The location-based services market size was USD 29.53 Bn in 2019 and expected to reach USD 202.19 Bn by 2027; this converts into a compound annual growth rate (CAGR) of 27.2% for the forecast period.
Based on geography market is segmented as below:
The term location based applies to any technology that uses real time tracking to operate. Location-based services (LBS) generally use global position system (GPS) technology to track the whereabouts of a person/object.
The logistics and transportation industry captured around 15% of the location-based services market globally in 2019. Since, the transportation industry is one of the major industry vertical of the LBS market, disruptions in supply chain and standstill of operations, due to the pandemic, has resulted in a decline in growth rate. However, the demand for these services to monitor the spread of the COVID-19 virus in high density populations is gaining traction and projected to positively influence the market.
The diversification of location-based services coupled with its proliferation into various sectors such as defence, civil engineering, media & entertainment, tourism, etc. will propel the market growth. The surge in use of navigation apps may further drive the market forward. However, the absence of security measures that ensure privacy and high cost of real-time LBS may have a negative impact on the overall market.
The hardware segment accounted for around 40% of the market share in 2019 owing to factors such as the advent of digitization among various industries, increased proliferation of smartphones and surge in usage of 3G & 4G networks. However, the services segment is anticipated to expand at a CAGR of more than 25%.
Location-based advertising offers location-specific marketing which is more effective than traditional marketing. As a result, by application, the segment is expected to grow at a CAGR of more than 30% during the forecast timeline. However, the mapping & navigation segment held nearly 20% of the market share in 2019.
The assisted GPS segment led the market, capturing close to 20% in 2019. Nevertheless, the others segment is envisaged to grow at a CAGR of more than 30%.
Among end-user industry vertical, the transportation & logistics segment garnered approximately 15% of the market. Nevertheless, the retail segment is projected to rise at a steady rate of around 31% throughout the forecast period.
North America is expected to lead the location-based services market due to the presence of well-established players in the region and heavy investments & financial support from government and other regulatory bodies for the integration of technologies such as AI, cloud computing, IoT, etc. with LBS.
Asia – Pacific is projected to expand at the fastest rate due to the growing transportation & logistics industry, increase in demand for smartphones and the surge in the number of automobiles.
The growth of the market in the Middle Eastern and African regions is a consequence of the continuous exploration and development of software platforms that enhance location services in the region.
Some of the key players operating in the location-based services market include, but not limited to: Alcatel-Lucent SA, Apple Inc., AT&T Inc., Bharti Airtel, LTD., Cisco Systems Inc., Google Inc., HERE, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation and Qualcomm Inc.