Why Most Geofencing Solutions Fail for Asset Tracking and How to Fix It

Geofencing sounds great in theory. Set up a virtual boundary, track when something enters or leaves, and trigger an action. Simple.

Except in practice, most geofencing solutions fail when applied to real-world asset tracking. They work fine for simple use cases like sending a push notification when a customer walks into a store. When it comes to tracking moving assets like trucks, equipment, or shipments, things start falling apart.

I have seen companies try different approaches. Some use Google’s geofencing APIs, others integrate with platforms like Radar.io or HERE. Most end up frustrated. Either the solution is too limited, too expensive, or too rigid.

After working with location-based services for years, I have realized what actually matters. Here is why most geofencing solutions do not work for asset tracking and what you can do instead.

The Three Biggest Problems with Traditional Geofencing

Most geofencing platforms are built for tracking people, not assets

Many geofencing tools were designed for marketing. They track user behavior by detecting when someone enters a shopping mall or restaurant. The problem is that assets are not people.

A fleet of trucks, a batch of high-value shipments, or rented construction equipment do not move like humans. They do not check into locations or follow predictable patterns. Most geofencing tools assume that is what you are tracking.

If you are tracking assets, you need a system that:

• Lets you define geofences dynamically, not just around fixed locations
• Supports high-frequency location updates without breaking the bank
• Works with GPS trackers, IoT devices, and third-party systems, not just mobile apps

Most geofencing solutions do not handle this well. They either force you to work with predefined points of interest or charge you based on per-user models that do not make sense for asset tracking.

Static geofences do not work for moving assets

A static geofence makes sense for a building or a city block. It is useless for something in motion.

A delivery truck does not just pass through one location. It follows a route. A piece of equipment moves between worksites. If you define a geofence as a fixed circle, it does not adapt to movement. You either end up with constant false alerts or no alerts at all.

Here is a real-world example. A logistics company sets up a geofence around a warehouse. Every truck entering the warehouse triggers an event. But what about tracking the truck on the road? What if it deviates from its planned route? What if it stops in an unauthorized area? A static geofence will not help.

What you actually need is dynamic geofencing:

• Geofences that move with an asset, such as tracking a security perimeter around a VIP convoy
• Route-based geofencing that detects deviations rather than just entry or exit
• Rules that account for dwell time, speed, and other conditions

Most platforms do not offer this. They assume geofences are fixed shapes on a map, not evolving boundaries that move with the asset.

Cost and complexity make scaling hard

Even when a geofencing solution works technically, it often fails on cost and scalability.

Most enterprise location platforms charge per API call, per tracked user, or per geofence event. That might work for tracking occasional app users, but for tracking thousands of moving assets in real time, the costs spiral out of control.

Some companies try to build their own geofencing logic in-house. They take raw GPS data, write scripts to check coordinates against polygons, and try to build alerts on top. It starts simple but turns into a maintenance nightmare. The more assets they track, the more processing power they need. Eventually, the system slows down, false positives increase, and the data becomes unreliable.

If a geofencing system cannot scale without breaking the budget or causing operational headaches, it is not a real solution.

How to Fix It

If you are tracking assets instead of people, your geofencing system should work differently. Here is what actually works.

Use a system designed for asset tracking

You do not need another marketing-focused tool. You need an API that can handle high-volume, real-time tracking for things that move. That means:

• Flexible asset management to track anything, not just users
• Geofences that adjust dynamically to movement
• Event-driven webhooks to trigger automation

Focus on real-time, rule-based geofencing

Instead of defining simple entry or exit zones, use custom geofence logic:

• Detect route deviations in real time
• Trigger alerts based on speed, time spent inside a geofence, or unexpected stops
• Combine geofencing with historical tracking for deeper insights

Keep it simple, scalable, and cost-effective

The best solution is one that works out of the box but allows deep customization when needed. It should:

• Support API-first integration with your existing systems
• Avoid unnecessary SDK dependencies or complex infrastructure
• Scale pricing based on actual usage without unpredictable per-event fees

Why We Built Bluvolve’s Locate Earth API

After seeing how businesses struggle with geofencing, we built Bluvolve’s Locate Earth API to solve these problems.

• Dynamic geofencing that moves with your assets
• Event-driven triggers for route deviations, speed limits, and dwell time
• API-first design that integrates easily with logistics, IoT, and fleet management systems
• Transparent pricing with no per-user charges or hidden fees

If you are tired of trying to make marketing-focused geofencing tools work for asset tracking, check it out check it out

Final Thought

If geofencing is frustrating you, it is probably because the tool you are using was not built for your use case. Tracking assets requires a different approach. With the right system in place, geofencing becomes a game-changer for logistics, security, and operations.

If that is something you are working on, let’s connect on LinkedIn.