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The location analytics tools market size is estimated to grow by USD 17.79 billion at a CAGR of 16.93% between 2023 and 2028. The Location Analytics Market witnesses significant growth driven by factors such as economic growth and increasing demand for operational enhancements. Companies utilize spatial context to analyze customer behavior and optimize resource allocation. However, they face business challenges such as legal concerns regarding geoprivacy and data misuse, necessitating compliance with regulatory laws. To address this, businesses invest in assets management and implement risk mitigation strategies.
Moreover, the market benefits from cloud deployment and scalable solutions, enabling data accuracy and privacy protection. Technological limitations notwithstanding, personalized experiences drive digital transformation, while internet of Things (IoT) devices contribute to market expansion and operational data collection. Advertising strategies leverage spatial insights to optimize peak purchase periods and enhance retail sector performance, ultimately shaping business planning and optimal pricing strategies.
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The market share growth by the transportation segment will be significant during the forecast period. The transportation sector is evolving as a critical focus area for manufacturers, distributors, and logistics service providers in the supply chain process. Transportation companies gather location-related data regarding road conditions, weather updates, urban infrastructure, and route permissions. Location analytic tools enable transportation companies to achieve better cost-distance ratios and reduce the time and fuel spent on transporting goods.
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The transportation segment showed a gradual increase in the market share of USD 2.07 billion in 2018. These tools confer transportation companies with benefits such as streamlined transport operations on the route, reduced operating costs with route optimization, improved visibility and control over transportation spending, ability to fulfill customer service level agreements, and improved distribution of resources during high demand. Thus, such benefits drive the demand for these tools among transportation companies, which will further drive the market during the forecast period.
Outdoor locations are emerging as a major market segment within the global market. This sector caters to different types of outdoor environments and offers a wide range of opportunities to businesses and organizations. Outdoor retailers can use this to track customer movement, optimize product placement, and create targeted marketing campaigns. All of this adds up to better customer experiences and higher outdoor retail sales. Thus, such features and properties of the outdoor location segment will drive the market during the forecast period.
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North America is estimated to contribute 40% 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. The market in North America is mainly driven by the rise in the adoption of this by enterprises and geo-targeted promotions and the presence of major market players such as ESRI, Oracle, IBM, Salesforce, and SAS Institute. Several other players in the region are expanding their product offerings, which are integrated with advanced technologies such as AI and cloud computing.
Furthermore, various industries such as telecommunications, manufacturing, retail, and healthcare generate huge amounts of customer-data with respect to different locations. These industries use these to extract and analyze location-data from customer data. Besides, market players are developing and launching new product offerings to capitalize on the increasing adoption of location analytics tools in the region. Thus, such factors will drive the demand and adoption of location analytics tools and result in the subsequent growth of the market in North America during the forecast period.
The location analytics market is experiencing robust growth driven by the increasing number of acquisitions and partnerships, which are expanding the reach and capabilities of location-based services. A notable trend within this market is the rising popularity of location-based gaming, which leverages geographic data to create immersive gaming experiences.
However, the industry faces challenges due to stringent government regulations governing the collection and use of location-based data, posing obstacles to data acquisition and analytics. Despite these challenges, businesses are leveraging location analytics to gain valuable insights from a variety of sources, including customer data, operational data, and environmental data, enabling better decision-making and operational enhancements. By analyzing spatial context, patterns, and correlations, organizations can overcome business challenges and harness the full potential of location analytics to drive economic growth and improve infrastructure, transportation, and environmental management processes.
Increasing number of acquisitions and partnerships is the key factor driving market growth. Market players are partnering with other location-based intelligence software providers to develop new capabilities in these tools to gain a competitive advantage over their peers. In addition, such partnerships help market players access new technologies that can help them enhance their product offerings. Partnerships and acquisitions help market players to expand their geographic footprint.
For instance, in October 2021, CartoDB Inc. announced a partnership with Google LLC to bring core applications related to satellite imagery, demographics, mobility, and telematics information to Google Cloud so they can be deployed at a greater scale. Hence, the growing number of strategic partnerships and acquisitions between market players is expected to drive market growth during the forecast period.
The growing popularity of location-based gaming is the primary trend shaping market. Location-based gaming is evolving with the growth in high-speed internet connectivity and smartphones that are integrated with positioning technologies. The availability of GPS in smartphones has led to the development of location-based and interactive map-based mobile gaming such as Ingress, Pokemon Go, and Geocaching. Such games use a players current physical location to navigate a player inside the game environment and progress through the game.
Moreover, the transformation of the gaming industry from merely a product to an as-a-service model with technologies, such as cloud computing, 5G, and virtual reality (VR), has led to the development of new gaming models, such as online multiplayer and free-to-roam gaming. Game developers are using these tools to track and analyze the movements of players while developing these games. This is also used to develop games based on the physical world with real-world locations. Thus, such factors are expected to drive the market during the forecast period.
Stringent government regulations for collecting location-based data is a challenge that affects market. Companies using customers location data are required to comply with several stringent government regulations and laws by the respective state and country authorities. They must ensure data privacy and legal use of customers location data to comply with regulations when collecting location data. Furthermore, companies analyzing location-related data are also required to take responsibility for the control of the distribution and use of customers location information.
The availability of customers personal data and the digitalization of enterprises have increased cybercrimes. Cyber attackers target sensitive customer data, such as names, email addresses, phone numbers, bank details, or hashed passwords. Besides, the adherence to regulations and laws by companies that analyze location data slows down the adoption rate, which impedes the growth of the market during the forecast period.
The Market 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 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 market 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 location analytics tools market is witnessing rapid growth as businesses leverage the power of data to gain insights into patterns and correlations within their operations. By analyzing geospatial data, companies can uncover valuable insights that drive better decision-making and improve processes.
One significant application of location analytics tools is in spatial data visualization, allowing businesses to understand foot traffic patterns and optimize their operations accordingly. For retailers, this means identifying store-product correlations and improving supply chain coordination to meet customer demand effectively.
However, the use of such tools raises concerns about privacy vulnerabilities and compliance with regulations like GDPR. As such, businesses must ensure that they handle confidential data and Personally Identifiable Information (PII) responsibly, adhering to regulatory norms to protect consumer privacy.
Despite these challenges, the potential benefits of location analytics tools extend beyond businesses to urban planners, aiding in city development and infrastructure planning, and even to the tourism industry, helping destinations optimize visitor experiences and manage crowds effectively.
In summary, the location analytics tools market offers powerful solutions for businesses to unlock insights from spatial data, but careful consideration of privacy and regulatory compliance is essential to mitigate risks and maximize benefits.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
The Market offers businesses efficiency improvements and serves as a strategic tool for informed decision-making and developing business strategies. These tools enable organizations to analyze fragmented location-based data effectively. By leveraging BI tools, IoT (Internet of Things), Artificial Intelligence (AI), and Machine Learning (ML), businesses can gain valuable insights through predictive analytics. The market is witnessing a shift towards Software-as-a-Service solutions, providing scalability and accessibility. As businesses increasingly rely on big data for insights, location analytics tools play a crucial role in harnessing this data to drive growth and competitive advantage.
Location Analytics Tools Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.93% |
Market Growth 2024-2028 |
USD 17.79 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.7 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 40% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Alteryx Inc., CartoDB Inc., Cisco Systems Inc., Esri Global Inc., Foursquare Labs Inc., Gravy Analytics Inc., InMarket Media LLC, International Business Machines Corp., Microsoft Corp., Oracle Corp., Pitney Bowes Inc., Precisely, Salesforce Inc., SAS Institute Inc., TomTom NV, Galigeo SAS, GeoMoby Pty. Ltd., Kinetica DB Inc., and Infillion |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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. |
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