ID: MRFR/ICT/3993-CR | July 2020 | Region: Global | 175 pages
The location based services market is likely to reach USD 91,025 Million by 2026 at a CAGR of 23.1% during the study period while registering a solid CAGR of 23.1% during the forecast period (2021-2025). The Location-Based Service performs functionalities according to the preference of the customer by utilizing the Location of the user. Location-Based Services are utilized to provide the essential services offered to the customer that are available locally or within reachable distance. The software runs on smart devices with the help of a mobile carrier that transmits the signal to acquire the information based on location by comparing the results provided by the GPS. The proliferation of smart devices and GPS has aided the growth of the Location-Based Services industry in the forecast period.
Location-Based Services are crucial in various business sectors. Moreover, every industrial sector utilizes Location-Based Services in some way in their businesses. To optimize the routes in the logistics, to monitor the customer preference, to locate the nearby library, books stores, retail stores, every individual make use of the Location-Based Services to decide in acquiring services or products. Many crucial sectors like Banking, surveillance, E-commerce; logistics are highly dependent on the Location-Based Services market.
COVID 19 Analysis:
The nature of Location-Based Services is acquiring the services or products from the location nearby the resident. Since the Pandemic has made the governments impose stringent movement laws and regulations the demand for the Location-Based Services industry has decreased slightly. Hence the experts say that the growth of the Location-Based Services Market is affected to a minimal rate due to the pandemic.
The industrial sectors like transportation, logistics, manufacturing units, tourism, hospitality are highly affected by the widespread of novel Coronavirus. However, the situation is returning to normal due to the reducing cases in several countries.
On the other hand, the Pandemic has increased the demand for logistics and e-commerce industries. A huge population is purchasing their essential items online in recent times to avoid crowds. The Location-Based Services are used to locate the consumer's residence. The consumer can locate the preferred services with the help of Location-Based Services.
The advancements in web analytics that aids in effective communication and the expanse of 4G and 5G technologies and changing customer attitude in determining the services based on location have created a huge impact on the Location-Based Services Market growth. The increasing number of smartphone users and internet accessibility has bolstered the growth of the Location-Based Services Market.
Business people are looking for effective solutions that help them to fulfill their customers' queries and necessities. The industrial sectors are hugely driven by the preference of customers which varies according to the location. Hence offering services to the customers based on the location will promote the overall business growth. Therefore the Spatial data like location, size, shape of objects on earth determined using the location-based services helps the business people to understand the business trends and challenges to be faced in the region. Such factors have bolstered the growth of the Location-Based Services industry in recent years.
Location-Based Services are increasingly utilized in every industrial sector in recent times. However, the essential industries are getting highly benefited by the advanced protocols of Location-Based Services. In the healthcare industry, Location Based Services are utilized to minimize the revenue destruction situations that might happen due to the wrong appointments made in the hospitals. Large venues and events like sports events require real-time mapping information. Since a large crowd will be gathered in the venue, cloud-based real-time mapping is used on such occasions.
The COVID 19 has increased the demand for Location-Based Services in locating the infected persons and monitors the ways of the viral spread. This technology has been immensely utilized in countries that are highly affected by the Coronavirus. Additionally, several startups and medium-sized companies have utilized Location-Based Services to determine the risky environment in recent years. Such factors present lucrative opportunities for Location-Based Services to grow at a faster pace in the forecast period.
Although Location-Based Service solutions serve a wide range of applications, the major restraining factor is that it takes a lot of time for processing and decision-making. Also, the faulty assumptions limit the intensive usage in the search for information.
The technical approach that enables the protection for the users like PET technologies which serve as cryptographic protocols tends to slightly alter the location of the users to hide the reallocation. Hence the accurate location information is not obtained due to privacy issues.
The huge challenge in Location-Based Services works only if the users utilize the location technology on their phone and provides apps to access the data. Although the Location-Based Services are accepted by a wide range of population, some sector of the population tends to avoid due to the privacy concerns. Especially the non-smartphone users who belong to rural areas do not have the location technology built into their handheld devices.
The Governments of several countries have imposed stringent regulations over the Location-Based Services market which restricts the service operators from collecting the data, location sharing, and storage of location information. Countries like Europe are increasingly focused on protecting the Personal Identification Information of their citizens.
Cumulative Growth Analysis:
Location-Based Services are currently emerging even in the under-developed and developing countries but have already gained popularity in the developed countries owing to the increased utilization of business intelligence solutions and analytical tools. The developed countries are primarily focusing on improving the infrastructure to provide the residents a comfortable commute and fresh air throughout the residential areas. This aspect has increased the number of parks, multiplexes, and other essential amenities. The rapid development of infrastructure has aided the growth of the Location-Based Services Market in recent years. 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 while registering a solid CAGR of 23.1% during the forecast period (2021-2025). As the increased employment and growing population have increased the necessity of commuting to essential places, the Location-Based Services industry is expected to surge in the developed countries.
Value Chain Analysis:
Location-Based Services possess matured protocols and are highly implemented in almost every industrial sector. The business market players are increasingly realizing the necessity of deploying Location-Based Services to determine the customer's preferences and business conditions that might affect the business revenue. With the help of Location-Based Services, the enterprises are quickly tackling and adapting to the changing business conditions. Location-Based Services are intensively beneficial to the digital marketing sector as their software solutions help the marketers to identify the customer's preferences, likes, and dislikes based on their location.
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Based on the industry:
The growth of the Location-Based Services Market is highly influenced by the proliferation of smart devices and handheld smart devices. North America is expected to showcase rapid growth in the Location-Based Services Market as the region possesses residents who own Smartphones and GPS-enabled handheld devices. More than 70% of the population are already accessing Location-Based Services from the indoor Location-Based Services solutions. The experts strongly believe that North America is expected to register a CAGR of 26.3% in the forecast period.
Europe and Asia-pacific are the second-largest revenue holder in the Location-Based Services Market as these regions have leading market players who are planning to increase their investments in the industry. Also, the changing attitude of the residents in these regions are adapting to the technology-based services are expected to boost the demand for the Location-Based Services industry.
The Location-Based Services varied applications and end-users. Especially the location-based marketing services are capable of increasing sales and enhance customer retention effectively. Recently, the automotive company utilized Location-Based services with the location targeting strategy, this campaign showed up great success and the sales of over 1200 visits were made and the visits to other dealerships are also improved.
A popular logistics service company has utilized the Sense Aware technology that can connect with the Wi-Fi across the company's network which transfers the location data of the COVID 19 vaccines to the critical regions. The sense aware technology enables the logistic services to transfer the location data to the clients and they are capable of functioning in the temperature-controlled environment as well. It was well-utilized to ship the vaccines and later utilized to ship the test samples.
This report has covered:
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.