The geofencing market size is expected to increase by USD 2.21 billion from 2020 to 2025, registering a CAGR of 23.96% according to the latest research report from Technavio.
Thirty-nine per cent of the growth will originate from North America for the geofencing market. The US and Canada are the key markets for geofencing in North America. Market growth in this region will be faster than the growth of the market in Europe and South America. The growing penetration of smartphones and an increase in social media networking and mobile-based advertising will facilitate the geofencing market growth in North America over the forecast period.
Driver: The increase in location-based marketing is one of the critical factors that will drive the geofencing market. Various business organizations and enterprises are adopting geofencing advertising and marketing solutions or proximity marketing as a crucial strategy for location-based marketing. It enables marketers to improve consumer engagement and build brand equity. It also enhances customer service across entertainment parks, public places such as airports, retail stores, and hotels. This is done by connecting with customers through the location of their mobile devices and collecting data on preferences, purchase history, and time to send them personalized commercial messages and customized push notifications.
Challenge: 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, might pose a challenge to vendors during the forecast period.
Segmentation: The Geofencing Market is segmented by Product (fixed and mobile) and Geography (North America, Europe, APAC, MEA, and South America).
Technavio report presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources by an analysis of key parameters.