Home Technology Geofencing Market Size, Growth, Trends and Forecast to 2031

Geofencing Market

Geofencing Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Type (Fixed Geofencing, Mobile Geofencing), By Application (Transportation & Logistics, Retail, Automotive, BFSI, Public Sector, Hospitality, Media & Entertainment), By Technology (RFID, GPS, Wi-Fi, Cellular Network) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRTE205DR
Study Period 2019-2031 CAGR 16.3%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 912.14 Million
Forecast Year 2031 Forecast Year Market Size USD 3551.49 Million
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global geofencing market size was valued at USD 912.14 million in 2022. It is projected to reach USD 3551.49 million by 2031, growing at a CAGR of 16.3% during the forecast period (2023-2031). 

Geo-fencing (geofencing) is a location-based feature service in which an app or software uses GPS, RFID, Wi-Fi, or cellular data to define geographical boundaries. It triggers a pre-defined action once an RFID tag or mobile device enters or exits a geographical location within a set boundary, referred to as a geofence. With the popularity of mobile devices, geofencing has become commonplace among plenty of businesses. Geofencing also helps businesses in targeting their ads to specific audiences to better understand what strategies work best on the basis of users' location data. Increasing demand for location-based services among consumers is one of the key factors driving the growth of the market. Geofencing is a popular way for businesses to deliver in-store promotions, alerting customers as soon as they step into the range of the store. For instance, Walmart is one of the most popular brands making it big with geofencing. Its app comes with a store mode that picks up signals when a buyer is within the store and delivers coupons and e-receipts.

Market Dynamics

What are the primary factors driving the market for Geofencing Market?

Rising adoption of geofencing in transport and logistics and increasing adoption of mobile devices

The rising adoption of geofencing technology in transport and logistics for proximity-based promotion and marketing is expected to further accelerate market growth during the forecast period. Apart from this, modern cab aggregating services and food delivery apps are also banking upon technology in a large way. For instance, Uber Car Hiring Service also uses geofencing at LAX so people within the area can conveniently get a cab to their desired destination in a matter of minutes. Domino's is currently using geo-targeting in its text message marketing campaign. The pizza chain has over 10,000 stores in 70 countries, so sending geo-targeted text messages is essential for the brand to make sure its text messages are relevant to each customer.

Increasing Adoption of Mobile Devices

Increasing mobile device adoption is anticipated to drive the market throughout the forecast time frame. In the past five years, the demand for LBS for real-time, location-based navigation and tracking, as well as market intelligence gathering, has increased significantly. During the forecast period, the beneficial adoption of geofencing technology will be aided by the consistent increase of the mobility trend among businesses operating in a variety of industries. As businesses become more aware of the advantages of location-based management and monitoring of mobile resources for boosting workforce efficiency, geofencing solutions are anticipated for rapid adoption.

What are the main factors that will slow down the market for Geofencing Market?

Rising Importance of Privacy Concerns

Obtaining people's locations is the most difficult objective to achieve. Geofencing is more difficult because the majority of individuals feel insecure about disclosing their location and other personal information. Geofencing is an intrusive form of surveillance that raises privacy and individual freedoms concerns. The rising concerns about privacy and movements to support personal freedom will restrain the technological developments of geofencing and slow down the market throughout the forecast period.

What are the future opportunities for Geofencing Market?

Increasing technological advancements

The primary factor driving the growth of the market is the increasing importance of technological advances in maintaining the security and safety of organizations and regions. In addition, the constant technological advancements in cloud computing applications, the Global Navigation Satellite System (GNSS), and the wireless technologies that support Location-Based Services (LBS) and the Global Positioning System (GPS) contribute significantly to the growth of the market. Geofencing technology is being utilized to educate employees and, for 33% of businesses, to proactively increase workplace safety. In the construction industry, for instance, geofences are used to trigger a device alarm when workers approach risks such as overhead powerlines or hazardous materials. Geofencing can also notify supervisors if employees or equipment have crossed a boundary, enabling a prompt response to the situation.

Regional Analysis

The global geofencing market share is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant shareholder in the global market and is expected to grow during the forecast period, owing to the high penetration of mobile devices and advanced GPS infrastructure. In September 2017, American Airlines partnered with MediaCom to utilize the latter's geofencing technology on a moving object for the first time. Growing E-commerce business in the USA, due to market leaders such as Amazon, will propel the growth of the market in the region.

Europe is pegged to be a prominent region in the geofencing network due to the adoption of geofencing systems in various industry verticals, such as healthcare. In November 2017, the Swedish TT News Agency reported that Sweden is considering introducing digital geo-fences in urban areas to protect cities against potential terror attacks. In Stockholm, geofencing initiatives have concentrated on commercial traffic in the city center, assessing if deliveries to businesses can occur at lower speeds at night when streets are typically less congested. 

Asia Pacific is projected to witness the fastest growth in the market during the forecast period due to the increasing government investment in defense and manufacturing sectors. For instance, Singapore's Land Transport Authority (LTA) made geofencing a mandatory feature for bike-sharing services in 2018 end. Rising awareness regarding location-based marketing and other services is further expected to boost the market growth in the region. Ofo is the market's leading bike-sharing company in China. Initially using simple web-based technology to support its services, this business model quickly adopted geofencing as a means of managing each of its market fleets throughout its more than 180 specific markets in China. 

The LAMEA region is expected to register a healthy growth rate in the market due to the increased use of geofencing in marketing campaigns across countries such as Saudi Arabia and the UAE. Fleet Management Systems & Technologies (FMS Tech) has introduced geofencing software as part of its portfolio for the GCC in UAE to boost fleet management.

Report Scope

Report Metric Details
By Component
  1. Solutions
  2. Services
By Type
  1. Fixed Geofencing
  2. Mobile Geofencing
By Application
  1. Transportation & Logistics
  2. Retail
  3. Automotive
  4. BFSI
  5. Public Sector
  6. Hospitality
  7. Media & Entertainment
By Technology
  1. RFID
  2. GPS
  3. Wi-Fi
  4. Cellular Network
Company Profiles Apple Bluedot Innovation DreamOrbit Embitel Esri Factual GeoMoby GPSWOX InVisage Localytics LocationSmart MAPCITE Maven Systems Mobinius Technologies MobiOcean Nisos Technologies Visioglobe (France)
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global geofencing market share is segmented by component, type, enterprise size, and service.

Based on component, the global market is bifurcated into solutions and services.

The solutions segment is the highest contributor to the market and is expected to grow during the forecast period due to the widespread adoption of these solutions by various industries, including transport and logistics, retail, the automotive industry, and the public sector. With companies expanding the solution's functions and integration with location-based services, the solutions market holds a substantial share of the overall market.

The services segment is expected to witness a higher CAGR. Since the commencement of the technology, there has been a significant rise in the utilization of API management services. Nevertheless, due to the rapid development and use of cloud computing, managed services are anticipated to experience substantial growth over the forecast period. These services enable the efficient implementation and maintenance of cloud-based geofencing solutions.

Based on type, the global market is bifurcated into Fixed Geofencing and Mobile Geofencing

The fixed geofencing segment is the highest contributor to the market and is expected to grow during the forecast period due to the effective application of fixed geofences for multiple applications, such as advertising, recreation, and asset monitoring.

The mobile geofencing segment is expected to grow at a significant rate. Mobile geofencing enables businesses to generate actionable insights from collected situational data. This enables them to conduct effective retargeting campaigns. When a user's personal interests are met, dynamic geofences send them notifications. As a result of these features, the mobile geofencing market is anticipated to exhibit robust growth over the forecast period.

Based on application, the global market is bifurcated into transportation & logistics, retail, automotive, BFSI, public sector, hospitality, media & entertainment.

The transportation and logistics segment is the highest contributor to the market and is expected to grow during the forecast period. As a result of the large-scale implementation, the ability to manage large fleets across multiple geographies is challenging.  Due to advantages such as real-time coordination, increased security, and enhanced scheduling of carrier mobility and deliveries, the transportation and logistics industry is increasingly adopting these systems.

The retail segment is expected to grow at a significant rate due to retailers' increasing use of technology to strengthen proximity marketing campaigns. With the advent of this technology, retailers are utilizing modernization to retain and expand their customer base. Specifically for short-term projects such as promotional events, retailers establish geofences to increase customer involvement and attract more customers to their stores.

Based on technology, the global market is bifurcated into RFID, GPS, Wi-Fi, and Cellular Networks.

The GPS segment is the highest contributor to the market and is expected to grow during the forecast period, owing to the high deployment of geofencing systems within the next five years. With the favorable proliferation of GPS-enabled mobile devices and the high precision of GPS tracking systems, these systems are increasingly being modernized to provide highly accurate location-based data for a variety of applications, such as fleet and maritime management.

The RFID segment is expected to grow at a significant rate. RFID tags, also known as Radio frequency identification tags, have become widespread among retailers and customers. These aid in tracking product movement and inventory within a store. The barcode system has been replaced by these tags, which are used as chips on products. RFID tags require specialized readers to identify the chips. They are not mobile-friendly and are, therefore, ineffective for location-based advertising. Inside the store, the system is nearly 100 percent accurate and can generate up to 1,000 tags per person. RFID tags are primarily useful for preventing shoplifting and internal theft.

Market Size By Component

Recent Developments

  • May 2022, Nisos raised USD 15 million in series B funding to propel the growth with investments in offerings, staff, and services.
  • April 2020, InVisage launched thematic indices with a recommendation from sell-side research.

Top Key Players

Apple Bluedot Innovation DreamOrbit Embitel Esri Factual GeoMoby GPSWOX InVisage Localytics LocationSmart MAPCITE Maven Systems Mobinius Technologies MobiOcean Nisos Technologies Visioglobe (France) Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the global geofencing market?
The global geofencing market size is growing at a CAGR of 16.3% from 2023 to 2031.
North America has the largest share of the market.
Rising adoption of geofencing in transport and logistics and increasing adoption of mobile devices is the key driver for the growth of the market.
Increasing technological advancements is one of the upcoming trend in the market.
The key players in the global Market include Apple ,Bluedot Innovation ,DreamOrbit ,Embitel ,Esri ,Factual ,GeoMoby.

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