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Global location-based services market generated a revenue of US$ 56,578.1 million in 2022 and it is estimated to reach a valuation of US$ 3,73,382.5 million by 2031 at a CAGR of 24.2% during the forecast period, 2023–2031.
Location Based Services (LBS) is a technology that leverages mobile devices' geolocation to offer personalized, real-time services. Utilizing GPS satellites, cellular ID, and beacons, LBS integrates data to provide users with services based on their current location. In recent years, the widespread adoption of smartphones and tablets has led to the mainstream usage of LBS and its applications
Location-Based Services has revolutionized the way businesses interact with their customers by providing location-aware services and offers. With the ability to track user location in real-time, businesses in the location-based services market are focusing on tailoring their services to meet the specific needs of individual customers, improving customer satisfaction and loyalty. The technology not only benefits businesses but also empowers consumers by providing relevant information and services based on their current location. With nearly two decades of existence, LBS has proven its worth and has become an essential component of the mobile industry. As technology continues to advance, the potential for LBS to transform the way we interact with our surroundings is limitless.
Key Dynamics of Location- Based Services Market
Privacy Issues in Location-Based Applications
Location Based Systems in Healthcare
Healthcare is turning to location-based services (LBS) powered by real-time location systems (RTLS) to improve performance. RTLS technology allows the seamless communication of the current location of people, assets, equipment, and more. LBS solutions in healthcare collect vast amounts of data that drive efficiency and profits. Hospitals are using RTLS to manage patients and respond to emergencies effectively.
Location-based services also help staff track assets and find equipment quickly. Instead of manual searching, employees can view a screen to know the exact location of objects in the location-based services market. The technology also offers people tracking, making it easier for hospitals to delegate tasks to staff. This feature is especially beneficial in healthcare environments.
The location-based services market is divided into two components: solutions and services. In 2022, the solutions segment had the highest revenue share, but the service segment is expected to grow at the highest rate during the forecast period due to increased adoption of service software across various industries.
The high demand for the solutions segment is driven by its widespread use for effective marketing, geo-tagging, and user-based multimedia content. The solutions segment is further sub-divided into location intelligence solutions, location-powered mobile applications, and location-based messaging. Location intelligence solutions offer benefits such as risk management, predictive analytics, real-time trend and pattern tracking, and streamlining of business operations and services.
Location Type Analysis:
By location type, the market is divided into indoor and outdoor. The outdoor segment captured the largest share of the location-based services market. This is due to the increasing demand for outdoor navigation and mapping applications and increasing deployment of outdoor location-based services, growing need for advanced route mapping solutions, and increasing availability of outdoor GPS navigation applications.
With positioning technologies such as Bluetooth Low Energy, RFID, and Ultra-Wideband, the market for indoor location services is also growing in demand, leading to advances in production and efficient improvements in customer experience.
By technology, the market is segmented into Global Positioning System (GPS), Global Navigation Satellite System (GNSS), Wi-Fi, Cellular ID, Bluetooth Beacons and others.
Among these, the GPS segment held the highest revenue share of the location-based services market in 2022. This segment is growing due to the popularization of smartphones, and the increasing number of GPS-enabled vehicles which has increased the demand for GPS.
The GNSS segment is valued at US$ 13978.3 million in 2022 and is projected to reach US$ 97849.7 million during the forecast period. The increasing use of global navigation satellite systems as standard navigation systems, providing global positioning for smartphones and road vehicles, among others, will lead to an expansion of the market. With the advancement of information technology and mobile phone technology, the number of applications using PVT (Position, Velocity, Time) services provided by space-based navigation systems has also increased.
Also, the most commonly used methods for locating mobile device are Wi-Fi, GNSS, cell tower triangulation and single cell tower.
By application, the mapping and GIS segment holds the largest share in the location-based services market. This segment is gaining importance in transportation applications such as traffic planning & modelling, road maintenance, accident analysis and route planning. GIS helps transportation planners store and analyze geospatial data and mapping of transportation features using basemap.
The business intelligence and analytics segment includes traditional business analytics systems such as business intelligence (BI), customer relationship management (CRM),enterprise resource planning (ERP), enterprise asset management (EAM), as well as productivity tool like Microsoft Office and collaboration tool like Microsoft SharePoint.
Increasing use of social media and smartphones is also driving the growth of the location-based services market. Deployment of smart devices and increasing application of the product with location-based services will contribute to the growth of the market in the coming years. Additionally, the increasing number of mobile devices and the increasing trend of navigation and map-based visualization are creating demand for the location-based market.
End User Analysis
Based on end-users, the transportation and logistics segment accounted for the largest share of the location-based services market in 2021. Demand in the transportation industry is growing due to growing demand for GPS vehicle tracking devices and personal tracking systems. Growing demand for GPS vehicle tracking software to monitor performance and improve vehicle efficiency, and technological advances in mapping and navigation systems are the Key factors behind the growth of the transportation and logistics segment.
The Asia Pacific region is expected to witness the highest growth rate in the location-based services market. This is due to the rising deployment of LBS in countries in the region. The integration of location information into wearable devices has revolutionized user-based services and applications.
In Asia Pacific, LBS are now widespread, with an estimated 90% of all smartphone apps relying on GNSS data. These cover a wide range of areas, from personal navigation and geo-marketing to sports and social networking. Additionally, the growth of innovative applications such as augmented/virtual reality and games will drive the need for high-accuracy, high-speed location information.
The region is also the world leader in shipping LBS devices, with nearly 1 billion devices shipped from the region in 2016, accounting for over 50% of the global location-based services market. countries like China, Japan, and South Korea, the LBS market is thriving, driven by increasing adoption of user-friendly LBS solutions and heavy investments in the defense, military, retail, and public sectors. Other industries, such as manufacturing, real estate, construction, and tourism, are also driving growth in the region.
The rise of smartphones and location-based marketing, search, and integration with social networking sites is also promoting the LBS market in Asia Pacific. In particular, China is a key location-based services market, driven by significant investments in building infrastructure and technological capabilities, as well as high internet and mobile penetration. In India, social media penetration has also seen a significant increase.
Top Players in Location-Based Services Market
The global location-based services market is dominated by leading players such as Google, Apple, Microsoft, IBM, HERE, Oracle, and TomTom. In 2022, these 6 players held approximately 42% of the market share, making the market highly consolidated. However, the market could see changes in the future with new players entering and existing players increasing their market share.
To maintain their dominance, the major players are implementing growth strategies, such as developing new solutions and enhancements to meet customer demands, and investing in innovative services that appeal to the market. These efforts aim to secure their supremacy in the location-based services market.
List of Key Companies Profiled:
By Location Type
By End User
Global positioning system (GPS), global navigation satellite system (GNSS), Wi-Fi, cellular id, Bluetooth beacons, and others are the main types of technologies under the location-based services market that are expected to grow substantially in the future.
Major applications where location-based services are being used includes inventory monitoring, mapping & GIS, asset tracking, proximity marketing, social networking, fleet management, navigation, and business intelligence & analytics.
The main benefits of location-based services include improvement in the customer experience, receiving detailed insights into customer behaviour, maximizing the marketing efforts etc.
Location-based services (LBS) have become a necessary business tool for enterprises, especially in industries such as hospitality, automotive, banking, and transportation & logistics. The need for location-based services in enterprise is increasing as it allows you to offer more relevant content and information, rather than spamming users with ads and opportunities that are useless to them. Location-based services also enable customers to share their experiences with others in their network, which can help spread the word about your business.
The global location-based services market is projected to grow at a CAGR of 24.24% during the forecast period 2023-2031 and is expected to reach US$ 3,73,382.5 million by 2031.
Factor such as spurred demand for location-based services in enterprises and it’s rising applications in tourism are likely to drive the market over the coming years.
The service segment holds the largest CAGR in the global location-based services market during the forecast period, 2023-2031.
Privacy issues in location-based applications inhibits the growth of the location-based services market during the forecast period.
Asia Pacific holds the major share in term of revenue in the global location-based services market in 2022.
China holds the major share in term of revenue in the Asia Pacific location-based services market in 2022.
Location based-systems in healthcare provides a lucrative growth opportunity in the location-based services market.
Component, Location Type, Technology, Application, End User, and Country are the different segments in the global location-based services market.
Google, Apple Inc., Microsoft, IBM, and Oracle, among others are some of the major key players in the global location-based services market.