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Extensive research conducted by the market research analysts at Technavio has shown that the global indoor location-based services (LBS) market will witness tremendous growth and will post a staggering CAGR of more than 43% over the forecast period. The number of deployments of local area networks and home area networks such as Wi-Fi and WLAN has been increasing globally, which is one the significant factors driving this indoor LBS market growth. This is primarily due to the availability of high-speed mobile broadband networks and a considerable reduction in deployment costs. Moreover, the majority of business organizations and university campuses are adopting virtual private networks (VPNs) for their data security and providing a seamless connection to their employees and students. The adoption of VPNs by business organizations enables them to provide indoor LBS on their premises. Also, several 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 LBS to offer location search, advertising, and providing updates on flight position and scheduled flights, which helps them deliver an overall better experience for their customers.
The increasing popularity of cloud-based big data analytics is one of the upcoming trends gaining traction in the market. Big data analytics provide enriching insights on consumer buying patterns so that the retailers can increase their sales volume and enhance customer search experiences. With indoor location-based technology, store owners can retrieve a shopper's search information and offer unique incentives to bring a strong value-added component in their digital and customer relation management strategy. For instance, advertising companies like Momo use big data analytics to understand consumer insights. Also, location-as-a-Service companies, such as GeoSpice, use big data analytics to offer cloud-based web services and mobile LBS, which can integrate real-time location information and data analytics.
The global indoor LBS market is highly fragmented owing to the presence of several well-established vendors. The market has high growth potential due to the presence of many new start-ups that are offering innovative solutions. Mobile advertising and location-based gaming have high potential in terms of growth and profitability, thus attracting investors. The market is growing rapidly with new players introducing innovative solutions. Therefore, the competition in the market has been intensifying. Companies like Broadcom, Microsoft, and Cisco are extending the capabilities of their product and service portfolio to enhance indoor positioning.
Key vendors in this market are -
Other prominent vendors in the market include Aisle411, Beaconinside, Bluepath, Cartogram, Comtech Telecommunications, DecaWave, Estimote, Gimbal, GiPStech, IndoorAtlas, Insiteo, Intel, MazeMap, Microsoft, Navizon, Nextome, Nimble Devices (Steerpath), Pinmicro, Pointr Labs, Qualcomm Technologies, Quantitec, Ruckus Wireless, Sensewhere, Social Retail, Spreo Indoor Location Services, Sprooki, Thumbvista, and Yoose.
During 2015, the retail companies segment dominated the market and is expected to continue its dominance over the forecast period. Indoor LBS providers offer coupons and discounts through push and pull marketing technologies. These services also provide social information such as ratings and reviews, product videos, and recommended products, thereby improving the overall shopping experience. Additionally, location-based marketing is extensively used across different industries to send product or service promotional messages based on user location. Many companies use location-based apps for targeted advertisements to reach potential consumers in real time, which will aid in this segment’s growth over the next four years.
In terms of geography, the Americas led the market in anticipated to contribute the highest revenue by end of 2020. Indoor LBS navigation (Google Maps) can be accessed through multiple mobile platforms such as Android, iOS, and Windows. Also, the majority of the adult smartphone users in the US use Google Maps get location-based directions and recommendations. Moreover, most of the retailers in the Americas are adopting intelligent vending machines that enable cashless payment, voice recognition, and digital signage. The increasing adoption of Internet of Things (IoT) technology is paving the way for the LBS market in this region.
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 end-user
PART 07: Geographical segmentation
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
PART 14: Appendix
PART 15: Explore Technavio
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