Geofencing Market Size, Share & Industry Analysis, By Geofencing Type (Fixed and Mobile), By Technology (Active and Passive), By Enterprise Type (Large Enterprises and Small & Medium Enterprises (SMEs)), By End-User (Retail and Consumer Goods, Government and Defense, Healthcare, Transportation and Logistics, Automotive, and Others), and Regional Forecast, 2024-2032

The global geofencing market size was valued at USD 2.20 billion in 2023 and is projected to grow from USD 2.65 billion in 2024 to USD 12.23 billion by 2032, exhibiting a CAGR of 21.0% during the forecast (2024-2032). North America accounted for a market value of USD 0.79 billion in 2023. Geofencing is a service that utilizes GPS, RFID, Wi-Fi, and cellular data to trigger preprogrammed actions for apps or other software used on mobile, desktop, or cloud-based platforms. A geofence, which is a virtual boundary, is established around a geographical location to enable this service. Its primary purpose is to allow businesses and companies with apps to track their users, market to them, or send alerts when a mobile device enters or exits a specified area.

The geofencing market growth can be attributed to several factors, including the increasing demand for location-based services among consumers and the growing importance of real-time analytics. Additionally, the global market is driven by the rising penetration of mobile devices. According to an industry expert, mobile web traffic accounted for 54.8% of global web traffic in 2021.

The major purpose of adopting and deploying geofence are:

• Simple device tracking within the geofence


• Automatically execute specific actions when devices enter or exit the geofence


• Detect and lock down lost or stolen devices


• Provisioning policies, applications, and services

The COVID-19 pandemic led to a minor decrease in the adoption of geofence technology; companies and governments quickly adapted to the changes and offered enhanced solutions for various sectors, including healthcare and transportation.

Geofencing Market Trends

Growing Adoption of Proximity Marketing by Geofencing Technology to Propel Market Growth

Consumers can establish a geofence and begin targeting users as soon as they enter the geofenced area through proximity marketing. Leading businesses are placing a growing emphasis on proximity marketing technologies to enhance the customer experience. Geofencing allows retailers to send personalized product recommendations, exclusive discounts, and clickable maps to assist potential customers on their journey. Organizations are adopting geofencing marketing to boost precise content, focusing on specific consumer base and building a brand image for company within the targeted area. Moreover, some factors that marketers focuses on geofencing tactics to obtain ROI are:

• Sending promotional offers to shoppers as they pass by stores to increase foot traffic


• Recommend products based on previous in-app behaviors


• Improve customer service by taking feedback, or communication between app users and business management


• Boost brand awareness by integrating social sharing

Furthermore, there is a growing trend of integrating proximity marketing with augmented reality. When businesses merge the physical and digital worlds, they can create immersive and interactive experiences.

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Geofencing Market Growth Factors

Rising Adoption of Mobile Devices for Consumer Engagement to Aid Market Growth

Internet usage and mobile device ownership have both significantly increased in recent years. The popularity of GPS-enabled, smart, and location-aware smartphones is on the rise, which supports market growth. Geofencing Technology enables companies to target specific customers with personalized notifications and real-time advertising. This has led to increased consumer engagement, which is fueling sector growth. Geofencing is a cost-effective and flexible marketing strategy that offers various options based on budget. Consequently, numerous companies are leveraging it, contributing to market growth.

Furthermore, with the rising demand for IoT devices, the integration of geofencing allows the collect more precise and accurate information about consumers. It makes it easy for marketers to communicate and exchange data.

RESTRAINING FACTORS

Battery Draining and Privacy Concerns to Hinder Market Expansion

Battery draining issues and a lack of professional expertise will hinder the industry's expansion over the upcoming years. Moreover, the growth of this industry has been hampered by increased privacy concerns related to location data. Users must share some of their information to enable geofence technology to process, and this information is stored by location-based service providers. This can create concern for the users.

Geofencing Market Segmentation Analysis

By Geofencing Type Analysis

Rise in Marketing Campaigns by Mobile Geofencing to Increase the Market Demand

Based on geofencing type, the market is segmented into fixed and mobile. The mobile segment is expected to grow at the highest CAGR during the forecast period. When a device enters or leaves the predefined geofenced areas, actions or alerts are triggered on the mobile device. Mobile geofencing is the practice of creating virtual borders on digital maps to highlight locations and areas of interest. Businesses are also using this type for marketing campaigns based on location. Businesses can easily provide their customers with personalized promotions or discounts as there has been an increase in location activities on mobile devices.

By Technology Analysis

Rising Usage of Passive Geofencing to Provide Effective Real-time Content to Fuel the Demand

Based on Technology, the market is segmented into active and passive. The passive segment is expected to grow at the highest CAGR during the forecast period. It can add value to business growth in several ways by enhancing customer engagement, providing valuable data insights, and improving marketing effectiveness. Businesses are using this Technology to give users timely and appropriate real-time content, based on their location. By providing personalized and detailed location information, businesses can increase client engagement and retain the interest of their audience.

In terms of market share, the active segment dominated the market in 2022. The segment's growth is supported by a significant rise in the number of retailers actively participating in geofence technology. Retailers use this Technology to attract customers into the store and encourage them to make purchases by offering specific messages and offers within a specified radius of an area. Moreover, due to the widespread acceptance of digital Technology, automation technologies using active geofencing techniques are becoming popular.

By Enterprise Type Analysis

Increasing Need for Geofence Technology at a Lesser Price by SMEs to Aid Market Expansion

By enterprise type, the market is classified into Small & Medium Enterprises (SMEs) and large enterprises. The small & medium enterprises segment is expected to grow at a higher CAGR over the projected period. It enables SMEs to gain a competitive advantage in their regional markets. By providing personalized and locational experiences to customers, they distinguish themselves from the competition and establish a distinctive brand identity. Geofence technology is a cost-efficient solution that allows small businesses to compete with large enterprises at a lesser price.

Large enterprises dominated the market share in 2022. Large enterprises' hyperlocal marketing strategies make it easier for customers to visit physical stores and increase sales. In addition, geofences are an essential element for large enterprises with substantial fleets of vehicles. It optimizes routes, allows real-time vehicle tracking, delivers insightful data, and keeps tabs on vehicle movements for rising fleet productivity and cutting expenses.

By End-User Analysis

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Rise of High-quality Healthcare Location Features to Aid Market Revenue in Healthcare

Based on end-user, the market is sub-divided into retail and consumer goods, government and defense, healthcare, transportation and logistics, automotive, and others. The healthcare segment is expected to grow at a higher CAGR over the forecast timeframe. Geofences offer reliable and effective solutions in the healthcare sector, including patient monitoring, process tracking, and other features. The sector has seen increased demand for these services due to a rise in high-quality healthcare. Geofences have become increasingly used in healthcare to track patients, staff, and valuable medical equipment in the event of an emergency.

The retail and consumer goods segment dominated the market in 2022. Market suppliers are introducing cutting-edge solutions by providing retailers with more precise, relevant, and personalized information at a suitable time and location. In August 2022, Alpine IQ, the data provider, and digital marketing solution for brands of medicinal products, introduced a geofence messaging service in its entire Omni-channel communication options.

REGIONAL INSIGHTS

Regionally, the market is fragmented into Asia Pacific, Europe, North America, Middle East & Africa, and South America.

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As per the analysis, North America held a major geofencing market share in 2022. In North America, significant investments and collaborations in geofencing are being implemented across various end users. The market demand for spatial data integration and real-time location technology in the region has increased. Moreover, North America boasts one of the world's most advanced economies, particularly in the U.S. and Canada. The market is dominated by the region's strong communication and internet infrastructure. According to CMO's report, in 2022, 52% of global marketing budgets will be spent on location-based marketing, with North American markets leading the way.

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Asia Pacific is anticipated to experience the highest growth rate during the forecast period. The region's market growth is driven by the innovation of products and new solutions offered by key players. Geofencing in the region is frequently used by retailers and service providers to deliver personalized marketing and promotions to customers when they enter specified areas or approach their physical stores.

Middle East & Africa are set to record the second-highest growth rate in the market over the projected period. Advancements in technologies used for geo-marketing, such as fleet management, are driving market growth in the region.

List of Key Companies in Geofencing Market

Market Participants Focus on Partnerships, Mergers and Acquisitions, and Product Development Plans to Promote Reach

Leading companies are continually striving to introduce advanced location services for enhanced proximity marketing and advertising for businesses. To expand their business presence, these market players focus on acquiring small and local firms. Additionally, increased investments, mergers and acquisitions, and strategic partnerships support market expansion.

List of Key Companies Profiled:  

• Bluedot (U.S.)


• Radar Labs, Inc. (U.S.)


• Infillion (U.S.)


• Esri (U.S.)


• Eskimi (Lithuania)


• Thumbvista (U.S.)


• Simpli.fi (U.S.)


• Mapsted Corp. (Canada)


• LocationSmart (U.S.)


• GeoMoby (Australia)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Simpli.fi partnered with Intent IQ, an identity resolution company, to offer a new Cookieless Audience Extension solution to customers. The new integration enhances Simpli.fi's suite of cookieless solutions and enables advertisers to reach maximum audiences.


• October 2023: Radar introduced geo-compliance and fraud detection solutions. The solutions offer a developer-friendly, cost-effective geolocation solution for the gaming industry. The solutions also provide a dashboard with comprehensive back-office capabilities, including tools for alerting, reporting, and debugging.


• February 2023: The Helsinki-based Skipperi sets out with USD 7.49 million to improve access to boating. For this purpose, the platform uses artificial intelligence (AI) and geofence technology to provide members real-time reports on conditions such as speed restrictions in harbors, shallow waters, and danger areas for seals and birds.


• November 2022: Habu, a provider of data room software, collaborated with Reveal Mobile, a geo-fencing and location intelligence software company, enabling Habu to introduce its first clean room for security-compliant location data.


• May 2022: Ford tested a technology called geofence that could automatically reduce vehicle speed to increase safety for all. In addition, Ford is deploying this technology to improve the quality of air in cities and ensure that a Ford Transit Custom hybrid electric vehicle runs automatically through zero emissions EV mode when it enters low emission zones.

REPORT COVERAGE

An Infographic Representation of Geofencing Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, and leading end-user of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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