According to a recent report published by Allied Market Research, titled, “Location-based Services Market by Component, Technology, Application, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020–2027,” the location-based services market size was valued at $28.95 billion in 2019, and is projected to reach $183.81 billion by 2027, growing at a CAGR 26.3% from 2020 to 2027.
A location-based service (LBS) is a suite of services that includes features such as mapping & navigation, local search & information, social networking & entertainment, proximity marketing, and asset tracking offered via software, which help end users to access location-specific data and other online services. Location-based services are widely used for mapping & navigation purposes. This is a major factor that propels the growth of the global location-based services market. Location-based solutions have emerged as an effective tool for disaster and natural resource management as well as entertainment projects. The use of technologically advanced mapping software, camera solutions, unmanned vehicles, and sensors reduces the risks associated with costs estimation, material wastage, project completion, and conflict resolution during the initial stages of project management. This, in turn, has proliferated the demand for geo-data, and is expected to be a major driver of the global LBS market.
Post COVID-19, location-based services are expected to witness increase in demand to trace the contacts of infected persons, monitor virus spread, analyze the trends in footfall, and impact of social distancing. Furthermore, key players operating in the market are expected to adopt various collaboration strategies with regional government or public sector agencies to develop innovative location-based solutions or applications to cater to specific need for that area. Various companies are expected to utilize LBS for predicting the risk areas in work environment and ensuring social distancing. This is further anticipated to present lucrative opportunities for the expansion of the global location-based services market.
The demand for location-based services is driven by its increasing use cases across various verticals. Moreover, technological advancements in software & hardware components and their increased adoption in navigation solutions drive the growth of the location-based services market. However, unorganized security regulations and high cost of components are anticipated to restrict the adoption of location-based services, which, in turn, is likely to hamper the growth of the LBS market.
Location-based services is used in various commercial sectors such as energy, construction, agriculture, civil engineering, archaeology, real estate, and media & entertainment to obtain geospatial data and information in the form of images and maps. Increase in use of satellite imagery-based on location-based services is expected to augment the market growth, globally. In addition, increase in applications of satellite imaging such as geographical mapping, disaster management, energy management, and security & surveillance has boosted the demand for location-based services, and, in turn, is expected to fuel the growth of the LBS industry. Advancements in technologies such as remote sensing technology, GPS technology, and cloud service are expected to provide numerous opportunities for the development of the market players.
Key Findings Of The Study
- By component, the hardware segment dominated the location-based services market share, and is expected to exhibit significant growth during the forecast period. However, the services is anticipated to witness notable growth, attributed to surge in demand for service-as-a-solution suite among industries opting for digitalized business and process operation.
- Depending on technology, the assisted GPS segment accounted for the highest revenue in 2019. The location-based services industry anticipates highest growth in terms of deploying assisted GPS solutions into smart devices such as smartphones.
- On the basis of application, the mapping & navigation segment has exhibited highest revenue in 2019, and is expected to grow significantly during the location-based services market forecast period.
- Depending on industry vertical, the transportation & logistics industry generated the highest revenue in 2019. This is attributed to high demand for location-based services for applications such as fleet management and asset management.
- Region wise, North America dominated in terms of revenue in 2019, however, Asia-Pacific is expected to witness highest CAGR in location-based services industry during the coming years.
Some of the key market players profiled in the report include Alcatel-Lucent SA, Apple, Inc., AT&T Inc., Bharti Airtel, LTD., Cisco Systems, Inc., Google Inc., HERE, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, and Qualcomm Inc. These players have adopted various development strategies such as product launch and product development to stay competitive in the market. This study includes location-based services market analysis, trends, and future estimations to determine the imminent investment pockets.