Active Geofencing Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Active Geofencing Market Analysis
The active geofencing market was valued at USD 930.7 million in 2021, and it is expected to register a CAGR of 23.96% over the forecast period of 2022-2027. The active geofencing market is witnessing growth due to increased use of spatial data, improved real-time location technology, and higher adoption of location-based applications among consumers globally.
- Geofencing is a location-based service used by various end users in which an application or software uses technologies such as GPS, PFID, Wi-Fi, or cellular data to trigger a pre-programmed action when the specific device enters or exits a pre-defined virtual boundary in a geographical location which is known as a geofence.
- The active geofence is used in various end-user industries, such as BFSI, defense, government, healthcare, retail, and many more, for uses such as marketing, user engagement, IoT, real-time location tracking for on-demand services, asset tracking, health and safety, and many more.
- The advancements in active geofencing have increased with technological flexibility and functionality. Trends, such as mobile marketing, focal clustering, autonomous cars, increasing adoption of BYOD, etc., are driving the market's growth. Thus, the market studied is expected to witness steady growth, with the high growth coming from market players.
- The rising concerns and regulations related to location tracking can threaten active geofencing technology. Moreover, the implementation of active geofencing solutions is being restrained due to the lack of a regulatory body on privacy and data collection in various regions.
- The COVID-19 pandemic resulted in an upsurge in adopting active geofence technology in various applications such as healthcare, industrial manufacturing, and many more. For instance, various companies needed an application to identify the staff on their premises and communicate with them directly and instantly. Active geofencing has played a crucial role in ensuring that immediate, targeted communications are delivered during a crisis.
Active Geofencing Industry Segments
Geofencing uses GPS, cellular technologies, or Wi-Fi to track the devices required to be monitored against defined geofences. Geofence is the virtual perimeter surrounding the physical location configured using maps. Active geofences require users to opt-in for location services through GPS or radio frequency identification (RFID).
The scope of the study has been segmented based on the organization size (small and medium-scale businesses, large-scale businesses), end-user industry (BFSI, defense, government and military, healthcare, industrial manufacturing, retail, transportation, and logistics, among others), and geography.
|By Organization Size|
|Small-scale and Medium-scale Businesses|
|By End-user Industry|
|Banking, Financial Services, and Insurance|
|Defense, Government, and Military|
|Transportation and Logistics|
|Other End-user Industries|
|Middle-East and Africa|
Active Geofencing Market Trends
This section covers the major market trends shaping the Active Geofencing Market according to our research experts:
Retail Segment to Witness Significant Growth
- Active geofencing enables retailers to recognize customers within a predetermined radius around a specific location and send them customized messages and special offers designed to encourage them to walk into the store and purchase. Additionally, with the advent of digitization across the retail sector, the demand for active geofencing is rapidly increasing in the retail industry.
- Further, active geofencing allows retailers to gain real-time insights into customers' behavior and where they are most likely to participate in certain activities. This data helps retailers precisely target ads and allows them to adapt their marketing strategy based on real-time consumer behaviors.
- In addition, since geofenced data allows retailers to focus mainly on consumers who are most likely to engage with their services or products, marketing campaigns powered by geofencing tend to yield a higher return on ad spend. Thus boosting the profit for the retail organizations.
- Moreover, active geofencing has the potential to help retailers connect with their customers, increase footfall and strengthen customer loyalty. Personalizing and targeting offers based on customer data allows retailers to stay relevant and understand consumers' needs well.
- Retailers in the automotive industry use active geofencing to watch the consumers taking test drives. If the consumer tries to exit the specified geofenced area, an immediate alert can be achieved so that a quick response can be taken to avoid asset losses.
- Further, in the future, combined with active geofencing and advanced technologies such as augmented reality (AR), customers expect a more digital-first, personalized shopping experience as more mobile devices become wearables. This will further boost the adoption of active geofencing in retail over the forecast period. In addition, growing adoption among retailers to promote their offers and marketing provides a promising future for the growth of the active geofencing market in the retail industry over the forecast period.
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Asia-Pacific Region to Witness Fastest Growth
- The Asian-Pacific region comprises major countries with fast-rising economies like China and India. These countries have significant small and medium enterprises. The rising need for geofencing technology by small and medium enterprises is creating an opportunity for the geofencing market in the region.
- According to the Asia Pacific Economic Corporation, small and medium-sized businesses are the drivers of growth and innovation in the region. Over 97 % of all businesses and more than half of the labor force in APAC economies. Their contribution to GDP typically ranges from 40% to 60% in most economies, making them a key contributor to economic growth. Government programs like Digital India have also promoted technologies in these nations' commercial sectors.
- In India, the National Roadways for EV (NHEV) has been working with several geofencing technology companies to make the highways theft-proof and subject to 24-hour breakdown service surveillance. For example, the Jaipur-Delhi-Agra E-Highway would be geofenced to allow electric vehicles and use a theft-proof relay concept.
- Food delivery businesses are rising with the increasing usage of smartphones in the region, and all delivery companies use geofencing technology in their applications for better communications. For example, in Singapore, Grab Maps uses geofencing to provide drivers with safe transportation. At Grab, they use geofencing to assist the driver partners in avoiding locations where traffic has been unexpectedly or momentarily stopped.
- The region is witnessing significant growth in the number of commercial vehicles because of the increase in the economy. According to the NITI Aayog report, Road freight transit is increasing in India. The number will rise from 4 million in 2022 to approximately 17 million trucks by 2050. As a result, geofencing technology providers in the country have a growing market.
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Active Geofencing Market Competitor Analysis
The active geofencing market is evolving in response to the widespread usage of smartphones, rising adoption of connected devices in various industries (such as transportation and logistics), and increasing worldwide usage of location-based service platforms for various applications, such as maps, check-ins, etc. Although the market studied poses moderate barriers to exit for players in the active geofencing market, several new entrants, such as Gimbal Inc. and Radar Labs Inc., focus on providing better products to help customers make better decisions and location data to gain traction in the market. Moreover, players like IBM, Microsoft, Google, and Samsung have a superior brand identity, powerful competitive strategies, and distribution control. Overall, the intensity of competitive rivalry is high in the active geofencing market.
- March 2022 - Microsoft Corporation completed the acquisition of Nuance Communications Inc., a US-based corporation, for a total purchase price of USD 18.8 billion, primarily in cash. Nuance is an artificial intelligence software company with experience in healthcare and enterprise AI, and the acquisition may expand its industry-specific services.
Active Geofencing Market Top Players
Bluedot Innovation Pty Ltd
Radar Labs Inc.
Infillion, Inc (GIMBLE)
*Disclaimer: Major Players sorted in no particular order
Active Geofencing Market Recent Developments
- August 2022 - DJI was granted the global first C1 EU-type drone examination certificate under the European Drone Regulation. This has helped it make a brand image of a trusted organization and assisted in gaining potential customers for its business.
- March 2022 - Samsung and Telus successfully deployed Canada's first next-generation Mission Critical Push-to-X (MCPTX) services that provide information and data with vital operational features such as geofencing and video to keep the public safer using the Samsung Knox platform.
Active Geofencing Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat Of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Use of Spatial Data and Improved Real-time Location Technology
5.1.2 Higher Adoption of Location-based Application among Consumers
5.2 Market Restraints
5.2.1 Rising Awareness Regarding Safety and Security among Consumers of Location Tracking
6. MARKET SEGMENTATION
6.1 By Organization Size
6.1.1 Small-scale and Medium-scale Businesses
6.1.2 Large-scale Businesses
6.2 By End-user Industry
6.2.1 Banking, Financial Services, and Insurance
6.2.3 Defense, Government, and Military
6.2.5 Industrial Manufacturing
6.2.6 Transportation and Logistics
6.2.7 Other End-user Industries
6.3 By Geography
6.3.1 North America
6.3.4 Latin America
6.3.5 Middle-East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Bluedot Innovation Pty Ltd
7.1.2 Infillion Inc. (GIMBLE)
7.1.3 IBM Corporation
7.1.4 Microsoft Corporation
7.1.5 Radar Labs Inc.
7.1.6 Google LLC
7.1.7 Samsung Electronics Co.
7.1.8 Verve Inc.
7.1.9 Apple Inc.
7.1.11 SZ DJI Technology Co.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Active Geofencing Market Research FAQs
What is the study period of this market?
The Active Geofencing Market is studied from 2018 - 2028.
What is the growth rate of Active Geofencing Market?
The Active Geofencing Market is growing at a CAGR of 23.96% over the next 5 years.
Which region has highest growth rate in Active Geofencing Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Active Geofencing Market?
North America holds highest share in 2021.
Who are the key players in Active Geofencing Market?
Bluedot Innovation Pty Ltd, IBM Corporation, Microsoft Corporation, Radar Labs Inc., Infillion, Inc (GIMBLE) are the major companies operating in Active Geofencing Market.
Active Geofencing Industry Reports
In-depth industry statistics and market share insights of the Active Geofencing sector for 2020, 2021, and 2022. The Active Geofencing research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Active Geofencing report PDF.