Geofencing Market size is expected to reach USD 15 Billion by the end of 2036, growing at a CAGR of 18% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of geofencing was over USD 2 Billion. The growth of the market is owing to the increase in demand for location-based services (LBS). Twenty-eight percent of adult Americans use mobile or social location-based services.
In addition to this, the need for geofencing has grown dramatically since the coronavirus outbreak. With working from home becoming the new norm, many companies are transitioning to long-term remote employment. Consequently, there is a great demand for geofencing software that enables employees to electronically clock in and depart. Because geofencing enables employees to better manage their time, workers become more productive. Consequently, this factor is anticipated to drive up sales in the geofencing market.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 18% |
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Base Year Market Size (2023) |
~ USD 2 Billion |
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Forecast Year Market Size (2036) |
~ USD 15 Billion |
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Regional Scope |
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Component (Solution, Services)
Based on component, solution segment in the geofencing market is attributed to hold largest revenue share of about 65% during the forecast period. The growth of the segment is because a number of industries, including retail, the transportation and logistics sector, the automobile industry, and the public sector, have widely adopted these solutions. In April 2022 to March 2023, the industry produced 2,59,31,867 vehicles, including passenger cars, commercial vehicles, three-wheelers, two-wheelers, and quadricycles, compared to 2,30,40,066 units in April 2021 to March 2022. The solutions industry has a sizable portion of the overall market owing to enterprises integrating location-based services and growing the solution's functionalities. To facilitate the deployment of geofencing techniques, this software solution typically combines location-based technologies with user-friendly interfaces. The software-enabled app allows developers to create dynamic push alerts that include action buttons, videos, and photographs. By enabling users to take immediate action from the idle screen, this type raises the response rate. Ordering, purchasing, responding, or participating in an activity like filling out a questionnaire are examples of direct actions, depending on the topic.
Technology (Active Geofencing, Passive Geofencing)
Based on technology, active segment in the geofencing market is estimated to hold largest revenue share of about 55% during the forecast period. Using active geofencing, retailers target customers within a predefined radius of a specific location with offers and messaging in an effort to bring them into the store and make a purchase. Additionally, the increasing acceptance of digital technology and the rising need for business intelligence tools across multiple industries have led to the rise in popularity of automation solutions that employ various geofencing techniques. Manufacturers have access to real-time process and workforce tracking solutions because of active geofencing services and real-time location systems.
Our in-depth analysis of the global market includes the following segments:
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Service |
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Technology |
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North American Market Forecast
Geofencing market in North America region is projected to hold largest revenue share of about 35% during the forecast period. North America is seeing significant advancements and investments in geofencing across a wide range of end users, including defense, healthcare, logistics, transportation, and BFSI. The market is driving the integration of spatial data and real-time location technologies in the region. Furthermore, the majority of companies in this sector operate in the BFSI, retail, transportation, and logistics industries all of which have the potential to use geofencing. Furthermore, the economies of North America more especially, the United States and Canada are among the most developed in the world. The region controls the market because of its robust internet and communication infrastructure. Eighty-two percent of Americans had internet connection as of 2023, compared to seventy-five percent in 2012. In 2022, there were around 299 million internet users in the United States, making it one of the largest online markets in the world.
APAC Market Statistics
Geofencing market in Asia Pacific region is anticipated to hold second largest revenue share of about 28% during the forecast period. The expansion of the market in this area is driven by major players in the industry introducing innovative products and new solutions. In the Asia Pacific region, geofencing has been applied for a range of uses in numerous sectors. Geofencing is a popular tool used by retailers and other businesses to target customers with incentives and marketing when they approach their physical stores or visit specific locations.
Author Credits: Abhishek Verma, Hetal Singh
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