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The global location analytics market size was USD 11.80 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth rate of 14.6% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 13.52 billion in 2021 to USD 36.22 billion in 2028 at a CAGR of 15.1% in the 2021 - 2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
In recent years, geospatial 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), blockchain, 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 global positioning system (GPS) practices into smartphones, vehicles, and other portable devices. Further, the progressive use of location-based services for accomplishing valuable data-driven insights witnessing the significant share of the location analysis industry into the global economy. Key players operating in the market are taking key initiatives to strengthen their position. For instance, in February 2019, TomTom collaborated with Microsoft Corporation to bring TomTom’s traffic and map data to Microsoft’s cloud services.
Financial Downturn to Hinder Market Growth to Some Extent
The demand for location intelligence solutions has grown significantly in recent years; but, due to the spread of the COVID-19 pandemic, the market declined marginally in 2020. This is due to the limited adoption of location intelligence solutions among several industry verticals. Several market players operating in the market witnessed a financial downturn and 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. Various countries worldwide are working on smartphone apps that use location-based systems to map the movement of COVID-19 positive checked citizens in their immediate vicinity. For instance, 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.
The pandemic outbreak offered numerous growth opportunities in the global market with the integration of growing technologies. The increasing usage of smart wearables, robotics, and drones assists the growth of geospatial analytics solutions during the pandemic. Organizations may use maps and Geographic Information System (GIS) to help them respond to the situation, manage activities, and facilitate the reopening process. On a long-term basis, location intelligence technologies are expected to offer unlimited support to get people back to work safely while ensuring security and compliance.
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Artificial intelligence (AI) and Machine Learning (ML) based Solutions to Propel the Market
In recent years, there has been cumulative growth of AI and ML capabilities. Location data integrated with AI and ML framework has been used to create pattern recognition and position signatures from the data it receives. Moreover, it is also a key component in creating high-definition (HD) maps and practical simulators to visualize the information. The prominent companies are investing strategically in AI and machine learning to achieve competitive advantages. For instance,
Drone and satellite imagery equipment are being used enormously in recent years, thus making it impossible 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. Geospatial analytics service vendors will deliver innovative tools to consumers and deploy them even more effectively as AI and machine learning advances. 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 market players offer differentiated solutions to assist businesses in using spatial data and gaining a competitive advantage. For instance, in May 2018, Pitney Bowes Inc., a leading technology and location intelligence company, launched the latest version of MapInfo Pro. The newly launched MapInfo Pro version 17 is a tailored solution for businesses and analysts for simplified user interfaces with robust GIS software.
The integration of location intelligence solutions with cutting-edge technologies such as AI, machine learning (ML), etc., are augmenting various enterprise operations such as asset and event management, visualization and reporting, and logistics management. Industries such as banking, financial services, and government use geospatial data to achieve a comparative edge and improve revenue and offer tailored solutions and services for their customers. As a result, the strategic benefits of location intelligence among various industries propel growth of the location analytics market.
Concerns Associated with Geo Privacy and Confidential Data to Limit Market Growth
Concerns over consumer privacy play a crucial role in processing location data, as numerous regulatory laws can limit access to location data without the user's consent. Individuals worried about the safety of their location-based data can refuse to allow critical location data to be collected, as is required by some geospatial analytics applications. Data processing, location sharing, use of location-based information, and data storage are all restricted by government rules and regulations. The General Data Protection Regulation (GDPR) of the European Union (EU) is the EU's first unified effort to protect citizens' Personally Identifiable Information (PII). Companies who gather data must adhere to regional legislation and obtain the requisite permission from each customer.
The availability of consumer location data for organizations is limited, restricting the use of geospatial data analytics solutions. As a result, individual concerns about geo privacy and sensitive data are rising, limiting the global location analytics market growth in the forthcoming years.
Solution Segment Captured Largest Market Share
Based on the component, the market is segmented into solutions and services.
Among these, the solution segment held the largest location analytics market share in 2020. The solution segment is further bifurcated into spatial analysis, geocoding, reporting and visualization, 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 drive sufficient adoption of the 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 service segment will probably demonstrate the highest growth rate during the forecast years. The development of various custom applications and enhancement of the existing products drives sufficient demand for integration and implementation services. In services, major players are offering consulting, integration and implementation, and support and maintenance services.
Outdoor Analytics to Drive Major Revenue
Based on location type, the global market is segmented into indoor and outdoor.
The outdoor segment gained maximum share in 2020. Outdoor analytics solutions enable enterprises to identify prospective customers on the basis of 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, indoor location analytics solutions help organizations in real-time mapping, indoor location tracking, and asset tracking.
Cloud Deployment to Hold Major Share
By deployment type, the market has been diversified into cloud and on-premises.
Businesses are using on-premises deployment for integration and deployment of analytical solutions due to security concerns. On-premises implementation is projected to grow significantly in the industry because it gives users full control over their data, applications, and hardware while still lowering running costs and improving security.
The cloud deployment of location analytics solutions dramatically changes 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 location analytics 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.
Location Intelligence to Play Vital Role in Sales and Marketing Optimization
By application, the global market has been segmented into disaster and emergency response management, sales, and marketing optimization, supply chain management, customer experience management, risk assessment and mitigation, and others.
Location analytics solutions are revolutionizing the way companies establish communication with their potential and existing customers. Companies will 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 would play a significant role.
The use of location intelligence solutions for disaster and emergency response management is expected to grow 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 in maintaining 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.
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Retail Industry to Showcase Strong Adoption of Location Intelligence Solutions
By vertical, the global market has been segmented into BFSI, transportation and logistics, government and defense, tourism and hospitality, manufacturing, healthcare, retail, telecommunications, and others.
The retail industry captured the largest market share due 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 the consumers from different locations helping retailers to build precise sales strategies. Further, efficient geographical data analysis also helps retailers understand the product and service demand in a geographical context.
The adoption of location-based solutions in the healthcare industry is booming at a fast rate. Big data and location intelligence, coupled with IoT solutions, help healthcare organizations to track patient statistics and vitals such as the patient’s sleep, heart rate, exercise, distance walked, etc. Location analytics 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, 2020 (USD Billion)
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Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America dominated the global location analytics industry backed by the increasing demand for location intelligence and geospatial analytics solutions among industry verticals such as government, defense, retail, and others. The regional government is heavily relying on location data to carry out various activities. In March 2020, The U.S. Government, collaborating with Google, Facebook, and other technology players and health experts, started using location data gathered from individuals to combat the virus spread, including tracking people's social distancing behavior. Robust infrastructure, mature policy framework, strong institutional capacity, and progressive user adoption level augment the demand for geospatial information.
Asia Pacific is anticipated to showcase the highest CAGR during the forecast period. The rapid industrialization of developing countries like China and India increased investment in IT infrastructure, and the increased availability of low-cost smartphones contributed to the region's development. Besides, there has been a substantial increase in the use of location intelligence solutions by governments in the area for public safety purposes. 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 probable to showcase a considerable CAGR in the global market. The European Space Agency's (ESA) projects, such as the Copernicus Program, aim to provide users with a user-friendly geographic information system environment. Furthermore, the increasing importance of geospatial data in infrastructure management and planning is expected to drive growth.
Similarly, the Middle East and LATAM countries have shown an interest in actively creating spatial data resources, citing high demand for location analytical tools. The Africa Regional Data Cube (ARDC) was founded in May 2018 to support geospatial sustainable development data (GPSDD) in five African countries: Kenya, Tanzania, Ghana, Sierra Leone, and Senegal. As a result of such initiatives, the regional market is expected to witness strong growth over the forecast period.
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, Precisely AB, SAP SE, International Business Machines Corporation, and Pitney Bowes, are launching innovative solutions integrated with advanced technologies.
An Infographic Representation of Location Analytics Market
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The global location analytics market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, product Industry, and leading 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 over recent years.
2017 – 2028
2021 – 2028
2017 – 2019
Value (USD Billion)
Component; Location Type; Deployment, Application; Vertical; and Region
By Location Type
According to Fortune Business Insights, the global market is expected to reach USD 36.22 billion by 2028.
Fortune Business Insights says that the market stood at USD 11.80 in 2020.
The market is expected to grow at a CAGR of 15.1% during the forecast period (2021-2028).
Based on the 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, Precisely AB, SAP SE, International Business Machines Corporation, and Pitney Bowes are the top companies in the market.
The retail segment holds the major market share.
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