Location Based Services Market Expected to Reach $235,062.8 Million by 2034

According to a new report published by Allied Market Research, titled, “Location Based Services Market," The location based services market size was valued at $70,357.3 million in 2024, and is estimated to reach $235,062.8 million by 2034, growing at a CAGR of 12.6% from 2025 to 2034.

Location-based services combine geospatial technologies, information and communication technologies, and the Internet to provide targeted information to individuals based on their geographic location in real-time. Mobile location-based services consist of location based services software, a content provider to provide geographic-specific information, an end user’s mobile device, a positioning component, and a mobile network to transmit the data. The increase in the advancements in positioning technologies is one of the prominent trends enhancing the accuracy and reliability of indoor location tracking. While traditional methods such as Wi-Fi, Bluetooth Low Energy (BLE), and RFID remain prevalent, emerging technologies such as ultra-wideband (UWB), visible light communication (VLC), and magnetic field-based positioning are gaining traction due to their superior accuracy and scalability. These innovations support location based services applications such as indoor navigation, proximity marketing, and asset management. In addition, there is a growing trend toward the integration of location based services (LBS) with the Internet of Things (IoT), driving the development of context-aware applications that can deliver real-time, personalized services based on user location and behavior.

Furthermore, the surge in the popularity of personalized location based marketing (LBM) is gaining traction to enhance customer engagement by delivering targeted advertisements and promotions based on real-time geographic data and user preferences. By analyzing user behavior, demographics, and purchasing history, LBM solutions enable retailers, event organizers, and hospitality providers to deliver targeted messages, promotions, and loyalty rewards based on consumers' precise locations and preferences, thereby driving engagement and conversion rates. These evolving trends, coupled with increasing demand for seamless user experiences, operational efficiency, and data-driven decision-making, are accelerating the adoption of advanced location intelligence solutions across various sectors. The growing LBS market size reflects this expanding adoption, highlighting the significant commercial potential and industry-wide investment in location-based technologies. As part of a broader location based services market analysis, stakeholders are recognizing the value of these innovations in transforming customer engagement and operational strategies.

The major factor driving the LBS industry is due to rise in the demand for navigation and mapping services in industries such as transport, tourism, and delivery services. In addition, the emergence of smartphones and other mobile devices equipped with GPS capabilities has significantly fueled the growth of the LBS industry. Consumers increasingly rely on real-time location data for various applications such as ride-hailing, food delivery, local advertising, and augmented reality experiences. Furthermore, the growing emphasis on data-driven decision-making across sectors such as retail, healthcare, and logistics continues to drive the demand for LBS solutions. 

Moreover, advancements in wireless communication technologies, such as 5G and Wi-Fi 6, are enhancing the accuracy and responsiveness of location-based services, further expanding the use cases across various industries. Businesses are leveraging these technologies to offer personalized and context-aware experiences to customers, boosting engagement and operational efficiency. In addition, the integration of LBS with emerging technologies like artificial intelligence (AI), the Internet of Things (IoT), and big data analytics is enabling smarter applications, including predictive traffic management, proactive customer service, and asset tracking. As digital transformation accelerates across industries, the LBS market size is expected to grow substantially. The demand for innovative and scalable location-based services will remain a key factor propelling the location based services market growth in the upcoming years. 

On the basis of technology, the global location based services market share was dominated by the GPS segment in 2024 and is expected to maintain its dominance in the upcoming years, owing to the integration of location based services with emerging technologies such as IoT, AI, and 5G technologies, enhancing real-time data processing and user experience. In addition, there is a growing trend in the development of infrastructures such as malls and airports, which has led to the growing demand for indoor navigation solutions. However, the Wi-Fi segment is expected to experience the highest growth during the location based services market forecast period. This segment is experiencing increasing penetration of smartphones, along with ubiquity of Wi-Fi networks in urban areas, and increase in use of location based advertising, leading to increased adoption of this technology.  

By region, Asia-Pacific dominated the market share in 2024 for the location based services market. This is due to the increase in the adoption of smartphones in countries such as China and India, driven by the rise in demand for location based services applications, including navigation, social networking, and location-based advertising, contributing significantly to the region’s market growth. However, LAMEA is expected to experience the fastest growth during the forecast period, driven by factors such as the growth of e-commerce fueling the demand for LBS, enabling businesses to offer location-based promotions, optimize delivery logistics, and enhance customer experience. 

Key findings of the study  

• By Component, the software segment held the largest share in the location based services market for 2024.   

• By Technology, the GPS segment held the largest share in the LBS market for 2024. 

• By Application, the location-based advertising segment held the largest share in the location based services market for 2024. 

• By Industry Vertical, the retail segment held the largest share in the LBS market for 2024.   

• Region-wise, Asia-Pacific held the largest market share in 2024. However, LAMEA is expected to witness the highest CAGR during the forecast period. 

The key players profiled in the LBS market are AT&T Inc., Microsoft Corporation, Google LLC, IBM Corporation, Apple, Inc., Qualcomm Technologies, Inc., Oracle Corporation, ALE International, HERE, ROHDE & SCHWARZ GmbH & Co. KG, Cisco Systems, Inc., Telefonaktiebolaget LM Ericsson, Bharti Airtel Limited, Esri, Intellias, and Foursquare. These players have adopted various strategies to strengthen their position in the LBS industry.