by Market Overview:
Location-based services (LBS) refer to a software application that provides information to users based on the geographic location of the user’s mobile device. This enables mobile devices like smartphones and tablets to leverage their GPS capabilities to identify the user’s current location and uses this context to provide localized search results or customized experiences. Common examples include mapping apps that can provide directions or identify points of interest near a user’s current location, location-based games and augmented reality apps, business directory apps, and location-based social networking apps. The increasing adoption of smartphones and internet connectivity has enabled rapid expansion of LBS across industries.
Market key trends:
One of the key trends in the location-based services market is the increasing development and adoption of location-based applications across various industries. Mobile apps that leverage location data to provide contextual and personalized experiences are becoming highly popular. Industries like retail, hospitality, healthcare and transportation are increasingly developing and promoting location-based apps to engage customers. For example, many retail stores are offering coupons and deals through location-based mobile apps to customers visiting their stores. Similarly, mapping and navigation apps are becoming integral for transportation networks. The growth of application programming interfaces (APIs) is also fueling the development of innovative location-based services across more industries.
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.
Porter’s Analysis
Threat of new entrants: Location-Based Services market requires high initial investment owing to infrastructure development and innovation. The already established players hold a competitive edge in terms of technology, resources and client base.
Bargaining power of buyers: Large enterprises have high bargaining power due to their ability to demand customised pricing and SLAs. However, many individual users and SMEs have low bargaining power.
Bargaining power of suppliers: Major suppliers including tech giants have significant influence on pricing and trade terms owing to their dominance in technologies like AI, IoT and cloud. However, open-source based small suppliers have low bargaining power.
Threat of new substitutes: Alternatives like GPS, geo-fencing and geo-targeted digital marketing pose threat of substitution. However, LBS enable comprehensive and real-time personalized location-based experience.
Competitive rivalry: The market consists of global technology giants and niche regional players. Intense competition exists based on technology, innovations, integrations and pricing.
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 LBS across industries for application in areas like transportation, retail, healthcare, hospitality and events.
Regional analysis: North America dominates the global LBS market currently due to high smartphone and mobile app penetration. Asia Pacific is expected to grow at the fastest rate owing to increasing investments in IoT and 5G infrastructure in countries like China and India. Europe and Latin America are also lucrative markets for LBS providers.
Key players operating in the Location-Based Services market are 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.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
