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2021

Location Analytics Market

Location Analytics Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, Location Type, Deployment Mode, Application Industry Vertical and Region: Global Opportunity Analysis and Industry Forecast, 2020-2027

IC : Information, Infrastructure & Network Security

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Author's: Vikas Gaikwad & Rachita Rake | Onkar Sumant
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Location Analytics Market Statistics - 2027

The global location analytics market size was valued at $10.29 billion in 2019, and is projected to reach $31.13 billion by 2027, registering a CAGR of 15.5% from 2020 to 2027. Location analytics or geoanalytics is the method of generating insights by analyzing location data. It adds a geographical data to the data assets of a business in order to extract more valuable insights. In all the industries, business data, such as the data about people, transactions, assets, and events, often comprises a geographic component, which when added to an analysis of performance may unlock new related insights. Location analytics provides an organization with spatial analytics as well as other analytics abilities to understand the data through a location-specific perception and optimize business practices and enable predictions accordingly. It helps businesses to make more informed decisions that can improve both effectiveness and efficiency.

On the basis of component, the software segment exhibited the highest growth in the location analytics market share in 2019, and is expected to maintain its dominance in the upcoming years, due to surge in adoption of location analytics in the organization to provide personalized and integrated products and services to customers. The location analytics software allows companies of all sizes to gain a competitive advantage with mapping tools for business. However, the services segment is expected to witness the highest growth, due to an extensive adoption of services among end users, as it ensures effective functioning of location analytics software throughout the process.

Location-Analytics-Market-2020-2027

By location type, the global location analytics market was dominated by the indoor segment in 2019 and is expected to maintain its dominance in the upcoming years, due to the extensive usage of smart devices and smartphones which are integrated with advanced location-based services. However, the outdoor segment is expected to witness the highest growth, due to the increasing adoption of location based marketing/advertising by the organizations to target consumers at a person-level with offline or online messaging based on physical location.

By deployment type, the global location analytics market share was dominated by the on-premise segment in 2019 and is expected to maintain its dominance in the upcoming years, as many businesses, especially the large organizations, are hesitant to move away from on-premise analytics solutions. In addition, on-premise location analytics is experiencing rapid adoption in enterprise organizations as well as government bodies which are facing strict data security, compliance, and regulation requirements. However, the cloud segment is expected to witness the highest growth. This is attributed to the ability of cloud based location analytics software to offer greater efficiency and flexibility.

North America dominates the location analytics market, due to the extensive technology support as well as growing trends in automation. The industry verticals such as government & defense, and IT & telecommunication are expected mainly contribute to location analytics market growth.  For instance, in 2019, AT&T, an American multinational conglomerate holding company partnered with the U.S. Department of Energy’s Argonne National Laboratory for a Climate Change Resiliency Project to better prepare for, anticipate, and adapt to climate change events. AT&T used location analytics to assess the impact of climate change on its base stations, cell towers, and other physical infrastructure. However, Asia-Pacific is expected to observe highest growth rate during the forecast period, owing to the factors such as upsurge in spending on location-based services and extensive adoption of smartphone and smart technologies.

The report focuses on the growth prospects, restraints, and location analytics market analysis. The study provides Porter’s five forces analysis of the location analytics industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the location analytics market trends.

Segment review

The location analytics market is segmented on the basis of component, location type, deployment mode, application, industry vertical, and region. On the basis of component, it is categorized into software and services. As per the location type, it is classified into indoor and outdoor. On the basis of deployment type, it is classified into on-premise and cloud. Depending on application, it is divided into remote monitoring, sales & marketing optimization, asset management, risk management, facility management, and others. On the basis of industry vertical it is categorized into BFSI, retail & consumer goods, healthcare, hospitality, transport & logistic, government, IT & telecom, media and entertainment, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Location Analytics Market
By Component
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Service segment is projected as one of the most lucrative segments.

Impact of COVID-19 Pandemic on Location Analytics Market:

Post COVID-19, the size of the location analytics market is estimated to grow from $11.37 billion in 2020 and projected to reach $31.13 billion by 2027, at a CAGR of 15.5%. The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has low impact on the growth of the location analytics market, as the adoption of location intelligence or analytics is increased to understand the impact of COVID-19 on consumer behavior and the economy. On the other hand, healthcare systems are experiencing an unprecedented level of demand for location data, with numerous countries having to inspect medical facilities, including primary care clinics, hospitals, and retirement homes to analyze care capacity and vulnerability. For instance, in March 2020, to help public health agencies as well as other organizations to initiate their response, Esri launched ArcGIS Hub Coronavirus Response template with complimentary six-month ArcGIS Online subscription for ArcGIS Hub. ArcGIS Hub is a framework used for building websites to analyze and visualize crisis in the context of population and assets of community or organization.

Furthermore, businesses across the globe are planning to come back stronger; hence, location analytics software adoption would help them to map COVID-19 density zones to plan their business operations accordingly. For instance, in May 2020, Transerve Technologies, a provider of geospatial solutions launched a solution to map COVID-19 density zones using remote sensing and geospatial technologies.

Location Analytics Market
By Deployment Model
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Cloud is projected as one of the most lucrative segments.

Top impacting factors    

The growth of the global location analytics market is mainly driven by proliferation of smartphones and upsurge in usage of GPS-enabled devices. In addition to this, factors such as growing usage of spatial data and analytical tools, increasing adoption of location analytics for asset management across various industries, and rise in adoption of location analytics in retail sector fuels the market growth. Moreover, increase in the adoption of location-based services during COVID-19 pandemic fueling the market growth. However, consent and privacy concerns may hamper the market growth to some extent. On the other hand, emergence of advanced technologies in the field of GIS, and integration of AI with location analytics is expected to provide lucrative opportunities for the market growth during location analytics market forecast period. 

Increase in adoption of location analytics for asset management across various industries 

A broad set of companies are implementing advanced analytics methods at multiple points in the asset-management value chain. There is growing demand for asset managers to maximize performance and minimize risks while managing cost as well as resources for both moving and fixed assets. Therefore, increasing number of innovative managers are using smart maps and dashboards to achieve a holistic view of their assets. Location intelligence provided by location analytics solutions is helping asset managers to enhance day-to-day operations such as maintenance, inspections, and investment planning.

Location Analytics Market
By Deployment Model
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Cloud is projected as one of the most lucrative segments.

In addition to this, there is growth in investments for location analytics by asset managers to generate actionable client insights to improve the productivity of sales & marketing efforts. This is one of the major factor that drives growth of the location analytics market.

Integration of AI with location analytics 

In upcoming years, it is anticipated that a majority of companies will use AI to accelerate and support guidance and decision-making. Location analytics with the help of geographic information system (GIS), provide businesses with the power to analyze, map, and share data in the context of location. The integration of AI with location intelligence or analytics allowing prediction to support market assessment, risk management, asset tracking, site selection, and other core business needs. Therefore, integration of AI is expected to provide lucrative opportunities for the market.

Location Analytics Market
By Region
2027
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific is projected as one of the most significant region.

Key Benefits For Stakeholders

  • This study includes the location analytics market analysis, trends, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and location analytics market opportunity.
  • The location analytics Market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in location analytics market.

Location Analytics Market Report Highlights

Aspects Details
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By Component
  • Software
  • Services
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By Location Type
  • Indoor
  • Outdoor
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By Deployment Mode
  • On-premise
  • Cloud
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By Application
  • Remote Monitoring
  • Sales & Marketing Optimization
  • Asset Management
  • Risk Management
  • Facility Management
  • Others
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By Industry Vertical
  • BFSI
  • Retail & Consumer Goods
  • Healthcare
  • Hospitality
  • Transport & Logistic
  • Government
  • IT & Telecom
  • Media and entertainment
  • Others
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By Region
  • NORTH AMERICA  (U.S, Canada)
  • EUROPE  (UK, Germany, France, Rest of Europe)
  • ASIA-PACIFIC  (China, India, Japan, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

MICROSOFT CORPORATION, PITNEY BOWES, SYNCSORT, ALTERYX, ORACLE CORPORATION, GOOGLE LLC, HEXAGON, HERE TECHNOLOGIES, ESRI, SISENSE INC

Analyst Review

According to the CXOs of leading companies, the location analytics market is going through enormous transformation and growth. Also, the market is undergoing a paradigm shift in adoption of innovative technologies. As the competition across all the business sectors is intensifying over the years, it has become necessary for companies to maintain consistent and stable relationships with their customers as well as ensure customer loyalty. The location analytics solutions are widely being adopted by numerous organizations across the globe to improve customer satisfaction levels as well as to enhance their product or service according to the consumer needs. Location analytics combines business data with location data to disclose the relationship of location to people, transactions, events, facilities and assets. Therefore, many organizations are using location data and spatial analytics in their business intelligence (BI) and analytical workflows. Location analytics has enabled the businesses to make more informed decisions to improve both efficiency and effectiveness of their services and growth strategies. For instance, according to a 2018 study by Dresner Advisory Services, it was revealed that 66% of enterprises across the globe has ranked location intelligence or analytics as being critical or important to their ongoing revenue growth strategies. 

In addition, the rapidly growing trend of using location analytics in the retail and consumer goods sector actively boosts the market growth. The retailers are benefiting from the adoption of location analytics to find where there is an active demand for their offerings by mapping key area demographics, competitor locations, and shopping habits of the consumer. For instance, Wendy’s, the American international fast-food restaurant chain has saved about $750,000 over last two years (2018 & 2019) just by adding a spatial component to its analysis of potential new restaurant locations.

Moreover, the demand for more accurate location data is increasing rapidly. The organizations are becoming increasingly dependent on data as well as becoming more data-driven. This is one of the key trend which is expected to significantly fuel the market growth in upcoming years. For instance, 93% of organizations in Singapore, use data analytics for critical and automated decision-making. On the other hand, the enhancement in location data quality is leading to the improved quality of AI and Machine learning, which is further opportunistic for the market growth during forecast period. Furthermore, the emergence of autonomous mobility is anticipated to provide lucrative opportunities for the market growth. A data-driven mapping system will be an essential component of autonomous vehicles. 

The location analytics market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions & services, reliability, efficiency of the product, and support services. The market is concentrated with major players consuming 40–50% of the share. The degree of concentration will remain the same during the forecast period. Owing to the competition, vendors operating in the market are offering advanced location analytics solutions to improve the marketing strategies of enterprises. On the other hand, the growing investment trend in companies across the location based industry will boost the market growth. For instance, in January 2020, Placer.ai, a startup company that analyzes location and foot traffic analytics for retailers as well as other businesses raised $12 million Series A. The investment was led by JBV Capital, with participation from investors including Reciprocal Ventures, Aleph, and OCA Ventures. In addition, key players are heavily investing in R&D activities to develop effective location analytics software and services offerings, which is opportunistic for the market.
 

Author Name(s) : Vikas Gaikwad & Rachita Rake | Onkar Sumant

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Location Analytics Market

Global Opportunity Analysis and Industry Forecast, 2020-2027