Location Based Services Market Forecasts to 2030 – Global Analysis By Component (Hardware, Software, Services and Other Components), Technology, Application, End User and By Geography

Location Based Services Market Forecasts to 2030 – Global Analysis By Component (Hardware, Software, Services and Other Components), Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Location Based Services Market is accounted for $31.8 billion in 2024 and is expected to reach $102.4 billion by 2030 growing at a CAGR of 21.5% during the forecast period. Location-Based Services (LBS) are applications that use a device's geographic location to provide personalized, context-aware features. These services use technologies like GPS, Wi-Fi, Bluetooth, and cellular network signals to pinpoint a user's or device's location in real-time. They are used in various sectors like navigation, advertising, emergency response, and social networking. LBS guide users to their destinations, send targeted ads or promotions to consumers near stores or events, and enable social media platforms to share users' locations.

According to the census bureau of the department of commerce source U.S. retail e-commerce sales for the second quarter of this year were USD 257.3 billion, up 2.7% from the first quarter of this year.

Market Dynamics:

Driver:

Increasing use of smartphones equipped with GPS technology

Location-based services (LBS) have a wider and more varied user base due to the widespread usage of smartphones, and demand for these apps is rising worldwide. The market for LBS has grown as a result, especially in developing nations, opening up new avenues for service providers. By delivering tailored services and offering real-time location data for suggestions, smartphones increase user engagement thus increasing the market growth.

Restraint:

High costs of implementation

Location-based services solutions often require significant initial investment in technology infrastructure, which can be prohibitive for small and medium-sized businesses, limiting their adoption and reducing market growth. Additionally, developing and managing advanced location-based systems requires skilled personnel in areas like software development, data analytics, and GIS technology, adding to operational costs for smaller firms with limited budgets.

Opportunity:

Continuous advancements in location technologies

Galileo and GLONASS, two GPS technological advancements, have increased the precision of location data, allowing for more accurate positioning for fleet tracking, geofencing, and real-time navigation. By integrating GPS with Wi-Fi, Bluetooth, and sensor fusion, multimodal positioning systems improve location reliability even in difficult-to-reach places like inside or urban canyons, enabling a greater variety of location-based system (LBS) applications propelling the market growth.

Threat:

Battery drains and network connectivity issues

Network connection and user experience may suffer as a result of location-based services (LBS). Because continuous monitoring and data processing might deplete battery life, users may disable or avoid using LBS applications. The dependability of LBS applications such as real-time traffic updates, navigation, and geolocation-based advertisements can be impacted by weak or lost network signals. Thus, the dependability and effectiveness of LBS applications are essential.

Covid-19 Impact

The COVID-19 pandemic had a mixed impact on the location-based services (LBS) market. Initially, the market experienced a decline due to reduced mobility and restrictions on movement. The pandemic accelerated the adoption of digital solutions, driving demand for LBS applications like contact tracing and remote asset management. Overall, while the pandemic posed challenges, it also catalyzed innovation and growth opportunities within the LBS sector.

The software segment is expected to be the largest during the forecast period

The software segment is estimated to be the largest, as it enhances user engagement and satisfaction, driving adoption in sectors like retail, healthcare, and logistics. LBS marketing strategies use sophisticated software to analyze user location data and deliver targeted advertisements, improving marketing effectiveness and customer experiences. As a result, demand for software solutions enabling effective geo-targeting continues to rise.

The global positioning system segment is expected to have the highest CAGR during the forecast period

The global positioning system segment is anticipated to witness the highest CAGR during the forecast period, because GPS technology has improved the accuracy and precision of location data, enabling real-time information for navigation and emergency response. The integration of GPS with other technologies like Wi-Fi and Bluetooth has created hybrid systems that function effectively in various environments; including urban areas with weak GPS signals encourage the market growth.

Region with largest share:

Asia Pacific is expected to have the largest market share during the forecast period owing to the growing use of smartphones with GPS technology in emerging markets like India, China, and Southeast Asia has significantly boosted the growth of Land Based Services (LBS) applications. Governments across Asia Pacific are investing heavily in smart city initiatives, relying on LBS for traffic management, smart parking, public transportation optimization, and urban planning.

Region with highest CAGR:

North America is projected to witness the highest CAGR over the forecast period, owing to North American ride-hailing market, dominated by companies like Uber and Lyft, heavily relies on LBS for real-time navigation and driver-passenger matching. LBS is also utilized in MaaS solutions for public transportation and bike-sharing. The US and Canada are investing in smart city projects, utilizing LBS for traffic management, smart parking, public safety, and environmental monitoring, enhancing urban living and increasing demand for LBS solutions.

Key players in the market

Some of the key players profiled in the Location Based Services Market include ALE International, Amazon.com Inc., Apple Inc , Baidu Inc, Cisco Systems, Inc., Ericsson, Esri, Google LLC, HERE Technologies, IBM Corporation , IndoorAtlas, iSpace, Mapbox, Maxar Technologies, Microsoft Corporation, NavInfo Co., Ltd., Oracle Corporation, Qualcomm Technologies, Inc and TomTom International BV

Key Developments:

In November 2024, Cisco and the OECD launched the Digital Well-being Hub to holistically study technology's impact on well-being and shape inclusive digital policies. The collaboration with the OECD is part of Cisco's Country Digital Acceleration program, co-innovation platform that is helping power inclusive communities and resilient economies.

In October 2024, Cisco announced new additions to its data center infrastructure portfolio, an AI server family purpose-built for GPU-intensive AI workloads with NVIDIA accelerated computing, and AI PODs to simplify and de-risk AI infrastructure investment.

Components Covered:
• Hardware
• Software
• Services
• Other Components

Technologies Covered:
• Global Positioning System
• Wi-Fi
• Bluetooth
• Cellular Networks
• Enhanced Observed Time Difference
• Other Technologies

Applications Covered:
• Mapping & Navigation
• Social Networking
• Proximity Marketing
• Asset Tracking
• Fleet Management
• Location-Based Advertising
• Other Applications

End Users Covered:
• Retail
• Transportation & Logistics
• Healthcare
• BFSI
• Manufacturing
• Government & Defense
• Media & Entertainment
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements