Market Overview

The global location-based services market in terms of revenue was estimated to be worth USD 25.23Million in 2023 and is poised to reach USD 130.28 Million by 2032, growing at a CAGR of 20% from 2024 to 2032.

The term Location-Based Services (LBS) Market refers to that industry which specializes in the provision of services and applications based on the user or device's specific location, capable of improving a user's experience and interaction. Such services are primarily enabled by the integration of diverse technologies such as GPS, RFID, Wi-Fi, and cellular data. LBS may involve applications ranging broadly across the sectors.

Advancements in technology and the increasing penetration of smartphones and IOT devices have led to the growth of the LBS market by multi folds. LBS encompass applications and services that leverage user or device location to display user experiences or to personalize interaction with various sectors. Among the major technologies that make LBS operational include GPS, Wi-Fi, Bluetooth, and cellular data.

The market includes other applications like navigation, geofencing, social networking, retail marketing, fleet management, emergency services, and tourism. An example is in navigation applications which offer real-time directions, solutions on geofencing applications where businesses reach their customers through location-based offers, and social media platforms utilize LBS to enable users to share their locations and find events happening around them, hence increasing their usage.

The growing demand for the LBS market is driven by the increased proliferation of smartphones-ubiquitous devices that offer complex location-tracking capabilities. With the integration of IOT devices, the available applications in LBS can collect real-time data and analyse them, therefore allowing smarter decisions in logistics and transportation activities.

LBS has specially benefited the retail sector-with a capacity to use location data to serve the customer with personalized marketing campaigns and richness of in-store experience. In the health sector, it applies LBS for asset tracking and patient monitoring, hence improving both operational efficiency and patient care.

Therefore, the LBS market will continue on an upward trajectory due to the rising investment in technology and infrastructure, especially where consumer preferences tip toward customizations for individual experiences and concepts like smart cities propel further advancements. When businesses and consumers see the worth of location-based insights in their operations, there would likely be great demand for innovative LBS solutions in the years ahead.

Key Findings

• To offer real-time location mapping positioning services, the Indian government launched a nationwide CORS (Continuously Operating Reference Stations) survey network in October 2023.
• PTV Group's new automated transport modeling system, PTV Model2Go, now includes traffic data from TomTom, a GPS technology supplier, according to a June 2023 announcement. The PTV Group significantly reduced the time and effort required to map transport patterns in all key regions by utilizing TomTom's reliable, efficient, and trustworthy origin and destination traffic data through this integration.
• Aruba Networks announced improvements to its Edge Services Platform (ESP) in March 2022, which will assist companies in leveraging edge and IoT opportunities. Better location-based services and more administration capabilities are two examples of these improvements. Additionally, the company unveiled self-locating indoor access points (APs) with built-in GPS sensors and Open Locate, a technology that lets the access point share position information with a device.

Market Dynamics - Market Drivers

Increasing Smartphone Penetration

The foremost growth driver of LBS market has been the increased adoption of smartphones that are embedded with GPS and high-end location-tracking abilities. Smartphones allow access to a wide range of applications based on location data, from navigation, social networking, to mobile shopping. The increased dependence on their devices for real-time directions, local recommendations, and personalized offers boosts the demand for LBS.

Navigation applications like Google Maps offer customers accurate turn-by-turn directions that increase travel efficiency. Social media applications use the location data to aid in checking into places and sharing locations with friends to enhance community engagement. Retailers use LBS to send targeted promotions to customers based on their current locations to increase foot traffic and sales. Such factors imply that with further evolution in smartphone technology and people increasingly using mobile for every-day activity, the LBS market is expected to continue growing.

Key Findings

• By the end of 2023, 69% of the world's population—5.6 billion people—had a mobile service subscription, up 1.6 billion from 2015. The penetration of mobile internet has increased much more quickly. By the end of 2023, there were 4.7 billion mobile internet users worldwide, or 58% of the total population, up 2.1 billion from 2015.
• About 35 million jobs were supported by mobile technology and services in 2023, which contributed $5.7 trillion in economic value added, or 5.4% of the world GDP.

Market Opportunities

Advancements in Augmented Reality (AR)

Integration of LBS with AR will open avenues for interesting applications that can elevate user experience in the retail, tourism, and real estate businesses. On the retailing front, it will create virtual and immersive shopping experiences by overlaying digital information onto physical products. For example, with smartphones, people can see how furniture would look in their homes or simply check what they purchase in-store by just scanning.

For instance, in tourism, AR applications can present location-based information in an interactive form, allowing users to inspect historically rich places or landmarks virtually, supported by virtual guides that will provide them with context and insights. Visitors can point their devices at a monument to view what are happening or what may have been relevant at that time.

It can be giving virtual space tours, such that prospective homebuyers can see it virtually rather than driving from house to house. Therefore, while LBS can improve the quality of information applied by users to enhance the making of better decisions, their combination with AR may be valuable, contextual information in the management of decision making of the environments around them, hence changing how consumers interact with their environment.

Key Findings

• DISH sent Maxar Technologies a request for a direct broadcast satellite in April 2023. Distributing information over North America, this geostationary communications satellite is operated by DISH. Viewing high-quality information is made easier for the user by the solution.
• Cognizant and Here Technologies, a location data and technology platform, announced an agreement in February 2023 to provide real-time location data and analysis. This collaboration has taken place with Cognizant clients in the areas of retail, ride-hailing, logistics, manufacturing, and automobiles. Cognizant may use location intelligence and analytics to more precisely reach and service customers.

Market Restraining Factors

High Development Costs

There is a huge cost to develop and maintain Location-Based Services applications, and these costs may be the significant entry barrier for smaller companies. Major costs are being arisen through the requirement of having solid technology infrastructure, including servers, cloud services, sophisticated software platforms, and much more, in order to properly handle the location data.

Investment in data management systems is also required to help businesses, such as locating the appropriate location information in a legitimate and reliable context. Investments in this direction include ensuring the best source of data, incorporating that into existing systems, and developing analytics tools for processing and interpreting location-based data.

LBS applications need to be updated and maintained on a constant basis as updating is a process that keeps on continuously happening. This involves software updates, security patches, and feature enhancements for focusing on the needs of customers and changes in regulations and acts.

This financial burden can pose such a challenge to small companies in their efforts to compete with leading players in the market, as they do not have such substantial resources and infrastructures in place. In this respect, high development and operational costs might deter innovation and reduce market competition.

Segmentation Analysis

The market scope is segmented because of by Application, by Technology, and by End-User Industry.

By Application

Based on the Application of the market is segmented into Navigation and Mapping, Geofencing, Location-Based Advertising, Fleet Management, Social Networking, Emergency Services.

Navigation and mapping services are in higher demand due to their use in activities executed daily within every logistical operation. Though navigation and mapping services like Google Maps provide live directions and the condition of traffic, they are still the front runners. Geofencing is the virtual boundary of an area; for example, retail use geofencing in sending notification to their customers who have entered a particular area. To deliver targeted advertisements to the user as per his current location, location-based advertising aims at enhancing marketing effectiveness.

Fleet management solutions enable the logistics company to keep tabs on the vehicle's location, ensure optimal routes, and advance efficiency in operations. Examples include Fleet Complete. Social networking applications, such as Snap chat, allow a user to share his or her location with friends and build relationships based on proximity. Finally, emergency services use LBS for a rapid response: apps like Pulse Point alert users to emergencies of cardiac origin that occur within their vicinity.

By Technology

Based on the Application of the market is segmented into Global Positioning System (GPS), Wi-Fi, Bluetooth, Cellular Data.

GPS leads the market because it is highly adopted and accurate, and can be widely used in most LBS applications all over the world. This is the most widely applied technology for accurate location tracking. It is currently applied in a lot of navigation apps such as Google Maps to guide delivery of precise directions and traffic information in the outdoor environment.

Wi-Fi technology has proven the effectiveness of using indoor location services, especially for navigation through complexly designed spaces and buildings like shopping malls or airports. For example, an application like Airport Maps can guide a traveller to the gate and other amenities by providing Wi-Fi signals.

Bluetooth technology is very well used in proximity-based applications, such as for indoor navigation and for location-aware marketing. Retailers use Bluetooth beacons to push targeted offers to customers' handsets when they enter the store.

This can therefore power cellular data in tracking a mobile location. Location information can then be understood and achieved even where the GPS coverage might not be available. For example, cab services like Uber apply cellular data to match drivers with passengers around them.

Regional Snapshots

By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. North America would be the largest region in the LBS market, primarily driven by leading-edge technological infrastructure and relatively high smartphone penetration. Large tech companies and innovative start-ups open opportunity to innovate in highly sophisticated LBS applications. The main focal area here is on data protection and security, leading to increasing demand for LBS solutions in industries such as retail and logistics.

Europe is another major region in terms of market and imposes strict rules and guidelines, starting with the General Data Protection Regulation, (GDPR), which affects the way organizations, intend to apply LBS. The usage is on the rise in both transportation and tourism fields because user experiences are hugely driven by the personalized service they get through specific LBS applications.

The region of Asia-Pacific is probably witnessing the most rapid and significant growth in LBS, with penetration sustained through higher levels of smartphone penetration, urbanization, and fast tracking of smart city development. Heavy investments into digital infrastructure in China and India create massive opportunities for LBS providers. Another trigger in demand for location-based marketing and delivery services is e-commerce, growing at an unrelenting pace.

LBS markets are seeing growth in Latin America and the Middle East & Africa, mainly in urban areas. Growth is also encouraged by increasing internet connections and smartphone usage. Several barriers, however, exist-a notably unstable economy and limited infrastructure-can limit consumer take-up.

Overall, the LBS market is growth across all regions and had different dynamics driving demand across these different regions. North America and Europe set the pace on technology and regulation but where Asia-Pacific is becoming a hotbed for fast growth while still showing a more diverse landscape with massive opportunities for innovation and investment.

Key Findings:

• In order to accelerate the operation of location-based services, Keysight integrated 5G technology with a global navigation satellite system in October 2022.

List of Companies Profiled

• IBM Corporation, Apple, Inc.
• Airtel India.
• Google LLC
• Microsoft Corporation
• ALE International
• Oracle Corporation, AT&T Inc.
• Qualcomm Technologies, Inc.
• Cisco Systems, Inc.

Key Industry Developments

• Mapbox, a platform that provides location and map services, introduced new solutions in December 2022 that enable developers and organizations to make better data-driven decisions and create seamless, intuitive user experiences using cutting-edge location technology.
• VeriDaaS Corporation announced in November 2022 that it would acquire the Canadian geo-intelligence firm 4DM. In the areas of environmental health, location-based services, risk assessment applications, and intelligent transportation solutions, 4DM offers consulting and service-based work to governments, non-governmental organizations, and private sector businesses.

Report Coverage

The report will cover the qualitative and quantitative data on the Global Location Based Services Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Regional Analysis

North America accounted for the highest xx% market share in terms of revenue in the Location Based Services market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Location Based Services. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Location Based Services companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Location Based Services Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Location Based Services Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase

• To gain insightful analyses of the Location Based Services market and have comprehensive understanding of the global market and its commercial landscape.
• Assess the production processes, major issues, and solutions to mitigate the development risk.
• To understand the most affecting driving and restraining forces in the market and its impact in the global market.
• Learn about the Location Based Services market strategies that are being adopted by leading respective organizations.
• To understand the future outlook and prospects for the Location Based Services market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of the Market

• Historic year: 2019-2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Million

Location Based Services Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: