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The location-based services (LBS) market size is forecast to increase by USD 296.3 billion at a CAGR of 32.77% between 2023 and 2028. The market is witnessing significant growth due to the increasing demand for personal and enterprise navigation services. The rise in the adoption of smartphones and the availability of accurate location data are major factors driving the market. Additionally, the growing popularity of location-based gaming and social media applications is fueling market growth. However, privacy and security concerns remain a significant challenge for the market. Adapting to the evolving MarTech series and ensuring seamless integration with businesses, mobile phones, and tablets remains crucial amidst dynamic market trends. With the increasing use of location data, there is a growing concern among consumers about the potential misuse of their personal information. As a result, there is a need for strong security measures to ensure the protection of user data. Overall, the market is expected to continue its growth trajectory, driven by the increasing demand for location-based services in various industries and the continuous innovation in technology.
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The market share growth by the hardware segment will be significant during the forecast period. The hardware segment include passive and active radio frequency identification (RFID) tags, beacons, and sensors. They can use existing infrastructure like Wi-Fi access points or might require upgrading of the prevalent infrastructure with components like infrared (IR) sensors and RFID or sonar components as per requirements. For instance, Hewlett Packard Enterprise Development provides Aruba Tags that produce location-based data within the range of BLE-enabled access points.
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The hardware segment shows a gradual increase in the market share of USD 13.90 billion in 2018 and continue to grow by 2022. Aruba tags have other features like batteries that require minimal maintenance as well as compatibility with medical applications and can be remotely controlled and easily deployed. Moreover, components used like RFID tags are economical and offered by numerous companies such as AiRISTA Flow. They also have motion sensors to determine the transmission intervals, which help in battery usage optimization. Hence, other factors are likely to contribute to the growth of the market during the forecast period.
The outdoor location-based services segment plays a vital role in improving the response times of emergency services. This ensures that government and local authorities can build cities keeping in mind population density from heat map which also enables public transport managers to predict and adjust routes to match the actual and future needs of commuters. This helps reduce congestion, improve safety, and optimize traffic clearance. Moreover, they help provide retailers, developers, and franchises with key location-based insights on which they can further leverage AI and other technologies to improve customer relationship management (CRM) and business intelligence (BI). Banks can utilize location-based data to drive branch expansion and optimize their regional promotions. Hence the above factors are likely to boost the growth of the market during the forecast period.
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North America is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America, which is also integrating AI and cloud computing into its services. Moreover, the demand for location-based services is greatly driven by the retail market which can utilize strategies like discounts and other offers, increasing sales revenue. Other industries that utilize location data and are demanding similar location-based services include the telecommunications, manufacturing, retail, and healthcare industries. Other factors that are driving the market in the US include high smartphone penetration and an increasing shift toward E-commerce. Hence, all these factors will result in market growth in North America during the forecast period.
The market is being driven by advancements in UWB (Ultra-Wideband), RFID (Radio-Frequency Identification), and BLE (Bluetooth Low Energy) technologies, facilitating precise geolocation data utilization. The proliferation of connected devices and IoT devices augments demand, while AR/VR technologies enhance enriching virtual experiences. Location intelligence drives contextual advertising and location-based advertising, ensuring accuracy and relevance. However, challenges such as privacy concerns surrounding IP addresses and data security persist, necessitating strong measures. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in demand for personal and enterprise navigation services is driving market growth. These include real-time navigation, LBA, and payment services, which help generate revenues through map updates fees and advertisements. Baidu offers a map application that gives a variety of location-based services like restaurant or hotel reservations, taxi booking, movie ticket booking, and traffic updates. Additionally, the efficiency of workforce management services, which enhances business productivity and operational efficiency, is boosted by greater smartphone penetration. Real-time sensors also can help logistics companies to track goods' movement.
Additionally, car navigation is increasingly shifting towards the adoption of voice assistance technology, which can reduce possible distractions associated with touch-based navigation. For ease of integration of devices with LBS, Apple Inc. CarPlay allows users to use the audio system of their iPhone devices, including Siri. Moreover, leading car manufacturers like Volkswagen, BMW, and Toyota are offering in-built GPS navigation. Hence, the above factors are likely to boost the growth of the market during the forecast period.
The growing popularity of location-based gaming is a key trend in the market. These include interactive map-based mobile gaming like Pokémon Go, and Geocaching that involve the player interacting in the game environment to progress further. This has transformed the gaming industry into an as-a-service model incorporating technologies like cloud computing, 5G, and virtual reality (VR). Game developers have included location analytics tools for players to track their movement and the movement of other players.
Additionally, there are even games that involve real-world locations such as Hello Kitty AR: Kawaii World launched by Bublar Group AB which uses the Google Maps Platform. This helps it incorporate a location-based augmented reality (AR) with real and imaginary locations in the game. Hence, the increasing popularity of such games shall boost demand for location-based services by game developers and result in further market growth during the forecast period.
Privacy and security issues are challenging market growth. For receiving coupons, deals, and promotions, people need to reveal personal and private information to advertisers and third parties, which results in the possibility of data leakage. Additionally, because these platforms are location-based, network providers have access to the real-time location of users and this could be shared without their consent. End-users are concerned about their privacy despite the presence of legal frameworks to safeguard it.
Hence, service providers must ensure adherence to regional and global data privacy laws, which will also help retain consumer trust. One such key regulation is the General Data Protection Regulation, passed by the European Parliament in April 2016 to ensure data privacy and legal use of customers' location data. Hence, data security and privacy are key challenges that could hinder the growth of this market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AiRISTA Flow Inc. - The company offers location-based RTLS solutions that provide location insights into people and assets.
Alphabet Inc. - The company offers location-based services under Google Cloud partner location.
Apple Inc. - The company offers location-based services that help to protect personal information on iPhone, iPad, iPod touch, and Apple Watch.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the dynamic landscape of the market, innovations in Smartphones and Assisted GPS (A-GPS) have paved the way for enhanced Location-based marketing strategies. Technologies like Enhanced GPS (E-GPS) and Enhanced Observed Time Difference (E-OTD) offer precise Navigation and Tracking capabilities, while Cellular ID and GIS and Mapping solutions facilitate accurate Geo Marketing and Advertising campaigns. Social connectivity through platforms like Social Networking and Entertainment fuels engagement, while Fleet Management systems optimize operations based on real-time data.
Leveraging user's actual location data, location service providers integrate Internet of Things (IoT) sensors to analyze fuel consumption and improve public service effectiveness. strong mapping tools track footfall patterns to target the target audience effectively, with seamless installation and deployment. Utilizing Wi-Fi location-based services and Coolpad technology, providers like Skyhook Wireless offer cost-effective solutions as a potent marketing tool for customer engagement. This amalgamation of imagery solutions and monitoring applications revolutionizes infrastructure development, catering to diverse locations such as shopping malls, parks, schools, and hospitals, extending even to home and local area networks (WLAN) for comprehensive coverage. The market is expanding rapidly, driven by advancements in positioning technologies and satellite-based GPS. Real-time location tracking using RTLS (Real-Time Location Systems) and wireless-assisted GNSS enhances the accuracy of indoor location services and 3D mapping applications. Technologies like Bluetooth beacons and A-GNSS are pivotal for mobile positioning in smart city projects and autonomous vehicles. Hybrid technologies and observed timed difference of arrival (OTDOA) are improving the precision of GIS (Geographic Information Systems) and 3D mapping. As smartphone use and mobile apps become ubiquitous, artificial intelligence is increasingly utilized for optimizing local search, food delivery services, and transportation and logistics. The integration of IoT technology and 5G infrastructure further propels the market, supporting innovative solutions across various sectors including disaster information systems and transportation.
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Market Scope |
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Report Coverage |
Details |
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Page number |
185 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 32.77% |
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Market growth 2024-2028 |
USD 296.3 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
26.69 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 48% |
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Key countries |
US, China, Germany, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AiRISTA Flow Inc., Alphabet Inc., Apple Inc., AT and T Inc., Bayerische Motoren Werke AG, Cisco Systems Inc., Emanate Wireless, Esri Global Inc., Foursquare Labs Inc., General Electric Co., Halma Plc, Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Oracle Corp., Qualcomm Inc., Siemens AG, Telefonaktiebolaget LM Ericsson, Zebra Technologies Corp., and Ziff Davis Inc. |
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Market dynamics |
Parent market analysis, Market growth analysis, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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