These services are used in navigation, tracking, location-based advertising and alerts. With increased penetration of smartphones and other connected devices, use of location services has increased significantly. These services provide information to users about items or places of interest located nearby and help users find direction for reaching desired locations. The global location-based services market is estimated to be valued at US$ 44044.73 Bn in 2024 and is expected to exhibit a CAGR of 16.% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the location-based services are Saskatchewan Research Council (SRC); SC Labs; Steep Hill, Inc.; SGS Canada Inc.; CW ANALYTICAL; PharmLabs; GreenLeaf Lab; Eurofins Scientific. These players are investing in R&D to develop advanced location-based analytical solutions.
There is immense potential for location-based advertising as advertising can now be customized based on consumer locations and preferences. Location-based analytics can also help companies gain valuable insights about customer footfall and purchasing behavior.
Many companies are expanding their location-based service offerings globally to capitalize on the growing market demand. Companies are partnering with local players to offer customized solutions catering to regional needs. Acquisitions are also allowing companies to broaden their geographic footprint and service portfolio.
Market drivers
One of the key drivers for the Global Location-Based Services Market Size is increased adoption of mobile technology. Availability of affordable smartphones and falling data prices have increased internet and location service adoption globally. According to reports, over 85% of the global population now has access to high-speed 3G or 4G networks. This widespread connectivity allows for easy implementation of location-based services.
Market restrain
Major restrain for the location-based services market is privacy and security concerns. Users are skeptical of sharing live location data due to fear of stalking, theft and surveillance. They are also concerned about how their location history can be used for profiling behaviors without consent. Strict privacy laws have been proposed in some regions to address such issues and gain user trust for these services. However, compliance comes at an increased cost for service providers.
Segment Analysis
This market can be segmented by component, type, application, location type and vertical. The component segment includes hardware, software and services. Among them, the hardware sub segment is dominating currently due to high adoption of GPS enabled devices for tracking purposes across various industries. The software and services segments are anticipated to witness higher growth during the forecast period owing to emergence of IoT and growing need for processing location data among organizations.
Based on type, the market is bifurcated into outdoor and indoor. The outdoor location based services sub segment holds major market share currently as they find widespread application across various outdoor activities like ride sharing and navigation. However, the indoor location based services segment is expected to register higher CAGR during the forecast years as they help in efficient management of resources within buildings and provide enhanced experience to customers indoor.
The key applications where location based services find usage includes mapping and navigation, asset tracking, concierge, social networking and proximity, targeted advertising and others. Among them, the mapping and navigation segment dominates currently led by rising adoption of ride sharing and car rental services. The asset tracking segment is anticipated to witness substantial growth rate owing to expanding IoT landscape and need for tracking high value assets across various industries including healthcare and transportation.
Some of the major location types covered are indoor, outdoor and geographic fencing. Meanwhile, key industry verticals utilizing location based solutions include transportation & logistics, manufacturing, government & public utilities, retail, healthcare & life sciences, media & entertainment, BFSI and others.
Global Analysis
On the basis of region, North America is expected to dominate the overall location-based services market during the forecast period. This is majorly attributed to strong presence of key solution providers and early adoption of emerging technologies like IoT and analytics in the region. Europe holds the second largest market share driven by strong government support for digitalization of businesses especially across manufacturing, transportation and healthcare sectors. Asia Pacific is anticipated to witness highest growth rate during the forecast years owing to rapid digitization initiatives in countries like China and India. Rising penetration of smart phones in the region along with government emphasis on infrastructure development are further supporting market growth of location based services in Asia Pacific. Latin America and Middle East & Africa are also emerging as high potential regional markets and expected to register steady growth during the coming years.
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