Location Analytics Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Location Type (Indoor and Outdoor), By Deployment (On-Premises and Cloud), By Application (Disaster and Emergency Response Management, Sales and Marketing Optimization, Supply Chain Management, Customer Experience Management, Risk Assessment and Mitigation, and Others), By Vertical (BFSI, Transportation and Logistics, Government and Defense, Tourism and Hospitality, Manufacturing, Healthcare, Retail, IT and Telecommunications, and Others), and Regional Forecast, 2022-2029

The global location analytics market size was valued at USD 13.66 billion in 2021 and is projected to grow from USD 15.76 billion in 2022 to USD 43.97 billion by 2029, exhibiting a CAGR of 15.8% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with location analytics experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 15.1% in 2020 as compared to 2019.

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), 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,

• In November 2021, Noogata launched a library of location metrics. This launch assisted businesses in utilizing the library and creating places with properties related to a certain business topic.

COVID-19 IMPACT

Financial Downturn to Hinder Market Growth to Some Extent

The demand for location intelligence 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 location intelligence solutions among 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 across the healthcare sector. Various government in countries such as India, Germany, and others, has developed smartphone apps based on location systems to map the movement of COVID-19 positive checked 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.

The increasing adoption of smart wearables, robotics, and drones assists the growth of the location analytics solutions during the pandemic. Organizations are implementing advanced maps and Geographic Information System (GIS) solutions that assist them in responding to the situation, managing activities, and facilitating the reopening process. On a long-term basis, location intelligence technologies are expected to offer support to assist people back to work safely while ensuring security and compliance.

LATEST TRENDS

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Artificial Intelligence (AI) and Machine Learning (ML) based Analytics Solutions to Propel Location Analytics Market 

In recent years, there has been cumulative growth of AI and ML technologies. Location data enabled with AI and ML technologies is 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. The prominent companies are investing strategically in AI and machine learning to achieve competitive advantages. For instance,

• In October 2021, Google LLC advanced its Google maps SDKs for Android to provide a better user experience, such as assisting drivers in making deliveries assisting shops in visually confirming an order's shipping address.

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. 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.

DRIVING FACTORS

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 own territories.

The adoption of location intelligence solutions enabled with cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and others, are 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.

RESTRAINING FACTORS

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 geospatial analytics apps need. Government laws and regulations oversee 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's predicted growth in the approaching years.

SEGMENTATION

By Component Analysis

Solution Segment Captured Largest Share, Owing to Adoption across Large Organizations

Based on the component, the location analytics market is segmented into solutions and services. Among them, the solution is expected to capture the largest market share in 2021. The solution is further bifurcated into spatial analysis, geocoding, reporting and visualization, and others.

The 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 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 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, key players are offering consulting, integration and implementation, and support and maintenance services.

By Location Type Analysis

Outdoor Analytics to Drive Major Revenue

Based on location type, the location analytics market is segmented into indoor and outdoor.

The outdoor has 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 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 industry solutions help organizations in real time mapping, indoor location tracking, and asset tracking.

By Deployment Analysis

Cloud Deployment to Hold Major Share

By deployment, the market has been diversified into cloud and on-premises.

Businesses are deploying on-premises for the integration and deployment of analytical solutions owing to security concerns. On-premises implementation is projected to grow significantly as it provides users with full control over their data, applications, and hardware while still lowering running costs and improving security.

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.

By Application Analysis

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.

Position 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.

By Vertical Analysis

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Retail Industry to Showcase Strong Adoption of Location Intelligence Solutions

By vertical, the global market is segmented into BFSI, transportation and logistics, government and defense, tourism and hospitality, manufacturing, healthcare, retail, telecommunications, and others.

The retail has captured the largest location analytics 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 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, 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.

REGIONAL INSIGHTS

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Geographically, the market is segmented across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America is expected to dominate the global location analytics market growth. The 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 geospatial data in infrastructure management and planning is expected to drive growth.

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Similarly, the Middle East and LATAM countries have shown an interest in actively creating spatial data resources, citing high demand for location analytical tools.

KEY INDUSTRY PLAYERS

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, SAP SE, IBM Corporation, and others, are launching advanced solutions integrated with emerging technologies.

• April 2021 – Quuppa, a location Intelligence Company, partnered with Actility, a provider of LPWAN connectivity solutions. Through the partnership, Quuppa and Actility aim to offer consumers precise indoor and outdoor location services using Abeeway’s ATEX certified tags.


• January 2021 – Esri launched ArcGIS Platform. It is a geospatial platform as a service for consumers and developers that plan to integrate location capabilities into applications, business processes, and products. ArcGIS Platform allows developers access to Esri's efficient position services using the web frameworks and APIs of their preference.

LIST OF KEY COMPANIES PROFILED:

• Microsoft Corporation (U.S.)


• Google LLC (Alphabet Inc.) (U.S.)


• Zebra Technologies Corporation (U.S.)


• Esri (U.S.)


• Hexagon Software (Sweden)


• Here Technologies (Netherlands)


• Precisely AB (Sweden)


• SAP SE (Germany)


• TomTom (Netherlands)


• SAS Institute Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2021 - Esri, a global leader in location technology, partnered with Wejo, a pioneer in connected vehicle and data, to launch a joint solution that augments Esri’s GIS technology by integrating actual road data from Wejo. With the launch of a joint solution, users will be better positioned to complement traffic and mobility data obtained through connected vehicles in real time.

REPORT COVERAGE

An Infographic Representation of Location Analytics Market

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The location analytics market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies 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 in recent years.

Report Scope and Segmentation