According to a recent report published by Allied Market Research, titled, "Location-based Services Market by Component, Technology, Application, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2019-2026," the location-based services market size was valued at $23.74 billion in 2018, and is projected to reach $157.34 billion by 2026, growing at a CAGR 27.1% from 2019 to 2026.
Location-based services are widely used for mapping, especially in the North America and Asia-Pacific. This is a major factor that propels the growth of the market. Conventional techniques such as control point method, triangulation, trilateration, compass, transits, metal tapes, and others are inefficient for the estimation and planning of land and natural resources. In such scenarios, location-based solutions have emerged as effective tools for disaster and natural resource management. The use of technologically advanced mapping software, camera solutions, unmanned vehicles, and sensors reduce the risks associated with cost 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 factor to drive the growth of the global location-based services market.
The applications of location-based services are influenced by its increased implementation across various verticals. Moreover, technological advancements in software & hardware components and their increased adoption in navigation solutions drive the growth of the market. However, unorganized security regulations and high cost of components restrict the adoption of location-based services, which, in turn, is expected to hamper the growth of the LBS market to a certain extent.
Location-based services are 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 drive the market. In addition, increase in applications of satellite imaging such as geographical mapping, disaster management, energy management, and security & surveillance have boosted the demand for location-based services, which is expected to fuel the growth of the location-based services market. Advancements in technologies such as remote sensing technology, GPS technology, and cloud service are expected to provide numerous opportunities for the growth and development of the market players. Regions covered in this market research include North America, Europe, Asia-Pacific, and LAMEA.
Key Findings of the Location-based Services Market :
- By component, the hardware segment dominated the location-based services market share. However, the services segment is expected to exhibit significant growth during the location-based services market forecast period. The services segment growth is attributed to the growing demand for service-as-a-solution suite among industries opting for digitalized business and process operation.
- By technology, the assisted GPS segment accounted for the highest revenue in 2018. The location-based services industry anticipates highest growth in terms of deploying assisted GPS solutions into smart devices such as smartphones.
- By application, the mapping and navigation segment exhibited highest revenue in 2018 and is further expected to propel the location-based services market growth during the forecast period.
- By industry vertical, the transportation & logistics industry generated the highest revenue in 2018. This is attributed to high demand for location-based services for applications such as fleet management, asset management, and others.
- Region-wise, North America dominated, in terms of revenue in 2018, and Asia-Pacific is expected to witness significant growth, in terms of CAGR in 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, product development, and others to stay competitive in the market. This study includes location-based services market analysis, trends, and future estimations to determine the imminent investment pockets.