Yahoo Finance Active Geofencing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Active Geofencing Market was valued at USD 930. 7 million in 2021 and 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 across the world.
New York, Oct. 04, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Active Geofencing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06325593/?utm_source=GNW
Key Highlights
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 expected to be coming from market players.
The rising concerns and regulations related to location tracking can pose a threat to 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.
Key Market Trends
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 make a 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 places where they are most likely to participate in certain activities. This data helps retailers target ads with precision 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 show a good understanding of consumers’ needs.
Retailers in the automotive industry use active geofencing to keep watch on 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 any asset losses.
Further, in the future, combined with active geofencing and advanced technologies such as augmented reality (AR) as more mobile devices become wearables, customers expect a more digital-first, personalized shopping experience. This will further boost the adoption of active geofencing in retail over the forecast period. In addition, growing adoption among retailers for promotion of their offers and marketing provide a promising future for the growth of active geofencing market in retail industry over the forecast period.
Asia Pacific Region to Witness Fastest Growth
The Asia 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 are accounted for by them. Their contribution to GDP typically ranges from 40% to 60% in most economies, making them a key contributor to economic growth. Additionally, government programs like Digital India have promoted the use of 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 are using 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 take advantage of 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 in the country.
Competitive Landscape
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., are focusing on providing better products to help customers make better decisions with 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 will expand its industry-specific services.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06325593/?utm_source=GNW
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