Geofencing Market Size was valued at USD 1.00 billion in 2022. The geofencing market industry is projected to grow from USD 1.2 Billion in 2023 to USD 4.5 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 24.10% during the forecast period (2023 - 2030). The rise in demand for location-based services (LBS) and the increase in mobile device adoption are the major market drivers enhancing the market growth. Additionally, due to its numerous advantages, the market is anticipated to profit from the rapid use of the internet of things (IoT) and geofencing solutions across various industry verticals.
Figure1: Geofencing Market, 2018 - 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for geofencing is being driven by the rising penetration of smartphones. Internet usage and smartphone ownership have both increased dramatically in recent years. The Indian Cellular and Electronics Association estimates that by 2022, there were 829 million smartphone users worldwide. Also, the number of smartphone users is anticipated to rise from 6.05 billion in 2020 to almost 7.33 billion by 2025, per Ericsson and The Radicati Group predictions. Smart, GPS-enabled, and location-aware smartphones are becoming increasingly popular, promoting market expansion. Geofencing allows businesses 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 expansion. If notifications are relevant and location-based, their click rate also rises. A versatile marketing strategy that gives many alternatives based on budget, geofencing is cost-effective. As a result, numerous businesses use it more frequently, fueling market expansion.
Figure 2: Predicted number of smartphone users in billions from 2020-2025
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Mobile location-based applications, such as GPS navigation, perform poorly inside airports, medical facilities, and retail establishments. Moreover, the GPS cannot tell the user what floor and level of the building they are on. Hence, providing a location-based application could make navigating easier for these users. Enterprise location-based systems, which are more precise than GPS, can allow airport apps to direct users around the terminal. For instance, Infsoft offers airports indoor navigation services. Similarly, enterprise location-based services in medical facilities can send staff, patients, and visitors to the proper spot. This will improve patients' overall experiences by easing the strain at the front desk and assisting patients in showing up on time for their appointments. Thus, driving the geofencing market revenue.
The Geofencing Market segmentation, based on components, includes solutions and services. In terms of sales CAGR, the solutions segment led in 2022. Through GPS location technologies, retailers have enhanced customer experiences and provided precise navigation for any objects or locations. With GPS location solutions, businesses can link those inside large areas with their partners, brands, and products in various ways that will strengthen their relationships with customers and increase sales. Furthermore, the service sector is growing at the fastest growth rate. Due to the need to adapt to changing technologies that may be employed for market advancement, the services segment accounts for a high adoption rate in the overall geofencing market.
The Geofencing Market segmentation, based on geofencing type, includes fixed and mobile. Throughout the anticipated term, the fixed segment's market share will expand at a major rate. A virtual fence surrounding a place, a structure, or any other fixed object is known as fixed geofencing. Many sectors use fixed geofencing, including retail, healthcare, hospitality, transportation and logistics, and industrial manufacturing. Geofencing aids merchants in boosting foot traffic in their physical stores in the retail sector. However, the mobile sector will experience significant growth. By sending out regular alert notifications whenever a vehicle breaches the geofenced location, geofencing aids in securing organizational assets. This severely restricts car theft as well. The ability to quickly assess the success of a geofencing campaign is one of the main advantages of mobile geofencing.
Figure 3: Geofencing Market, by geofencing type, 2022 & 2030 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Geofencing Market segmentation, based on vertical, includes BFSI, healthcare, manufacturing, retail, and media & entertainment. In 2022, retail users were the major user of geofencing. Retailers can identify clients using active geofencing within a predefined radius of a particular area and give them personalized messages and deals to entice them to enter the store and purchase. Also, as the retail sector increasingly embraces digitization, active geofencing is increasingly in demand. The transportation and logistics segment is another important industry for implementing geofencing market solutions. Some geofencing technology applications in logistics and transportation include asset tracking, speed restriction, fleet and freight management, and commercial transportation management.
By Region, the study provides market insights into Asia-Pacific, North America, Europe, and Rest of the World. The Europe geofencing market will dominate due to the region's significant use of Virtual Private Networks (VPNs) and the introduction of digitalization. German digitalization will attain a value of 70.2 points in 2021, greater than the 68.3 points it had in 2019. In the banking and financial sector, installing indoor vending machines that accept cashless payments, digital signs, and voice recognition is another key application of Location-Based Services (LBS), aiding market expansion. Further, the German geofencing market held the largest market share, and the UK geofencing market was the fastest-growing market in the European region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 4: GEOFENCING MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America’s geofencing market accounts for the second-largest market share. The market is expanding in the North American region, mostly due to rising smartphone adoption, a rise in social networking and mobile-based advertising, and rising 3G and 4G network expansion. By 2022, 4G (LTE) coverage will be available to AT&T mobile customers in the US 99.3% of the time. The expansion of the North American market has been facilitated by the expanding number of developing SMEs and the growing digitization within large enterprises. Further, the U.S geofencing market held the largest market share, and the Canadian geofencing market was the fastest-growing market in the region.
The Asia-Pacific Geofencing market is predicted to grow at the fastest growth rate from 2023 to 2030. Due to the region's expanding economy, commercial vehicles have seen a noticeable increase. Road freight transit is growing in India, per the NITI Aayog report. By 2050, there will be over 17 million trucks, up from 4 million in 2022. As a result, the nation's geofencing technology market is expanding. Small and medium-sized businesses increasingly need geofencing technology, opening up new opportunities for the local geofencing market. Moreover, China’s geofencing market held the largest market share, and the Indian geofencing market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing largely in research and development to expand their product lines, which will help the geofencing market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The geofencing industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global geofencing industry to benefit clients and increase the market sector. In recent years, the geofencing industry has offered some of the most significant medical advantages. Major players in the geofencing market, including General Mills Inc., Amway, Conagra Brands Inc., Cargill Incorporated, Abbott Laboratories, Kraft Foods Group Inc., and others, are attempting to increase market demand by investing in research and development operations.
Manufacturer of unmanned aerial drones and camera support accessories designed to improve the reliability and ease of use of aerial photography and filmmaking equipment and platforms for creators and innovators worldwide. Drones from the company are utilized in filmmaking, agriculture, search and rescue, energy infrastructure, and other industries, allowing clients convenient access to aerial and handheld cinematic options. In August 2022, DJI was granted the world's first C1 EU-type drone examination certificate under the European Drone Regulation. This has aided them in developing a trustworthy brand image and attracting potential clients for their firm. The new C1 drone certification placed the Mavic 3 series in the A1 'Open' category, indicating that it poses no danger to third parties.
Samsung Electronics is a multinational electronics corporation that makes and distributes a diverse range of products, such as smartphones, semiconductor chips, printers, household appliances, medical equipment, and telecom network equipment. The semiconductor industry generates roughly half of its profit, while the mobile handset business generates another 30%-35%, however, these percentages vary depending on the fortunes of each of these sectors. In March 2022, TELUS and Samsung Networks announced the successful launch of Canada's first next-generation Mission Critical Push-to-X (MCPTX) services. This new MCPTX solution, deployed over TELUS' globally recognized network, will provide Canada's first responders with the information and data they need to assess emergencies more accurately, improve responsiveness and operational efficiency, and drive better public safety outcomes.
March 2022 Microsoft Corporation finalized the acquisition of Nuance Communications Inc., a company based in the United States, for a total purchase price of USD 18.8 billion, paid mostly in cash. Nuance is an artificial intelligence software business with experience in healthcare and enterprise AI, and the acquisition could broaden the company's industry-specific services.
June 2021 Verizon announced the acquisition of Senion, a global pioneer in location-responsive technologies. This acquisition broadens Verizon's location-based technology capabilities, enabling businesses to better and more safely manage their spaces. It includes indoor wayfinding and geofencing, location sharing, analytics, and predictive intelligence.
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| Report Attribute/Metric | Details |
| Market Size 2022 | USD 1.00 billion |
| Market Size 2023 | USD 1.2 billion |
| Market Size 2030 | USD 4.5 billion |
| Compound Annual Growth Rate (CAGR) | 24.10% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Geofencing Type, Organization Size, and Verticals |
| Geographies Covered | Asia Pacific, North America, Europe, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | General Mills Inc., Amway, Conagra Brands Inc., Cargill Incorporated, Abbott Laboratories, Kraft Foods Group Inc., The Coca-Cola Company, PepsiCo Inc., Atkins Nutritionals Inc., and Brunswick Corporation |
| Key Market Opportunities | · Ease of integration and deployment of geofencing solutions |
| Key Market Dynamics | · Higher adoption of location-based applications among consumers |
Frequently Asked Questions (FAQ) :
The Geofencing Market size was valued at USD 1.00 Billion in 2022.
The global market is anticipated to expand at a CAGR of 24.10% from 2023 to 2030.
Europe had the largest share of the global market
The key players in the market are Swirl Networks Inc. (U.S.), GPSWOX Ltd. (U.S.), Pulsate (U.S.), and Apple INC. (U.S.).
The fixed geofencing category dominated the market in 2022.
The retail sector had the largest share of the global market.
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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