The global geofencing market size was US$ 1.25 billion in 2021. The global geofencing market is forecast to grow to US$ 7.4 billion by 2030 by registering a compound annual growth rate (CAGR) of 24.9% during the forecast period from 2022 to 2030.

The process of geofencing uses GPS or RFID technology in order to develop a virtual geographic boundary. This boundary allows the software to trigger an alert when a mobile device enters or leaves a particular boundary. It is a location-based service. The application uses radio frequency identification (RFID), Wi-Fi, GPS, or cellular data to send text, email, social or other types of alerts, when a mobile device or RFID tag enters or exits the boundary.

Factors Influencing the Market

The rising popularity of proximity marketing is forecast to fuel the growth of the geofencing market. In addition, proximity marketing adoption is increasing across various industry verticals, such as SMEs. Such factors are expected to fuel the growth of the geofencing market in the coming years.
Legal and privacy concerns associated with geofencing may limit the growth of the market. On the contrary, the growing use of spatial data and the adoption of analytical tools will escalate market growth during the study period.
The contribution of prominent brands will also benefit the geofencing market during the study period. For instance, McDonald's, a leading restaurant chain, acquired all the stakes of Dynamic Yield, a Tel Aviv-based start-up, in 2019. This start-up offers algorithm-based "decision logic" technology to retailers.
COVID-19 Impact Analysis

Geofencing services were adopted all over the world to find quarantine violators. Thus, the market witnessed substantial growth due to government support. For instance, In India, the government tested an application that starts SMS alerts if any person violates quarantine rules or escapes a particular area. Thus, the COVID-19 pandemic positively influenced the global geofencing market.

Regional Analysis

The Asia-Pacific geofencing market is forecast to hold the highest market share, owing to the rising adoption of advanced technologies. Furthermore, continuous government support and investments will fuel the growth of this regional market. The market may also witness lucrative growth opportunities, owing to the ongoing R&D based on location and geofencing services. Furthermore, the rising deployment of content management systems and location analytics will benefit the Asia-Pacific geofencing market during the study period.

Competitors in the Market

Apple (US)
Bluedot Innovation
DreamOrbit
Embitel
Esri
Factual
GeoMoby
GPSWOX
InVisage
Localytics
LocationSmart
MAPCITE
Maven Systems
Mobinius Technologies
Other Prominent Players
Market Segmentation

The global geofencing market segmentation focuses on Component, Geofencing Type, Organization Size, End-Use Industries, and Region.

By Component

Software
Services
Deployment and integration services
Support and maintenance services
Consulting and advisory services
API management and testing services
By Geo-fencing Type

Fixed geofencing
Mobile geofencing
By Organization Size

Large Enterprises
Small and medium-sized Enterprises
By End-Use industries

Transportation and logistics
Retail
Healthcare and life sciences
Industrial manufacturing
Media and entertainment
Government and defense
Banking, Financial Services, and Insurance (BFSI)
Others (agriculture, education, construction and engineering, and energy and utilities)
By Regional Outlook

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa