Outlook of the location-based services (LBS) market in China

Technavio’s market research analysts have predicted the location-based services (LBS) market in China will grow tremendously at a staggering CAGR of more than 46% over the forecast period. This market will be positively affected by the growing popularity of mobile commerce in the coming years. China is the largest mobile market in the world with more than 1.3 billion mobile connections and 600 million active mobile Internet users. Moreover, the use of mobile-based activities related to banking, gaming, online shopping, and LBS, and social networking are extremely popular in China. Furthermore, mobile commerce has led to the rapid growth of the mobile advertising. For instance, the Alibaba Group is expanding its e-commerce sales in other BRIC nations through AliExpress. Therefore, the adoption of location-based services in China will aid in the growth of this market in the coming years.

In this industry research report, analysts have estimated factors like an augmented demand for location-based games to spur the growth of this market in the predicted period. The easy availability of affordable smartphones has led to the growing popularity of location-based games such as Ingress and Tourality. Owing to the growing popularity of location-based games, many businesses and LBS app developers are focusing on gaming as an important sales channel. Therefore, the integration of location-based services with mobile games will impel the prospects for growth in this market until the end of 2020.

Segmentation by technology and analysis of the LBS market in China

• Outdoor LBS
• Indoor LBS

During 2015, the outdoor LBS segment dominated the market and is anticipated to reach more than USD 11 billion by 2020. Outdoor LBS has extensive applications in city planning as they help in the intelligent design of city infrastructure using population density heat maps. These maps enable public transport managers plan and update routes to match the actual and future needs of the commuters. With growing smart city planning activities, outdoor LBS also provide monitored solutions to improve energy efficiency, thereby propelling this market segment’s growth over the forecast period.

Competitive landscape and key vendors

The LBS market in China is highly competitive owing to the presence of several SMEs and established companies. This market has high growth potential as many big enterprises have launched applications that offer innovative retailing solutions.

The leading vendors in this market are -

• Alibaba Group
• Baidu
• Dianping
• NavInfo
• Tencent

Other prominent vendors analyzed in this market research are AccuWeather, AutoNavi, China Mobile, DecaWave, Jiepang, Momo, NetEase, Qieke, Sensewhere, SINA, Sky-Mobi, Telenav, ZettaMobile, and ZTE.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the LBS market in China?
• What are the key market trends impacting the growth of the LBS market in China?
• What are the challenges to market growth?
• Who are the key vendors in the LBS market in China?
• What are the market opportunities and threats faced by the vendors in the LBS market in China?
• What are the trending factors affecting the market shares in China?
• What are the key outcomes of the five forces analysis of the LBS market in China?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Indoor LBS Market in Western Europe 2015-2019
• Global Indoor LBS Market 2015-2019
• LBS Market in India 2015-2019

Location based services, or LBS, are used to track the location of users within a wireless network by using location-enabled devices. LBS makes use of the GIS technology and the Internet to estimate the location of users and can be utilized for discovering places and routes, tracking, obtaining traffic updates, information regarding ongoing local events, routes to landmarks,  finding friends, location-based advertising, location-based shopping, location-based social networking, and location-enabled searches.

The LBS Market in China is part of Technavio’s ICT research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as automatic identification system, cloud computing, data center, enterprise application, IT security, ITO and BPO, and product lifecycle management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.