Location-Based Services Market By Component, By Application, By Technology, By Industry Vertical, and By Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2017 To 2027.

Location-Based Services Market Definition and Estimation:

The term location-based applies to any technology that uses real time tracking to operate. Location-based services (LBS) use global position system (GPS) technology to track the whereabouts of a person/object. For example, if the GPS function of a smartphone is enabled by a user, location-based apps such as Google Maps, Foursquare, Yelp and even Facebook Places can pinpoint the position of the user accurately. While this technology is predominantly used with mobile phones, it can be integrated with many other devices.

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.

Location-Based Services Market Overview:

The transportation industry captured nearly 15% of the location-based services market globally in 2019. The industry is dependent on several factors such as fuel costs, labor, demand for services, government regulation, and geopolitical events. The pandemic has caused disruptions in the supply chain and a standstill of operations. This has resulted in a decline in demand for LBS. However, the growing demand for these services to monitor the spread of the COVID-19 virus in high-density populations is gaining traction and projected to offset the decline in market growth.

The Location-Based Services Market is Segmented to include:

By Component

• Hardware
• Software
• Services

By Application

• Location-based Advertising
• Business Intelligence & Analytics
• Fleet Management
• Mapping and Navigation
• Local Search & Information
• Social Networking & Entertainment
• Proximity Marketing
• Asset Tracking
• Others

By Technology

• GPS
• Assisted GPS (A-GPS)
• Enhanced GPS (E-GPS)
• Enhanced Observed Time Difference
• Observed Time Difference
• Cell ID
• Wi-Fi
• Others

By Industry Vertical

• Transportation & Logistics
• Manufacturing
• Government & Public Utilities
• Retail
• Healthcare & Life Sciences
• Media & Entertainment
• IT & Telecom
• BFSI
• Hospitality
• Others

Factors such as the advent of digitization among various industries, increased proliferation of smartphones and surge in usage of 3G & 4G networks are driving the growth of the hardware segment. It accounted for 40% of the market share in 2019, accumulating over USD 12 billion in revenue. However, the services segment is projected to expand at a compound annual growth rate of over 25% owing to the rising demand for integration & implementation, support & maintenance as well as consulting solutions from various industry verticals.

Location-based advertising offers location-specific marketing that is more effective than traditional marketing. As a result, the segment is expected to grow at a CAGR of more than 30% during the forecast timeline. However, due to its extensive use by individuals and corporations alike, the mapping & navigation segment held nearly 20% of the market share in 2019.

The assisted GPS segment led the location-based services market, capturing close to 20% in 2019. The segment garnered over USD 5.5 billion in revenue. Nevertheless, the Others segment is expected to register a CAGR of more than 30%.

The use of location-based services in the transportation & logistics industry enables tracking of material, resources, etc. in real-time. With the growth of e-commerce, usage of location-based technologies for tracking is expected to rise further. Therefore, the transportation & logistics segment garnered approximately 15% of the market. Nevertheless, the retail segment is projected to rise at a steady CAGR of around 31% during the forecast period.

Location-Based Services Market Geography Overview:

Based on geography market is segmented as below:

• North America
• Europe
• APAC
• Latin America (LATAM)
• Middle East & Africa (MEA)

North America is home to a few giants of the technology industry such as Google, IBM, Apple, Microsoft, and many more. Their presence has resulted in an extensive adoption of location-based services in the region. Moreover, heavy investments and financial support from the government and other regulatory bodies are pushing for the development of newer technologies such as AI, cloud computing, IoT, etc. This when integrated with LBS will propel the growth of the market. Consequently, North America is estimated to account for the largest market share during the forecast period.

Asia-Pacific is projected to expand at the fastest rate owing to the growing transportation & logistics industry. Rising population and disposable income, increase in demand for smartphones and the surge in the number of automobiles are a few more factors boosting the regional market. 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.

Location-Based Services Market Dynamics

Currently, location-based services are used for navigation, asset tracking, proximity-based marketing, and so on. However, the diversification of these services, into fraud prevention, context advertising, mobile workforce management, geology mapping and more, will propel market expansion. The surge in the use of navigation apps may further drive the market forward. Furthermore, the increase in demand from various sectors such as defense, civil engineering, media & entertainment, tourism, etc. will boost the market growth. Another important factor positively affecting the location-based services market is its proliferation into business analytics solutions.

However, on the flip side, there exists various operational challenges that may hamper the growth of the market. The absence of security measures that ensure privacy and the high cost of real-time location-based systems are a few challenges that may adversely impact the market progress.

The market is studied by analyzing all the key market participants across the ecosystem. The key players 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
• Qualcomm Inc.

Recent News and Developments in the Location-Based Services market:

1. TomTom N.V. partnered with Verizon to improve Verizon’s location-based data, navigation, and intelligence suite in April 2020. Verizon will integrate TomTom’s Maps APIs and SDKs into its location services offering.
2. In February 2020, Cisco featured a Multiscreen-as-a-Service, in a location-based service app published by Phunware Inc. in its Meraki platform. The software offers various features including an Indoor routing and navigation, off-route notification, and location sharing.
3. Indian Space Research Organization (ISRO) entered an agreement with Qualcomm in October 2019 to enhance the geolocation capabilities of mobile, automotive and IoT solutions.

Why buy this Report?

How big is the location-based services market?       

The market size was USD 29.53 Bn in 2019 and expected to reach USD 20.22 Bn by 2027.

What is the estimated market growth?         

The market is estimated to grow at a compound annual growth rate (CAGR) of 27.2% during the forecast period.

Which geography accounted for the largest market share?

In the base year, North America held the largest geographic share in the location-based services market.

Which geography is lucrative for investments in the market?

With the highest growth rate, APAC is the most lucrative region in the location-based services market for investments.

By component segmentation, which is the fastest growing sub-segment?  

Services is the fastest-growing sub-segment when analyzing the market by component.

Who are the key players in the location-based services market?

Key players 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, Qualcomm Inc.

Related Reports