Outlook of the location-based services (LBS) market in the US

Technavio’s market research analysts have predicted the location-based services (LBS) market in the US will grow at an impressive CAGR of more than 30% over the forecast period. This market will be positively affected by the increasing adoption of smartphones in the coming years. The consumer demand for smartphones has been increasing rapidly over the years which has led to the introduction several new smartphone models and the development of compelling mobile applications. Moreover, the US is one the world’s largest 4G market and has a 100% smartphone adoption rate with respect to its population. Furthermore, due to a high-speed mobile Internet connection that provides real-time information and context-aware services using cloud technology, highly personalized location solutions are offered to retailers. Such solutions ensure high customer engagement, thereby increasing sales.

The integration of location-based search with social networking sites like Facebook, Twitter, and Flickr on a mobile platform is increasing worldwide. This integration helps users post updates on social networking sites with exact location information. Therefore, smartphone manufacturers are collaborating with LBS providers to develop applications that integrate location-enabled search with social networking sites. Additionally, LBS service providers like GeoSolutions Holdings and Pelago offer location-based mobile social networking services that let users share their real-life experiences using geo-tagged, user-generated multimedia content. Moreover, the integration of location-based search with social networking websites helps local advertisers to target potential customers easily. The integration of location-based search with social networking websites and its rising adoption is a critical factor that will impel the prospects for growth in this market until the end of 2020.

Segmentation by technology and analysis of the LBS market in the US

• Outdoor LBS
• Indoor LBS

During 2015, the outdoor LBS segment dominated the LBS market and is anticipated to reach more than USD 12 billion by 2020. Outdoor LBS has extensive applications in city planning as they help in the intelligent design of city infrastructure using population density heat maps. These maps enable public transport managers plan and update routes to match the actual and future needs of the commuters. With growing smart city planning activities, outdoor LBS also provide monitored solutions to improve energy efficiency, thereby propelling this market segment’s growth over the forecast period.

Application-based segmentation and analysis of the LBS market

• Location-based search and advertising
• Location-based tracking
• Location-based navigation
• Location-based games and augmented reality
• Emergency support and disaster management
• Analytics

In this market study, analysts have estimated the location-based search and advertising segment to be the largest revenue generating segment during the forecast period. LBS provides coupons and discounts through push and pull marketing technology. Location-based marketing is a combination of mobile marketing and contextual marketing and is widely used by marketers in different industries. Enterprises, retail outlets, and restaurant owners find this medium convenient to advertise their Comprehensive market research carried out by the analysts at Technavio has shown that the location-based search and advertising segment will grow exponentially at a CAGR of over 37% by the end of 2020.

Competitive landscape and key vendors

The LBS market in the US is highly competitive and consists of stakeholders like location providers, location technology developers, digital map providers, navigation providers, proximity marketing providers, among others. This market has high growth potential owing to the presence of many start-ups that offer innovative solutions.

The leading vendors in this market are -

• Apple
• Foursquare
• HERE
• Micello
• Telenav

Other prominent vendors analyzed in this market research are Aisle411, Google, IndoorAtlas, Intel, MazeMap, Navizon, Near (AdNear), Polaris Wireless, Scanbuy, Sensewhere, Shopkick, Spirent Communications, Sprint, TeleCommunication Systems, Telenity, TomTom, Verve Wireless, Waze, xAd, Yelp, and Zebra.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the LBS market in the US?
• What are the key market trends impacting the growth of the LBS market in the US?
• What are the challenges to market growth?
• Who are the key vendors in the LBS market in the US?
• What are the market opportunities and threats faced by the vendors in the LBS market in the US?
• What are the trending factors affecting the market shares in the US?
• What are the key outcomes of the five forces analysis of the LBS market in the US?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Indoor LBS Market in Western Europe 2015-2019
• Global Indoor LBS Market 2015-2019
• LBS Market in India 2015-2019