"Smart Strategies, Giving Speed to your Growth Trajectory"
The global location-based services (LBS) market size was USD 16.14 billion in 2018 and is projected to reach USD 66.61 billion by 2026, exhibiting a CAGR of 20.0% during the forecast period.
Location-based services (LBS) offer a wide range of opportunities because of their ability to provide information associated with a particular location or place. Location-based services use real-time data through mobile devices and keep track of the geographical location of the phone. Increased use of smart devices and location-aware technologies drive the growth of LBS market.
Uses of location-based services include store location, proximity-based marketing, emergency services, travel information, roadside assistance, mobile workforce management, and fraud prevention. The growing awareness of the advantages of LBS analytics among organizations has further boosted the market growth.
Request a sample to learn more about this report.
In the era of gradually developing information technology and social web, users are not only capable of creating the content but also localize it. LBS also helps its users to identify and locate the geographical position of an object, person, or places such as the discovery of the nearest ATM, whereabouts of a friend, or an employee.
In addition to this, increasing adoption of location-based fitness monitoring, healthcare, and transport LBS applications are contributing to the growth of the global location-based services market.
“Increasing adoption of Social Media, Smart Phones, and Easy Availability of GPS Technology is Expected to Drive the Market Growth”
Increased adoption of smartphones and other wireless devices is one of the crucial factors that is driving global location-based services market growth. Moreover, the rise in demand for location-based check-in applications, advancements in analytical capabilities in communication technology and the ease of availability of low-cost GPS-mounted devices is expected to constitute an increase in the LBS market size. In addition to this, rising penetration of social media, mobile-based networking, and increasing penetration of the Internet of Things (IoT) are some of the key factors driving the market growth of location-based services (LBS). The advancements in the field of communications and ongoing developments in the area of 4G and 5G technologies in economically developing regions are expected to propel the global location-based services market.
“Emergence of Location-Based Technology is Likely to Boost the Demand for Location-Based Services across Industries”
Ongoing demand for location-based applications in e-commerce, food delivery, tourism, and social networking applications are expected to create numerous growth opportunities for the global location-based services market in the forecast period.
Location-based services (LBS) enable retailers to analyze consumer preferences and can give immediate access to products or services information. For instance, retailers may plan their advertising strategies for their nearest store or area-based offers based on customer location. This will help retailers increase sales and provide personalized products and services to their customers.
The automotive sector is gaining high functionality when it comes to location-based services (LBS). LBS allow car and truck drivers to find the best possible route, and therefore reduce idle time and increase work efficiency. Automotive manufacturers ensure to provide value-added services to their customers, such as asset tracking, emergency services, vehicle telematics, traffic services, fleet tracking, and navigation.
“Hardware segment is expected to augment the location-based services (LBS) market growth during the forecast period”
Based on the component, the market is classified into hardware, software, and services. Among these, the hardware segment held the largest market share in 2018 and is expected to continue during the forecast period. Based on extensive location-based services market research, it is found that the growth is mainly attributable to expanding digitization among industries. Moreover, the rise in the use of geo-tagging and user-oriented multimedia content will open up new opportunities for key players in the global location-based services (LBS) market.
The software segment of the global LBS is expected to be the fastest-growing segment during the forecast period. Growth in the adoption of social media marketing and increasing awareness about the advantages of location-based services (LBS) among industry players has significantly driven market growth.
Along with the solutions, organizations are also providing professional services which include integration and implementation, support and maintenance, and consulting. Among them, integration and implementation segment is projected to hold the largest market share in the forecast period. The proliferation of location-based apps among customers would lead to growth in the global location-based services market.
“By location type, the outdoor location segment has accounted for the largest market share.”
Based on the location, the market is segmented into the indoor location-based services and outdoor location-based services.
Outdoor LBS locate data based on device and the user, who are using GPS systems, satellites, and a location remote sensor. Geo-marketing and advertising, asset tracking, personal tracking, client location tracking, vehicle tracking, freight management, road-optimization and planning, visualization of exploration and infotainment, regional activity warning, and security management are some of the significant applications of outdoor location-based services. In addition to this, outdoor LBS are expected to hold a major share in the global LBS market due to increased analytical capabilities of location-based applications and easy availability of GPS.
The market for indoor LBS is growing at the fastest rate. In the indoor LBS, positioning technologies such as Bluetooth Low Energy (BLE), RFID, or Ultra-wideband have led to advancements in production and to enhance customer experience efficiently. The demand for indoor LBS is expected to increase in the coming years since almost all of the industry verticals are adopting advanced technologies to expand their businesses. Increased adoption of advanced technologies across industries such as cloud, big data, and AI is driving LBS market growth. Besides this, indoor LBS helps organizations in real-time mapping, indoor wayfinding, indoor space management, asset tracking, indoor location tracking, events scheduling and management, and safety alerts.
“Navigation services has accounted for the largest market share owing to the increasing availability of Location-aware technologies.”
By application, the location-based services (LBS) market has been classified into emergency services, tracking services, navigation services, social media services, information services, gaming/entertainment services, advertising/promotion services, and others. Navigation services hold the largest share in the global location-based services market. Navigation services locate exact positions for a mobile device using one of the positioning systems available. It will enable users to be guided or navigated to the desired locations. One of the examples of LBS navigation is Google Maps, which is available on a global platform and can be installed on different operating systems.
To know how our report can help streamline your business, Speak to Analyst
Advertising or promotion services exhibited the highest CAGR during the forecast period owing to the rise of the internet accessibility, mobile devices, and targeting technology. Location-based services (LBS) provide many advantages over traditional marketing and can serve as a valuable tool for engaging with customers and providing customized marketing deals. Location-based marketing has opened a wide range of opportunities for businesses to target locations where customers are most likely to engage with their products. Industry players are implementing location-based advertising as it is affordable and guarantees exposure to the relevant people.
“The growing need for client fulfilment and delivery management are contributing to the growth of location-based services (LBS) in transportation and logistics.”
Based on end-user, the global LBS market is segmented into BFSI, IT and telecom, retail, transportation and logistics, government, healthcare, and life sciences, manufacturing, and others.
LBS enables transport partners to track the materials, resources, and driver’s position in real-time over the transit process. Also, mobile phones at drivers can be used to monitor the carrier's real-time location. Continuous driver control through mobile devices eliminates the need for conventional, time-consuming, frustrating and expensive test calls. Drivers are not obliged to pass hands-free driving legislation or risk violating it to respond to test calls.
The use of location-based services (LBS) in the retail industry is expected to witness the fastest growth during the forecast period. Location-based services (LBS) not only help consumers to access physical retail stores but also share their personal experiences. LBS in the retail industry have played a key role since it allows businesses and key players to gather data about the spending habits of customers from various locations.
The banking and finance sector is in a continuous race to differentiate themselves from other players and provide advanced tech-solutions and standardization of banking products. Banks these days are following advanced technologies to find whereabouts of the mobile devices that encounter payment abnormalities. They are using the location of the mobile device as a data source and connection between the source and the server. The mobile channel and location security have become a priority for leading banks and finance companies that seek rapid growth in the field of the BFSI sector.
Fortune Business Insights’ latest LBS market report includes analysis across five major regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America this region is further categorized into countries.
North America is projected to holds the largest share in location-based services market during the forecast period. In 2018, North America generated a revenue of USD 5.91 billion and is expected to reach up to USD 22.58 billion by 2026. North America will be the dominant region in the global LBS market during the forecast period. This lucrative growth in North America is mainly owing to the increasing penetration of smartphones and developments in communication technology in this region. Organizations in the region are using location-based services (LBS) to track down their customers, which will, as a result, help them grow their business. The US has emerged as the largest market in North America location-based services (LBS) market, mainly due to the most significant number of smartphone users and the high pace of infrastructure developments. Apart from this, profitable growth in advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing will impact the market in the forecast period.
North America Location-Based Services (LBS) Market Size, 2018 (USD Billion)
To get more information on the regional analysis of this market, Request a sample
Europe is expected to hold a leading position in the market and is expected to grow at a remarkable CAGR till 2026. Europe is considered as one of the most technologically advanced regions, owing to the presence of key players working in the location-based services market. Prominent players in this region are making new investments in location-based services.
Asia Pacific is positioned to be the fastest-growing region in the global location-based services (LBS) market in terms of CAGR. Increasing demand for location-based services (LBS) in the transportation and logistics industry will aid the growth of the market in Asia Pacific. Apart from this, increasing infrastructure development in commercial offices, localities, and shopping malls in this region offers lucrative growth opportunities for indoor location-based services.
The Middle East and Africa are anticipated to witness a steady growth rate in the LBS market. The Middle East and Africa providers of location-based services (LBS) are working to develop software platforms to connect, improve, and enhance location services across the region.
“Google LLC, HERE Global BV, And Apple Inc. Would Strengthen Its Market Position Backed by Heavy Investments And Developments In Location-Based Services (LBS) Strategies”
Google has been actively providing location-based services and solutions including location-based advertising, cloud computing, and search engine. Google location-based services (LBS) aim to provide a more accurate device location and generally improve location accuracy. Moreover, Google maps provide useful information on nearby ATMs, restaurants, and other places based on the user location. Furthermore, the company offers LBS API integration for other application developers. Other LBS services provided by Google are Google Now, Google Search and Knowledge Graph.
HERE, an Open Location Platform company offers maps and location-based services (LBS) on multiple screens and different operating systems. It provides services and solutions to various end-use industries such as automotive, transportation and logistics, telecom, utilities, insurance, public sector, and infrastructure. HERE offers a wide range of location-based services (LBS) such as Fleet Telematics, Geocoding, Geovisualization, HERE Advertising Data Services, HERE Mobile SDK, which enriches user location data with smart location context for the more precise location.
Apple location-based services help Apple and third-party application providers to gather the current location of Apple users and provide them a variety of location-based services (LBS). In recent times Apple has gained more traction in indoor location-based services. Moreover, the company introduced iBeacon and acquired WiFiSLAM to strengthen its indoor location-based technology.
An Infographic Representation of Location-Based Services Market
To get information on various segments, share your queries with us
The report offers an elaborative analysis of numerous factors affecting the global location-based services (LBS) market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as component, location type, applications, and end-user. It strategically analyzes several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players in the industry. The report includes LBS market research across several regions.
Value (USD billion)
By Location Type
By End User
As per our (Fortune Business Insights) study, the location-based services market is predicted to reach USD 66.61 billion by 2026 with a CAGR of 20.0% (2019 -2026).
As per our study, business owners are more inclined towards location-based services. Currently (in 2019), the location-based services market value at USD 18.54 billion, and it is anticipated to reach USD 66.61 billion by 2026 at a CAGR of 20.0% during the forecast period (2019 -2026).
Globally, spending on location-based services is increasing each year. For instance, North America generated a revenue of USD 5.91 billion in 2018 and is expected to create a remarkable revenue share by 2026. Advances in smart technologies and analytics have led to remarkable investments of businesses in deploying location-based services.
In the location-based services market, hardware and outdoor location-based services are the leading segments. The emergence of cloud technology and advent digitization has given an unprecedented opportunity for the key players to create enormous investments in location-based analytical solutions.
Some of the driving factors for the location-based services market are growing technological advancements in cloud, increasing IT spending capability, and rise in demand for location-based services.
In the location-based services market, some of the key players are AT&T Inc., Cisco Systems, Inc., Telefonaktiebolaget LM Ericsson, IBM Corporation, Google LLC. These market players are focusing on agreements, acquisitions, and developments in the location-based services market.
North America is expected to hold the highest market share in the location-based services market. The region is expected to witness a remarkable growth as it houses the major key players in the location-based services market. The high pace of infrastructure development and increasing penetration of smartphones in the region would fuel the market growth across the region.
Outdoor location-based services would generate the highest revenue during the forecast period. Increasing the adoption of smartphones and social media platforms would ensure to boost the adoption of location-based services strategies.
The transportation and logistics industry is expected to lead the location-based services market. Research and development in location-based services solution in location-bases services would contribute to the market growth.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry