The location-based service (LBS) market has witnessed significant growth in recent years, driven by technological advancements and increasing demand for location-specific information and services. One of the prominent trends in this market is the widespread adoption of smartphones equipped with GPS capabilities, enabling users to access LBS seamlessly. These services utilize real-time geographic data to provide personalized experiences such as navigation, local recommendations, and location-based advertising.
Moreover, the integration of LBS into various industries, including retail, transportation, and healthcare, has further fueled market expansion. For instance, retailers leverage LBS to send targeted promotions to consumers based on their proximity to stores, enhancing engagement and driving sales. Similarly, transportation companies utilize location-based solutions for fleet management, route optimization, and vehicle tracking, leading to operational efficiencies and cost savings.
Furthermore, the emergence of advanced technologies like augmented reality (AR) and Internet of Things (IoT) has opened up new possibilities for location-based services. AR-based LBS applications overlay digital information onto the physical environment, offering immersive experiences in areas such as gaming, tourism, and education. Additionally, IoT devices equipped with location sensors enable the collection of valuable spatial data, which can be utilized for various purposes such as asset tracking, environmental monitoring, and smart city initiatives.
In terms of market dynamics, the increasing demand for personalized and context-aware services is driving innovation in the LBS sector. Companies are investing in machine learning and artificial intelligence algorithms to analyze location data and deliver more relevant content to users. This trend is particularly evident in the realm of location-based advertising, where advertisers are leveraging sophisticated targeting capabilities to reach consumers with highly tailored messages based on their location, preferences, and behavior.
Furthermore, the COVID-19 pandemic has accelerated the adoption of contactless and location-based technologies, as businesses seek to adapt to changing consumer preferences and safety protocols. For instance, restaurants and retailers have implemented curbside pickup and delivery services facilitated by LBS applications, allowing customers to place orders and receive notifications when their items are ready for pickup.
Despite the promising growth prospects, the LBS market faces certain challenges, including privacy concerns and regulatory hurdles associated with the collection and use of location data. Consumers are increasingly wary of sharing their location information due to privacy apprehensions, prompting companies to implement stringent data protection measures and transparent consent mechanisms. Additionally, compliance with regulations such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States poses compliance challenges for LBS providers operating in multiple jurisdictions.
Report Attribute/Metric | Details |
---|---|
Market Opportunities | The growing demand for wearable devices has resulted in an increase in the use of location-based services |
Market Dynamics | Increasing Application of Location Based Service for a Wide Range of Area |
Location Based Services Market Size was valued at USD 31.984 billion in 2022. The Location Based Services market industry is projected to grow at USD 108.768 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.6% during the forecast period (2022 - 2032).
Location-based services (LBS) was primarily used for navigation, but it is today employed in all industries and has a wide range of uses. For instance, LBS improves to drive traffic to particular departments in retail by providing simple product navigation, while LBS technology has been successfully applied to minimize revenue loss due to missed appointments in the healthcare sector by guiding patients from home to their doctor's office inside the hospital.
Figure1: Location Based Services Market, 2018 - 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Targeted geographical information can be provided to customers and mobile workers through a location-based service. Examples of LBS include utility location data, asset or person tracking, concierge services, and route-guidance data. The importance of LBS technology and applications will rise in the constantly linked, mobile society of today. The demand for location-based services has reduced compared to the pre-COVID period as a result of the full or partial nationwide lockdown that has been imposed across the globe owing to the spread of COVID19. The need for location-based services is anticipated to be minimal, even in post-COVID times when people will need to practice social distance and avoid large gatherings, according to trends and COVID-19's nature and characteristics analysis.
Increasing Application of Location Based Service for a Wide Range of Area
Over the past few years, adoption of location-based applications has skyrocketed. The use of such applications has increased as a result of the surge in ride-hailing app usage overall. Other uses for location-based applications include social networking, geo-marketing, gaming, fitness and health tracking, and navigation.
The integration of location-based services has transformed the transportation industry by improving navigation and traffic control. The defense sector utilizes these services to secure borders and assist in rescue missions through the creation of border maps. The real estate and construction industries have seen considerable advancements in the adoption of modern technologies such as architectural design, project location mapping, and multi-dimensional modeling. LBS also finds usage in fields like research, archaeology, mining, and resource management in the oil and gas sector. These widespread applications of LBS across various industries is expected to drive growth in the LBS market during the projected time frame.
The hardware segment dominated the location-based services (LBS) industry in 2022 and is projected to maintain its dominance during the forecast period. This can be attributed to an increased adoption of LBS by enterprises to gain a strategic advantage over their competitors. The hardware component ensures the effective functioning of LBS software, driving growth in the LBS market. However, the service segment is expected to experience the highest growth in the coming years due to the increased adoption of LBS software in various industries. This will result in a greater demand for services such as system integration and managed services. More countries are embracing these services to align various business tools such as manufacturing, marketing, and sales. This factor is expected to drive growth in the LBS market during the forecast period.
In May 2022, AT&T and Intrado announced the launch of a nationwide location-based routing technology, aimed at improving the response time for wireless 911 calls. This new technology uses device location to quickly route calls to the right first responders, fulfilling long-standing goals set by the Federal Communications Commission (FCC) to enhance public safety.
In January of 2022, Catalina, a company that provides shopper intelligence and omnichannel media services, joined forces with PlaceIQ, a provider of data and technology, to bring location-based planning, measurement, and attribution to consumer-packaged goods (CPG) retailers. This partnership will allow advertisers to target more specific audiences, enhance engagement across both offline and online channels, and measure the real-world return on investment (ROI) of their brand campaigns.
The outdoor segment dominated the location-based services market due to factors such as high demand for outdoor navigation and mapping applications, increased deployment of outdoor LBS, growing need for advanced route mapping solutions, and widespread availability of outdoor GPS navigation apps. These factors led to the largest share of the market for the outdoor segment.
Figure 2: LOCATION BASED SERVICES MARKET, BY LOCATION, 2022 & 2030 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
In 2022, North America held significant market share. The is owing to the growing automation trend and widespread adoption of Industry 4.0. There is a strong presence of location-based service providers, including tech giants like Google, Microsoft, IBM, Apple, Amazon, and Oracle, in the U.S. Furthermore, North America, particularly the U.S. and Canada, being technologically advanced nations, is embracing location-based services technology at a brisk pace, fueled by the increasing demand for wearable devices.
Europe, being an industrialized region, is driving the growth of the location-based services market. The region comprises industrialized countries such as the UK, Germany, France, Spain, and the Rest of Europe. In the UK, the use of location-based services is governed by laws that require permission-based services. This means that in order to receive messages and information, the end-user must give their consent to the service. Typically, this involves installing the LBS application and agreeing to allow the service to access the device's location.
Asia-Pacific is the fastest-growing region in the location-based services market. The Asia-Pacific region comprises countries such as China, India, Japan, South East Asia, and the Rest of Asia. In recent years, the region has experienced significant growth in industrialization, accompanied by a rising number of small and medium-sized enterprises (SMEs), which are expected to drive the growth of the location-based services market. The technology sector in countries like China, India, and Japan has seen rapid growth, leading to a substantial demand for location-based services, software, and hardware components to enhance technology facilities.
Figure 3: LOCATION BASED SERVICES MARKET, BY REGION, 2022 & 2030 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The for Location Based Services market is projected to witness healthy growth during the forecast period, owing to the proliferation of location-based apps among consumers, and the rise in the use of location-based mobile advertising.
Key players operating in the Location Based Services market include Microsoft Corporation (US), Oracle Corporation (US), TomTom International BV (Netherlands), ESRI (Germany), Ericsson (Sweden), Qualcomm Incorporated (US), ROKK (US), iSpace (US), Apple Inc (US), Baidu Inc (China), NavInfo Co., Ltd. (China), IBM (US), Google Inc (US), Cisco Systems, Inc.(US), Amazon.com Inc. (US), HERE Technology (Netherlands), and Mapbox (Netherlands).
In November 2022: VeriDaaS Corporation announced the acquisition of 4DM, a Canadian-based geo-intelligence company. 4DM provides consulting services and service-based work to governments, NGOs, and private sector organizations in the fields of intelligent transportation solutions, environmental health, location-based services, and risk assessment applications.
In March 2022: Aruba Networks announced advancements to its Edge Services Platform (ESP) with the addition of new management capabilities and improvements in location-based services to support enterprises in exploiting edge and IoT opportunities. The company also launched self-locating indoor access points (APs) that feature built-in GPS receivers and Open Locate, a feature for sharing location information from the access point to a device.
Hardware
Software
Services
Outdoor
Indoor
Bluetooth Low ENERGY (BLE) Beacons
WI-FI
GPS/GNSS
Others
Government Defense and Public Utilities
Retail and E-commerce
Banking Financial Services and Insurance
Automotive Transportation and Logistics
Industrial Manufacturing
Healthcare and Life Sciences
Media and Entertainment
Others
North America
South America (exc. Mexico)
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
South America
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)