Active Geofencing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2029

The Active Geofencing Market size is estimated at USD 1.81 billion in 2024, and is expected to reach USD 5.16 billion by 2029, growing at a CAGR of 23.23% during the forecast period (2024-2029).

Active geofencing is growing due to more effective use of Spatial Data, improving Real Time Location Technologies, and increased adoption worldwide for location-bassed applications by consumers.

Key Highlights

• Geofencing is a location-based service used by each end user, for which an application or software uses technologies such as GPS, PFID, WiFI, and mobile data to enable them to trigger preprogrammed actions when the device leaves virtual boundaries of geographical zones known as geofences.
• How people and businesses interact with the world and make huge savings has changed due to the increased use of spatial data and real-time location technologies. All kinds of devices and systems are connected to the Internet, such as phones, Smart buildings, car navigation systems, industries, or fleets of autonomous vehicles. Technology that provides real-time location data is required to maintain the system's proper functioning on a daily basis.
• With technological flexibility and capabilities, advancement in Active Geofencing is increasing. The market's growth is driven by trends such as digital marketing and clustering, autonomous cars, increased adoption of Bring Your Own Device, etc. The market studied, therefore, is expected to remain robust and will have a significant growth contribution from players in the market.
• Increasing concerns and regulations regarding location tracking can threaten active geofencing technologies. Moreover, active geofencing solutions are being held back due to the lack of regulatory bodies dealing with privacy and data collection in various regions.
• The COVID-19 virus increased the use of Active Geofences in several sectors, such as healthcare, industry, and many others. For example, an application had to be submitted by individual companies to identify staff at their premises and communicate with them directly and immediately. Active geofencing has facilitated secure, timely communication during an emergency.

Active Geofencing Market Trends

Retail Segment to Witness Significant Growth

• Active geofencing allows retailers to identify potential customers within a specified radius around a particular point of sale, sending them customized messages and special offers to walk into the store and buy. Moreover, demand for effective geofencing is increasing rapidly in the retail sector as digitization continues to spread across all sectors of retailing.
• The advertising campaigns using geofenced data tend to deliver a higher return on expenditure due to their ability for retailers to target consumers who are at the highest risk of engaging with their services or products. Thus, the profits of retail organizations are increased.
• Moreover, In the future, active geofencing combined with advanced technologies and augmented reality (AR), customers expect a more digital-first, personalized shopping experience. Customers expect a more digital-first, personalized shopping experience as more mobile devices become wearables. This will lead to increased uptake of active geofencing in retail during the coming forecast period. Moreover, the prospects for growth of the Active Geofencing Market in the Retail Industry over the forecast period are expected to be driven by increasing adoption between retailers regarding promoting their offers and advertising.
• In other words, almost a third of US consumers are expected to use AR technology to purchase goods on the Internet in two years, based on Snap Inc.'s recently analyzed trends, which will define the future of shopping over two years. Virtual browsing of products is possible using Augmented Reality technologies when shopping online. According to the report, while the predicted use of AR was as high as 45% in Europe, this was much lower in countries such as the United Arab Emirates. Augmented Reality in retail could provide a growth opportunity for this study market.

North America is Expected to Hold the Major Share of the Market

• In North America, active geofencing investments and innovation have been made at various endpoints, such as healthcare, transport, logistics, financial services sector, security, and many others. Market forces push for integrating spatial information and real-time location technologies in this region.
• Further, this region is dominated by companies in the BFSI sector, retail and transport, and logistics sectors capable of using active geofencing. In addition, North America has one of the most developed economies in the world in the form of the United States and Canada. As a result of the strong communication and Internet infrastructure in the region, it is also leading the market.
• In addition, the adoption of automated tools that take different geofence solutions has increased due to the wide deployment of digital technologies and the growing demand for business intelligence tools in all kinds of enterprises.
• However, many regional retailers are increasingly applying active geofencing through digital offers and promotions to strengthen customer loyalty. Retailers can also better understand where their customers are coming from before and after they visit one particular shop.

Active Geofencing Industry Overview

The active geofencing Market is moderately fragmented due to prominent vendors like Bluedot Innovation Pty Ltd, Infillion Inc. (GIMBLE), IBM Corporation, Microsoft Corporation, Radar Labs Inc., etc. The key players are involved in various strategies, such as acquisitions and partnerships, to improve their market share and enhance their profitability in the market studied.

In July 2023, Radar announced our partnership with Cordial, Increasing engagement and revenue through location-based experiences like on-premise app modes, store maps and locators, and address autocomplete. By combining Radar's industry-leading location infrastructure with Cordial's marketing and data platform, brands like JOANN deliver highly personalized, contextually relevant experiences to their customers in real-time.

In September 2022, M3 announced significant advancements to its proprietary Labour Management software, M3 labor, consisting of geofencing and beacon technologies. With this new functionality, users of the M3 Labour service can create an area radius where staff can punch in and out at work. These new features are intended to ensure that hotel staff clock in and out when and where they should while preventing them from doing so elsewhere, thereby avoiding the possibility of false and erroneous punching.

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• The market estimate (ME) sheet in Excel format
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