Why Real-Time Location Systems (RTLS) Are Being Increasingly Used Globally?

Industries globally are shifting to smart manufacturing practices. Industry 4.0 principles are also being increasingly adopted. This has led to a growing interest in real-time location systems. These systems are now a part of various sectors, including manufacturing and logistics.

The name of real-time location systems explains their key functionality. But how exactly do these systems work? And what are their key components? Keep reading as we explain everything you need to know about these systems. We also cover the key metrics of the real-time location systems market and detail the key factors propelling the market forward.

Real-Time Location Systems: Overview

Real-time location systems (RTLS) can accurately determine the location of a person or an object. RTLS isn’t a specific system or technology type. Instead, it makes use of various systems to locate and manage assets. A key aspect of RTLS is the tracking time of the assets. Based on the application, this tracking data can be used in various ways. The data can be fed into asset management systems. An ideal RTLS is capable of accurately locating, managing, and tracking assets. Using RTLS, companies can also track inventory or people and make informed decisions based on the collected information.

Parts of an RTLS System

The exact components of RTLS are based on the specific system. However, all RTLS applications have a few basic components. Below, we’ve explained them in detail:

Transponders

A transponder is attached to an item or a person. Its basic purpose is to uniquely identify that asset or individual. A transponder usually gets a signal from a receiver. It responds back to the signal with a unique ID. Some transponders also come with an internal power source that allows them to send the initial signal. Transponders can take the form of RFID tags, Bluetooth beacons, and ultrasound tags. Some systems may also use smart devices and GNSS tags as transponders.

Receiver

A receiver is a hardware piece in RTLS that’s attached to a power source. The network connection of the receiver enables it to send and receive signals from transponders. The receiver then forwards the collected data to back-end databases or host computers. Some systems may have the receiver as part of their existing infrastructure. Others require purchasing a receiver and incorporating it into the application environment. The receiver hardware in RTLS can be readers, location sensors, and access points.

Software

Software is an important element of RTLS. It varies in complexity based on the specific system. Some RTLS systems may have it in the form of a simple software that’s integrated into the receiver hardware. Others might have it as an application software on a host computer. It’s possible to combine software to achieve the desired functionality of the system.

Key Market Metrics

Our latest analysis reveals that the real-time location systems (RTLS) market is expected to witness robust growth. The market for RTLS was valued at USD 5.79 billion in 2024. It is projected to grow at a CAGR of 18.48% between 2025 and 2034.

The rise in densely populated environments due to growing urbanization has created a need for RTLS. The increasing development of smart factories is also driving the real-time location systems market demand to track assets and workers in real-time.

Different RTLS Technologies Explained

RTLS makes use of various technologies to meet the different tracking needs across industries. Each technology has its own set of benefits and applications. Below, we’ve explained the different RTLS technologies in detail:

Bluetooth Low Energy Asset Tracking

Bluetooth low energy (BLE) is widely used for real-time asset tracking. It offers a cost-effective and scalable way to track assets. BLE involves attaching BLE tags to the assets. These tags then communicate with smartphones or BLE readers. Using BLE, it’s possible to get precise location data while consuming less power. The high versatility of BLE means it can be easily integrated into existing systems.

Ultra-Wideband Technology

Ultra-Wideband (UBW) technology is known for its high precision. It can precisely track objects and individuals. UBW sends billions of signals across various frequencies. That way, it becomes possible to track objects accurately. UBW is helpful in complex environments where high accuracy is needed. It can be found in manufacturing facilities and is also used during emergency response operations.

Wi-Fi-Based RTLS Systems

These systems leverage the Wi-Fi infrastructure that’s already present. As such, they are a cost-effective option for various industries. Wi-Fi-based RTLS systems aren’t as precise as UBW. However, they are still capable of providing location accuracy within a few meters. This makes it useful for applications like office asset tracking and hospital staff management.

RTLS Coverage Options Detailed

The read ranges and capabilities of RTLS systems vary from one technology to another. Here’s an explanation of the various RTLS coverage options:

Wide Area Coverage: Wide area coverage refers to tracking an asset or person on a global scale. It makes use of global coordinates for the same. An application example of this is tracking cargo containers with valuable machinery inside across land or ocean.

Local Area Coverage: Local area coverage refers to locating an item or person within a facility or building. Local area coverage involves locating on the same network. A practical example of this is locating an IT asset within a company's building.

Zonal Coverage: This involves tracking an item or individual within a set zone. It has hardware set up at specific intervals. An example of this is locating an oxygen tank within a hospital.

Conclusion

RTLS is important for managing and interpreting location data. Its ability to integrate data from various sources offers insights into the movement of assets and potential bottlenecks. The presence of features such as real-time mapping and analytics allows businesses to make informed decisions. Real-time location systems market key players are increasingly using advanced technologies such as artificial intelligence (AI) to offer enhanced solutions.