Europe Location Analytics Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Europe Location Analytics Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Europe Location Analytics Market size is expected to grow from USD 3.61 billion in 2023 to USD 7.46 billion by 2028, at a CAGR of 15.60% during the forecast period (2023-2028).

Also called Geospatial data analytics, it adds features of place and time to data to make it more understandable. Location analytics is actionable information that assists both the public and corporate sectors in identifying patterns and making strategic decisions. Location analytics in the region would help in critical sectors such as urban planning, transportation, natural disasters, and park preservation, to name a few.

Key Highlights

• The location analytics market is anticipated to gain more traction with the development of Artificial Intelligence(AI) and Machine Learning (ML). The next major potential for Europe's sustainable economic growth will come from its dominance in space constellations and national efforts like Digital Strategy Europe and Destination Earth. Hence these technologies will be used in the spatial development of urban areas of the continent.
• Accurate location tracking has improved with the introduction of 5G. 5G location delivers improved precision and permits a higher fingerprint resolution in the database thanks to its usage of millimeter waves and beamforming. This has also improved indoor mapping. Users can get 3D indoor geospatial views of many infrastructure types, including auditoriums, airports, music halls, theaters, factories, buildings housing the government and the general public, malls, and other retail establishments. Also, it was noted, Point-level assignments provide advantages over address-level geocoding.
• To lessen the COVID-19 pandemic's effects, the European Data Protection Board (EDPB) published guidelines for using contact tracking software and location data. All digital interventions are covered by Europe's data protection framework, which implies that EU nations and authorities must adhere to legal requirements while creating tracing tools or collecting data for COVID-19-related objectives. Such government regulations would have favorably impacted the market under investigation.
• Security Concerns and privacy are restraining the market growth. Every mobile app with an engaging user interface can provide the user with important information about his whereabouts at all times. Google and other crucial content delivery services are extremely clear about not keeping location information. Nonetheless, a data breach is still possible, which can lead to dangerous circumstances.

Europe Location Analytics Market Trends

Cloud Segment is One of the Factors Driving the Market

• Cloud computing systems are perfect for dynamic applications like Location Intelligence because the data is always changing, and capacity is scalable. More capacity and bandwidth are necessary due to the sheer volume and increasing complexity of location data and images.
• Nowadays, a location component is present in 80% of insurance business data. The need for GIS increases quickly as businesses collect and retain more data. Insurance companies may now address challenges that were previously out of their grasp thanks to the flexible and scalable cloud-based Location Intelligence solutions and the unlimited processing capacity of on-demand solutions.
• Businesses use "pay-as-you-go" subscription models for cloud computing services based on flat rates or system utilization. No long-term software license agreements or capital hardware investments are necessary.
• Location intelligence solutions can be accessed by an infinite number of people because of the flexibility and scalability of cloud computing. The cloud architecture also makes intelligent collaboration possible through round-the-clock community computing anywhere and in any time zone.

Retail is One of the Factors Driving the Market

• The growth of e-commerce has presented several difficulties for offline retailers. Foot traffic in physical stores decreased following the resumption of business, as people preferred shopping online during the pandemic. Companies will need to invest in the correct location for their operations with greater attention if they want to survive this change. By spotlighting underperforming stores and marketplaces, retailers who use location-tracking software will learn which business areas can benefit from further investment.
• The rise of teleworking and people spending more time at home gained local e-commerce. Retailers will be making massive investments toward order fulfillment. Online orders from consumers are increasing due to the popularity of last-mile delivery and curbside pickup services. Integration of technologies like Location Analytics will be necessary to ensure the successful implementation of these services.
• For the research period of 2022, 55% of German retailers intended to prioritize marketing and customer retention initiatives, according to the German Retail Association (HDE), the trade association for German retailers. Over the projected period, it is anticipated that a focus on marketing, business equipment, and e-business would propel the market under study and enable location analytics companies to provide fresh solutions to cater to client wants.
• Automotive is another industry that is thriving with smart innovation as connected cars become the next phase of the industry's rapid digitalization. Retailers of automobiles are also beginning to value location analytics. OnMyWay App, which Mavi created, offers curated shopping to the dashboard of client automobiles. The location, ordering, product recommendations, payment, and pickup coordination capabilities of connected cars with OnMyWay payment capabilities satisfy the expectations of customers making an immediate purchase.

Europe Location Analytics Industry Overview

Due to the existence of numerous companies, the European location analytics market is very competitive. To diversify their product offerings, broaden their geographic reach, and ultimately maintain their competitiveness in the market, the businesses are implementing methods including product innovation, mergers, and acquisitions.

In January 2022, McDonald's Germany teamed with Berlin-based location intelligence startup Targomo to expand further in the country. Companies collaborate with AI location experts to gain insight into the event and identify the reason behind the event. Similarly, this tie-up will help McDonald's to recognize favorable locations for the new establishment.

In April 2022, Real estate consultancy, Reno, partnered with Place Sense, the top location-based company in Europe. Place Sense can help with location selection, property value assessment, tenant mix, benchmarking against rivals, marketing and advertising activity measurement, and more.

In December 2022, OneSoil partnered with Mapbox to launch OneSoil Map, a data visualization and mapping solution that helps farmers quickly visualize and analyze fields.OneSoil measures and analyzes field variability and creates prescriptions for custom seed, fertilizer, and chemical applications, helping farmers achieve higher profits and environmental protection.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support