What is Geofencing and What Does it Do?

Geofencing is a combination of "geography" and "fence," which refers to creating virtual boundaries or fences in real-world areas. It utilizes real-time location tracking services (RTLS) to monitor whether individuals pass through specific areas. Geofencing finds applications in various fields such as private businesses, healthcare, military, aviation, and more. The geofencing market is predicted to exceed 9.5 billion dollars by 2032, starting from 1.9 billion dollars in 2022, indicating its significant value in future industries.

Location-based service devices initially set specific boundaries and regions, and developers establish virtual boundaries around those specific locations. Geofencing then combines with other auxiliary technologies such as Wi-Fi, cellular data, beacons, and more to track users' real-time locations and access information. When a mobile device with location information enters the designated area, predetermined actions, such as sending text messages, emails, or app notifications, are executed based on specific conditions. The process typically occurs through mobile devices, and users can choose to deny or configure app location access separately. Consent from users is prioritized for location-based service usage.

Sensitive areas regarding safety or security, such as construction sites, hospitals, military facilities, can be designated, and individuals accessing these areas can be monitored. This enables the prevention and swift response to safety accidents and incidents.

Geofencing technology directly relates to the safety and efficiency of workers and workplaces. For example, it monitors the working status of employees at a company or workers at job sites. If someone is absent from the workplace for an extended period or accesses restricted areas during work, administrators can take appropriate measures to prevent potential issues.

By offering coupons and benefits to individuals passing through specific areas, customer experiences can be personalized. This helps reduce marketing costs that were previously wasted. Recently, domestic credit card companies utilize geofencing technology to send notifications to people in certain areas, such as department stores.