The geofencing market size was USD 458 million in 2016 and is projected to reach USD 1,825 million by 2022 after growing at a compound annual growth rate (CAGR) of 27.5% during the forecast period.
Source: Markets and Markets
The global geofencing market is forecast to reach USD 1.7 billion by 2024.
Source: Global Market Insights
How does geofencing impact an organization’s operations?
Geofencing has revolutionized fleet management and other location-based operations by allowing enterprises to define perimeters around specific locations and automate actions based on the movement of sensors across those boundaries. Geofencing systems are typically deployed with the objective of improving security, safety, operational efficiency, management visibility, or real-time reporting.
What are the business applications of Geofencing?
This use case has a very broad range of potential applications by industrial and commercial organizations.
What sensors are typically used to provide data into a geofencing system, and which factors define their deployment?
RFID tags, GPS signals, Wi-Fi tower triangulation, and cellular networks can all be used in geofencing systems. Cellular and WiFi are preferred in facilities due to their reliability indoors. GPS-based solutions consume energy quickly when deployed on wireless devices and may have connectivity issues indoors. However, in fleet management situations GPS systems are often preferred solution due to its superior geographic coverage.
Geofencing technology is used both independently and in conjunction with similar technologies such as beacons to enhance the effectiveness of location-based services.
What software is required in a geofencing system?
Geofencing systems include software that is integrated into a mobile or desktop app and managed through an online dashboard. APIs are used to transfer data between the nodes in the system and the management software. Geofencing software allows users to track the entry and exit of people, equipment, and vehicles, receive alerts on phone or email, and analyze movement patterns and trends over time.
How is data obtained by the system?
Geofence data is most commonly derives from GPS signals or RFID tags, although other types of transceivers can be used to track the movement of assets or people. GPS is commonly used in fleet management situations in which the equipment moved within a large geographical area. RFID tags are appropriate for confined facilities with defined entry/exit points where a signal can reliably be received. For example, geofencing could be deployed to track the location of people in a highly secure research facility or to monitor access to areas of a chemical factory with particular safety risks.
What regulatory challenges could impact geofencing deployment?
The use of geofencing to track employee locations makes business sense in a range of situations. However, there are significant privacy concerns related to real-time monitoring of employees. The regulatory environment is uncertain in many countries, meaning that early adopters could be exposed to litigation.