LOCATION-BASED SERVICES MARKET ANALYSIS

Market Challenges And Opportunities

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 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.                        

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.