Geofencing Technology Has Huge Growth Potential, Technavio Finds
Research firm Technavio has predicted that the global geofencing market will grow by 23.96 percent per year, compounded annually, through 2025.
The growing penetration of smartphones and an increase in social media networking and mobile-based advertising will facilitate the geofencing market growth, according to the research.
The increase in location-based marketing is one of the critical factors that will drive the geofencing market, Technavio says. Companies are adopting geofencing advertising and marketing solutions or proximity marketing as a crucial strategy for location-based marketing, which it says enables marketers to improve consumer engagement and build brand equity and enhances customer service across entertainment parks, public places, retail stores, and hotels.
This is done, it said further, 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.
Among the main challenges, Technavio says the market is capital-intensive, which it attributes to the nascent nature of the market and high infrastructure and hardware requirements. The deployment of such solutions requires extensive planning to mitigate these cost risks, it said.
The report notes that the geofencing market is fragmented, and vendors are deploying growth strategies, such as improving the accuracy and integration capabilities of their products, to compete. Among the leading vendors of the technology, it cited Apple, Bluedor Industries, Environmental Systems Research Institute, GPSWOX, LocationSmart, MAPCITE, Pulsate Mobile, Simplifi Holdings, Thumbvista, and Upland Software.