LOCATION-BASED SERVICES MARKET ANALYSIS

The global location-based services market size was valued at US$ 32,210 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 18.7% from 2023 to 2030. The global market for location based services is expected to witness strong growth in the coming years. This is primarily due to technological advancements, upsurge in use of smartphones and GPS-enabled devices, and rise in adoption of business intelligence.

Global Location-Based Services Market: Regional Insights

Among regions, North America is expected to gain major share in the global location-based services market over the forecast period. This is due to the region being a major market for tablets and smartphones and for in-vehicle navigations systems. The demand for location-based services is high among various end user industries across this region. Moreover, the growing oil production in Canada is also creating a strong demand for location-based services. Thus, the region is expected to witness a substantial growth in the global location-based services market during the forecast period.

Asia Pacific is also projected to witness significant growth in the global location-based services market over the forecast period. This can be attributed to increasing growth in investments toward technological capabilities and building infrastructure, along with this rise in mobile and internet penetration in countries such as China. Moreover, increasing growth in exports of consumer electronics, electronics, healthcare, and automotive equipment in Japan is also driving the growth of the global location-based services market in Asia Pacific region.

Figure 1: Global Location-Based Services Market Share (%), By Region, 2022

To learn more about this report, request sample copy

Global Location-Based Services Market Drivers:

Rise in demand for geo-based marketing to drive the market growth

Due to rise in use of mobile devices, location has become one of the most important factors of marketing. With location, marketing teams are enabled to target consumers easily with the use of location-based data on qualifiers such as proximity to a store, upcoming events, and others. Companies are now able to target consumers geographically and personally with offline or online messaging depending their physical location with the use of location-based marketing. Thus, the rise in demand for this marketing is expected to drive growth of the global location-based services market over the forecast period.

Technological developments supported by emerging BLE and UWB for indoor services to fuel the market growth

As the demand for novel methods for improving consumer experiences and increase profitability is growing among businesses, the indoor location technologies are evolving. Several organizations and companies are attempting leveraging these services including asset monitoring, analytics, proximity-based services, and indoor navigation. Various technologies in location-based services such as Bluetooth Low Energy (BLE), Ultra-Wideband (UWB) are radio frequency systems for wireless communication that could be utilized for identifying and monitoring the positions of devices, assets, and people in interior environments. Thus, these factors are expected to fuel growth of the global location-based services market over the forecast period.

Global Location-Based Services Market Opportunities:

Growing number of smart city projects is likely to create multiple growth opportunities in the global location-based services market over the forecast period. Geofencing is useful for creating virtual perimeters near physical areas in smart cities, and this can used in variety of applications such as in-store or security marketing. With increasing number of smart city projects, the demand for location-based services is growing across the world, which in turn will provide market players with growth opportunities in the global location-based services market.

Growing demand for wearables is anticipated to create lucrative environment for growth opportunities in the global location-based services market over the forecast period. With constantly growing consumer electronics industry, changing lifestyles, and technological advancements, the demand for wearables is increasing all over the world, which in turn creates strong demand for location-based services. Thus, the market players are likely to experience several business opportunities in the market during the forecast period.

Global Location-Based Services Market Trends:

Investments in machine technology learning is a growing trend

The use of machine learning is increasing across several industries, including in location-based services. Many market players are increasingly investing in development of this technology for LBS. For instance, HERE Technologies invested US$ 28 million into a new machine learning research institute, which is likely to aid in organizing the geolocation data that smart devices are collecting. With this companies involved in the market can experiment more with the type of services they offer. Thus, this trend is likely to continue in the global location-based services market over the forecast period.

Growing popularity of cloud-based Big Data analytics is a major trend

The use of cloud-based Big Data analytics is gaining traction in the global location-based services market. The use of Big Data analytics offers promising insights on a consumer buying patterns, with which retailers are able to grow their sales volume and improve customer search experiences. Companies such as GeoSpice, the location-as-a-Service companies are utilizing big data analytics to offer cloud-based web services and mobile LBS that integrates a real-time data analytics and location information. Thus, the rise in popularity of cloud-based Big Data analytics is expected to drive growth of the global location-based services market over the forecast period.

Global Location-Based Services Market Restraints:

Trade-offs between security/privacy and regulatory limitations to hinder the market growth

Location-based services are changing various businesses where resource efficiency is vital. Positions of individuals could be tracked at all times, the use LBS offers the visibility required for keeping people safe. Due to this, data privacy and security has become important for users, as misuse of this data can cause adverse consequences. In recent years, the incidences of data breaches have increased significantly owing to different applications that defy restrictions for gaining access to location of the user without permission. Thus, these factors are likely to hinder growth of the global location-based services market over the forecast period.

Stringent standards and regulations to impede growth of the market

The constantly growing stress on higher accuracy and reliability have restricted the demand for high speculation in terms of performance of LBS. This further highlights the protocols for data security to keep sensitive and important user information safe. Thus, many regulations are implemented for protecting and promoting user privacy as the use of location-based services is increasing around the world. Services providers and users have to adhere to these stringent regulations and guidelines. This further impacts adoption of these services, which is expected to hamper growth of the global location-based services market over the forecast period.                        

Figure 2: Global Location-Based Services Market Share (%), By Location, 2022

To learn more about this report, request sample copy

Global Location-Based Services Market Segmentation:

The global location-based services market report is segmented into Location, End User Industry.

Based on Location, the market is segmented into Indoor, Outdoor. Out of which, Indoor is expected to dominate the global market over the forecast period and this is attributed to the rise in penetration of smartphones and development of sensor technology as well as rise in door time. With this technology smart networks can receive data from a smartphone with no additional device.

Outdoor segment is also expected to witness significant growth in the near future and this is owing to the wide adoption of location-based services in various outdoor applications such as multi-modal transport navigation and guidance, machine control, asset management systems, and synchronization of telecommunications networks.

Based on End User Industry, the market is segmented into FMCG and e-commerce, Retail, Healthcare, IT and Telecom, Transportation, Oil and Gas, and Other End user Industries. Out of which, FMCG and E-Commerce is expected to dominate the global market over the forecast period and this is attributed to the growing trend in e-commerce establishments in recent years. The increasing growth of e-commerce industry and rise in use of mobile apps is driving growth of this segment.

Retail segment is also expected to witness significant growth in the near future and this is owing to the growing use of location-based services in retail sector. These services help stores in recognizing customer buying patterns. The use of this technology is increasing among food retailers, owing to the need for product-specific navigation. Thus, the segment is likely to witness strong growth in the coming future.

Global Location-Based Services Market: Key Developments

In June 2021, Ale International (Nokia Corporation) announced the launch of Rainbow Office in the U.K. with RingCentral, a unified communications services (UCaaS) solution. The office features latest UCaaS technology and advanced communications, network, and Alcatel cloud.

In August 2021, Teldio Corporation signed a contract for deploying its technology at Daniel K. Inouye International Airport, Honolulu. This system is linked to everything from defibrillators to fire extinguishers, to alter terminal workers in real-time when these safety or medical devices are being used.

In October 2021, Cisco Systems Inc. entered into partnership with Kloudspot Inc. for helping companies offer smarter and safer workspace experiences for employees and customers.

In January 2020, Creativity Software Ltd. acquired Arcanum Communications Ltd., a big data streaming technology provider to expand into the provision of digital transformation solutions.

Global Location-Based Services Market: Key Companies Insights

The global location-based services market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global location-based services market are GuardRFID Solutions Inc., ALE International (Nokia Corporation), Favendo Gmbh, Teldio Corporation, CenTrak, Cisco Systems Inc. (Cisco Meraki), AiRISTA Flow Inc., Creativity Software Ltd., IBM Corporation, DigitalGlobe Inc. (Maxar Technologies), Aruba Networks (HPE Development LP), Ericsson Inc., HERE Global BV, IndoorAtlas Ltd., GL Communications Inc., and Esri Inc.

*Definition: Location-based services use data from a mobile device's GPS to provide a user with information and services that are relevant to their current location. These technologies enable apps to locate users based on their exact position and offer information such as traffic updates, weather reports or roadside assistance.