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The global location analytics market size was valued at USD 15.84 billion in 2022 and is projected to reach USD 50.88 billion by 2030, exhibiting a CAGR of 15.7% during the forecast period. Location analytics is a process to generate insights from location by combining business and geographical data. In recent years, these solutions and services have gained excessive demand across various businesses, government, and retail industries, supplementing the market growth. Innovative technologies, such as cloud computing, the Internet of Things (IoT), Artificial Intelligence (AI), and Big Data, play a crucial role in broadening the application area of location analysis.
The market has been significantly driven by the adoption of global positioning system (GPS) practices across smartphones, vehicles, and other portable devices. Key players operating in the market are taking key initiatives to strengthen their position. For instance,
Financial Downturn to Hinder Market Growth to Some Extent
The demand for spatial analytics solutions has grown significantly in recent years; however, owing to the spread of the COVID-19 pandemic, the market declined marginally in 2020. This is owing to the minimal adoption of such solutions among verticals. Several market players operating in the market witnessed a financial downturn and an adverse impact on revenue growth.
Location information played a critical role in the administration of community emergency services amid the pandemic. The health infrastructure sector has been dealing with several issues, including overcrowding in hospitals and a scarcity of ventilators, gloves, and other essential supplies. Location data has become an important tool to overcome these challenges and provide insightful information about planning and optimizing resources across the healthcare sector. Governments of India, Germany, and others developed smartphone apps based on location systems to map the movement of COVID-19 positive citizens in their immediate vicinity. For instance, in April 2020, the Indian Ministry of Healthcare launched ‘AarogyaSetu,' a Bluetooth and location service-based smartphone application that keeps users updated about emergency services and positive people around them. Therefore, the increasing adoption of smart wearables, robotics, and drones assists the growth of location analytics solutions during the pandemic.
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Artificial Intelligence (AI) and Machine Learning (ML) based Analytics Solutions to Propel Market
In recent years, there has been cumulative growth of Artificial Intelligence (AI) and ML technologies. Location data enabled with AI and ML technologies are used to create pattern recognition and position signatures from the data it receives. Moreover, the technologies are used in creating high-definition (HD) maps and practical simulators to visualize the information. Prominent companies are investing strategically in AI and machine learning to achieve competitive advantages. For instance,
Drone and satellite imagery equipment have been used enormously in recent years, thus making it possible to process all data using conventional computational methods. By completing image recognition and object identification tasks, AI and ML technology save a large amount of time and energy. Location analytics service vendors will deliver innovative tools to consumers and deploy them even more effectively as AI and machine learning advance. The market is projected to grow significantly with advancements in AI and ML.
Increasing Adoption of Location-based Applications among Several Industries to Favor Market Growth
In an environment of increasingly developing digitization, businesses are relying on data to provide the best customer services and thereby grow their business revenues. Businesses may use the ability to envision spatial data to further manage their business plans, such as determining regional priorities, appropriate pricing strategies, and peak buying periods. Furthermore, by combining geospatial data with GIS, businesses can tap into a customer's location to offer appropriate product details and guidance to nearby shops based on their needs.
Key players in the market offer differentiated solutions to assist businesses in using spatial data and gaining a competitive advantage. For instance, in August 2021, Oracle Corporation launched Spatial Studio 21.2. The platform allows users to design areas based on polygon map layers. Using selecting tools, users are designing their territories.
The adoption of such solutions enabled by cutting-edge technologies such as AI, ML, and others, is augmenting. These solutions with advanced technologies are adopted across enterprise operations such as asset and event management, visualization and reporting, and logistics management. Industries such as banking, financial, and government are using geospatial data to achieve a comparative edge and improve their revenue and offer tailored solutions and services for their customer experiences. As a result, the strategic benefits of location intelligence among various industries propel market growth.
Concerns Associated with Geo Privacy and Confidential Data to Limit Market Growth
Consumer privacy concerns are important in the processing of location data since several regulatory restrictions might prohibit access to location information without the user's agreement. Individuals concerned about the protection of their location-based data might decline to enable vital location data to be gathered, as some spatial analytics apps need. Government laws and regulations oversee the processing of data, location sharing, the use of position information, and data storage. The European Union's (EU) General Data Protection Regulation (GDPR) is the EU's first concerted attempt to safeguard individuals' Personally Identifiable Information (PII). Companies that collect data must follow regional legislation and obtain permission from each customer.
Organizations' access to consumer location data is constrained, limiting their usage of geographic information analytics solutions. As a result, individual worries regarding geo-privacy and sensitive data are growing, restricting the global location analytics market growth in the coming years.
Solution Segment Captured Largest Share, Owing to Adoption across Large Organizations
Based on component, the market is segmented into solution and services. Among them, the solution segment captured the largest market share in 2022. The solution segment is further divided into geocoding and reverse geocoding, thematic mapping and spatial analysis, reporting and visualization, data integration and ETL, and others.
Analytics solutions endorse social, geographic, physical, and emotional indicators that are helping businesses to increase their profit. Extended practices of the Google cloud and Google maps into the advanced location mapping and tracking applications drive sufficient adoption of geocoding APIs. Spatial analysis is expected to showcase significant adoption owing to its enhanced perspective capabilities. Spatial analytics is allowing businesses to solve complex location-related problems and drives new perceptions for better decision-making.
The services segment is expected to demonstrate the highest growth rate during the forecast period. The development of various custom applications and enhancement of the existing products drives sufficient demand for integration and implementation services. In services, key players are offering consulting, integration and implementation, and support and maintenance services.
Outdoor Analytics to Drive Major Revenue as Software Providers Demand Location Analytics Solutions
Based on location type, the market is segmented into indoor and outdoor.
The outdoor segment gained maximum share in 2022. Outdoor analytics solutions enable enterprises to identify prospective customers based on online customer behavior, shopping experiences, and location data visualization. Business intelligence and analytics software providers are incorporating mapping and geographical data into their offerings. This will aid companies in geo-marketing and advertisement, asset management, and business planning by understanding consumer behavior.
The indoor segment is expected to grow at the highest CAGR during the forecast period. Indoor analytics solution enables organizations and government associations to visualize data collected from indoor devices such as smartphones and Wi-Fi networks and help businesses make business decisions. Besides this, the indoor location analytics industry solutions help organizations in real-time mapping, indoor location tracking, and asset tracking.
Greater Functionality and Lower Costs of Cloud-based Location Analytics Solutions to Boost the Market
Based on deployment, the market is diversified into cloud and on-premises. Cloud is expected to witness the highest growth rate and to be the dominating due to its ability of the cloud-based location analytics to provide greater flexibility and efficiency.
Cloud deployment has dramatically changed how businesses deliver their functionality with greater efficiency and flexibility in almost every field. Lower costs and less maintenance are some of the major advantages of boosting the cloud deployment of solutions. With the help of cloud-based solutions, organizations can access a large amount of geographic data and leverage cloud platforms to perform analysis and mapping.
Rapid Emergency Response and Real Time Decision Making in Disaster and Emergency Response Management to Play a Vital Role
Based on application, the market is segmented into disaster and emergency response management, sales and marketing optimization, supply chain management, customer experience management, risk assessment and mitigation, and others. The use of location intelligence solutions for disaster and emergency response management is expected to grow at a higher rate during the forecast period. To sustain mission-critical decisions, agencies need real-time, coordinated emergency response, and risk management solutions. These tools must aid emergency managers to maintain situational and organizational awareness, analyze the effects of an event quickly, assess risk, deploy required resources, and educate, inform, and warn the public. When accidents happen, emergency responders need a location-based approach to enable strategic decision-making that can help save lives.
Location analytics solutions are revolutionizing the way companies establish communication with their potential and existing customers. Companies make their marketing campaigns more competitive by evaluating geo-specific data intelligently and ensuring they reach the right customers. As businesses gain a competitive edge, sales and marketing optimization strategies with location intelligence solutions played a significant role.
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Growing Usage of GPS and Spatial Analytical Tools in Retail to Showcase Strong Adoption of Location Analytics Solutions
By vertical, the market is segmented into BFSI, transportation and logistics, government and defense, tourism and hospitality, manufacturing, healthcare, retail, IT and telecommunications, and others.
The retail segment has captured the largest market share owing to the increasing use of GPS and spatial analytical tools to enhance indoor retail operations. The capability of the GIS platform to analyze the spending habits of consumers from different locations help retailers to build precise sales strategies. Further, efficient geographical data analysis also helps retailers understand the product and service demand in a geographical context. Additionally, various partnerships to bring new technologies into the retail sector have increased the demand for location analytics solutions. For instance,
The adoption of location-based solutions in the healthcare industry is booming at a faster rate. Big Data and location analysis, coupled with Internet of Things (IoT) solutions, assist healthcare organizations in tracking patient statistics and vitals such as the patient’s sleep, heart rate, exercise, distance walked, and others. The solutions provide numerous applications to healthcare organizations and hospitals, such as performance management, territory management, healthcare factor analysis, and site planning for healthcare operations.
North America Location Analytics Market Size, 2022 (USD Billion)
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Geographically, the market is segmented across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
North America is expected to dominate the global location analytics market share. The market growth is backed by the increasing demand for position intelligence and geospatial analytics solutions among industry verticals such as government, defense, retail, and others. For instance, in March 2020, The U.S. Government collaborated with Google LLC, Meta Platforms, Inc. (Facebook), and other technology players and health experts to deploy analytics tools. This has assisted organizations in leveraging location data gathered from individuals to combat the virus spread, including tracking people's social distancing behavior.
Asia Pacific is anticipated to showcase the highest CAGR during the forecast period. A substantial increase in the adoption of location intelligence solutions by governments in the area for public safety purposes has driven the growth. For instance, in June 2020, Quadrant.io, a leading location intelligence firm, launched Asia Pacific Data Alliance (APDA), including over 100 consulting and geospatial and data analytics firms. The program helped leading companies, governments, and researchers access mobile location data to mitigate risks associated with the virus spread.
Europe is expected to showcase a considerable CAGR. The European Space Agency's (ESA) projects, including The Copernicus Program, aim to provide users with a user-friendly geographic information system environment. Furthermore, the increasing importance of location data in infrastructure management and planning is expected to drive growth.
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Similarly, the Middle East and South American countries have shown an interest in actively creating spatial data resources, citing high demand for location analytical tools.
Emphasis of Key Players on Developing Advanced Location Analytics Solutions to Strengthen Market Competition
The companies operating in the market, such as Microsoft Corporation, Google LLC (Alphabet Inc.), Zebra Technologies Corporation, Esri, HERE Technologies, IBM Corporation, and others, are launching advanced solutions integrated with emerging technologies and various strategic partnerships.
An Infographic Representation of Location Analytics Market
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The report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies and product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors contributing to the market's growth in recent years.
Value (USD Billion)
CAGR of 15.7% from 2023 to 2030
By Component, Location Type, Deployment, Application, Vertical, and Region
By Location Type
The global market is expected to reach USD 50.88 billion by 2030.
In 2022, the market stood at USD 15.84 billion.
The market is expected to grow at a CAGR of 15.7% during the forecast period (2023-2030).
Based on component, the solution segment is expected to lead the market during the forecast period.
The increasing adoption of location-based applications among several industries is one of the key drivers for market growth.
Microsoft Corporation, Google LLC (Alphabet Inc.), Zebra Technologies Corporation, Esri, SAP SE, IBM Corporation, and others are the top companies in the market.
The retail segment holds the major market share.
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