Location-based services (LBS) use geo-location technologies to provide information, entertainment or utility services to customers based on their geographical location. These services are used across fields such as healthcare, transport, retail and media & entertainment among others. LBS uses the latitude and longitude obtained from satellites to pinpoint the exact location of the user. It can identify the location of a person/asset/vehicle through a variety of methods like using GPS, Wi-Fi or cell tower triangulation.
Location data is increasingly used by companies to gain insights into customer mobility patterns and behaviors. This helps businesses deliver enhanced and personalized customer experiences. LBS also enables location-based advertising which allows promoting relevant offers and services to customers within a specified local area. The growing demand for digital & location-based advertising is one of the major factors driving the growth of the global LBS market.
The Global Location-Based Services Market Size is estimated to be valued at US$ 44044.73 Billion 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 market are Saskatchewan Research Council (SRC); SC Labs; Steep Hill, Inc.; SGS Canada Inc.; CW ANALYTICAL; PharmLabs; GreenLeaf Lab; Eurofins Scientific
– Rapid urbanization and growing use of smartphones are propelling the demand for LBS from industries such as retail, transport, and media & entertainment for applications including fleet management, field sales, and location-based advertising.
– Technological advancements in geo-location technologies such as GPS, Wi-Fi, Bluetooth, RFID are enhancing the accuracy and effectiveness of LBS. Integration of LBS with AI and analytics is further augmenting their utility.
Market Trends
– Indoor location-based services: With the advent of technologies like iBeacon, Wi-Fi triangulation and UWB, LBS providers are shifting focus to offer indoor navigation and mapping services to help users locate products or navigate within buildings like malls and airports.
– Augmented reality powered location services: Leading technology companies are working on AR applications integrated with location data to create interactive augmented experiences. For example, visual marker based AR experiences that provide location-specific information.
Market Opportunities
– Location-based marketing: Growing mobile advertising spending on location-based campaigns provides major opportunities for LBS vendors to partner with brands and offer customized & localized promotional offers.
– Enterprise location services: Demand from enterprises across sectors for fleet management, field force optimization, asset tracking using IoT and geo-fencing based location solutions is opening new revenue streams.
Impact of COVID-19 on Location-Based Services Market Growth
The COVID-19 pandemic had a profound impact on the growth of the location-based services market. During the initial lockdown phases in early 2020, businesses were forced to shut down operations as people were confined to their homes. This led to a steep decline in the demand for location-based advertising and marketing services. With mobility restrictions enforced to curb the virus spread, footfalls to physical retail stores dipped drastically and overwhelmed the market. However, as contactless delivery gained traction, location-based services played a pivotal role in enabling essential services. Food delivery and on-demand services pivoted to location-based technologies for order fulfillment.
As lockdowns started easing in late 2020, location-based services market started recovering gradually post-COVID. The need for social distancing drove more users to adopt location-based apps for wayfinding, navigation and turn-by-turn directions while commuting. Businesses increasingly relied on proximity marketing solutions for digital customer engagement. Live maps and geo-location functionalities were incorporated into apps and platforms for safety tracking. Indoor navigation gained significance with office and mall reopenings. Going forward, trends like hybrid working, hyperlocal commerce and outdoor activities are expected to fuel the demand for personalized, localized experiences and location intelligence solutions.
North America Dominates Location-Based Services Market
North America holds the major share of the global location-based services market in terms of value. The large-scale presence of leading technology companies and prominent location platform developers in the US and Canada have accelerated innovations. Moreover, high smartphone and internet penetration coupled with the aggressive adoption of new technologies supplement market growth. Large enterprises across sectors have implemented LBS for various business functions including field force optimization, digital marketing and asset management. Besides, the trend of connected vehicles, AR/VR and urban mobility is further propelling demand.
Asia Pacific Emerges as Fastest Growing Region
Asia Pacific region is emerging as the fastest growing market for location-based services globally. Countries like China, Japan, India and South Korea are experiencing rapid urbanization and digital transformation. This has boosted the implementation of location-based platforms for navigation, social networking and indoor mapping. Furthermore, the rising disposable incomes, growing millennial population and increasing investments by international players in the region are fueling the regional market expansion. The spreading awareness about LBS benefits and government initiatives for smart infrastructure development also drive the Asia Pacific location-based services industry.
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