Location-Based Services (LBS) Market by Component, Type and Geography - Forecast and Analysis 2023-2027

Location-Based Services (LBS) Market Forecast 2023-2027

The location-based services (LBS) market size is forecast to increase by USD 167.69 billion at a CAGR of 26.22% between 2022 and 2027. Market expansion hinges on factors such as escalating demand for personal and enterprise navigation services, widespread usage of mobile computing devices, and swift integration of beacon technology. Location-based services, integral to software applications, utilize location data on IP-capable mobile devices to pinpoint device locations. This fusion of technologies enables precise tracking and tracing functionalities, catering to diverse needs ranging from personal navigation to enterprise solutions.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by component (hardware, software, and services), type (outdoor and indoor), 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.

Market Segmentation By Component

Considering the realm of Location-Based Services (LBS), the convergence of UWB (Ultra-Wideband), RFID (Radio-Frequency Identification), and BLE (Bluetooth Low Energy) technologies has ushered in a new era of connectivity. Leveraging IP addresses and geolocation data, businesses can tap into the vast network of connected devices to deliver tailored experiences. The MarTech series is abuzz with innovations in IoT devices, AR/VR technologies, and location-based technologies, aiming to enhance the accuracy and relevance of services provided. With a focus on delivering immersive virtual experiences and leveraging augmented reality (AR)/VR technologies, location intelligence is harnessed to fuel location-based advertising and contextual advertising campaigns. Through the seamless integration of mobile phones, tablets, and other devices, LBS providers are poised to redefine consumer engagement, offering personalized solutions tailored to individual preferences and behaviors.

The market share growth by the hardware segment will be significant during the forecast period. They include passive and active radio frequency identification (RFID) tags, beacons, and sensors. They can use existing infrastructure like Wi-Fi access points or might require upgrading of the prevalent infrastructure with components like infrared (IR) sensors and RFID or sonar components as per requirements. For instance, Hewlett Packard Enterprise Development provides Aruba Tags that produce location-based data within the range of BLE-enabled access points.

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The hardware segment shows a gradual increase in the market share of USD 11.42 billion in 2017 and continue to grow by 2021. Aruba tags have other features like batteries that require minimal maintenance as well as compatibility with medical applications and can be remotely controlled and easily deployed. Moreover, components used like RFID tags are economical and offered by numerous vendors such as AiRISTA Flow. They also have motion sensors to determine the transmission intervals, which help in battery usage optimization. Hence, other factors are likely to contribute to the growth of the market during the forecast period.  

Market Segmentation By Type

The outdoor location-based services segment plays a vital role in improving the response times of emergency services. This ensures that government and local authorities can build cities keeping in mind population density from heat map which also enables public transport managers to predict and adjust routes to match the actual and future needs of commuters. This helps reduce congestion, improve safety, and optimize traffic clearance. Moreover, they help provide retailers, developers, and franchises with key location-based insights on which they can further leverage AI and other technologies to improve customer relationship management (CRM) and business intelligence (BI). Banks can utilize location-based data to drive branch expansion, optimize their regional promotions. Hence the above factors are likely to boost the growth of the market during the forecast period.

Regional Overview

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North America is estimated to contribute 48% 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. In the region, the US is the largest market with major vendors like major vendors such as ESRI, Alphabet Inc., Apple Inc, and Cisco Systems Inc. North America, who are also integrating AI and cloud computing into their services. Moreover, the demand for location-based services is greatly driven by the retail market which can utilize strategies like discounts and other offers, increasing sales revenue. Other industries that utilize location data and are demanding similar location-based services include the telecommunications, manufacturing, retail, and healthcare industries. Other factors that are driving the market in the US include high smartphone penetration and an increasing shift toward E-commerce. Hence, all these factors will result in market growth during the forecast period.  

Market Dynamics and Customer Landscape

The market is being propelled by advancements in UWB (Ultra-Wideband), RFID (Radio-Frequency Identification), and BLE (Bluetooth Low Energy) technologies, facilitating precise geolocation data utilization. The proliferation of connected devices and IoT devices augments demand, while AR/VR technologies enhance immersive virtual experiences. Location intelligence drives contextual advertising and location-based advertising, ensuring accuracy and relevance. However, challenges such as privacy concerns surrounding IP addresses and data security persist, necessitating robust measures. Adapting to the evolving MarTech series and ensuring seamless integration with businesses, mobile phones, and tablets remains crucial amidst dynamic market trends. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

 Key Market Driver

The rise in demand for personal and enterprise navigation services is driving market growth. These include real-time navigation, LBA, and payment services, which help generate revenues through map updates fees and advertisements. Baidu offers a map application that gives a variety of location-based services like restaurant or hotel reservations, taxi booking, movie ticket booking, and traffic updates. Additionally, the efficiency of workforce management services, which enhances business productivity and operational efficiency, is boosted by greater smartphone penetration. Real-time sensors also can help logistics companies to track goods’ movement.

Additionally, car navigation is increasingly shifting towards the adoption of voice assistance technology, which can reduce possible distractions associated with touch-based navigation. For ease of integration of devices with LBS, Apple Inc. CarPlay allows users to use the audio system of their iPhone devices, including Siri. Moreover, leading car manufacturers like Volkswagen, BMW, and Toyota are offering in-built GPS navigation. Hence, the above factors are likely to boost the growth of the market during the forecast period.

 Significant Market Trends

The growing popularity of location-based gaming is a key trend in the market. These include interactive map-based mobile gaming like Pokémon Go, and Geocaching that involve the player interacting in the game environment to progress further. This has transformed the gaming industry into an as-a-service model incorporating technologies like cloud computing, 5G, and virtual reality (VR). Game developers have included location analytics tools for players to track their movement and the movement of other players.

Additionally, there are even games that involve real-world locations such as Hello Kitty AR: Kawaii World launched by Bublar Group AB which uses the Google Maps Platform. This helps it incorporate a location-based augmented reality (AR) with real and imaginary locations in the game.  Hence, the increasing popularity of such games shall boost demand for location-based services by game developers and result in further market growth during the forecast period.

Major Market Restrain

Privacy and security issues are challenging market growth. For receiving coupons, deals, and promotions, people need to reveal personal and private information to advertisers and third parties, which results in the possibility of data leakage. Additionally, because these platforms are location-based, network providers have access to the real-time location of users and this could be shared without their consent. End-users are concerned about their privacy despite the presence of legal frameworks to safeguard it.

Hence, service providers must ensure adherence to regional and global data privacy laws, which will also help retain consumer trust. One such key regulation is the General Data Protection Regulation, passed by the European Parliament in April 2016 to ensure data privacy and legal use of customers' location data. Hence, data security and privacy are key challenges that could hinder the growth of this market during the forecast period.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and forecasting strategies.

Customer Landscape

Who are the Major Market Companies?

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.

AiRISTA Flow Inc. - The company offers location-based RTLS solutions that provide location insights into people and assets.

Alphabet Inc. - The company offers location-based services under Google Cloud partner location.

Apple Inc. - The company offers location-based services that help to protect personal information on iPhone, iPad, iPod touch, and Apple Watch.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• AT and T Inc.
• Bayerische Motoren Werke AG
• Cisco Systems Inc.
• Emanate Wireless
• Esri Global Inc.
• Foursquare Labs Inc.
• General Electric Co.
• Halma Plc
• Hewlett Packard Enterprise Co.
• International Business Machines Corp.
• Microsoft Corp.
• Oracle Corp.
• Qualcomm Inc.
• Siemens AG
• Telefonaktiebolaget LM Ericsson
• Zebra Technologies Corp.
• Ziff Davis Inc.

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

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 2017 to 2027. 

• Component Outlook 
  • Hardware
  • Software
  • Services

• Type Outlook
  • Outdoor
  • Indoor

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overveiw

In the dynamic landscape of the Location-Based Services (LBS) market, innovations in Smartphones and Assisted GPS (A-GPS) have paved the way for enhanced Location-based marketing strategies. Technologies like Enhanced GPS (E-GPS) and Enhanced Observed Time Difference (E-OTD) offer precise Navigation and Tracking capabilities, while Cellular ID and GIS and Mapping solutions facilitate accurate Geo Marketing and Advertising campaigns. Social connectivity through platforms like Social Networking and Entertainment fuels engagement, while Fleet Management systems optimize operations based on real-time data.

Leveraging user's actual location data, location service providers integrate Internet of Things (IoT) sensors to analyze fuel consumption and improve public service effectiveness. Robust mapping tools track footfall patterns to target the target audience effectively, with seamless installation and deployment. Utilizing Wi-Fi location-based services and Coolpad technology, providers like Skyhook Wireless offer cost-effective solutions as a potent marketing tool for customer engagement. This amalgamation of imagery solutions and monitoring applications revolutionizes infrastructure development, catering to diverse locations such as shopping malls, parks, schools, and hospitals, extending even to home and local area networks (WLAN) for comprehensive coverage.

Market Scope
Report Coverage	Details
Page number	180
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 26.22%
Market growth 2023-2027	USD 167.69 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	24.6
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 48%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AiRISTA Flow Inc., Alphabet Inc., Apple Inc., AT and T Inc., Bayerische Motoren Werke AG, Cisco Systems Inc., Emanate Wireless, Esri Global Inc., Foursquare Labs Inc., General Electric Co., Halma Plc, Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Oracle Corp., Qualcomm Inc., Siemens AG, Telefonaktiebolaget LM Ericsson, Zebra Technologies Corp., and Ziff Davis Inc.
Market dynamics	Parent market growth analysis, Market Forecast, 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.
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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of market vendors

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