What is geofencing?

What is geofencing?

A geofence is a virtual perimeter created within a real-world geographic area. A geofence could be generated dynamically or can have a predefined set of boundaries. Geofencing uses technology such as global positioning systems (GPS), radio frequency identification (RFID), Wi-Fi, or cellular data to create a virtual boundary around a designated geographic location. When a location-aware device (such as a vehicle tracker, mobile device, IIoT device, or asset tracking tag) enters or exits a virtual boundary, an alert will be triggered. For example, if a mobile device or RFID tag enters or exits a geofenced area, it can prompt alerts such as: 

• Push notifications

• SMS messages

• Send ads via social media

• Allow tracking for vehicle fleets

• Trigger actions in other apps

• Disable specific technologies

Geofencing is widely used as a security tool to monitor activity in secure places, allowing users to see who is accessing specific areas. Businesses also use location data to monitor employees in the field and time tracking. 

How does geofencing work?

Geofencing software uses different technologies to build their virtual fences. The most commonly used technologies are GPS, RFID, Wi-Fi, cellular data signals. Some fences are built on IP address ranges. 

Setting up a geofence can be as easy as drawing a circle around a location on Google Maps with a geofencing provider. Geofences can be drawn in any shape or size to accommodate larger areas or specific buildings. When an authorized or unauthorized device, RFID tag, or mobile app enters or exits this specific location, it triggers a response. 

Geofencing software integrates with other systems to create customizable triggers. These triggers are simple “if this, then that” style commands where an app is programmed to take action based on another action. For instance, “When a vehicle enters this area, send the warehouse manager a text message saying: Driver is 10 minutes away from the warehouse.”

The typical process behind a geofence functions like this:

1. Geofence creation 

• Defining boundaries: A geofence is established by setting a virtual perimeter around a specific location on a digital map. This boundary can be circular, polygonal, or custom-shaped depending on the application.

• Technology integration: The geofence relies on GPS coordinates, RFID tags, Wi-Fi signals, or cellular triangulation to pinpoint a device’s location relative to the defined boundary.

• Device enrollment: Devices or assets with location-tracking capabilities (like smartphones, GPS trackers, or asset tags) are enrolled in the geofencing system to monitor their movement within a specific geographic boundary.

2. Real-time location detection

• Continuous monitoring: The system constantly receives location data from enrolled devices, typically via GPS or network-based location services.

• Geofence triggering: When a device crosses the geofence boundary — either entering, exiting, or moving within the area — the system recognizes this event.

• Event detection accuracy: Advanced geofencing systems incorporate algorithms to reduce false triggers caused by GPS inaccuracies or signal loss.

3. Automated response and alerts

• Immediate notifications: Once a geofence event is detected, the system can instantly send alerts via SMS, email, push notifications, or system dashboards to designated users.

• Workflow automation: Geofences can trigger automated actions such as unlocking doors, logging attendance, adjusting marketing campaigns, or activating security protocols.

• Data logging: Every geofence interaction is logged for analytics, compliance, or audit purposes, helping businesses track movement patterns and optimize operations.

What are the differences between geofences and beacons?

Geofences and beacons can both be used to detect location and proximity, but they use different technologies. A beacon uses a BLE or Bluetooth Low Energy hardware device. They broadcast a signal that Bluetooth-enabled devices can pick up when users opt into specific mobile apps. Beacons differ from geofencing in several key ways:

• Physical hardware: Beacons are tangible devices used for location tracking, whereas geofencing is done via software.

• Technology dependence: Unlike geofencing, which relies on GPS or Wi-Fi, beacons function through Bluetooth signals and require Bluetooth to be enabled on the receiving device.

• Range limitations: Beacon signals typically reach up to about 30 feet—the effective range of Bluetooth—while geofences can cover virtually any size or shape of area.

Generally, geofencing and beacons are complementary technologies that come down to precision. Geofences are better at covering large areas, while beacons cover smaller, close-proximity locations with accuracy. Beacons can be placed indoors, creating ultra-targeted micro-locations.

Common industries and use cases for geofencing

Geofencing technology has become a powerful tool across a wide range of industries and use cases, enabling businesses to create virtual geographic boundaries that trigger specific actions when devices enter or exit these zones. Businesses from a variety of sectors employ different types of geofencing strategies to enhance security and improve operational efficiency. Some applications of geofencing across different industries include:

1. Fleet telematics

Geofencing has become a valuable tool for fleet telematics and overall supply chain management. Fleet managers and dispatchers can track activity around warehouses, distribution centers, and delivery locations. By setting up geofenced areas, fleet managers can track deliveries in real time, decrease detention time, plan routes efficiently, prevent cargo theft, and improve customer service.

2. Public sector

Geofencing is particularly important for public sector fleets such as governments and schools. Public fleets and public works vehicles are needed at peak community times, like snowstorms, community events that leave streets dirty, or overflowing trash. In addition to knowing precisely where public vehicles are located, and when they are removed —geofences also help public fleets provide more sustainable snow removal services. Salt and brine solutions can greatly hurt the environment and therefore many government agencies that oversee snow removal are leveraging geofence technology to limit material spreading such as salt and brine so that they don’t impact more environmentally sensitive areas that would be impacted by the materials.

3. Security

A basic security measure is using a virtual fence to know when someone is entering or leaving a property. Businesses can set up a geofence and find out in real time if there is an unauthorized person on-site after hours. Geofencing software can even trigger an automatic alert to law enforcement or off-site security teams to investigate further.

Security can also use geofencing technology where there is sensitive information or where devices are forbidden. For instance, IT or security teams can set up a “no-phone” zone using geofencing to know when a mobile device enters an area or disable phones completely within the zone. This can prevent illegal recordings/leaks (entertainment venues, meetings) or keep high-security areas safe (military bases, prisons).

4. Human resources and workplace safety

Human resource teams and people managers use geofencing in workplaces to automate clocking in and out of work. When employees enter a jobsite, a geofence system can automatically punch in for a worker or send them a push notification on their mobile phone. Managers can also track who’s on-site when employees are in the field from miles away.

Companies can also use geofencing to keep employees safe. For example, businesses can use geofences to create low-speed zones or keep drivers out of dangerous areas on construction sites. Or, if they need to conduct an explosion, they can create a geofence to ensure no workers are within the blast zone.

5. Location services and safety

Just as geofence technology has been used to track people entering a fenced area, it can help notify people when a person is leaving a physical location. For example, parents can set up geofences around their home, babysitter’s house, or child’s school. When kids come and go from these locations, parents can receive text messaging or other alerts. Similarly, geofencing has been used to protect and prevent persons with Alzheimer’s disease or dementia from wandering away from caregivers.

When combined with home automation apps, geofences can trigger house lights, stereos and TVs, and thermostats. For example, you could set up outdoor lights to turn on if someone enters your property when you’re not home. Or turn your lights on automatically when you’ve entered a geofenced space, so you don’t have to walk into a dark room.

6. Marketing and advertising

Geolocation data is a valuable tool for a business’ marketing strategy, often called geo-targeting. For example, large retailers have leveraged geofencing, location-based marketing, and mobile marketing to get customers into their retail stores. When a person who’s downloaded the retailer’s mobile app is within the location of a store, geofencing triggers an alert notifying the person of new products and loyalty points they can spend. 

Another business set up a geofence around a competitor’s location. When a customer entered the area, the business sent an offer to entice the customer away.

Have you ever been to a conference or wedding that had customized Instagram filters or social tags? This is geofencing technology at work. Businesses (and individuals) use targeted marketing and social media to personalize experiences. When social media users enter or leave a geofenced area, the venue or event may prompt them to check-in, post and update or image, or share feedback.

How Samsara can help fleets improve safety and efficiency with geofences

Samsara enables fleet managers to create geofences around a real-world location, like a warehouse, yard, delivery site, or customer facility. When a tracked vehicle or asset enters or exits this perimeter, Samsara can trigger real-time alerts, log the event, and automate actions in other workflows. Some Samsara products that leverage geofences include:

1. Fleet Telematics: Vehicle Gateways (VGs) use geofences to provide real-time tracking of trucks and vehicles. When a vehicle enters or exits a designated area such as a warehouse, yard, or customer site, managers receive instant alerts via SMS, email, or app notifications. This geofencing technology helps prevent unauthorized vehicle use, supports real-time dispatch, improves route compliance, and streamlines theft detection.

2. Equipment Monitoring: Powered and unpowered asset gateways enable geofencing for equipment like generators, trailers, and heavy machinery, sending immediate notifications if these assets move beyond a job site. This capability significantly enhances theft prevention and recovery efforts. It also automates time-on-site tracking and billing reports, reduces unnecessary equipment rentals by providing accurate usage data, and streamlines maintenance scheduling.

3. Asset Tags (AT11): Designed for small, high-value, or mission-critical assets without their own power source, AT11 tags use geofences to monitor small equipment such as tools, trailers, or generators. If a tagged asset leaves its assigned area, instant alerts are sent to the back office, helping to prevent loss and simplify recovery. This improves inventory management and maximizes utilization, especially for fleets with widely distributed assets.

4. Smart Trailers: Powered by the trailer’s electrical system, Samsara’s Smart Trailers solution provides real-time location tracking along with geofence alerts and health diagnostics for your entire trailer fleet. Wireless sensors further enhance security by monitoring doors, cargo, and environmental conditions, ensuring protection for sensitive shipments. Through the Samsara Dashboard, administrators are able to create virtual geofences around critical sites, triggering immediate alerts when trailers cross designated boundaries, helping to reduce theft, minimize unauthorized movement, and streamline trailer operations.

If you’d like to learn more about how you can improve fleet operations with Samsara, check out our Fleet Management Platform and speak with our team today.