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The size of the enterprise indoor location-based services market in US is estimated to increase by USD 25,831.89 million to grow at a CAGR of 47.45% between 2022 and 2027. The growth of the market depends on several factors, including proximity marketing, improved indoor navigation, and asset tracking.
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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Asset tracking is notably driving the market growth, although factors such as growing demand for high costs and capital investment may impede the market growth. 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.
Asset tracking is the key factor driving the growth of the market. Businesses often need to know when an object or person enters or leaves a particular area. These include production facilities, hospital floors, or data centers. In such cases, the receiver is attached to a fixed location and the tag is attached to the mobile asset. Separate receivers can be attached to outlets and doorways for more accurate tracking of objects and people. With the help of the tag, the location of an object or person is time-stamped as it moves through different receiver fields.
This solution enables the detection of the location as well as the direction of the object or person at a specific time. In certain scenarios, video cameras are used, which capture the identity of the person or object entering or leaving the indoor premise. Thus, asset tracking is expected to drive the market during the forecast period.
The use of analytics for business process optimization is the primary trend in the market. Analytics software can be integrated into existing in-house location-based service systems. This software helps measure the time spent in frequently traveled locations and routes. Data can be displayed in the form of charts and heat maps. This facilitates the evaluation and processing of available information. infsoft GmbH offers a real-time analysis service for the data collected by its in-house location-based service. For instance, Power Analytics, part of Target Brands, uses its network of beacons to provide software for designing, simulating, and analyzing electrical energy systems for in-store personalization. The results help identify busy hours of a day or week. These results are useful in conducting promotional activities as well as personnel capacity planning.
In addition, analytics is useful in determining the number of people passing through a particular spot during the day. This helps finalize the product placement in the retail sector. In the industrial sector, the movements of objects such as work equipment, goods, or products can also be measured, which can help determine the most efficient plant layout and implement lean manufacturing tools and processes such as just-in-time. Thus, the trend of analytics in the market is expected to gain momentum during the forecast period as it offers a deep understanding of modern consumer behavior to drive data-driven decision-making.
High costs and capital investment is a major challenge to the growth of the market. One of the major challenges hindering market growth is the high costs and capital expenditures associated with the US business location services market. The market is capital-intensive, mainly due to market emergence and high infrastructure requirements. Buyers of these typically have a high-cost investment due to extensive hardware requirements. Internal location-based services are evolving and constantly changing.
The adoption and implementation of these services is expensive and time-consuming, which can be primarily ascribed to the complexity of the deployment and the additional job of proper integration with existing IT infrastructure across companies. As such, the cost impact on an organization may be considerable, particularly small companies such as small retail stores. Thus, the deployment of such solutions requires extensive planning to mitigate these cost risks and is expected to be a key challenge for the market during the forecast period.
The market research 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.
AiRISTA Flow Inc.: The company offers point deep location. Also, the company offers location-tracking hardware, software, and mobile phone applications.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
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.
The market share growth by the RFID segment will be significant during the forecast period. RFID uses radio waves to wirelessly transmit important data such as serial numbers. Active RFID tags communicate on a variety of frequencies including 125 kHz, 13.56 MHz, 433 MHz, 900 MHz, 2.4 GHz and 5 GHz. RFID is a new location-based technology for tracking the movement of objects and people, with inherent advantages such as high accuracy and low maintenance costs. RFID can be broadly divided into passive RFID and active RFID.
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The RFID segment was valued at USD 765.70 million in 2017 and continued to grow by 2021. RFID is gaining traction as it allows identification as well as tracking of an asset, and it also offers higher accuracy than Bluetooth and Wi-Fi. Therefore, localization through RFID is suitable for tracking solutions in industrial environments. Moreover, in retail enterprises, RFID can be used to analyze the walking route of customers to generate consumer heatmaps, and in the automotive industry, it can be used for vehicle identification, especially in law enforcement. Such factors will increase the segment's growth during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The Market is experiencing significant growth, driven by the demand for location accuracy and tracking efficiency in various sectors. These services find application in promotional activities, infrastructure developments, and tracking purposes in retail malls, parks, educational institutes, hospitals, and business organizations.
Technological advancements have led to the development of infrastructure facilities like shopping malls, skyscrapers, and hi-tech parks, which further fuel the adoption of location-based services. The use of virtual private networks (VPNs) ensures data protection and security, meeting the requirements of government authorities and business organizations.
The market offers a range of solutions, including monitoring devices, public activity tracking, and location-based advertising services, enhancing customer engagement. Industry players like Radisys are driving innovation through product launches and collaborations, such as the Radisys ReachPoint geolocation platform, which leverages GPS connectivity and the ReachPoint Navigation application for precise and real-time location tracking.
Market Scope in US |
|
Report Coverage |
Details |
Page number |
143 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 47.45% |
Market growth 2023-2027 |
USD 25,831.89 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
39.4 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AiRISTA Flow Inc., Aislelabs Inc., Alphabet Inc., Apple Inc., Broadcom Inc., Cisco Systems Inc., Comtech, Esri Global Inc., HERE Global BV, Hewlett Packard Enterprise Co., HID Global Corp., infsoft GmbH, Juniper Networks Inc., Microsoft Corp., NextNav Inc., PaeDae Inc., Polaris Wireless, POLE STAR SA, Qualcomm Inc., and xAd Inc. |
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, 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Component
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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