Indoor Location Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Indoor Location Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The indoor location market will register a CAGR of 21.7% during the forecast period.

• A network of devices known as an indoor positioning system is used to identify people or things in environments where GPS and other satellite technologies are less accurate or completely ineffective, such as multistory buildings, airports, alleys, parking garages, and underground places.
• The development of indoor location systems has given businesses more accuracy in various settings, irrespective of the size and scope of the facility. In addition, the method has assisted numerous production facilities in effectively managing their floor level. The proliferation of applications powered by beacons and Bluetooth low energy (BLE) tags, as well as the growing incorporation of beacons into cameras, LED lighting, point of sale (PoS), and digital signage, are the main drivers of the indoor location market's growth.
• Businesses are automating most of their operations with cloud computing and Internet of Things (IoT) systems. A more significant number of applications are planned for the healthcare industry. The healthcare vertical is expected to rise due to the growing IoT applications developed with healthcare needs in mind.
• Also, the market for indoor locations is expected to expand due to the rising use of smartphones with cutting-edge mobile applications, the trend toward digitization, mobile commerce, and technological improvements. In the past year, roughly 41% of people worldwide used smartphones, according to GSMA research.
• End users are hampered by the incompatibility of numerous infrastructures and the need for interoperability along with data and security-related Issues; Maintenance Challenges might challenge the market growth.
• Numerous businesses have started tracking employee interactions and activities in response to COVID-19 to stop workplaces and industries from developing into new infection epicenters. To take advantage of the rising demand for contact-tracing solutions during the COVID-19 pandemic, several indoor location solution providers have released new products or improved existing products to fulfill the needs of their clients.

• The growth can be attributed to the demand for mobile assistance for travelers at airports and railway stations to direct them to the proper location for finding eateries and retailers in airports and trains.
• Use of indoor location solutions helps the transportation sector understand consumer behavior. It provides useful data that could be used to create enlarged advertising campaigns, choose appropriate locations, and optimize services. The transportation vertical may also trace missing equipment, effectively control inventory, and save audit expenses by choosing indoor location solutions.
• The development of indoor location solutions in the logistics vertical is driven by the requirement to track and recognize asset locations to save time lost in asset location management. With location analytics tools, a business may organize and decipher complicated plans, enabling it to gather insights and engage with them swiftly.
• For the transportation and logistics vertical to be successful, complex, ongoing operations and capital-intensive processes are required. The logistics industry is concerned with locating storage assets. To cut down on time wasted in managing asset locations and promote interior location solutions, the logistics industry also saw a change in the requirement to track and identify asset locations.
• A company may organize and interpret complex plans using location analytics tools, enabling it to gain insights quickly and interact with customers.

• Due to the rising smartphone penetration and the development of IoT technology in the region, North America is predicted to account for a sizeable portion of the Indoor Location market. In addition to being the largest manufacturer of airplanes and one of the leading producers of aerospace and marine navigation equipment, the North American region is also the second-largest market for tablets, smartphones, and in-vehicle navigation systems.
• In nearly every end-user industry in North America, especially in the consumer electronics market, the United States holds a large market share. The market penetration and sales of smartphones are impressive in the nation.
• For instance, the GSM Association predicts that the North American mobile industry will generate USD 333 billion in revenue in 2025, making America the largest mobile market in the world – around 50% larger than China. With the country's intentions to transition to 5G services, sales are predicted to increase even higher. By the end of this year, 24% of connections on the continent will be on 5G networks, which will rise to 46% by 2025, or 200 million 5G connections.
• Also, startups and established companies are rushing to provide location-based services to engage indoor users across the region due to rising smartphone penetration and changing consumer mobile purchasing behavior. Retailers have enhanced their customer experiences and provided appropriate navigation for products or places by implementing indoor location technology.
• The increasing investments in creating new technologies and utilizing indoor location solutions are two other key factors supporting the growth of the indoor location market in North America. It is also projected that an increase in indoor location companies across regions will fuel market expansion.

The indoor location market could be more cohesive. Continuous research and technological advancements are anticipated to be the principal trends in the market. The firms are adopting diverse strategies to increase their customer base and mark their presence in the market.

In March 2023, Inpixon announced a collaboration agreement with Schauenburg Systems, an original equipment manufacturer of mine safety systems and equipment, to sell Inpixon’s real-time location technologies to mining companies in South Africa. Under the agreement, the parties will aim to achieve sales of hundreds of thousands of nanoLOC chips and other core technologies of Inpixon that provide real-time tracking, collision avoidance, and proximity applications for the mining industry.

In December 2022, Oriient Indoor Location Services announced its Available on Google Cloud Marketplace; through this offering, customers with an existing Google Cloud Marketplace commitment benefit from seamless procurement and consolidated billing through a single channel. This availability will help retailers improve the in-store shopping experience with more digital touch points and customer journey analytics to improve operations and the bottom line.

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