Geofencing Market Size

Global Geofencing Market size was valued at USD 5.83 Billion in 2023 poised to grow from USD 6.40 Billion in 2024 to USD 13.59 Billion by 2032, growing at a CAGR of 9.86% in the forecast period (2025-2032).

The increasing use of smartphones and wearable technology is one of the major drivers for the global market for geofencing. With an ever-increasing use of smartphones globally, customers are engaging with more location-based services, presenting a huge business opportunity to reach their customers. Geofencing enables businesses to define virtual fences around certain locations, so they can send specialized notifications, offers, or advertisements when users enter or leave these areas. This ability supports targeted marketing initiatives, enhancing customer interaction and sales. With an increasing number of consumers using mobile devices, the need for geofencing solutions grows, driving market growth in several industries, including retail, logistics, and healthcare.

Advancements in IoT (Internet of Things) technology have become a key trend driving the global geofencing sector. The acceleration in connected devices ensures more efficient and accurate tracking and offers space for geofencing solutions to combine smoothly in many industries. Within retail, geofencing relies on IoT sensors and devices that track merchandise as well as consumers' movements in real-time. In logistics, geofencing optimizes vehicle fleet management through virtual borders defined for vehicle monitoring. These IoT-driven innovations enable companies to provide personalized experiences, streamline processes, and enhance operational effectiveness, greatly enhancing the use and deployment of geofencing technology across industries.

How can AI-Powered Systems Predict User Behavior in Geofencing?

AI is having a profound effect on the global geofencing market by making location-based services more accurate, efficient, and intelligent. AI, through machine learning algorithms, can process large volumes of location data to forecast user behavior, allowing for more accurate geofencing applications. For instance, AI-based systems can detect patterns of user movement and interaction with various regions, enabling companies to establish highly customized, real-time offers or notifications. Also, AI facilitates decision-making automation, like dynamically changing geofencing areas according to user activities, enhancing the efficiency of marketing campaigns. Another development along these lines is AI facilitating fleet management optimization in geofencing, enhancing route planning for more efficiency.

In February 2025, the DoMIThumbcoast app was released to assist small-town retailers by harnessing the power of geofencing technology. Created by Be Truly Local, the app pushes alerts to consumers when they cross into a virtual perimeter around participating businesses, delivering regionally relevant offers and rewards. Rolled out in Michigan's Thumb first, the platform plans to roll out nationally, offering small business owners' access to location-based marketing capabilities that are usually reserved for larger companies.