LOCATION ANALYTICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Location Analytics Market Size and Trends

Global location analytics market is estimated to be valued at USD 21.25 Bn in 2024. The market is expected to reach USD 65.32 Bn by 2031, growing at a compound annual growth rate (CAGR) of 17.4% from 2024 to 2031.

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The growing adoption of advanced technologies such as Machine Learning, Artificial Intelligence, big data analytics and location data aggregation are driving the demand for Location Analytics solutions across industry verticals. Location analytics is a technology that involves the process of analyzing and interpreting data corresponding to geospatial information. It uses GIS techniques, data mining, visualization, and statistics to extract essential information from spatial data.

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Insights, By Component, Analytics Solutions are Expected to Dominate in the Forecast Period

By component, solution segment is expected to account for 61.4% in 2024 due to the ongoing technological advancements that widen the scope of location-based insights. Varied software tools for indoor mapping, geofencing, geoanalytics, and proximity marketing allow comprehensive extraction of intelligence from device locations. Emerging technologies like Bluetooth beacon integration, Wi-Fi positioning, and GIS mapping extend the Solution segment's applications beyond geography to customized contextual alerts.

Insights, By Location Type, Indoor Localization's Prominence in Innovative Industries Boosts its Share

By location type, indoor is expected to contribute 54.9% in 2024 owing to innovative industries' increasing reliance on precise indoor positioning. Retail, healthcare, transportation, and manufacturing spearhead location-centric innovations that alter consumer and employee experiences based on real-time indoor navigation. Beacon deployments, camera recognition, and hybrid techniques accurately mapping interior spaces enable hyperlocal contextual engagement.

Insights, By Deployment, On-premise Deployment Preferred for Governance Over Critical Location Data

By deployment, on-premise is expected to contribute 51.3% market share in 2024 as many organizations prioritize data governance over flexibility for mission-critical location analytics. Sensitive geospatial insights involving assets, facilities, and customers are prioritized on dedicated private infrastructure allowing full control. Strict regulatory compliances and privacy norms necessitate isolating such information within organizational boundaries shielding it from external threats and access.

Regional Insights

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Dominating Region: North America

In North America, the dominance in the location analytics market is expected to account for 34.2% market share and can be attributed to robust technology adoption and well-established Location-Based Service (LBS) ecosystem in countries like the US. Major tech companies in the region are investing heavily in location data and solutions to gain competitive advantage.

Fastest-growing Region: Asia Pacific

Meanwhile, the Asia Pacific region is expected to account for 30.3% market share in 2024 due to increasing penetration of mobile devices and rapidly expanding e-commerce sector across developing nations. Countries like China and India are promoting location technology usage through supportive policies and initiatives.

Location Analytics Market Outlook for Key Countries

Versatile Demand Driving Growth in U.S. Market

The United States location analytics market continues to be driven by strong demand from verticals like retail, transportation and logistics. Key players like Google and Microsoft are leveraging location insights to enhance various services. The adoption of location analytics technologies and solutions in the U.S. has grown significantly in recent years, driven by broader trends in data availability, connectivity, and customer expectations.

China Showcasing High Technological Prowess

China's market is shaped by government's 'Digital Silk Road' initiative and growing local giants focusing on location as a key technology. Providers are offering customized solutions targeting verticals like automotive and healthcare. E-commerce in particular has been a big driver of the location analytics boom. The scale and complexity of China's logistics network necessitates precise location data to optimize delivery routes, manage warehouse inventories in real-time, and provide accurate estimated arrival windows to customers.

Japan Leading with Dominance in 5G Technologies

Emergence of 5G technologies boosts the adoption of E-commerce in Japan. With more people embracing e-commerce and online shopping post-pandemic, businesses have recognized the importance of location data and analytics to better understand customer purchase behavior based on their physical locations. According to Japan's Ministry of Internal Affairs and Communications, the country aims to have 5G coverage in all prefectures by the end of 2024 to support technologies like IoT, autonomous vehicles.

Growing Synergy among Technology Companies

The UK’s location analytics market is characterized by increased collaboration between tech companies, network providers and cities to modernize infrastructure and urban mobility through location services. the UK public transport system used location data from mobile ticketing apps in 2021 to analyze commuting and travel patterns during the pandemic. This helped transport authorities strategize schedules and safety protocols as restrictions eased.

India Accelerating through Rapid Digitization

Rapid digitization and availability of affordable smartphones are fueling India's location analytics space. Devices connected to the internet now collect massive amounts of geographic location data on a continuous basis. For example, in 2020 Indian Railways started installing IoT sensors in rail coaches and tracks to monitor mechanical issues and passenger footfall patterns in real-time. This granular spatial IoT data holds immense potential for transportation planning as well as predictive maintenance when leveraged through advanced location analytics tools.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Location Analytics Market Players

Established Players: Established Players focus extensively on research and development to develop innovative location analytics solutions. For example, companies like Esri invest over 20% of their annual revenues in R&D to enhance their spatial data and analytics capabilities. They also form strategic partnerships with other tech giants. Esri has collaborated with companies like IBM, Microsoft and SAP to expand the usage of location intelligence across various industries.

Mid-level Players: Mid-level players strive to deliver cost-effective location analytics products and services. For instance, Pitney Bowes provides affordable location analytics solutions targeting small and medium enterprises. It has partnered with resellers and system integrators to broaden the sales and support networks globally. Other players like Galigeo collaborate with technology providers and system integrators to supplement their technological expertise and production abilities.

Emerging Players: Emerging small players focus on niche specialization and technology adoption. Localytics excels in retail location analytics focusing on footfall measurement and consumer behavior. AirSage leverages big data analytics and uses passive Wi-Fi and Bluetooth signals to generate foot traffic insights. Such firms also collaborate with local partners for market penetration. For example, Gravy Analytics has allied with developers and industry groups in the Midwest to offer specialized agricultural location solutions.

Emerging Startups in the Location Analytics Market

• Innovative Technologies - Several startups are developing innovative technologies to disrupt the market. VenueSift utilizes AI and computer vision to gather visitor demographics from security camera feeds. FootTraffic provides heat maps and visitor count data by analyzing Wi-Fi signals using patented techniques. Such solutions could transform customer intelligence approaches for retailers.
• Sustainability- Other startups focus on sustainability. GreenVirgo monitors urban air quality and calculates carbon footprints using IoT sensors and spatial analytics. These insights allow municipalities to reduce pollution. Plantix uses computer vision on smartphones to identify plant diseases and recommend organic treatment, contributing to eco-friendly agriculture.
• Niche Specialization- Some startups fill critical niches. Routeware aids logistics companies in last-mile delivery route optimization. Leftr helps optimize field operations for utility companies. Both address unique industry needs. Many startups also partner with corporations and universities to develop new technologies. For example, Nearspec works with Intel to build optimized computer vision models on specialized AI chips. Such collaborations will propel innovation.

Location Analytics Industry News

• In April 2022, Oriient, a provider of indoor location services, collaborated with Google Cloud to develop a unified solution for in-store navigation and proximity marketing.
• In October 2021, Google LLC enhanced its Google Maps SDKs for Android to improve user experiences, aiding drivers in deliveries and assisting retailers in visually confirming order shipping addresses.
• In November 2021, Noogata introduced a library of location metrics, enabling businesses to create places with properties related to specific business topics.
• In August 2021, Oracle Corporation released Spatial Studio 21.2, allowing users to create zones using polygon map layers and selection tools.

Key Takeaways from Analyst

• The location analytics market has significant potential for growth driven by the widespread deployment of IoT devices and rising adoption of location-based services. As more individuals and assets get connected, there is a growing need to analyze spatial data and gain real-time insights. The COVID-19 pandemic has further accelerated the demand for location analytics solutions from industries seeking to understand mobility patterns and support contact tracing efforts.
• However, data privacy and security continue to pose challenges as customers are wary of sharing their location information. Vendors need to focus on implementing robust privacy and security measures to ensure location data remains anonymous and protected. Partnerships between technology providers and map companies could also face antitrust issues in some jurisdictions.
• Nevertheless, industries such as retail, transportation and logistics present major opportunities for location analytics vendors. The retail industry can leverage location data to optimize store operations, gain customer insights and drive footfall. Transportation providers are using location analytics to improve fleet management, predict demand hotspots and augment safety. Government agencies worldwide are implementing location-based programs for emergency response, urban planning and smart city initiatives.
• Among regions, North America currently dominates the location analytics market due to high technology adoption rates and presence of leading vendors. However, Asia Pacific is expected to grow at the fastest pace given the massive ongoing digital transformations and rising economic influence of countries like China and India.

Market Report Scope

Market Dynamics

Market Driver - Need for Spatial Data Analysis and Visualization

The modern business landscape increasingly relies on gathering and leveraging location data to gain advantage. Understanding where customers and assets are located, and how those locations impact business outcomes, is key to informed decision-making. Yet unlocking insights from spatial information requires specialized skill and technology. For organizations lacking dedicated location analytics capabilities, gleaning actionable strategic or tactical perspectives from their geographical data remains a challenge. Thriving in a digital economy demands a keen awareness of customers as dynamic individuals rather than stationary demographics. Competitive pressures spur firms to unlock deeper revelations about client preferences, behaviors and needs on a continuous basis.

Market Challenge - High Upfront Costs for Implementation and Tools

The location analytics market faces significant challenges in terms of high upfront costs for implementation and tools. While location data and location-based insights have immense potential to optimize business operations and customer experiences, setting up the necessary infrastructure, software, and analytics capabilities requires heavy initial investment. The growing availability of location data from multiple sources presents a big opportunity for companies to monetize this information. Location analytics vendors and data aggregators can partner with market research and consulting firms to provide valuable market intelligence and insights. By analyzing anonymized and aggregated location data of consumers, trends can be identified about their visiting patterns to certain store types, categories spending behaviors in different locations.

Market Opportunity- Monetization of Location Data and Analytics for Market Insights

The growing availability of location data from multiple sources presents a big opportunity for companies to monetize this information. Location analytics vendors and data aggregators can partner with market research and consulting firms to provide valuable market intelligence and insights. By analyzing anonymized and aggregated location data of consumers, trends can be identified about their visiting patterns to certain store types, categories spending behaviors in different locations. Demographic profiles and characteristics of customers within specific geographies can also be determined. This monetized location data and derived location-based analytics has strong potential to benefit various sectors such as retail, real estate, transportation and urban planning. It allows generating customized reports, Heatmaps and other visualizations that deliver deep market understandings to various industry players for enhanced strategic decision making.

Market Segmentation

• Component Insights (Revenue, USD Bn, 2019 - 2031)
  • Solution
  • Services
• Location Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Indoor
  • Outdoor
• Deployment Insights (Revenue, USD Bn, 2019 - 2031)
  • On-premise
  • Cloud
• Industry Insights (Revenue, USD Bn, 2019 - 2031)
  • Transportation and Logistics
  • Government and Defense
  • BFSI
  • Tourism and Hospitality
  • Healthcare
  • Retail
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Microsoft Corporation
  • Google LLC (Alphabet Inc.)
  • Zebra Technologies Corporation
  • Esri
  • Hexagon AB
  • Here Technologies
  • Precisely
  • SAP SE
  • TomTom
  • SAS Institute Inc.