Location Based Services Market

Location Based Services Market Research, 2031

The global location based services market was valued at $45.4 billion in 2021, and is projected to reach $402.4 billion by 2031, growing at a CAGR of 24.6% from 2022 to 2031.

“The COVID-19 outbreak had significant impact on the growth of the location-based services market owing to, many location-based services providers are under immense pressure. At present, economies are shifting their focus from responding to the pandemic to economic recovery, and hence, various growth opportunities may emerge for the location-based services market players due to the growing demand for GPS-based solutions. Leading location-based services providers enhanced their services portfolio and product capabilities during the COVID-19 pandemic, consequently driving the growth of the location-based services market.”

Location-based services (LBS) use real-time geodata from a smartphone to provide information, entertainment, or security. Location-based services can use a smartphone’s GPS technology to track a person’s location if the user has allowed access. Moreover, Location-based technology is commonly used with mobile devices, but it can be applied to any device able to provide a location, including desktop PCs. Furthermore, several mechanisms inside a typical mobile device can provide location information. The most common technologies are GPS, RFID, Wi-Fi, and cellular technology. 

Increase in adoption of social media & smart phones, easy availability of GPS, and emergence of location-based technology is boosting the growth of the global location-based services market. In addition, the increase in number of smartphone users and internet accessibility positively impact the growth of the location-based services market. However, inflated cost of installation and maintenance and operational challenges is hampering the location based services market growth. On the contrary, the growing penetration of 3G & 4G networks and continuous increase in the number of internet users are expected to offer remunerative opportunities for expansion of the location based services market during the forecast period. 

The location based services market is segmented into Component, Technology, Application and Industry Vertical.

Segment Review 

The location-based services market is segmented on the basis of component, technology, application, industry vertical, and region. By component, it is categorized into hardware, software, and services. By technology, it is divided into GPS, Assisted GPS (A-GPS), Enhanced GPS (E-GPS), enhanced observed time difference, observed time difference, cell ID, Wi-Fi, and others. By application, the LBS market is classified into location-based advertising, business intelligence & analytics, fleet management, mapping and navigation, local search & information, social networking & entertainment, proximity marketing, asset tracking, and others. By industry vertical, it is segmented into transportation & logistics, manufacturing, government & public utilities, retail, healthcare & life sciences, media & entertainment, IT & telecom, BFSI, hospitality, and others. Region-wise, the market is performed across North America, Europe, Asia-Pacific, and LAMEA. 

In terms of type of application, the business intelligence and analytics segment hold the highest location based services market share, as it helps in improving decision making, optimizing internal business, and increasing operational efficiency. However, the location-based advertising segment is expected to grow at the highest rate during the forecast period, as it helps to increase organizational efficiency, reduce cost, and enhance customer engagement. 

Region-wise, the location based services market size was dominated by North America in 2021. The region is expected to retain its position during the forecast period, owing to the increasing penetration of smartphones and developments in communication technology in the region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increase in infrastructure development in commercial offices, localities, and shopping malls in the region. 

The key players that operate in the location based services industry are ALE International, Apple, Inc., AT&T Inc., Airtel India., Cisco Systems, Inc., Google Inc., HERE, IBM Corporation, Microsoft Corporation, Oracle Corporation, and Qualcomm Technologies Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the location based services industry. 

Digital Capabilities: 

location-based service (LBS) is a software services which use geographic data and information to provide services or information to users. In addition, LBS can be used in a variety of contexts, such as health, indoor object search, entertainment, work, personal life, etc. Commonly used examples of location-based services include navigation software, social networking services, location-based advertising, and tracking systems. LBS can also include mobile commerce when taking the form of coupons or advertising directed at customers based on their current location. LBS also includes personalized weather services and even location-based games. Location-based services (LBS) are digital services that are tied to a user's physical location. These services can range from providing local information, such as directions or restaurant recommendations, to providing more complex services such as tracking and monitoring of a user. Location-based services use a variety of technologies to pinpoint a user's location, such as GPS, Wi-Fi networks, cellular towers, QR codes and RFID technology. The digital capabilities of location-based services are constantly evolving, with more and more services being developed to make use of a user's location data. These services can provide a range of capabilities, such as personalizing content, providing real-time navigation, tracking and monitoring, and even providing detailed analytics about a user's location. LBS industry can also be used to provide targeted advertisements and promotions to users, as well as providing insights into a user's behavior and interests. 

Government Regulations:  

Increase in demand for location-based service market has strengthen significantly, the adherence to deployment & development of geospatial analytics and government regulations & laws are inevitable. Significant barriers are set to achieve the goals in the national and societal policies objectives; some relate to cost. Sometimes the location-based service is varied by geographical location, religion, and political condition and commercial factors. However, a number of issues are of regulatory nature, arising from the rules and processes governing many aspects of data security, from company licensing to usage of website. On location-based service, government regulations have considerations such as restriction on leaking of customers live time location information and disclosing customer personal information, and other regulatory considerations. This regulation will protect customer’s information and take strict action against any data theft. This regulation will restrict the use of critical information in case sensitive customers such as banking and financial customer, or government and defense customer. This will increase the growth of the market in this industrial vertical. For instance, the California’s Online Protection Privacy Act provides explicit privacy rights and allows users to know how their information will be used in the future. Furthermore, the cloud security regulations are strongly adhered by almost all AI service providers to operate as global service providers, for instance, the U.S. security regulation is mandatory to be adhered by majority of players located in this country.   

In addition, federal and state governments are improving their track plans for various privacy laws, which are applicable for data that are involved in their operations. For instance, the Massachusetts Data Security regulations are majorly focused on security purpose and increasing the privacy of big data analytics. Europe is set to take the advantage of AI for providing data protection facilities to different organizations. For instance, the European Government adopted the new General Data Protection Regulation (GDPR). The act seeks to regulate the collection, storage, and processing of information about individuals. The key aim of GDPR is to protect critical data of business sectors of the European nation.   

Furthermore, the GDPR act imposed by the European Government mitigates the risk of cyber security and any potential data breaches. Emerging countries of Asia-Pacific are developing stringent automation regulations, which comprise privacy, government regulatory environment, and intellectual property protection. In July 2017, Indian government took a step toward implementing law against data leakage and enact a data protection framework modeled along the lines of the GDPR. In July 2017, the government of India appointed a Committee of Experts on a Data Protection Framework for India, or Data Protection Committee (DPC), under the chairmanship of Justice B.N. Srikrishna, to study issues related to data protection in India. This committee submitted its report and proposed a comprehensive law for protection of online information of customer in India. This is expected to protect location-based information of customers. 

Top Impacting Factors 

Increasing adoption of social media, smart phones, and easy availability of GPS   

Increase in adoption of smartphones and other wireless devices is one of the crucial factors that is driving location-based services market growth. In addition, the rise in demand for location-based check-in applications, advancements in analytics capabilities in communication technology and the ease of availability of low-cost GPS mounted devices is expected to constitute an increase in the LBS industry market size. Furthermore, to this rising penetration of social media, mobile-based networking, and increasing penetration of internet-of-things (IoT) are some of the key factors driving the growth of the market. Moreover, the advancement in the field of communications and ongoing developments in the area of 4G and 5G technologies in economically developing regions. For instance, in February 2022 Druid Software partnered with Polte to enable global location for enterprise 4G, 5G private networks. This collaboration is to address the challenges of security, accuracy, and seamless cellular continuity between private and macro networks globally for Massive IoT, Critical IoT and Broadband IoT positioning use cases. Thus, all these factors collectively are expected to fuel the demand for LBS market size in the near future. 

Emergence of location-based technology 

Ongoing demand for location-based application in e-commerce, food delivery, tourism, and social networking applications are expected to create numerous growth opportunities for the location-based services market. which in turn is driving the growth of the market. In addition, LBS enable retailers to analyze consumer preferences and can give immediate access to product or services information. For instance, retailers may plan their advertising strategies for their nearest store or area-based offers based on customer location. This will help retailers increase sales and provide personalized products and services to their customer. Moreover, the automotive sector is gaining high functionality when it comes to location-based services (LBS). It allows car and truck drivers to find the best possible route, and therefore reduce idle time and increase work efficiency. Automotive manufactures ensure to provide value added services to their customers such as asset tracking, emergency services, vehicle telematics, traffic services, fleet tracking and navigation.  

KEY BENEFITS FOR STAKEHOLDERS  

• The study provides an in-depth analysis of location based services market forecast along with current trends and future estimations to explain the imminent investment pockets. 

• Information about key drivers, restraints, and opportunities and their impact analysis on location based services market trends is provided in the report. 

• Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry. 

• The location based services market analysis from 2022 to 2031 is provided to determine the market potential. 

 Location Based Services Market Report Highlights