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The Enterprise Location-Based Services (LBS) Market size is estimated to grow at a CAGR of 23.37% between 2022 and 2027. The market size is forecast to increase by USD 45,230.04 million. The growth of the market depends on several factors, including an increasing focus on proximity marketing, high penetration of mobile computing devices, and rapid adoption of beacon technology. Location-based services (LBS) can be referred to as software services that use geographic data and information to offer services and information to consumers. LBS has been gaining traction in enterprise applications and can be used to identify and locate an object or a person accurately in an enterprise setting, such as retail stores, hospitals, or industrial/manufacturing units.
This enterprise LBS market report extensively covers market segmentation by application (large enterprises and SMEs), component (hardware, software, and services), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the enterprise LBS market growth is the increasing focus on proximity marketing. The proximity marketing strategy is widely used by different enterprises such as retail stores, hotels, and entertainment parks, to improve consumer engagement and build brand equity to strengthen customer loyalty. By leveraging proximity marketing, marketers can connect with consumers through their mobile devices.
Moreover, some of the factors which these enterprises include while sending personalized messages include user preference and prior purchase history, geographic location of consumers, and time of day. The main advantage of proximity marketing is that retailers can deliver just-in-time communication to the target audience by analyzing the purchasing behavior of the consumer. Thus, there is targeted advertising using advanced technologies, including radio frequency identification (RFID), beacon, and Wi-Fi. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the enterprise LBS market growth is the use of analytics for business process optimization. The main advantage of analysis software is that it enables measuring the time spent at a location and the routes that are taken often. It has become possible to integrate analysis software with existing enterprise LBS solutions. Thus, this software allows easy evaluation of and processing of the available information.
In addition, there is an increasing adoption of analysis software in the retail sector as it is utilized for determining the number of people passing through a particular spot during the day and thereby facilitating product placement. Additionally, the main application of analysis software in the industrial sector is to monitor the movement of objects including work equipment, goods, or products and thereby determining the most efficient layout of the plant and implementing lean manufacturing tools and processes, such as just-in-time. Hence, such factors are expected to drive market growth during the forecast period.
Privacy and security concerns are one of the key challenges hindering the enterprise LBS market growth during the forecast period. Even though the advancement in technology offers several benefits, it has an inherent risk of information security associated with it. Due to the new development in technology, enterprise LBS is prone to serious security issues, risks, and threats.
Additionally, these systems have data reconciliation and interoperability issues as they communicate with a large set of diverse systems across an organization. As a result, it leads to security gaps and ambiguities, which may be misused by hackers and other cybercriminals. Hence, such factors are expected to hinder market growth during the forecast period.
The large enterprises segment is estimated to witness significant growth during the forecast period. There is increasing adoption of enterprise LBS in large enterprise segments as it is extensively used for various applications such as navigation and real-time monitoring, location-based advertising and asset tracking, mobile city guides, vehicle theft detection, visual analytics, fleet management and public transportation systems, and other purposes. As a result, enterprises are able to adopt a more personalized approach to clients by leveraging in-depth consumer data.
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The large enterprise segment was the largest segment and was valued at USD 6,242.87 million in 2017. Additionally, the solution is used to monitor when an object or a person is entering or leaving a particular area. Large enterprises comprise manufacturing plants or data centers. By attaching receivers in fixed places and tag in mobile assets the location of an object or person is time-stamped as they move through different receiver fields. Therefore, this solution offers the detection of the location as well as the direction of the object or person at a particular point in time. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The wide variety of offerings of hardware segment by market players is increasing the market growth during the forecast period. Hardware components comprise passive and active RFID tags, beacons, and sensors such as cameras as well as supplemental beacons, access points, and wired or wireless bridges that offer connectivity to Wi-Fi. Hardware components may utilize existing enterprise infrastructure, such as Wi-Fi/BLE access points depending on the requirement. Several prominent market players such as Infsoft provide hardware tags as part of their offerings. Additionally, the company offers locator tags with BLE and UWB modules. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. There is increasing adoption of innovative technologies due to the ongoing digital transformation across different industry verticals in order to gain strategic and operational advantages. As North America is a mature market in technology, there is a high level of adoption of enterprise LBS in North America across several business and industrial processes to ensure operational streamlining and business process optimization.
Additionally, the emergence of Industry 4.0 in the region has made enterprise LBS indispensable. The main advantage of adopting LBS across enterprises is that it can monitor workers and assets and the data can be used for resource optimization. Furthermore, enterprise LBS will also enable the interconnection of industrial production with modern information and communication technology (ICT) and assist buyers including large and small enterprises gain a competitive advantage in the market. Hence, such factors are expected to drive market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global enterprise LBS market witnessed a mixed impact as there was a shift in the purchasing behavior of consumers to buy things online, resulting in the increasing adoption of enterprise LBS in the retail sector. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the recovery of the market. Such factors are expected to drive the market during the forecast period.
The enterprise LBS market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Enterprise LBS Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The enterprise LBS market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Enterprise LBS Market Scope |
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Report Coverage |
Details |
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Page number |
155 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 23.37% |
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Market growth 2023-2027 |
USD 45,230.04 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
22.29 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 49% |
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Key countries |
US, China, Japan, Germany, and the UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AiRISTA Flow Inc., Aislelabs Inc., Broadcom Inc., Cisco Systems Inc., Comtech, Esri Global Inc., Foursquare Labs Inc., HERE Global BV, HID Global Corp., infsoft GmbH, Juniper Networks Inc., NextNav Inc., Polaris Wireless, POLE STAR SA, Qualcomm Inc., Securitas AB, Siemens AG, xAd Inc., Zebra Technologies Corp., and Ziff Davis Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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