Location-based Services Market Growing to $239.7B by 2029

The demand for location-based services is increasing with the rise in GPS-enabled precision applications, including precision farming, smart logistics and automotive. Location-based services combine geospatial, information and communication technologies and the internet to provide individuals with targeted information based on the individual’s geographic location in real time.

Meticulous Research projects the LBS market will grow at a 15.2% compound annual growth rate from 2022 to 2029, reaching $239.7 billion by 2029.

The driving forces behind the location-based services market’s growth include the increasing demand for mobile location-based services, the surge in location-based services for strengthening agricultural practices and navigation solutions and the growing significance of location-based services in strategic planning and crime analysis.

Location-based services can be segmented based on component, technology, application, location type, industry vertical and geography.

• Component: Segmented into solutions and professional services. The solutions segment is expected to account for the largest share of the overall location-based services market in 2022 because of the growing demand for location-based platforms to promote proximity marketing across various industries.
• Technology: Segmented into global positioning system, global navigation satellite system, Wi-Fi, near-field communication and other technologies. The GNSS segment is expected to account for the largest share of the overall location-based services market in 2022 because of the rising demand for GNSS-based consumer platforms and automotive solutions across various enterprises.
• Application: Segmented into geo-marketing and advertising or target marketing, mapping and GIS, navigation, tracking, social networking, infotainment, commercial and other applications. The navigation segment is expected to account for the largest share of the global location-based services market in 2022.
• Location type: Segmented into indoor and outdoor. The outdoor segment is expected to account for the largest share of the overall location-based services market in 2022 because of the rising demand for outdoor navigation and mapping applications and the increasing deployments of outdoor location-based services. The indoor segment is expected to register a faster growth rate during the forecast period as the demand for location-based productivity tools grows and the need for indoor location-based services amidst the COVID-19 pandemic rises.
• Industry vertical: Segmented into transportation and logistics, government and public sector, retail and consumer goods, manufacturing, health care and life sciences, media and entertainment, aerospace and defense, agriculture, hospitality and tourism, BFSI, IT and telecom and other industries. The transportation and logistics segment is expected to account for the largest share of the overall location-based services market in 2022 because of the growing demand for a fleet management system and the rising need for GPS-enabled systems for route management. The retail and consumer goods segment is expected to record the fastest growth during the forecast period.
• Geography: Asia-Pacific is expected to account for the largest share of the overall location-based services market in 2022 due to the increasing deployment of location-based services across the Asian countries and the increasing government investments to support the adoption of location-based services.

With growth, however, there are challenges. These challenges included high procurement and implementation cost, security privacy and accuracy issues. The location-based services market also faced several challenges because of the COVID-19 pandemic and the lockdowns put into effect during the second and third quarters of 2020, such as orders being delayed and postponed.

Despite these pandemic challenges, verticals, including health care, energy and utilities, adopted location-based services platforms and services to enhance their services portfolio and product capabilities. Location awareness technologies also experienced a surge in the pandemic because of the contact tracking mobile application variants developed, deployed and discussed.

Opportunities will continue to arise during this growth period in the market as the demand for location-enabled mapping, tracking and proliferation of social media, smartphones and location-based applications among consumers continues to grow. The retail sector and the transport and logistics industry will continue to adopt location-based services technology for accurate location and spatial data.

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