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Global Hyperlocal Services Market is projected to reach a revenue of US$ 5,123.3 Mn by 2031 up from US$ 1,449.6 Mn in 2022, with a projected CAGR of 15.9% over the forecast period 2023-2031. The concept of a hyperlocal business is to allow local offline stores to connect with their target customers by delivering products within a short timeframe, ranging from a few meters to a few kilometers from the store's location.
The growth of the market is driven by several factors, including the rising penetration of smartphones and digitalization, as well as the increasing popularity of urban culture and working population. The rise in smartphone users, especially in countries such as the US, India, and China, has been a major contributor to market growth. With countries such as India recording the highest mobile data consumption rate at 12 GB per user per month, the market is expected to continue to grow. The acceleration of the digitalization process, especially during the COVID-19 pandemic, has also played a role. Government-led digitalization strategies, such as Singapore Digital, Philippine Digital Strategy, and Digital India Policy, are further boosting market growth.
Urbanization has also been a significant factor in the growth of the hyperlocal market. The world's population has been rapidly urbanizing since 1950, and by 2030, it is expected that 60% of the global population will live in urban areas. Africa and Asia are urbanizing faster than other regions, and China has the largest urban population, followed by India. In addition, the increasing working population has also been driving market growth.
However, the growth of the hyperlocal market is challenged by increasing competition and the difficulty of determining the appropriate geographical location. Despite these challenges, the hyperlocal marketplace model is an innovative way of shopping that is poised for continued growth.
Segmental Analysis of the Global Hyperlocal Services Market
The global hyperlocal services market can be segmented into various types, including home utility services and food ordering services.
Home utility services, which include services such as carpentry, plumbing, and electrical work, have dominated the market in 2022 and are expected to continue their dominance over the forecast period. This can be attributed to the growing popularity of these services among urban populations, as well as the rise of companies such as Urban Company that offer their services through their own network of service providers.
On the other hand, the food ordering segment is expected to register the highest compound annual growth rate (CAGR) over the forecast period. This can be attributed to the increasing popularity of online food delivery services and the growing demand for convenient food options.
Additionally, other types of home services that are gaining popularity include home cleaning services, home maintenance services, and home security services. As the demand for these services continues to grow, it is expected that new entrants and established players will increase their offerings in these segments, further driving the growth of the global hyperlocal services market.
In terms of nature, the global hyperlocal services market can be segmented into two main categories: utility services and personal/household services.
Utility services, which include services such as home maintenance and repair, have dominated the market in 2022 and are expected to continue their dominance over the forecast period. This can be attributed to the growing popularity of these services, as well as the rise of hyperlocal e-commerce platforms that have made these services more accessible to consumers. The COVID-19 pandemic has also increased the demand for utility services, as people have shifted their preferences to these services for safety reasons.
Personal/household services, such as house cleaning and personal care services, have also seen a significant increase in demand in recent years. This can be attributed to the growing popularity of hyperlocal e-commerce platforms, as well as the rise of on-demand services that make these services more convenient and accessible.
North America dominates the Global Hyperlocal Services Market in 2022, with growing investment in start-up businesses and quick adoption of technological changes as major drivers. The US has the highest smartphone penetration rate in the world, with over 273.7 million smartphone users in 2022. Meanwhile, the Asia Pacific region is expected to show the highest CAGR over the forecast period, largely due to the increasing penetration of technology and digitization processes in countries such as China and India.
The Asia Pacific region is emerging as a key player in the global hyperlocal services market, with the highest projected CAGR over the forecast period. The region's growth can be attributed to several factors, including the rapidly increasing smartphone user base and the growing trend of digitalization in countries such as China and India.
In China, the increasing adoption of digital technologies, along with the country's huge population, has created a massive market for hyperlocal services. The Chinese government's efforts to promote digitization, such as the Digital China strategy, have also contributed to the growth of the market. Meanwhile, in India, the increasing number of smartphone users and the growing penetration of digital technologies in rural areas are driving the growth of the hyperlocal services market.
In addition to these two major players, other countries in the Asia Pacific region, such as Japan, South Korea, and Australia, are also showing strong growth in the hyperlocal services market. The region's overall growth is expected to continue in the coming years, driven by the increasing popularity of online shopping and the growing trend towards urbanization.
List of Key Companies Profiled:
By Type segment of the Global Hyperlocal Services Market is sub-segmented into:
By Nature, segment of the Global Hyperlocal Services Market is sub-segmented into:
By Region segment of the Global Hyperlocal Services Market is sub-segmented into:
|Market Size Value in 2022||US$ 1,449.6 Mn|
|Expected Revenue in 2031||US$ 5,123.3 Mn|
|Unit||Value (USD Mn)|
|Segments covered||By Type, By Nature, By Region|
|Key Companies||Askfortask Inc., Delivery Hero Se, Grofers India Private Limited, Grubhub Inc., Handy Technologies, Inc., Housekeep Limited, Instacart, Just Eat Takeaway.Com N.V., Uber Technologies, Inc., Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
Hyperlocal services ensure product delivery at a great speed that too from the customer’s very local trusted store.
The service ambit of a hyperlocal business could fall anywhere starting from a few meters to a few kilometers from the location of the business.
The Global Hyperlocal Service Market was valued at US$ 1,449.6 Mn in 2022.
The Global Hyperlocal Service Market is forecasted to expand at a CAGR of 15.9% over the projection period.
The market is majorly driven by factors such as increasing smartphone penetration & digitalization across countries and rising adoption of urban culture & increasing working population.
Rising competition and the problem of determining appropriate geographical location is hindering market growth.
Increasing small & medium business is providing an emerging opportunity for market expansion.
Home utility services hold the highest share in the Global Hyperlocal Service Market in 2022.
North America dominates the Global Hyperlocal Service Market in 2022.
The Asia Pacific region holds the highest CAGR over the forecast period.
The key players in the Global Hyperlocal Services Market are Berkem, International Flavors & Fragrances, Inc., Kuber Impex Ltd., and Naturex, among others.