called trilateration, which allows your device to calculate its precise location.
A GPS receiver receives signals from multiple satellites. Each signal contains information about the satellite’s position and the exact time the signal was transmitted. By calculating how long it takes each signal to reach the receiver, the device can determine its distance from each satellite. These distances, when combined, provide an accurate location on Earth.
Trilateration: The Key to Location Accuracy
To understand how the Global Positioning System works, let’s dive deeper into trilateration. A single satellite can give the GPS receiver only a distance, but not the exact location. Imagine that the satellite shines a "spotlight" on the ground, creating a circle. Anywhere in that circle could be the receiver. A second satellite is required to narrow it down, which makes another circle. The potential sites are reduced by the junction of these two circles. A third satellite provides a third circle, and the overlap of all three gives the receiver its exact position.
The more satellites involved, the more accurate the location becomes. Typically, a Global Positioning System receiver uses signals from at least four satellites to ensure a highly accurate 3D position, including latitude, longitude, and altitude.
The Role of Time in GPS Accuracy
Time has a major impact on the Global Positioning System's accuracy. Satellites use atomic clocks that are extremely accurate, but the GPS receiver on the ground uses quartz clocks, which are less precise. This discrepancy between the satellite’s time and the receiver’s time is known as the time offset, which can introduce significant errors in the location calculation.
To correct this, the Global Positioning System incorporates a fourth satellite. By using signals from four satellites, the receiver can adjust for the time offset and compute an accurate location, effectively bypassing the need for expensive atomic clocks in consumer devices.
Relativity and GPS Accuracy
The Global Positioning System relies not only on precise time measurements but also on Einstein's theory of relativity. According to relativity, time behaves differently depending on the speed of an object and its proximity to gravity. GPS satellites travel at high speeds—about 14,000 kilometers per hour—and are far from the Earth’s gravity. This means that the satellite clocks run slower by about seven microseconds each day due to their speed. On the other hand, the weaker gravitational pull at the satellite’s altitude causes the clocks to run faster by about 45 microseconds per day.
Without accounting for these effects, the Global Positioning System would be off by miles each day. The satellites’ onboard computers are programmed to adjust for these time differences, ensuring that GPS provides accurate location data, regardless of relativistic time distortions.
The Global Positioning System's Business Applications
The Global Positioning System has wide-ranging applications in business, enhancing efficiency, reducing costs, and driving decision-making in real-time. Here are some key areas where GPS is important:
Logistics and Fleet Management: GPS enables businesses to track their vehicles, optimize routes, and reduce fuel consumption. This leads to improved operational efficiency, fewer delays, and enhanced customer satisfaction. Companies can track deliveries in real time, ensuring accurate and on-time arrivals.
Agriculture and Precision Farming: GPS-powered technology helps optimize crop production by providing real-time data on field conditions, equipment positioning, and crop health. This data-driven approach reduces waste and improves yield, leading to better profitability for farmers.
Telecommunications and Network Synchronization: GPS ensures the synchronization of cellular networks, facilitating efficient data routing and service delivery. It is also used in mobile towers to maintain the required time accuracy for seamless communication.
Financial Services: GPS’s time-stamping capabilities allow for precise transaction timestamping, ensuring accuracy in banking and stock market transactions. GPS timing is essential in preventing fraud and maintaining the integrity of financial records.
Overcoming Challenges in GPS Accuracy
While the Global Positioning System is powerful, it faces challenges. Signal interference in urban environments, known as the "urban canyon" effect, can cause inaccuracies. Multipath errors, where signals bounce off buildings or other structures, can also distort the GPS data. To combat these issues, advanced GPS systems use techniques like Real-Time Kinematic (RTK) positioning, which enhances accuracy by using a fixed base station and multiple satellites for real-time corrections.
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The Future of Global Positioning System in New Business Opportunities
With the development of new GNSS systems like BeiDou and Galileo, the Global Positioning System is becoming more accurate and dependable. By automating processes and increasing productivity, technologies like 5G and IoT are improving the usage of GPS in business. Businesses will remain competitive as GPS adoption increases and leads to smarter, scalable operations.