April 18, 2024
Location-Based Services Market

Location-Based Services Are Trending Towards Real-Time Tracking And Personalized Experiences

The Location-Based Services market provides businesses with real-time location data and analytics to enhance customer experiences through personalized offerings based on their geographical locations. Location-based applications utilize GPS, WiFi networks and other geo-location technologies to gather and analyze precise location coordinates from mobile devices. Key functions include mapping services, social media check-ins, local search and discovery, asset tracking and navigation assistance.

The Global Location-Based Services Market Size is estimated to be valued at US$ 44044.73 Bn in 2024 and is expected to exhibit a CAGR of 16.% over the forecast period from 2024 to 2030. Location-based services help businesses optimize operations, improve customer retention and target new audiences based on spatial insights. They play a vital role in fields like e-commerce, transportation, supply chain, travel, events and more. The ability to monetize real-time spatiotemporal patterns through hyperlocal advertisements and deals is a major driver of growth.

Key Takeaways

Key players operating in the Location-Based Services are Saskatchewan Research Council (SRC); SC Labs; Steep Hill, Inc.; SGS Canada Inc.; CW ANALYTICAL; PharmLabs; GreenLeaf Lab; Eurofins Scientific. Saskatchewan Research Council is a leading provider of environmental testing, medical cannabis testing and research and development.

The growing demand from industries such as e-commerce, healthcare, transportation and hospitality is fueling market expansion. Location services are prominently used in online and mobile commerce for order tracking, promotions, store locators and targeted advertising. They also aid in navigation, emergency response and field service applications.

Geo-spatial analytics based companies are increasingly globalizing their operations to capitalize on worldwide growth opportunities. Leading players are eyeing emerging regions in Asia Pacific, South America, Middle East and Africa to diversify revenues. Partnerships with local technology providers and content companies help global firms optimize and customize offerings for regional markets.

Market Key Trends

Real-time location-based tracking is a major trend, enabled by technologies like Bluetooth beacons, WiFi/cellular triangulation and GPS. This allows constant monitoring of assets and people within indoor environments like malls, hospitals with centimeter level accuracy. Personalized experiences are also trending, where location signals are analyzed to provide individually tailored recommendations, offers and assistance based on usage patterns and contextual factors.

Porter’s Analysis

Threat of new entrants: Low cost of entry as several services are available for free or low cost. However, established players have strong brand recognition and network effects.
Bargaining power of buyers: Individual buyers have low bargaining power due to availability of several provider options. However, large companies can negotiate better deals based on volume.
Bargaining power of suppliers: A few large technology companies dominate the supply of location data and analytics tools. However, other sources of location data have emerged.
Threat of new substitutes: Several new location-based solutions are emerging across different industries like social, retail, banking. However, existing solutions have strong customer base and integration with other services.
Competitive rivalry: Intense competition among providers to acquire more customers and improve/differentiate offerings.

North America is currently the largest market for location-based services, accounting for over 35% of the global value share in 2024. This is attributed to high smartphone and mobile internet penetration coupled with strong investments by tech companies in location technologies.

The Asia Pacific region is expected to record the fastest CAGR during the forecast period. Rapid economic growth, rising disposable incomes, and increasing digitalization across industries are driving the adoption of location-based solutions in countries like China, India. Favorable government policies are also encouraging tech investments to develop smart infrastructure and location-based solutions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it