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The global location-based services market size was valued at USD 22.16 billion in 2022. The market is projected to grow from USD 26.22 billion in 2023 to USD 95.66 billion by 2030, exhibiting a CAGR of 20.3% during the forecast period.
Location-based services use IP addresses and real-time geolocation data to provide information relevant to a user's actual location. It ensures that users have access to timely and accurate information on their surroundings while providing businesses with a means of updating customers about the services they use.
The location-based services market growth is expected to be driven by the growing use of connected devices, such as mobile phones and tablets and the easy availability of GPS. In addition, the market share is expected to be stimulated by a growing use of location-based technologies for promoting applications during the forecast period. For instance, according to the MarTech series 2021, more than 80% of advertisers said location data could lead to more successful campaigns.
Rising Need for Wi-Fi-based Location Solutions During COVID-19 Pandemic Fueled Market Demand
The COVID-19 pandemic brought a stagnant change. Key market players were reluctant to anticipate the recovery of the location-based service market due to uncertainties about the duration of lockdowns. The growing demand for Wi-Fi-based location solutions drives economies to shift their focus from responding to a pandemic to recovery, which may lead to different growth opportunities for players in this market. Historical and predictive insight into patient behavior can be gained through contextual information and geographical insights from digital maps and location-based technologies. It simplifies the planning and implementation of health resources by incorporating minute layers of detail on existing inefficiencies in the system.
As a result of the COVID-19 pandemic, the major market players increased their service portfolio and product capabilities, thus driving the market's growth. For instance,
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Increased Integration of Emerging Technologies to Enhance Location Experience is a Major Trend in the Market
A huge amount of data is available to enhance the accuracy and relevance of maps and location services due to the proliferation of mobile phones and IoT devices. Location-based service providers can use information from the internet of things (IoT) in several ways, for instance, to improve accuracy and enhance customer experience. These services are used by organizations to improve the efficiency of their logistics, optimize routes and reduce fuel consumption, enhancing public service effectiveness as well as gaining insight into consumer behavior.
The rise of AR/VR technologies, where location technologies, such as mapping, can help create immersive virtual experiences, is also witnessed by organizations. Thus, the rising demand for augmented reality (AR)/VR technologies and IoT devices is increasing the use of location-based services.
Rapid Proliferation of Smartphones and Increasing Location-based Marketing to Aid Market Growth
The use of location-based services has significantly increased with location-based marketing, rapid uptake of mobile phones, and easy availability of GPS. Organizations are using location intelligence and analytics to serve location-based advertising, contextual advertising, and social media posts based on the footfall patterns of their target audience.
Location technology enables users to share data from a mobile application that allows organizations and search engines to display near restaurants, shopping malls, ATMs, or cinemas according to location and consumer choice. These far-reaching applications and a booming location-based marketing sector will drive growth in this market over the coming years.
Absence of Consistent Regulation and Higher Costs to Hamper the Market Growth
There are significant costs associated with installation, deployment, and privacy concerns that are hampering the market growth. Additionally, the government's laws and regulations regarding privacy pose a major threat to the market players. Consumers are unwilling to share location-based data because there are no clear rules or regulations on data collection, storage, and use by third parties. As a result, high costs and regulation issues could hamper growth during the forecast period.
Growing Ease of Accessibility and Convenience of the Wi-Fi Location Technology to Increase the Demand
Based on the technology, the market is segmented into GPS, Assisted GPS (A-GPS), Enhanced GPS (E-GPS), Enhanced Observed Time Difference (E-OTD), Wi-Fi, Cellular ID, and others.
Wi-Fi is expected to grow at a higher CAGR during the forecast period. The segment’s growth is attributed to the ease of accessibility and convenience of the technology. Wi-Fi location-based services use various techniques to determine position, from access point to client device. Moreover, new product launches are driving the demand for Wi-Fi-enabled location technologies. For instance,
In terms of market share, GPS dominated the market in 2022. This growth is mainly driven by the early adoption of GPS and most services provided by key players related to location technologies. Additionally, lucrative growth opportunities are seen for the market through increasing consumer usage in mapping and navigation.
Cost-Effectiveness and Increasing Usage of Powerful Marketing Tools for Geo Marketing and Advertising to Raise Market Growth
Based on the application, the market is segmented into GIS and Mapping, Navigation and Tracking, Geo Marketing and Advertising, Social Networking and Entertainment, Fleet Management, and Others. Geo marketing and advertising are expected to grow at a higher CAGR during the forecast period. The growth of this segment is due to its cost-effectiveness and powerful marketing tool used for consumer behavior. This application allows businesses to target consumers precisely, based on their specific physical location, which leads to increased customer engagement and an increase in customers.
GIS and mapping held a dominated market share in 2022. The growth is due to the increasing demand for goods delivery and imagery solutions across different sectors. Effective tools for developing maps and adding elements such as text, images, or video are available to users through GIS and mapping applications. Users can collect and display valuable location intelligence by implementing GIS and mapping applications.
Rising Infrastructure Development for Navigation and Mapping Applications by Indoor Location Services to Drive Market Growth
Based on location type, the market is segmented into outdoor and indoor. Indoor is expected to grow significantly at a higher CAGR during the forecast period. Developing infrastructure, such as shopping malls, parks, schools, and hospitals, provides a lucrative opportunity for indoor location services to be implemented in navigation and monitoring applications. Furthermore, the market will benefit from the growing deployment of home and local area networks, such as Wi-Fi and WLAN, over the forecast period.
As per market share, outdoor dominated the market in 2022. Factors, such as the growing demand for outdoor navigation and mapping applications and the increasing deployment of outdoor location services make up a large part of this segment.
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Increasing Usage of GPS Trackers to Boost Transportation and Logistics Segment Growth
Based on end-users, the market is segmented into transportation and logistics, manufacturing, retail and consumer goods, automotive, healthcare, government and public, aerospace and defense, and others. Among these, transportation and logistics dominated the market in 2022. The rising demand in this industry is due to the increased use of GPS vehicle trackers and personal trackers and the higher demand for GPS fleet tracking software that monitors performance and increases its operating efficiency.
Healthcare is expected to grow significantly at a higher CAGR during the forecast period. The sector can benefit from the seamless collection of large amounts of data through location services, which provides improved efficiency and increased profits. Health workers could help identify long-term trends in the health of individuals by integrating location data with location-based technologies. Organizations can track asset locations instantly, reducing possible security risks, improving the management of assets over time, and so on.
North America Location-based Services Market Size, 2022 (USD Billion)
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Geographically, this market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific.
North America held a major location-based services market share in 2022 owing to the increasing smartphone penetration and the growth of IoT technology in the region. The need for personalized experiences, better security measures, and more effective operating efficiencies in several sectors, such as retail, healthcare, and logistics, has led to this increase in demand. In addition, companies are taking initiatives to accelerate the usage of location services in the region. For instance,
Asia Pacific is expected to grow significantly at a higher CAGR during the projected period. The strong growth in investment to build infrastructure and technological capabilities, combined with the growing penetration of the Internet and mobile phones, has led it to be a leading region.
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The Middle East & Africa is subjected to registering the second-highest growth rate during the projected period. The rapidly growing data digitization and innovation in this region has led to the expansion of location-based services technologies.
Growing Key Players Focus on Merger & Acquisition, Partnerships, and Product Development Strategies to Drive Market Growth
Leading key players in the market focus on providing secure and flexible solutions and services by shifting to location-based service. The growing focus of these players on acquiring small and local companies to expand their presence globally. Moreover, the partnerships, merger & acquisitions, and leading investments in the advanced technologies helps to raise the market demand.
An Infographic Representation of Location-Based Services Market
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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading end-users of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.
CAGR of 20.3% from 2023 to 2030
Value (USD Billion)
By Technology, Application, Location Type, End-Users, and Region
By Location Type
The market is projected to reach USD 95.66 billion by 2030.
In 2022, the market value stood at USD 22.16 billion.
The market is projected to grow at a CAGR of 20.3%.
Transportation and Logistics is likely to lead the market.
Rapid proliferation of smartphones and increasing location-based marketing to aid market growth.
HERE, IndoorAtlas, Mapbox, Esri, Google LLC, IBM Corporation, Cisco Systems, Inc., Maxar Technologies, ALE International, and Qualcomm Technologies, Inc are the top players in the global market.
North America is expected to hold the largest market share.
Asia Pacific is expected to exhibit the highest growth rate during the forecast period.
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