A sophisticated satellite vehicle tracking system - similar to one being taken on board by London Buses - has hit the road in the Midlands.

Action Trax, which supplies the Navman Wireless Vehicle Tracking System, a global positioning system (GPS), to businesses in the region, says demand is accelerating for the innovative technology.

"Companies whose business depends on the use of vehicles to transport goods or people can benefit hugely from this real-time tracking system, as it helps to increase productivity and efficiency," said Gary Poole, area sales manager for Action Trax, which is based in Aston, Birmingham.

"Over the past few months we have noticed a substantial increase in the number of companies in the Midlands wanting to use this product and we're being asked to put in tenders for several councils."

Transport for London announced last month that it had signed a £120 million contract with Siemens AG to implement what will be the world's largest GPS tracking system on the capital's bus fleet.

Navman is a Microsoft Windows-based application that provides a company with live visibility of its fleet's activities via the Internet.

A firm can track, send and receive messages and monitor its fleet from any PC at almost any location in the world.

The system includes area mapping to street level, geofencing, daily activity reporting and journey replay.

"A company can locate precisely where a particular vehicle is at any time," said Mr Poole. "Using such a tracking system can lead to lower fuel bills - drivers will be less inclined to make personal diversions or leave engines ticking over if they know the information is being logged."