Global Location-Based Service Market Grows at a Staggering CAGR of 23.40%

Introduction

A Location-based service (LBS) is a software application that determines the precise location of a mobile or wireless device. In addition to navigation and tracking the movements of people, objects, and vehicles, these services are also used for location-based marketing. Using a smartphone to access real-time geo-data points to obtain information, entertainment, or security data for later processing is another function of an LBS. The widespread use of wireless devices such as smartphones, tablets, and other portable electronics promotes the growth of social networking sites and creates new channels for location-based marketing and advertising opportunities. The use of business intelligence tools for fraud management and secure authentication is also increasing, as is the demand for active check-in apps. However, rising real-time-based LBS component costs and concerns over the security of personal data are among the factors restraining market expansion.

Market Dynamics

The Surge in Demand for Location-Based Services Drives the Market

The global location-based services market is expected to experience significant growth opportunities over the forecast period due to the persistent demand for location-based applications in e-commerce, food delivery, tourism, and social networking applications. Retailers can analyze consumer preferences by utilizing location-based services (LBS), which also provide quick access to information about goods or services. Retailers, for example, may plan their advertising strategies for their nearest store or area-based offers based on customer location. Retailers will benefit from this because it will allow them to generate more revenue and offer customized goods and services to their customers. When it comes to location-based services, the automotive industry is becoming increasingly functional (LBS). LBS assists drivers of cars and trucks in determining the most efficient route, which reduces downtime and increases productivity. Vehicle telematics, emergency services, traffic services, fleet tracking, and navigation are just a few of the value-added services that automakers make sure to provide to their customers.

New Innovative Advancements allow Exponential Growth

The market is expected to grow as a result of the increased use of cloud computing, GPS, GNSS, wireless technologies, high-precision cameras for unmanned vehicles, and advancements in advanced motion & temperature sensors. Integration of LBS with other wearable sensors, such as those that can measure body temperature, EEG signal, blood pressure, and heart rate to monitor health and provide individualized healthcare information and services, is a key factor in the growth of the global market. The high demand for information services and topographical maps is expected to drive market expansion. Additionally, thanks to advancements in geospatial data processing, data transmission capability, and the scalability of cloud-based platforms, LBS providers should soon have access to lucrative opportunities. Furthermore, new technologies like AI, autonomous systems, and IoT are changing location analytics. During the forecast period, it is anticipated that the demand for location analytics to provide fundamental features like map-based visualization to enable complex analytics for scenario analysis will increase, driving the growth of the LBS market.

Regional Analysis

North America region is the highest contributor to the market and is expected to grow at a CAGR of 21.35% during the forecast period. Regional headquarters are located in a sizable number of companies with operations in LBS. The growth of location-based service (LBS) applications in the transportation and defense sectors has contributed to the expansion of the LBS market in this region. LBS-based applications for geospatial mapping are rising in popularity as a base for NASA and the United States Geological Survey (USGS) operations. Government and military organizations use satellite images for mapping, military reconnaissance, disaster management, and other purposes. These images are taken in the area specified by the LBS solutions. The National Geospatial-Intelligence Agency (NGA), a U.S. intelligence agency, employs LBS through satellite imagery to gather, examine, and disseminate geospatial intelligence about the security of the country. Additionally, the region's high adoption of cloud computing, AI, and the Internet of Things is responsible for the LBS market's quick growth (IoT).

Europe is expected to witness dynamic growth in the location-based service market, with a CAGR of 29.05% during the forecast period. The strong economic conditions have led to the countries' adoption of LBS in several application areas. The market is being driven by the increased use of satellite images by departments responsible for archaeological and heritage conservation. The European archaeological field has advanced in several ways thanks to LBS, including mapping excavation sites and keeping an eye on potential archeological sites. Furthermore, based on observations of the Earth made possible by images captured by satellites and aircraft using LBS, the European Association of Remote Sensing Companies (EARSC) is a trade association that provides information to various sectors, including defense, aerospace, and government. Due to the rising need for 3D imagery and 3D scanning for geospatial and industrial applications, the market for location-based services in Europe is growing. Governmental and commercial institutions in Europe have increased their demand for the global navigation satellite system (GNSS), which helps the market grow.

Asia-Pacific is expected to witness a significant CAGR of 29.7% in the location-based service market during the forecast period. Location-based service providers now have access to a sizable pool of potential customers as a result of the widespread proliferation of GPS-enabled smartphone devices, which is linked to the growth. The growth of this market is also being aided by an increase in internet usage. In addition, it is anticipated that LBS will have a significant market share in nations like India, China, Singapore, and others, as a result of the rising adoption of user-friendly LBS solutions and the significant investments made in the defense, retail, military, and public transportation sectors. The market is propelled by a rise in the number of sectors, including manufacturing, construction, real estate, and tourism, as well as by the uptake of smartphones, location-based marketing, and the incorporation of location-based search into social media platforms. Asia-Pacific is one of the regions that are most vulnerable to natural disasters, such as floods, earthquakes, and cyclones. NGOs and governments can manage these disasters by using LBS solutions to map, monitor, and analyze vulnerable areas.

The LAMEA region is expected to witness a moderate CAGR of 27.3% in the global location-based service market during the forecast period. The market for location-based services is expanding quickly in the LAMEA region as a result of foreign and government investment in the geospatial industry's growth. Archaeological sites, excavations, and research projects are surveyed and examined using LBS. Geospatial mapping in the Middle East is affected by military developments in drone and missile technology, which is anticipated to expand the market for LBS providers there. The energy sector in Africa can use LBS solutions widely. LBS can increase the location's dependability and accuracy when spotting resources.

Key Highlights

• The global location-based service market was valued at USD 55.58 billion in 2022. It is projected to reach USD 368.76 billion by 2031, growing at a CAGR of 23.4% during the forecast period (2023-2031). 
• Based on components, the global location-based service market is bifurcated into hardware, software, and service. The hardware segment is the highest contributor to the market and is expected to grow at a CAGR of 24.4% during the forecast period.
• Based on technology, the global location-based service market is bifurcated into GPS, assisted GPS,  enhanced GPS, enhanced observed time difference, observed time difference, cell Id, Wi-Fi, and others. The assisted GPS (A-GPS) segment is the highest contributor to the market and is expected to grow at a CAGR of 27.45% during the forecast period
• Based on application, the global location-based service market is bifurcated into location-based advertising, business intelligence & analytics, fleet management, mapping and navigation, local search & information, social networking & entertainment, proximity marketing, asset tracking, and others. The mapping and navigation segment is the highest contributor to the market and is expected to grow at a CAGR of 16.2% during the forecast period
• Based on end users, the global location-based service market is bifurcated into transportation & logistics, manufacturing, government & public utilities, retail, healthcare & life sciences, media & entertainment, it & telecom, BFSI, hospitality, and others. The transportation and logistics segment is the highest contributor to the market and is expected to grow at a CAGR of 22.7% during the forecast period.
• North America region is the highest contributor to the market and is expected to grow at a CAGR of 21.35% during the forecast period.

Competitive Players

Competitive Analysis:

The global location-based service market's major key players are ALCATEL-LUCENT, APPLE INC., AT&T Inc., Bharti Airtel Limited, Cisco Systems, Inc., Google LLC, HERE, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, and Qualcomm Technologies, Inc.

Recent Developments

Market News

• In October 2022, Airtel launched an IoT solution that is always on to help vehicle tracking through GPS. Using this IoT solution, vehicles such as ambulances and other passenger vehicles will stay connected via different mobile network operators and ensure constant tracking and safety.
• In October 2022, Microsoft Corporation launched Places, which includes GPS-style navigation for finding meeting rooms to make hybrid work models easier to adopt.

Segmentation

Global Location-Based Service Market: Segmentation

By Component

• Hardware
• Software
• Services

By Component

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

By Application

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

By End Users

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

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA