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The geofencing market is estimated to grow at a CAGR of 22.35% between 2022 and 2027. The size of the market is forecast to increase by USD 3,024.7 million. The growth of the market depends on several factors, including the increase in location-based marketing, the increase in demand for indoor navigation services, and the rising need for asset tracking.
This report extensively covers market segmentation by product (fixed and mobile), component (services and solutions), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global geofencing market as a part of the global Internet services and infrastructure market within the global IT services market. The super parent global IT services market cover companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increase in demand for indoor navigation services is notably driving the market growth, although factors such as the high initial setup costs and capital investments may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Geofencing Market Driver
The increase in demand for indoor navigation services is notably driving market growth. Mobile location-based apps such as navigation via GPS do not function well inside airports, hospitals, and retail stores. In addition, the GPS fails to provide information about the floor and building level where the user is located. Therefore, offering an indoor location-based application could ease the navigation for such consumers.
Being more accurate than GPS, enterprise indoor location-based services can enable airport apps to guide passengers around the terminal. For instance, Infsoft provides indoor navigation services for airports. Similarly, in hospitals, enterprise indoor location-based services can guide direct caretakers, patients, and visitors to the appropriate place. This will reduce the workload at the reception desk and help patients to arrive on time for their treatments, thereby improving their overall experience. Thus, improved indoor navigation is expected to drive the market during the forecast period.
Significant Geofencing Market Trend
Increased use of analytics is the primary trend in the market. Analytics is being integrated with existing enterprise indoor location-based services systems to derive insights, enabling data-based decision-making on the part of the user. The data can be displayed in the form of diagrams and heat maps. This enables easy evaluation and processing of the available information.
Localytics provides geofencing solutions that help users to analyze data on physical locations, which gives access to insights and geotargeting capabilities. The results are helpful in identifying the busiest and least busy hours of the day or week. In addition, analytics is useful in determining the number of people passing through a spot during the day. This is helpful in finalizing the product placement in the retail sector. Therefore, the trend of analytics in geofencing services is expected to gain momentum, which, in turn, will drive the market during the forecast period.
Major Geofencing Market Challenge
High initial setup costs and capital investments is the major challenge impeding market growth. The market is capital-intensive, which is primarily attributed to the nascent nature of the market and high infrastructure requirements. The cost of investments for buyers of geofencing solutions is generally high due to extensive hardware requirements.
Geofencing services are evolving and constantly changing. The adoption and implementation of location-based solutions like geofencing are expensive and time-consuming. This is because of the complexity of deployment and their integration with existing IT infrastructure across enterprises. Hence, the cost impact on an organization may be considerable, particularly in small enterprises such as small retail stores. Thus, the deployment of such solutions requires extensive planning to mitigate these cost risks, which, in turn, will pose a challenge to vendors during the forecast period.
Key Geofencing Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Geofencing Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Simplifi Holdings Inc. - The company offers geofencing through geo conversion lifts. The company offers programmatic advertising and agency management software delivering integrated omnichannel workflow which helps to buy media organizations perform effectively and efficiently.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the fixed segment will be significant during the forecast period. Fixed geofencing is a virtual boundary around a location, building, or any fixed object. The user gets an alert about the violation when the geofence is breached and a report about the entry or exit of any intruder from a location and the time spent by them in the same position or area. Additionally, a person who enters the fence receives push notifications initiated by the geofencing user. All these factors will accelerate the demand for geofencing, which, in turn, will boost the growth of the market during the forecast period.
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The fixed segment was valued at USD 535.21 million in 2017 and continued to grow until 2021. Fixed geofencing is used in various industries, such as transportation and logistics, retail, healthcare, hospitality, and industrial manufacturing. In the retail industry, geofencing helps retailers increase footfall in physical stores. In hospitality management, geofencing can be used to increase sales at restaurants and bars by sending automated messages or banner ads regarding offers and deals to attract customer traffic. Hence, the adoption of geofencing solutions and services has increased across various sectors will boost the market growth during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America has been the front-runner in terms of the implementation of new advanced technologies in marketing and advertising. The major geofencing platform providers, such as Google, Microsoft, and IBM, are based out of the region. These platform providers help develop new applications and various new geofencing solutions, which, in turn, will contribute to the growth of the market. Also, the integration of social networking platforms and the rise in the use of location-based services in marketing will drive the geofencing market in North America.
With COVID-19 being declared by the World Health Organization (WHO) as a pandemic, governments of various nations-imposed lockdowns to contain the spread of the virus. However, the growth of e-commerce businesses and the increasing demand for product delivery services have been driving the demand for GPS trackers, which, in turn, has been fueling the demand for geofencing.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Product (Fixed and Mobile), Component (Services and Solutions), and Geography (North America, Europe, APAC, Middle East and Africa, and South America).
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Geofencing Market Scope |
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Report Coverage |
Details |
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Page number |
154 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 22.35% |
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Market growth 2023-2027 |
USD 3,024.7 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
22.16 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 37% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Apple Inc., Bluedot Industries Pty Ltd., Embitel Technologies Pvt. Ltd., Esri, Floating Market B.V., Foursquare Labs Inc., GeoMoby Pty. Ltd., GPSWOX LTD., infsoft GmbH, Juniper Networks Inc., Locance Inc., MessageBird BV, Pulsate Mobile Ltd., Radar Labs Inc., Raveon Technologies Corp., Salesforce.com Inc., Simplifi Holdings Inc., Theoblong Global Ltd, Thumbvista, and Upland Software Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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