11 Apr 2023 14 min


Last update 25 APR 2023

What Is Geofencing & How Different Industries Use It

Navigine - What Is Geofencing & How Different Industries Use It
11 Apr 2023 14 min


Last update 25 APR 2023

Img Source - Jourdan Rahschulte

Geofencing is a modern technology that can be used to send notifications when a user crosses a certain boundary on a map. The geofencing technology can be used for different purposes but is most often used in tracking and marketing. With it, customers can receive personalized ads, and companies can improve the quality of service and increase sales. Statistically speaking, in 2022, the geofencing market was valued at $1,867.2 million. By 2032, its average annual growth rate is projected to reach 17.8%, and the total volume is projected to be $9,596.6 million.

How does geofencing work?

Geofencing works based on the location of people or objects. When entering a building, the visitor's smartphone uses one of the technologies available to determine a virtual geographic boundary on the map (known as a geo-fence) and initiate a particular event. These events can be informational notifications in a chatbot or personalized push messages.

A geofencing system can be implemented based on various technologies. The ones that are typically used for this purpose are GPS, Bluetooth® LE, Wi-Fi, RFID, and equipment in the form of beacons or tags. To achieve high geofencing accuracy, many companies use a combination of GPS, mobile data, and Bluetooth® LE or Wi-Fi. In this case, the geofencing accuracy will be 300-650 ft.

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Geofencing helps solve a wide range of problems. It can be used for the following purposes:

  • Notifications about discounts and promotions: the technology is used to send advertising messages when visitors pass through specified areas in stores, places of recreation, and entertainment.
  • Creating automated tasks for staff: using a geofence, you can set tasks and adjust them in real time for each allocated area and the staff working there (workshop, office, etc.).
  • Detailed analytics: a system based on geofencing collects the history of movements in certain areas, which allows you to optimize the operation of the company and make the right management decisions that will positively affect the business processes.
  • Increasing security: users can be notified about emergencies, the need to leave the danger zone, and the shortest exit routes. Geofencing is also used to notify about temporarily closed rooms, limited access to certain areas, etc.

When implementing indoor tracking systems, you can set up polygonal geofences that allow you to set the spaces of shops, cafes, service places, etc. As soon as a user crosses a given virtual line, a trigger is activated on their smartphone that records this visit.


If needed, smartphone owners can set up their geofences. Mobile applications make it easy to select the location or address where the trigger should be activated. These opportunities are usually used as reminders. For example, when approaching the office, the phone will inform the employee about wearing a badge.

How geofences are used in various industries

So that you can better understand the essence of the technology, we will provide geofencing examples through the industries below.


The main point of geofencing in retail is to organize more efficient marketing campaigns. Using geofencing in marketing, you can delimit zones in the store and send targeted push notifications to customers that contain information about products or services, events, discounts, promotions, or sales.

If we consider specific examples of geofencing system software for retail, then while walking past an electronics store, a person may receive a message like this: “Buy a laptop right now and get a mouse for free!”. Ads like this reach the user because the area in front of the store is included in the geofence, which automatically launches advertising messages.

In addition to marketing opportunities, geofencing product services for retail can be used to get feedback from customers or to analyze their behavior. Using this technology allows stores to increase sales and attract new customers.

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Shopping malls

As in the case of retail, the main reason for using geofencing push notifications in a shopping mall is for advertising purposes. The system helps target specific visitors and sends them personalized notifications or coupons that can be used immediately during your stay in the mall.

The system also provides the following features:

  • simplifying the purchase process by activating navigation and product search tools;
  • audit of staff activities within the shopping mall zones;
  • improving the safety of visitors and staff.


The high accuracy of the geofencing allows the technology to be successfully used within the production process. The main benefits of geofencing for manufacturing include:

  • Monitoring zones with limited access: allows you to control the movement of staff and provides data on the crossing of a certain zone by an employee (number of visits, time of entry and exit, etc.).
  • Improving staff safety: sending notifications to the security service if an employee has entered an unauthorized area.
  • Searching for assets within zones: allows you to locate any object within a specified boundary in a matter of seconds.
  • Controlling working hours: the management can control the time spent by each employee in a certain area (workshop).

Logistics and warehousing

Geofencing technology in warehouses is widely used to search for various assets. The system quickly determines the location of equipment, vehicles, and other objects, and reports their location in a certain area. Also, while using the technology, it’s possible to notify warehouse staff about the arrival of vehicles for unloading or loading.

With the geofencing system, companies can set up an alert that will be triggered if an asset leaves the established geofence. Thanks to this solution, you can protect yourself from theft and prevent intruders. As soon as the employee receives the appropriate notification, they can immediately determine the location of the asset and take the necessary measures.

Navigine develops efficient geofencing software for retail, manufacturing, warehousing, and other industries. We are ready to help you with the implementation of the system and provide you with the Navigine Tracking tool, which will allow you to implement geofencing in your enterprise infrastructure. To learn more about our software, leave a request on our website or book a free Zoom demo:

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