Market Snapshot
Location based services (LBS) have been widely deployed in the last decade across the globe. These services were mainly used for navigation but now are being used across all industry verticals and have a plethora of applications. For instance, in retail, LBS helps drive traffic to specific departments by presenting easy navigation to products, while in the healthcare sector, LBS technology has been successfully used to minimize revenue loss due to missed appointments by guiding patients from home to their doctor's office within the hospital. At large venues and events, it helps in decreasing signage and operational costs due to its ability to offer cloud-based real-time mapping updates. In sporting events and stadiums, it enhances the experience with in-stadium wayfinding. Additionally, in airports, LBS increases passenger satisfaction by providing turn-by-turn directions to boarding gates.
Amidst the nationwide full/partial lockdown across the globe due to the spread of COVID-19, the demand for LBS has decreased compared to the pre-pandemic time. Analyzing the trends and the nature/characteristic of COVID-19, even post-COVID, when people must follow social distancing and will have to avoid huge gatherings, the demand for LBS is expected to be low.
The global location based services market is dominated by some a few key players. Google, Microsoft Corporation, IBM Corporation, Oracle Corporation, TomTom, Apple Inc, ESRI, Qualcomm Technologies, Baidu, HERE Technologies, and Amazon are key companies offering LBS technology. These companies have witnessed a significant increase in their year-on-year revenue. Apart from the big players (mentioned above), many small and regional players, including iSpace, Navinfo, and Mapbox, have also set a strong footing in their home market.
In terms of regions, the location based services market is divided into North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. The market in North America is the largest in 2018, and the market of Asia-Pacific is likely to grow with the highest CAGR of 26.3% during the forecast period, 2020 to 2026. The global location based services market is likely to reach USD 91,025 Million by 2026 at a CAGR of 23.1% during the study period.
Synopsis
The location based services market has been segmented based on component, location type, technology, vertical, and region.
The global location based services market is divided, based on component, into software, services, and hardware.
Based on location type, the global location based services market is divided into outdoor and indoor.
Based on technology, the global location based services market is divided into GPS/GNSS, Wi-Fi, BLE Beacons, and others.
Based on vertical, the global location based services market is segmented into government, defense and public utilities, retail and e-commerce, banking, financial services, and insurance (BFSI), automotive, transportation and logistics, industrial manufacturing, healthcare and life sciences, media and entertainment, and others. Various verticals have been using LBS extensively to gather real-time data and information from smart devices based on the user’s location.
Regional Analysis
Geographically, the global location based services market has been categorized into North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.
North America is a key market for LBS. In the region, the location based services market is currently experiencing robust growth due to the rising popularity of smartphone and high-speed cellular data plans. LBS are being widely adopted in navigation and familyfinder applications, although augmented reality, gaming, and fitness applications have significant potential for growth too. In North America, the adoption of smartphone and GPS enabled handsets are higher, more than 50% of all handset users now access LBS regularly. Overall, the region is expected to exhibit a 20.6% CAGR during the forecast period.
Companies Covered
The key players of the global location based services market are Microsoft Corporation (US), Oracle Corporation (US), TomTom International BV (Netherlands), Ericsson (Sweden), Qualcomm Inc. (US), Rokk (UK), iSpace (US), Apple Inc. (US), Baidu, Inc. (China), NavInfo Co Ltd (China), IBM Corporation (US), Google Inc (US), Cisco Systems, Inc. (US), Amazon.com Inc. (US), HERE Technologies (Netherlands), and Mapbox (Netherlands). The global location based services ecosystem consists of various global, regional, and local service providers that are evolving to enhance their market positions. Moreover, intense rivalry and rapid advancements in technology to cope with security concerns are key factors that aid market growth. The service providers compete based on cost, efficiency, security, and reliability of the solutions to sustain in the market.
Market Segmentation
By component – Software, Services, and Hardware
By location type – Outdoor and Indoor
By Technology – GPS/GNSS, Wi-Fi, BLE Beacons, and Others
By Vertical - Automotive, Transportation and Logistics, Government, Defense, and Public Utilities, Retail & e-Commerce, Industrial Manufacturing, Healthcare, Media and Entertainment, BFSI, and Others
By Region – North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key questions addressed by the report
- What was the historic market size (2018)?
- Which segments (component/ location type, technology, vertical, region) are driving the Location based services market?
- What will be the market growth rate by 2026?
- Who are the key players in this market?
- What are the strategies adopted by the key players?
Frequently Asked Questions (FAQ) :
With the increase in home delivery services and fleet management, the services are likely to gain a quick mileage in the near future.
The market is anticipated to mark 28% CAGR.
The market is poised to reach USD 80 Bn by 2023.
Cisco systems (U.S.), IBM Corp. (U.S.), Google Inc. (U.S.), Microsoft Corp. (U.S.), Qualcomm (U.S.), Oracle Corp. (U.S.), ESRI (U.S.), Ericsson (Sweden.), Zebra Technologies (U.S.), Teldio (U.S.) are few of the prominent vendors.
BFSI, government, retail, Defense, media & entertainment, and industrial manufacturing, among others are the end-user segments studied in this MRFR report.
