Geofencing Market: Global Industry Analysis and Forecast (2023-2029)

Geofencing Market was valued at US$ 908.15 Mn. in 2022. Global Geofencing Market size is expected to grow at a CAGR of 25.8 % through the forecast period.
Geofencing Market Overview:
Geofencing is the use of GPS technologies to build a fictitious geographic border that enables mobile phone responses to be triggered by the GPS software when an unauthorized individual enters or exits a preset zone. Anyone may create triggers based on location-specific information using geo fence. It sends out an alarm if a person or object crosses a certain border or region. For example, a notice or a promotion offer may appear on the person's phone or another device when they visit a mall, a business, a neighborhood, or search a specific pre-defined region. Geofencing technology enables corporations and enterprises to increase revenue, client loyalty, and engagement. In order to safeguard critical locations, geofencing is being widely used by governments and the defense industry, which drives the market growth.

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Geofencing Market Dynamics:
Growing Adoption of Location-Based Marketing: Internet usage and smartphone ownership have both increased dramatically in recent years. Smart, GPS-enabled, & location-aware smartphones are becoming more and more popular, which is promoting the market growth. Geofencing gives businesses the chance to target specific customers by personalizing their notifications and adverts and sending them in real-time.

This increases consumer engagement, which is driving the industry's growth. If notifications are relevant and location-based, their click rate also rises. A versatile marketing strategy that gives several alternatives based on budget, geofencing is cost-effective. As a result, numerous businesses are using it more frequently, which is fueling the market growth.

Because they don't require technological expertise, geofencing campaigns are simple to use and widely available, promoting industry growth. It also helps in responding to customer concerns and questions inside a certain geofence. To raise awareness, geofencing can display adverts on social media platforms by creating a virtual geofence.

Also, it can monitor real-time data and enable organizations to examine their advertising behavior, which further stimulates market growth. Geofencing marketing is becoming more popular among small and medium-sized businesses as a way to increase customer retention and brand awareness. Geofencing boosts the likelihood of purchases by enabling marketing to a specific audience. This is stimulating market growth.

Increasing need for employee monitoring when working remotely: The rise of the coronavirus outbreak has significantly raised the demand for geofencing. Many businesses are migrating to long-term remote employment as working from home becomes the new standard. Because of this, there is a higher need for geofencing software that enables electronic clocking in and out for employees.

It helps workers be more productive by enabling them to manage their own time well. This is expected to accelerate market growth. Geofencing is being utilized more frequently for staff training and recruiting due to its technological improvements. In order to efficiently find suitable applicants, a geofence is put up.

In the healthcare sector, geofencing can be utilized to set up patient updates for physicians and nurses in certain localized locations. This is accelerating the growth of the market.

High cost of Devices: The high pricing of the devices is one of the primary restraints highlighted in the geofencing market forecast. It also has various limitations in terms of radius coverage, difficult maintenance, and so on. Also, installation expenses may seriously hamper the market growth in the next years.

Rising awareness among customers: Customers' growing awareness might present enormous opportunities for the sector. Along with other firms, we are working to enhance vehicle management, supply transportation, and logistics. The geofencing technique is expected to improve consumer and vendor contact and interaction. It will emerge as a vital marketing tool, assisting in the rise of profit as well as the productivity of personnel.

Lack of knowledge and skills: The absence of qualified labor & knowledge among clients will be a barrier to market growth. Rapid technological development might cause significant misunderstandings among users. The strict regulations and restrictions imposed by various governments might sometimes make it difficult to meet deadlines.
COVID-19 Insights on Geofencing Market:
Today, geofencing services are utilized to find people who have violated a quarantine and are being watched. The Indian government tested a program that sends SMS notifications to a designated government agency whenever a person enters or leaves a quarantine facility based on the location of a mobile phone's cell tower. This program helps the government find a person and prevent the spread of COVID-19. As a result, there was a strong demand for geofencing services both during and after the COVID-19 pandemic.
Geofencing Market Segment Analysis:
Based on End-user Industry, the Retail segment dominated the market with 24% share in 2022. Retailers are enthusiastically embracing digitalization because it enables them to contact consumers more effectively and remotely, which will help them build a much more loyal customer base. With the help of active geofencing technology, retailers can track consumer foot traffic as soon as customers enter the geofenced region and push customers with promotional messages to capture them.

Automotive merchants utilize geofencing to monitor consumers who are having test drives. If a client tries to leave the designated region, an immediate alarm may be obtained, allowing for prompt action to be done to prevent asset losses.

Retailers are being encouraged to use active geofencing technologies as a result of the increased use of smartphones by people throughout the world, which allows them to monitor even more foot traffic in their geofenced area. When compared to wealthy nations, which have an average smartphone penetration of 80%, emerging countries have a higher rate of 82 %. 3.2 billion Smartphone devices are expected to be shipped globally in 2022. Therefore, there are chances for growth in emerging nations for the active geofencing market.

For product delivery to clients, retailers are using novel strategies like aerial unmanned drones. For example, Walmart has decided to use drones to deliver goods in a safebox rather than to a doorstep. The program uses block chain technology and geofencing for shipment tracking and identification.
Regional Insights:
The North America region dominated the market with 32 % share in 2022. The majority of stable and established economies that engage extensively in R&D operations, hence encouraging the emergence of new technology, are found in North America. When compared to other countries, North America's start-up culture is growing more quickly. The development of the North America market has been facilitated by the increasing number of emerging SMEs and the growing digitalization inside major enterprises. Small and medium-sized businesses (SMEs) can easily integrate technological advances into their current systems, but large enterprises must spend a lot of money on digitalization. The market for geofencing in North America is growing as a result of all these causes. The market is increasing in the North America region, mostly as a result of rising smartphone adoption, a rise in social media and mobile-based marketing, and rising 3G and 4G network deployment.

The Asia Pacific region is expected to witness significant growth at a CAGR of 26.2% through the forecast period. The Asia-Pacific area comprises important nations with fast-rising economies like China and India. There are several SMBs in these nations. Also, government programs like Digital India have promoted the use of technology in these nations' commercial sectors. Beacons & active geofencing are being used by small and medium-sized businesses (SMBs) to improve customer connections. The price of this technology is quite low since several beacon devices may be purchased for about USD 20.

It is simple to create the software platform required to manage the messages. The region's Fintech market is likewise growing fast. To guarantee that cardholder transactions are authorized and lower the risk of fraud, several banks are implementing active geofencing to compare consumer whereabouts to card transactions. Also, Walmart has already begun selling in India, and the vast e-commerce presence in the country creates more prospects for the geofencing market since both Amazon and Walmart intend to use unmanned drones to transport goods.

The objective of the report is to present a comprehensive analysis of the global Geofencing Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Geofencing Market dynamic, structure by analyzing the market segments and projecting the Geofencing Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Geofencing Market make the report investor’s guide.
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Geofencing Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 908.15 Mn.


Forecast Period 2023 to 2029 CAGR:
25.8%
Market Size in 2029:
US $ 4528.16 Mn.


 Segments Covered:
by End-user Industry
Banking
Retail
Defense
Healthcare
Industrial Manufacturing
Transportation
Other


by Organization Size
Small-scale and Medium-scale Businesses
Large-scale Businesses


by Component
Solution
Services


by Geofencing Type
Fixed Geofencing
Mobile Geofencing



Geofencing Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (razil, Argentina Rest of South America)
Key Players:
1. Apple Inc. (US)
2. Bluedot Innovation (US)
3. DreamOrbit (India)
4. Embitel (India)
5. Esri (US)
6. Factual Inc. (US)
7. GeoMoby (Australia)
8. Gpswox.com (UK)
9. InVisage (US)
10. Localytics (US)
11. LocationSmart (US)
12. MAPCITE (UK)

Frequently Asked Questions:

1] What segments are covered in the Global Geofencing Market report?
Ans. The segments covered in the Geofencing Market report are based on End-user Industry, Organization Size and geography.

2] Which region is expected to hold the highest share in the Global Geofencing Market?
Ans. The North America region is expected to hold the highest share in the Geofencing Market.

3] What is the market size of the Global Geofencing Market by 2029?
Ans. The market size of the Geofencing Market by 2029 is expected to reach US$ 4528.16 Mn.

4] What is the forecast period for the Global Geofencing Market?
Ans. The forecast period for the Geofencing Market is 2023-2029.

5] What was the market size of the Global Geofencing Market in 2022?
Ans. The market size of the Geofencing Market in 2022 was valued at US$ 908.15 Mn.