Market Overview:
Location-based services utilize geo-data to detect the geographic coordinates of a person’s device in order to provide them certain capabilities based on their current location. These services involve tracking pedestrian or vehicular movement through precise positioning techniques and use context-aware technologies to deliver relevant information to users. Some key advantages of location-based services include real-time tracking, accessibility, enhanced customer engagement and analytical capabilities for businesses.
Market key trends:
One of the major trends driving the growth of location-based services market is rising awareness regarding space utilization in various industries such as retail, transportation and hospitality. Location analytics provides businesses with actionable insights on consumer footfall pattern, dwell times and purchase behaviors in different areas of a store, airport or hotel. This enables companies to optimize their floor plans, product displays and staff deployment to enhance productivity and profitability. Furthermore, proliferation of beacon technology is enabling location-based push notifications and indoor navigation services across public venues like malls, stadiums and museums. Integration of location data with mapping solutions is also augmenting tracking and wayfinding capabilities for transportation networks, warehouses and supply chains.
Porter’s Analysis:
Threat of new entrants: The location-based services market requires high capital investments and established distribution networks to penetrate. This acts as significant barrier for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to presence of many service providers offering location-based services. Buyers can negotiate on price and opt for alternatives.
Bargaining power of suppliers: Suppliers have low bargaining power due to fragmented supply market with presence of many component suppliers. Easy availability of components limits their influence on pricing.
Threat of new substitutes: Limited threat from substitutes as location-based services integrated with latest technologies like IoT, big data act as differentiated offering.
Competitive rivalry: Intense competition among existing players to develop advanced solutions and target more application areas.
The global Location-Based Services Market Share is estimated to be valued at US$ 38,233.27 Mn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis:
Strength: Location-based services offer real-time insights on asset location, movement patterns and activities. Integration of technologies like IoT, big data analytics enhances performance.
Weakness: High dependency on network connectivity for location tracking can impact operations. Data privacy and security concerns restrict commercial acceptance.
Opportunity: Growing IoT adoption across industries expands scope for location-based solutions in fleet management, retail, healthcare and other verticals.
Threats: Stiff competition from in-house developed location tracking systems limits demand for commercial products. Complex technology integration challenges adoption.
Key Takeaways:
The global location-based services market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing adoption of location-based services across industries for effective inventory tracking, predictive maintenance, emergency response, and others.
Regional analysis: North America dominates the market and is expected to continue its dominance over the forecast period owing to high technology adoption across industries in the US and Canada. The Asia Pacific region is expected to witness the fastest growth due to rising digitalization in countries like China and India.
Key players operating in the location-based services market include GuardRFID Solutions Inc., ALE International (Nokia Corporation), Favendo Gmbh, Teldio Corporation, CenTrak, Cisco Systems Inc. (Cisco Meraki), AiRISTA Flow Inc., Creativity Software Ltd., IBM Corporation, DigitalGlobe Inc. (Maxar Technologies), Aruba Networks (HPE Development LP), Ericsson Inc., HERE Global BV, IndoorAtlas Ltd., GL Communications Inc., and Esri Inc. These players adopt strategies like partnerships, new product launches to strengthen market presence.
For more details on the report, Read-
https://www.insightprobing.com/location-based-services-market-trends-size-and-share-analysis/