Hyperlocal Services Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Market Scenario 

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.

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Market Dynamics 

Drivers:

• Rising smartphone penetration and digitalization: The increasing number of smartphone users and the growing trend towards digitalization are key drivers of the hyperlocal services market. With more and more people relying on their smartphones for shopping and other daily activities, the demand for hyperlocal services that allow for fast and convenient product delivery is growing.
• Urbanization and working population: The rapid urbanization of the world's population and the growing share of the working population are also driving the growth of the hyperlocal services market. As more people move to cities and have less time for traditional shopping methods, the demand for fast and convenient hyperlocal services is increasing.
• Government policies promoting digitalization: Governments around the world are promoting digitalization through various policies and initiatives, such as the Digital India policy, the Philippine Digital Strategy, and the Singapore Digital initiative. These policies are driving the growth of the hyperlocal services market by creating a supportive environment for the development and adoption of digital technologies.

Restraints:

• Competition: The hyperlocal services market is highly competitive, with a large number of players operating in the space. This competition can make it difficult for new entrants to establish a foothold in the market and may limit growth in some regions.
• Difficulty in determining appropriate geographical location: One of the biggest challenges facing the hyperlocal services market is the difficulty in determining the appropriate geographical location for product delivery. This can result in poor product delivery times and decreased customer satisfaction, hindering the growth of the market.

Segmental Analysis of the Global Hyperlocal Services Market 

By Type

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.

By Nature  

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. 

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Regional Analysis 

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:

• 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

Segmentation Overview

By Type segment of the Global Hyperlocal Services Market is sub-segmented into:

• Food Ordering
• Grocery Ordering
• Home Utility Service
• Logistic Service Providers
• Others

By Nature, segment of the Global Hyperlocal Services Market is sub-segmented into:

• Goods Delivery
• Utility Services

By Region segment of the Global Hyperlocal Services Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America