According to a new report published by Allied Market Research, titled, “Location Based Services Market," The location based services market was valued at $45.4 billion in 2021, and is estimated to reach $402.4 billion by 2031, growing at a CAGR of 24.6% from 2022 to 2031.
Location-based marketing/advertising provides vast advantages to businesses in reaching out to their customer base in a particular location. Location-based marketing enables advertisers to build high-quality databases and more accurately forecast consumer spending. Its additional features increase consumer connections and audience visibility. Increased use of the internet and GPS-enabled mobile devices accelerate market expansion.
Furthermore, increase in adoption of social media, smart phones, and 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 is positively impacts growth of the location-based services market. However, high cost of installation and maintenance and operational challenges is hampering the location-based services market growth. On the contrary, the growing penetration of 3G and 4G networks and continuous increase in the number of internet users is expected to offer remunerative opportunities for expansion during the location based services market forecast
Depending on component, the service segment is expected to grow at the highest rate during the forecast period, owing to increase adoption of LBS across sectors such as retail, telecom and IT, government & public utilities, real estate, and healthcare. However, the software segment holds the largest location based services market size as large enterprises are adopting location-based services to protect all their infrastructures.
Region-wise, the location-based services market size was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to, increase in social media platforms. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to growing demand for location-based services by food and beverage industries.
The location-based services market has witnessed stable growth during the COVID-19 pandemic, owing to the growing demand for GPS-based solutions. Leading LBS industry providers enhanced their services portfolio and product capabilities. In addition, the COVID-19 pandemic has resulted in changes in model performance, as more continuous monitoring and validation is required to mitigate various types of risks, compared to static validation and testing methods, which, in turn, drive the development of advanced technology models in LBS market size. This location data is collected from only those devices in which the permission to collect data is granted. Location-based services are expected to gain traction, owing to their usage for predicting the next hotspot of COVID-19 and to preplan allocation of healthcare resources accordingly. Innovations and advances in location-based services post COVID-19 outbreak with features such as real-time tracking, location-based marketing, geotagging, and augmented reality have further supported the market growth. With increase in adoption of bring your own device (BYOD) trend among industries across the globe, the penetration of LBS industry services has increased significantly. Governments and private sectors are majorly relying on the geolocation to curb the spread of novel coronavirus.
The integration of advanced technologies such as big data analytics is helping the industries to improve various aspects of a company such as perception, reasoning, learning, and problem solving of the human mind for detecting and predicting risks, which, in turn, is driving the growth of the LBS market. In addition, surge in need for virus containment, rise in use of BYOD trend, and increase in traction for geo targeting were some of the factors leading to the growth of the location-based services market due to COVID-19 outbreak. The technology companies are collaborated with governments and healthcare experts across different nations to work on solutions to combat COVID-19 and ensure social distance is maintained by using location data from mobile phones of users. Public health authorities sought for the companies that could facilitate to compile the data in anonymous, aggregated method, which was used to map the spread of the infection, understand patterns of people movement, and analyze the trends from location of smartphone users to track coronavirus. For instance, in March 2020, Google has confirmed that it is worked to tap its trove of location data, particularly any insights it can derive from its maps app and explore ways to help healthcare authorities to provide insights about traffic patterns to determine impact of social distance. It would not include share data about any individual’s location, movement, or contacts. Furthermore, Facebook has worked with health researchers and nonprofit organizations in several countries to deliver anonymized & aggregated statistics about individual movements over a project named disease prevention maps. In addition, the demand for location based services industry to ensure safe work environment across companies. Thus, developing innovative solutions and strategic partnership with relevant authorities across the world are expected to offer remunerative opportunities for players operating in this LBS market.
Key Findings of the Study
By component, the software segment accounted for the largest location-based services market share in 2021.
Region wise, North America generated highest revenue in 2021.
Depending on application, the Assisted GPS (A-GPS) segment generated the highest revenue in 2021.
The key players profiled in the location based services market analysis is 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.