Enjoy complimentary customisation on priority with our Enterprise License!
Extensive research carried out by the analysts at Technavio has shown that the global indoor location-based search (LBS) and advertising market will witness impressive growth and post a staggering CAGR of more than 63% over the forecast period. The increasing adoption of local area networks (LANs) and home area networks globally is one of the major factors driving this market’s growth. The availability of high-speed mobile broadband networks and decreasing costs of deployment is leading to the augmented adoption of LAN around the world. Moreover, most business organizations and university campuses are adopting virtual private networks for enhanced data security and providing a seamless connection to their employees and students. The adoption of virtual private networks by business organizations and universities enable them to provide indoor LBS on their premises. Also, most airport authorities in countries like the US and Singapore are using indoor LBS to track and monitor assets used in the airport. The airport authorities also use indoor LBS offer location search, advertising, providing updates on flight position and scheduled flights, and airport floor layout tracking, thereby, offering better customer service.
In terms of geography, the Americas was the highest revenue contributing region during 2015 and will continue to lead the market in the coming years. The majority of smartphone users in the US use Google Maps to get location-based directions and recommendations. Furthermore, the retail sector in the Americas has already witnessed the deployment of a wide range of low-powered beacons. The retailers have been implementing powerful multi-channel experiences to engage customers and boost business sale using smart devices. Beacons not only personalize the customer's shopping experience but also improve their marketing capabilities. They also help in gaining valuable customer intelligence that accelerate sales, which, in turn, will boost the indoor LBS and advertising market over the next four years.
The global indoor location-based search and advertising market is highly fragmented as it includes several stakeholders such as location providers, location technology developers, digital map providers, platform providers, application developers, navigation providers, mobile operators, proximity marketing providers, and mobile search providers. The market has a high potential for growth due to the presence of many start-ups that are offering innovative solutions. Mobile advertising and location-based gaming have high potential in terms of growth and profitability, thereby, attracting many investors. Of the total consumer and advertiser expenditure on LBS market, approximately 55% comes from the location-based search and advertising market.
Key vendors in this market are -
Other prominent vendors in the market include Accuware, Admoove (HiMedia), Aisle411, Aislelabs, Broadcom, Cartogram, Cisco, Estimote, Facebook, Gimbal, Groupon, Indoo.rs, Insiteo, Jatis Mobile, MazeMap, Micello, Microsoft, Near (Ad Near), Nexage (Verizon), Ping Mobile, Pinmicro, Polaris Wireless, Qualcomm Technologies, Scanbuy, Sensewhere, Shopkick (SK Telecom), Social Retail, Sprooki, Thinknear (TeleNav), Thumbvista, Verve Wireless, Waze (Google), and Yoose.
During 2015, the search application segment led the global indoor location-based search and advertising market and will continue to dominate the market during the forecast period. Search application enables advertisers to promote brands and products when users search directly for specific information by providing them with ads and promotions related to the search keyword entered by the customer. Search ads exhibit significant dynamics that improve their effectiveness and return on investment over time, leading to their increased adoption.
The global indoor location-based search and advertising market by push technology accounted for most of the market shares during 2015 and will lead the market until the end of 2020. In the push advertising model, advertising content is automatically delivered to the end user based on some trigger, for instance, a location-based couponing in which a promotional message or coupon can be triggered by the user's device based on the mobile user’s location or proximity to the address or landmark. The primary focus is to inform the customer about the product at the point of purchase. Several companies like Groupon have high investments in push strategy to reach target customers, and this market segment is expected to witness growth during the forecast period.
PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by application
PART 07: Market segmentation by technology
PART 08: Market segmentation by end-user's point of presence
PART 09: Geographical segmentation
PART 10: Market drivers
PART 11: Impact of drivers
PART 12: Market challenges
PART 13: Impact of drivers and challenges
PART 14: Market trends
PART 15: Vendor landscape
PART 16: Appendix
PART 17: Explore Technavio
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.