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The global location analytics market size was USD 9.70 billion in 2019 and is projected to reach USD 25.48 billion by 2027, exhibiting a CAGR of 13.0% during the forecast period.
Geographic context and spatial dimensions have emerged as a part of the developing digital infrastructure. Besides, the appearance of location intelligence and spatial analytics into the business processes and connected systems has fetched a significant attention to the market. Since, past several years, the geospatial services are gaining excessive demand across the retail industry which is resulting in growing investments by the emerging key players. In January 2020, a location and foot traffic analytics company, Placer Labs, Inc. invested USD 12 billion in the research & development activities to drive the enhanced products and features. The investment is aimed to expand its business operations across the United States.
The innovative technologies such as cloud computing, the internet of things (IoT), blockchain, artificial intelligence (AI), and big data are playing a crucial role in broadening the application area of location analysis.
The market growth has been significantly driven by the practices of a global positioning system (GPS) into the smartphones, vehicles, and other portable devices. Furthermore, the progressive use of location-based services for accomplishing valuable data-driven insights is leading to a significant growth of this market.
Location Intelligence Serves as an Obligatory Role to Battle Against COVID-19
The location intelligence has become an indispensable part of the COVID-19 global crisis from the beginning. The global COVID-19 crisis can be called a geographical crisis, as understanding the geographical locality of virus-infected people can significantly help in reducing the virus spread. Various countries across the globe are developing mobile applications using location-based services to track the movement of the COVID-19 positive tested individuals and the people in close proximity to them. For instance, the Indian Ministry of healthcare has launched a Bluetooth and location service-based mobile application named Aarogya Setu that keeps users informed about their interactions with the COVID-19 positive tested person. This application is helping to analyze and control the virus spread across the country. Such location intelligence-based services are playing a vital role to fight against the global crisis and witnessing a remarkable market growth.
Apart from this, visualizing and communicating the influences of the pandemic through the spatially-powered interactive dashboards have driven significant demand for location services. The drastic need for reconfiguration of business processes has escalated the demand for Geographical Information System (GIS) tools for geospatial analysis and mapping. Moreover, geo-spatial data and field capture tools are extensively adopted by the government entities to gather faster and accurate data about the pandemic situation. For instance, in April 2020, the Caribbean Community has launched the Caribbean COVID-19 food security & livelihoods impact survey for which they have used interactive geo-enabled data visualization dashboards. Thus, the COVID-19 global pandemic has aided demand for the geographical location-based applications that is anticipated to drive the substantial market growth.
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Integration of Business Data with Location Information to Stimulate Demand
Today, data integration plays a crucial role in all businesses as it empowers the business leaders to make better decisions based on the trends, facts, and statistical analysis. Location information is one of the crucial components of business analytics that businesses have added to their data network. GIS are using spatial analytics technology that helps business professionals to gain valuable insights for better decision making. The massive opportunities of exploiting data with the location information to offer a competitive advantage provides an optimum result.
Location-based service providers have strategically shifted their business from Software-as-a-Service (SaaS) to Platform-as-a-Service (PaaS) model. This modern PaaS model with location intelligence is allowing companies to build custom applications that give businesses a competitive edge. Thus, the capability of location intelligence to develop more efficient, real-time and custom business applications boosts the market value.
Increasing Adoption of Location-based Applications among Retail Industry to Promote Market Growth
Today, the competitive landscape of the retail industry has led retailers to adopt custom-centric approaches to build a strong customer base for business profits. The fast pacing retail industry is demanding highly accurate data for delivering the best customer services. As the location data is playing the most significant role in enhancing various retail operations, it is extensively demandable across the industry. The location analytical tools are offering a constant visualization of spatial data which helps the retailers to determine regional preferences and effective sales strategies. Moreover, using geospatial data with the integration of GIS, retail companies are tapping into a customer’s location and are providing the relevant information about products and directions to the specific stores according to their needs.
The integration of location capabilities with advanced technologies such as Artificial Intelligence, Blockchain, Machine Learning, and the Internet of Things would be augmenting various retail operations like transaction, asset management, event management, and logistics management. By integrating and mapping geospatial data into the products, retailers can provide context to visualization, reports, and market analysis. Hence, the competitive advantages of location analytics are fueling the market growth across the retail sector.
Integration of Location Intelligence into Business Intelligence to Help Attain Optimized Results
The developing business era is looking for the suitable business strategies to sustain their competitiveness and market value. The business intelligence (BI) platforms have been purposely designed for building robust business strategies with the help of valuable data-driven perceptions. Location intelligence is empowering the BI platform performance by incorporating the location-based data insights. The developed platform helps to enrich the customer’s portfolio and to catch business leads based on the best clients.
The location-based services offer the ability to pick the right location for the businesses. Apart from this, logistics and fulfillment, facility management, asset tracking and management, customer or market analytics are the essential business operations that are utilizing location intelligence. As a result, location intelligence is gaining momentum across the business intelligence sector. The extended role of GIS into the business to business (B2B) and business to customer (B2C) marketing is likely to drive the considerable market growth.
Geospatial Standards and Policies Associated with Information Sharing to Limit Adoption of Location based Services
GIS is a powerful application that has developed for tracking, storing, testing, and representing data regarding positions on Earth's surface. The technology helps users to comprehend the spatial patterns and their relations. The GIS plays a vital role in the geographic context based data collection and data analysis. As GIS is primarily used in location intelligence and analytics, the GIS adoption directly affects location analytics industry growth in a significant way. However, some data privacy regulations and policies are increasing pressure on the usage of geospatial services. For instance, the geospatial information regulation bill (GIRB) has been passed by the government of India in 2016, which has standardized the publication and distribution of geospatial data under the control of government bodies.
Several national and international geospatial regulatory standards and policies such as the national geospatial data policy (NGDP), latitude/longitude data standard or general data protection regulation (GDPR) are limiting the application area of GIS. Thus, the lack of clear government compliances and privacy standards are somewhat confining the market growth.
Solution Segment is likely to Hold Significant Market Share
Based on components, the market is segregated into solutions and services.
Among these, the solution segment holds a large market share. The solution segment is further bifurcated into the geocoding and reverse geocoding, thematic mapping and spatial analysis, reporting and visualization, data integration and ETL, and others.
The location analytics solutions are endorsing 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 are driving sufficient adoption of the geocoding APIs. Thus, the geocoding and reverse geocoding segment is likely to drive major growth.
Spatial analysis is expected to showcase significant adoption owing to its enhanced perspective capabilities. It allows businesses to solve complex location-related problems and drives new perceptions for better decision making. As a result, spatial analytics is contributing to a significant revenue share.
Reporting and visualization solutions are likely to exhibit a considerable CAGR during the forecast period. Business intelligence dashboards, interactive geo-maps, data analytics, and real-time data visualization are the mission-critical applications of location analytics, which also utilizes enormous data integration capabilities. Thus, data integration and ETL and Reporting and visualization segments are likely to disclose significant market growth.
The service segment will probably demonstrate a momentous growth rate in the forthcoming years. The development of various custom applications and enhancement of the existing products is likely to drive sufficient demand for support and maintenance services followed by the integration and implementation services.
Outdoor Analytics to Drive Major Revenue
In terms of location type, the global market has been fragmented into indoor and outdoor.
Among these segments, the outdoor segment will account for a significant location analytics market share during the forecast period.
The extended applications of geospatial analytics offer visualization and analysis of entire data in geographical context to deliver more precise and better analytical insights. Weather forecast, land mapping, and geographical maps are some of the applications of outdoor analytics. The development of multichannel marketing hubs extensively utilizes location data for empowering geo-marketing, offline campaign, customer location tracking, logistics and transport management, and data mapping. This way, the development of various outdoor applications using geospatial and positioning services is driving the market value.
The development of GPS tracking systems, GIS, and extended range of beacons are helping organizations for spatial mapping, asset management, inventory management, and for indoor location tracking. Such indoor location intelligence services are highly demandable across the retail, healthcare, as well as telecommunication industries. So, the indoor segment is likely to grow reasonably in the forthcoming years.
Cloud Deployment is likely to Dominate Market Growth
Based on the type of deployment, the market has segregated as cloud and on-premises deployment.
The cloud segment has emerged as a leading segment in the market. The capability to deliver functionality with greater efficiency and flexibility is a key factor that led organizations to prefer cloud deployment models over on-premise deployment. Also, integration of the analytical cloud with on-premise data servers is further stimulating the demand for the cloud architecture. This integration offers user efficient data analytics and mapping. Apart from this, less maintenance and low cost delivers a competitive advantage to businesses. With such beneficial features, the cloud-based deployment is anticipating to illustrate the high CAGR. Although, several organizations are still dealing with the on-premise deployment owing to the growing security concerns for better data control. Thus, on-premise deployment is likely to showcase average adoption.
Disaster and Emergency Response Management to Exhibit High CAGR
Based on the application, the market has been fragmented into disaster and emergency response management, sales and marketing optimization, supply chain management, customer experience management, risk assessment and mitigation, and others.
Key players are developing advanced location analytical tools that are helping businesses to target the marketing by offering user preference services. For instance, Cuebiq Inc. has developed an onboard location-based campaign optimization platform, Visit Optimization. This offline campaign platform is helping marketers to understand the impact of offline, location-based cross channel advertising. Thus, the sales and marketing optimization segment is likely to hold a significant revenue share owing to the increasing demand for location-based services (LBS) into the marketing hubs and sale optimization.
LBS is proving to be extremely beneficial across the disaster and emergency management applications owing to their ability to preserve the location data. Disaster management authorities collect and analyze geographic data for ensuring the safety of assets and citizens. Also, location data is playing an extremely crucial role in delivering public centric services such as tracking vulnerable people, emergency services, traffic advisory, and many more. Hence, disaster and emergency response management applications are anticipated to hold significant CAGR during the forecast period.
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Location Intelligence to Play Vital Role to Support Constantly Changing Sales and Marketing Strategies across Retail Industry
Based on vertical, the market is segregated as retail, government, energy & utilities, healthcare, travel & transportation, telecommunication, and others.
Location-based intelligent services are playing a critical role in optimizing banking operations, customer networks, and on-boarding processes. With artificial intelligence and predictive analytics, location platforms are able to empower chat boats to offer personalized customer experience. According to Environmental Systems Research Institute, Inc. (esri), with geo-enabled services, banks can enhance their branch efficiency by almost 10%. Also, banks that are using location analytics can achieve about 30% of new customers. Thus, the BFSI industry is likely to drive substantial adoption to improve operational efficiency and customer experience.
The retail industry is projected to hold a large market share owing to the increasing use of GPS and spatial analytical tools for enhancing the indoor retail operations. Adoption of smartphones and social media platforms has led retailers to implement omni-channel marketing hubs with location intelligence for optimal campaign results. The data collection using GIS is helping retailers to apply a highly targeted approach to online marketing. The capability of the GIS platform to analyze the spending habits of the consumers from different locations helps the retailers to build precise sales strategy. Thus, the dependency of extensive retail applications on the location data is driving significant market growth.
The location intelligence services are highly demandable across the transportation and logistics industry. Global positioning services (GPS), geospatial services are used for real-time tracking of assets during transportation.
Governments across the world have taken initiative for the development of the open-source data cube platforms which are relying on the GIS and location analytics technology. Also, digitization has led the government to use location intelligence for designing a new prototype model which helps them to deliver government services to citizens efficiently. Apart from this, the development of information hubs, GPS tracking, land mapping, and digital data analysis are some of the key areas of location analytics.
North America Location Analytics Market Size, 2019 (USD Billion)
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North America is expected to dominate the market growth owing to the presence of the large geospatial service providers across the United States. As the region has emerged a global leader in big data analytics, location analytics services are gaining tremendous growth opportunities across North America. The growing geospatial engine demand, coupled with high geospatial readiness, is further driving substantial market growth across the North American countries. Another key factor that is driving location-based service growth is the integration of location components for supporting high-tech advancement. Robust infrastructure, mature policy framework, strong institutional capacity, and progressive user adoption level are augmenting the demand for geospatial information. Thus, the region is likely to hold a significant share in the global market.
Europe is anticipated to showcase a favorable CAGR in the global market. The initiatives taken by the European space agency (ESA) such as the Copernicus Programme to offer a user-friendly geographic information system environment to people is expected to favor market growth. Furthermore, the growing significance of geospatial information into infrastructure management and planning would likely propel the demand for GIS across Europe.
Asia-Pacific is anticipated to display significant growth during the forecast period owing to the increasing government investments for the development of GIS applications across the region. Rapid development of open-source software platforms and evolving satellite applications has been intended for the collaborative gathering of geospatial data. For example, Australian government has launched an open-source analysis platform under the open data cube (ODC) ecosystem that is escalating the demand for location analytical tools. Similarly, mapping of lands using advanced machine learning technologies is significantly driving the adoption of location based services.
To develop the student’s spatial thinking abilities, the Singapore Ministry of Education (MOE) has launched a GIS platform named MOE EduGIS. Moreover, the global partnership between the Environmental Systems Research Institute, Inc. (esri) and the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) for the development of the Pacific Ocean accounting portal using GIS has validated its growing demand across the region. With these significant developments, Asia pacific is expected to drive the market growth in the forthcoming years.
Several African countries have signified their active participation in the development of spatial data providing services leading to a significant demand for the location analytical tools. For instance, in May 2018, the Africa Regional Data Cube (ARDC) was launched in support of the geospatial sustainable development data (GPSDD) across five countries including Kenya, Tanzania, Ghana, Sierra Leone, and Senegal. Thus, the factors are likely to enhance the adoption for location based services across Africa.
Strategies Including Product Launch, Product Enhancement, and Partnerships to Sustain the Market Position of Key Players
Collaborations, partnerships, and acquisitions are the key strategies adopted by market players to sustain their competitiveness. Besides, key players are focusing on broadening the application area of geospatial services which helps them to expand their business portfolio across various industries. Several topmost industry players are investing their capital share in the research and development activities, to develop various location-based applications. In March 2020, IBM Corporation started offering free location based tools to track and inform about the nearby COVID-19 positive cases. This tool utilizes AI-based interactive mapping, trend visualization, news, and data based on the geographic context to track the pandemic situation across the United States and other countries.
Various emerging players are offering superior integrated systems, software, and services for strengthening their market position. With the acceptance of the 5G network, the market players are anticipated to strengthen the geo-data collection and analytics capabilities that will drive the superior adoption of location-based services.
An Infographic Representation of Location Analytics Market
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The location analytics market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the location analytics industry trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over the recent years.
Value (USD Billion)
By Location Type
Fortune Business Insights says that the global market size was USD 9.70 billion in 2019 and is projected to reach USD 25.48 billion by 2027.
In 2019, the North America market value stood at USD 3.21 billion.
Growing at a CAGR of 13.0%, the market will exhibit steady growth in the forecast period (2020-2027).
The solution segment is the leading segment in this market during the forecast period.
Increasing adoption of the location-based applications among the retail industry is promoting the global market growth
IBM Corporation., Environmental Systems Research Institute, Inc. (esri), CartoDB, Inc, GeoMoby, Galigeo, and among others are major players of the global market.
North America has dominated the market share in 2019.
COVID-19 pandemic will drive the adoption of location service based applications.
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