Geofencing is a technology that defines a virtual fence around a real-world geographical area. It combines awareness of the user's current location with the user's proximity to locations that may be of interest. A radius of interest is established which can trigger an action in a geo-enabled phone or other portable electronic devices. Geofencing triggers an alert when a device or object enters a designated location set by the administrator. Geofencing uses technologies such as GPS, RFID, Wi-Fi or cellular data to allow location identification. Some geofences are set up to monitor activities in secure areas, allowing management to receive alerts when anyone enters or leaves the specific area.
Government and defense industry which see heavy reliance on geofencing applications such as marine defense, drone management, air force defense, military vehicle management, law enforcement, and geographic event alerts, is the key factor to boost growth of the global geofencing market. Applications such as telematics, human resources, and child location services are also expected to further propel growth of this market. Abundance of low-cost developers expanding technology beyond traditional location-based applications is further boosting growth of the global geofencing market.
However, limitation of radius in low coverage areas, device capacity and battery drainage issues on certain versions are key factors restraining growth of the global geofencing market. Concerns towards continuous device monitoring, high costs related to implementation and maintenance, and preference towards permission marketing serving as a substitute are other factors expected to hamper growth of the global geofencing market over the forecast period.
The global geofencing market is segmented on the basis of component, service, geofencing type, size of organization, end-user, and region. On the basis of region, the global geofencing market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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