Market Overview
Location as a service market is accounted to register a CAGR of 23.70% during the forecast period and is estimated to reach USD 286.7 Billion by 2030. Location as a service is a location data delivery solution, and a huge amount of data produced by location as a service market can benefit the organizations to enhance their operational efficiencies, reduce cost, increase security and provide a better experience to the customers. Location data plays a huge role in driving real insight from data attached to a specific location. Location as a service solution gives businesses a wide range of advantages because of their ability to provide information to a particular location or place. It uses all-time data with the use of mobile devices and tracks the location of the phone. The rapid growth of digitization across the globe drives the demand for a location as a service market.
Location as a service is emerging technology and gaining popularity because of the availability of analytical tools and spatial data. The growing demand for business intelligence solutions fueling the location as a service market growth. With the development of infrastructure in various countries with an increasing number of parks, shopping malls are allowing the providers to offer customers regarding the location. The market for mobile-based location services has seen rapid growth over the years and in recent years as well. The growth is due to the cheaper GPS devices and the services related to the user’s location. The key services in which location solutions can be seen are mapping, tracking, location-based game, emergency support, advertising, and analytics. With a wide range of applications of location as a service solution, the market is set to see huge growth in demand.
The location as a service solution can improve efficiency with privacy and security. With the advancement of technology, many sectors are adopting new staters to improve their transportation efficiency. With a location as a service system, the organization can automate its operations. The global location as a service market to see huge growth in the forecast period due to the adoption of mobile services. Mobile-based services are dependent on the information generated from navigational data. There is a wide range of applications related to location information, such as data posted on various sites, location mapping, increasing the demand of location as a service market. The location solutions are also used in many sectors such as analytic, fleet Management, tracking system, and shipment management.
Covid-19 Analysis
The covid-19 pandemic has a mixed impact on the location as a service market, unlike other businesses that are largely impacted due to the pandemic. Due to the covid-19 pandemic, the transportation sector, manufacturing, tourism, and hospitality. Apart from these, the retail, education, and government sectors are impacted. Due to the strict Lockwood and social distancing, the import-export activities in various countries have affected and the growth of transportation, manufacturing z, and tourism.
But healthcare, energy, and utility sectors are adopting location solutions to meet the people’s requirements. With the rising number of covid-19 patients, the need for technically advanced technologies is significantly increasing in the pandemic. Drone and other devices are used to provide required support so that the location as a service solution is used in this case that is driving the location as a service market growth.
Market Dynamics
There is the location as a service market driver that is driving the growth of the market. But the market restraints hampering the growth of demand.
Market Drivers
Spatial data shows the location, size, and shape of the objects present in the earth, such as mountains, lakes, or towns. It is considered that spatial data is required for the companies to under the changing business trends and changing customer requirements across the regions that are driving the market growth. The need for business intelligence solutions is also one of the major locations as a service market driver. An increasing number of mobile devices and the trend of navigation & map-based creating a high demand for the location-based service market. Raising demand for social media, advertisement, loT devices, and wearable devices are also some of the major drivers of the market. The 4G and 5G networks and the increasing number of Internet users also boost the location as a service market. The increasing application of location solutions is expected to boost the location as a service market sale in the coming years.
Market Opportunities
The location solutions are easy to install, low cost, and offer a wide range of advantages to businesses. These are also used in mobile devices and easily portable. Many business organizations are using location solutions, and the application of these solutions is expected to bring opportunities for the market in the coming years. Key players are also trying to bring new opportunities to the market to boost the demand. The e-commerce sector is booming, and mobile apps are contributing highly to their success. Location solutions form a link between brands and customers, so increasing the e-commerce field bringing new opportunities to the market.
Market Restraints
Strict rules and regulations are the biggest market restraints. Government rules and regulations are restricting the location sharing process, data collection process, use of location-based information. Security is the priority for the country, and the rules are trying to limit the use of location solutions. Customer privacy also issues major restraints for the market.
Market challenges
Misuse of location solutions can be dangerous, and it can lead to a serious problem for the organization and the customers. Overcome the privacy and security issues can be a huge challenge for the location as a service market. Location solutions can reveal personal information such as the real-time location, whether they are visiting any places. Thieves and stalkers can use this information to attack, and it has become a major concern for the location as a service business.
Cumulative growth analysis
The global location as a service market is expected to grow at $99 billion with a CAGR rate of 32% by 2023. The market was valued at $44.47 billion in 2020; the Increasing number of smartphones driving the market.
Market Segmentation
The location as a service market segments are on the basis of component, location type, end-users, and region.
- By component- The component segment of location as a service market includes hardware, software, iOS, Android, windows.
- By technology- By location type, the location as a service industry divided into GPS, GPRS, RFID, GIS.
- By connectivity type- The end-user segment of the location as a service market includes wired and wireless.
- By deployment- The deployment segment of the market includes on the cloud, in premises, and others. And from these cloud solutions has the highest share.
- By end-user- The end-user segmented on the basis of consumer electronics, government, BFSI, retail, transportation, automotive, healthcare, and others.
- By regions- The region segment of location as a service market includes North America, Europe, Asia Pacific, and other regions in the world.
Regional Analysis
The major regions in the location as a service market are North America, Europe, Asia Pacific, and other regions in the world. North America is responsible for the highest share of the market as the location as a service market size is expanding. Increasing smartphones and loT technology will boost the market growth in the forecast period. Apart from this, North America has big GPS infrastructures such as satellites, equipment manufacturers, and accuracy is influencing the growth of the market. The Asia Pacific region is expected to see huge growth in the location as a service market Industry due to the rising population and demand for mobile devices. People are adapting to the different types of advanced technology that are expected to fuel market growth. Asia Pacific was growing at a high CAGR rate and expected to grow more in the forecast period. The European region is also seeing a rapid growth of demand due to the booming automotive sectors in this region. Europe has big and advanced vehicle manufacturing companies that use location solutions to provide a great experience to drivers, and hence the market will grow more in the region.
Competitive Landscape
The major location as a service market players are:
- Cisco Systems (U.S.),
- Google Inc. (U.S.),
- Qualcomm (U.S.),
- Location Labs (U.S),
- LocationSmart (U.S),
- Microsoft Corp. (U.S.),
- Ericsson (Sweden.),
- IBM Corp. (U.S.),
- Oracle Corp. (U.S.),
- Esri (U.S),
- Accelerite (U.S)
Among these key players, Google contributing the most to the market.
Recent Developments
- In April 2020, Google launched community mobility reports that helped to track spread the covid-19.
- In April 2020, TomTom collaborated with Verizon to improve location-based data, navigation, and intelligence.
- In October 2019, Qualcomm collaborated with ISRO o enhance the geolocation of mobile, loT, and automotive.
Location As A Service Market Highlights:
