Global Statistics Representing Geofencing Market Scenario
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 geofencing market. Geofencing is a popular way for businesses to deliver in-store promotions, alerting customers as soon as they step in the range of the store. For instance, Wal-Mart is one of the most popular brands making it real 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.
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 for each customer.
Geofencing also finds application in popular social networking apps; for example, Snapchat. The technology enables various features such as location-based filters, stickers, and other shareable content.
The geofencing market was valued at USD 580.65 million and expected to grow at a CAGR of 16.3% during the forecast period (2019–2026).
The geofencing market can be segmented by type, component, technology, deployment, and vertical.
On the basis of type, the geofencing market can be segmented into fixed geofencing and mobile geofencing. On the basis of component, the market can be segmented into solution and service. By technology, the geofencing market can be segmented into GPS, RFID, Wi-Fi, and cellular network.
Based on deployment, the market can be segmented into on premise and cloud. On the basis of vertical, the geofencing market can be segmented into transportation and logistics, retail, healthcare, industrial manufacturing, media and entertainment, government and defense, banking, financial services, and insurance, and others.
Geographically, the geofencing market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America is anticipated to lead the geofencing market, 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.
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, Swedish TT News Agency reported that Sweden is considering introducing digital geo-fences in urban areas to protect cities against potential terror attacks.
Asia Pacific is projected to witness the fastest growth in the geofencing 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 with effect from 2018 end. Rising awareness regarding location-based marketing and other services is further expected to boost market growth in the region.
The LAMEA region is expected to register a healthy growth rate in the geofencing 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 a geofencing software as part of its portfolio for the GCC in UAE to boost fleet management.
Key Market Players
Some of the prominent key players in the geofencing market are Apple, INC. (U.S.), Thumbvista (U.S.), Pulsate (U.S.), Simpli.Fi Holdings Inc. (U.S.), Esri (U.S.), Bluedot Innovation (U.S.), Geomoby (Australia), GPSWOX, Ltd. (U.S.), Localytics (U.S.), Swirl Networks Inc. (U.S.) and others.
Why Buy This Report?
Geofencing is one of the most innovative solutions for a sustainable future. Attributing to current developments and constant progress in GPS technologies, geofencing technology has an extremely wide-spectrum of practical and commercial applications. Geofencing, if used strategically, can become an indispensable tool towards customer loyalty. The following sections are specifically covered in the report.